Where’s the best place to find gold? Well, a gold mine may be a good place to start.
Ausmex Mining Group (ASX:AMG) has proven that simple bit of logic to be true, finding gold underneath the Mt Freda open cut mine near Cloncurry.
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It hit grades of up to 1m at 32.7 grams per tonne (g/t) gold while drilling underneath the mine with reverse circulation and diamond drills.
Anything over 5g/t is generally considered high-grade.
Other hits included:
- 24m at 2.8g/t from 109m, including 6m at 10.6g/t
- 7m at 5.2g/t from 147m, including 3m at 11g/t
- 10m at 2.8g/t from 165m, including 6m at 3.8g/t
The mine is located within an existing mining lease, and has two access roads to third-party ore processing facilities in the area — with a combined capacity of 1 million tonnes per annum.
Mt Freda was last owned by Diversified Mineral Resources from 1987-1991, producing 30,000 ounces of gold in its run.
The next steps is for a lab to process a backlog of drilling over the next four to six weeks, with the company telling shareholders it wants to come up with a maiden JORC resource for the project by late November.
From there it is aiming to come up with a preliminary mining study by early December.
In other ASX gold news:
Sunstone Metals (ASX:STM) has officially taken a 51 per cent stake in the Bramaderos gold-copper project after spending $US3.4m ($5.03m) on development. The clock is now ticking, with Sunstone given another 90 days to come up with a feasibility study and additional payment to take a 70 per cent stake in the project.
Kalamazoo Resources (ASX:KZR) has consolidated in the Victorian goldfields, submitting an exploration license application for 68 sqkm immediately west of the company’s South Muckleford project. If granted, the company will have 152 sqkm in a highly prospective gold field, just 10km away from Kalamazoo’s Castlemaine gold project.
And finally, Bardoc Gold (ASX:BDC) has hit high-grade extensions at its El Dorado project — including hits of 10m at 2.31g/t gold from 105m and 4m at 6.71g/t from 147m down plunge from its current resource. It should be in a position to provide an updated mineral resource in September.