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Ausmex Mining Group Ltd

Ausmex Mining to direct $7 million cash injection to Queensland-focused exploration

Snapshot

Its focus is on ground in Tier 1 provinces, such as on the Mt Freda complex in Queensland and an Olympic Dam structural corridor in South Australia.

Drill pad preparation at Mt Freda complex in Queensland

Quick facts: Ausmex Mining Group Ltd

Price: $0.11

Market: ASX
Market Cap: $50.48 m
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  • The company has completed a $7 million capital raise that favours exploration in Queensland first
  • Ausmex plans to spend $2.4 million in the June quarter of 2019
  • Its quarterly exploration and evaluation budget is $2 million

What does Ausmex Mining Group do?

Ausmex Mining Group Ltd (ASX:AMG) specialises in minerals exploration in Australia’s east. The Sydney company is focused on exploring two world-class mining provinces in the east of Australia that house T1 assets - Queensland’s Mt Freda complex, near Mt Isa inlier; and a South Australia G2 structural corridor that extends to Adelaide near Ausmex’s Burra project.

Ausmex is run by Matt Morgan, a managing director who has more than 25 years' experience in mining, exploration and mine management. Moran has worked in underground and open cut environments for BHP Group Ltd (ASX:BHP) (LON:BHP) (NYSE:BHP), Rio Tinto plc (LON:RIO) (ASX:RIO) (NYSE:RIO), Idemitsu Kosan Co, Ltd (TYO:5019), Glencore PLC (LON:GLEN) subsidiary Xstrata plc and Whitehaven Coal Ltd (ASX:WHC) buy-up Coalworks Limited. He was previously a director at Gold Mountain Ltd (ASX:GMN).

What does Ausmex Mining Group own?

The key assets are in Queensland’s Cloncurry area and South Australia’s Burra region.

Ausmex’s Cloncurry ground on Mt Freda complex near Mt Isa inlier is found near a number of large copper-gold deposits.

These are the 354 million tonne Mt Elliot deposit grading 0.6% copper and 0.35 g/t gold; the 166 million tonne Ernest Henry deposit which grades 1.1% copper and 0.54 g/t gold; and the 56.7 million tonne Rocklands deposit grading 0.64% copper, 294ppm cobalt and 0.15% gold.

Ausmex’s Armada Capital & Equities Pty Ltd and CPS Capital Group Pty Ltd-led $7 million oversubscribed placement at current price levels was designed to help fund Mt Freda complex exploration where a massive 2,000-metre-long conductive structure was identified at Golden Mile Gold Project southeast of the town of Cloncurry.

Other Ausmex projects in Queensland are Trump and Evening Star.

The company’s exploration efforts will target IOCG-style mineralisation, with a 2D modelling study reported on earlier this week showing a strong response below its first target Mullaby prospect from about 400 metres below surface, spanning about 8 kilometres wide.

Mullaby prospect had been looked at by MIM Exploration Ltd in the 1990s but drill testing had not fully tested the conductive anomaly which was only drilled to a 204-metre depth.

3D modelling is set to take place for the Queensland ground, with the company’s drilling program to encompass 10,000-metres of reverse circulation and diamond drilling of its conductive structure to depths of 250-650 metres.

In South Australia, the G2 structural corridor that hosts Ausmex’s Burra project is also home to high-profile South Australian operations and deposits such as BHP’s Olympic Dam and IOCG discoveries and OZ Minerals Limited’s (ASX:OZL) (FRA:OXR) (OTCMKTS:OZMLF) Prominent Hill.

Ausmex’s Burra project on the corridor near the historical mining centre of the same name features 3 million tonnes grading 1.7% copper.

The corridor travels northwest up to Olympic Dam and beyond and features: Burra project; the 337 million tonne Hillside deposit grading 0.6% copper and 0.14 g/t gold; the 587 million tonne Carapeteena deposit grading 0.7% copper, 0.3 g/t gold and 2.9 g/t silver; the 10.1 billion tonne Olympic Dam deposit grading 0.78% copper, 0.33 g/t gold, 1 g/t silver and 0.25 kilograms per tonne uranium; and the 186 million tonne Prominent Hill deposit grading 1.1% copper and 0.7 g/t gold.

Inflection points

  • In-field exploration successes at Golden Mile Gold Project and in Queensland’s Cloncurry area

  • Copper-gold resource definition for Cloncurry-Golden Mile assets on Mt Freda complex near Mt Isa

  • Exploration and resource upgrade for South Australian Burra project on IOCG Olympic Dam-G2 corridor

  • Financing and feasibility study milestones

  • Significant transactions and project acquisitions and divestments

Ausmex managing director Matt Morgan highlights prospectivity of ground

“The latest AMT survey results have indicated that the Burra tenement suite held by Ausmex has the potential to host multiple, large-scale, Tier 1 conductive drilling targets,” Ausmex managing director Matt Morgan told the market on Monday.

“To have large-scale conductive bodies located below known surface mineralisation supports the current interpretation that the area has the potential to host significant sulphide mineralisation.

“(Ausmex) can offer shareholders exposure to two world-class mining provinces including Cloncurry, Qld, and Burra, SA, that host significant Tier 1 IOCG targets.

“With drilling due to commence within days at Cloncurry targeting large IOCG massive sulphide mineralisation, combined with the outstanding Burra AMT survey results, the next three months may prove incredibly exciting for Ausmex shareholders.”

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