Drill results from Little Duke are firming up Ausmex’s theory on a significant IOCG-style gold, copper and cobalt system under its Cloncurry region tenements.
It comes as the company awaits the completion of a maiden JORC resource estimate for its raft of gold projects in the area, with plans to get into production in 2020.
Ausmex reported this week that a recent Little Duke drill hole intersected 122m of IOCG (Iron Oxide Copper Gold)-style gold and copper mineralisation.
It included grades of up to 9.6 g/t gold and 3.05 per cent copper.
Little Duke is part of the company’s Golden Mile project near Cloncurry.
Managing director Matt Morgan said the results indicated the mineralisation extended down dip to the east under the company’s nearby Mt Freda complex.
“This fits our recent interpretation that the shallow epithermal high-grade gold mineralisation at the Mt Freda complex is sourced from a deeper IOCG style magmatic source,” he said.
“Mineralisation at Little Duke is very similar to the Ausmex Evening Star copper gold mine about 2km to the south that adjoins the Newcrest Mining Ltd Canteen IOCG project.
“This indicates there may be an extensive magmatic source at depth feeding the near-surface mineralisation over several kilometres, from the Newcrest Canteen project up to the Ausmex-controlled Golden Mile.”
Exploration on hold as focus turns to mining
“The company aims to invest future gold production cash flow into an extensive drilling program in 2020 focusing on both shallow high-grade gold resources and deeper IOCG target,” Mr Morgan said.
“The latest Little Duke results are now telling the company where to drill next.”
Sydney-based consultants Geos Mining are preparing a maiden JORC resources estimate for the Golden Mile and Mt Freda open-cut projects – due for completion next month (December 2019).
Ausmex says it is engaging with consultants to begin mining studies as soon as that JORC estimate is complete.
It is committed to fast tracking gold production in 2020, with processing to go through Round Oak Minerals’ Cloncurry plant.