Gold: Ausmex wants to be making $$ from mining in 2020
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Following a strong run of discoveries, Ausmex Mining Group (ASX:AMG), is committed to reactivating the dormant Mt Freda gold operation in north-west Queensland.
The latest assay results high-grade gold as high as 21 grams per tonne under the historic Mt Freda pit.
The company now reckons it can start production soon as next year, once it completes a resource estimate and a plan of operations at the site.
Shares in AMG were up in morning trade at around 10 cents, down from the 12-month high of 15.5 cents reached in July.
It makes sense when you think about it. The Mt Freda site had a four-year production run from 1987-1991 at 30,000oz per annum, before it was shuttered when gold prices slumped below $300 an ounce.
The open-cut mine is located within an existing mining lease and has established haul-road infrastructure to two third-party processing facilities.
Ausmex said it will keep shareholders in the loop as more assay results from its drill-holes underneath the pit are released over the next four weeks.
The company plans to issue a maiden resource estimate by the end of November. It will then commence a mining study and prepare to re-open Mt Freda.
If all goes to plan, Ausmex is targeting a production commencement date of September 2020.
Pure Alumina (ASX:PUA) isn’t getting out of the gold game just yet. The company has terminated the sale process for its Hill End-Hargraves gold assets, as part of a broader strategic review. The review will take into account that 1) the purchase of a private high purity alumina play has fallen through, and 2) gold prices in AUD terms have risen by more than 30 per cent since the sale process commenced.
And the listed life of controversial gold stock Cleveland Mining (ASX:CDG) has ended with a whimper. The ASX announced last night that CDG will be removed from official quotation, effective today, after being in suspension for a “continuous period of more than three years”.