Ausmex Mining says it is committed to fast-tracking the Mt Freda complex into production in 2020 as high-grade gold results continue to roll in from its drill program.
The company aims to release a maiden JORC resources estimate for the combined Mount Freda complex and Golden Mile projects near Cloncurry by late November.
It will then kick off a mining study and plan of operations to re-open Mt Freda.
The Mt Freda open-cut mine produced about 30,000 ounces of gold per annum when operated by Diversified Mineral Resources from 1987 to 1991.
Mining stopped when gold prices fell below $US300 per ounce. Today the price is around $US1500.
The latest assays from resource definition drilling at the site have shown grades of up to 21.8g/t gold under the old Mount Freda pit floor. (Full results HERE)
The company says the results confirm that additional high-grade gold extends from the pit floor and is still open at depth around 300m.
Ausmex says it is committed to fast-tracking the project, including the current Golden Mile mining lease application and progressing a mining study and plan of operations to re-commence mining at the granted Mt Freda mining lease.
Ore would be processed at Round Oak Minerals’ 1Mtpa processing facilities in Cloncurry.