Geophysical processing and 3D modelling by Ausmex Mining Group (ASX: AMG) at the Golden Mile joint venture project in Queensland has identified a “large conductive structure” believed to be associated with a larger iron-oxide or iron-sulphide copper-gold mineralised system.
The company said the 3D program delineated an “outstanding result” of more than 2,000m in length, 400m in width and depths up to 500m.
The discovery sits entirely within Ausmex’s own tenements near Cloncurry, and plunges south towards the tier one Canteen IOCG joint venture between Newcrest Mining (ASX: NCM) and Exco Resources.
It is also believed to extend underneath the Ausmex-controlled Mt Freda mining lease.
A second 3D program featuring additional field surveys is currently being designed to continue modelling the conductive structure further south to the Evening Star region, approximately 800m north of Canteen.
Golden Mile is a joint venture between Ausmex (80% equity) and Exco (20%).
Ausmex controls approximately 30% of the Canteen prospect area previously delineated by Exco in 2012, on ground covered by Golden Mile and the Mt Freda tenement.
Subcontracted to Brisbane-based GeoDiscovery Group, the 3D modelling program was based on various detailed geophysical data sets, including a helicopter-borne sub-audiomagnetic (heliSAM) survey, detailed regional magnetic data and a versatile time domain electromagnetic (VTEM) survey.
Ausmex said the results correlate with an independent expert’s findings last month suggesting potential for a deep and fertile IOCG or ISCG mineral source below the Golden Mile, which forms part of the Mt Freda Complex.
The findings followed earlier shallow drill holes by Ausmex into the Little Duke prospect – one of nine parallel historical gold mineralised systems within Golden Mile – which produced “highly significant” assays including 67m at 1.33 grams per tonne gold and 0.47% copper.
Ausmex previously identified a large graphitic shear zone associated with Little Duke directly east above the large conductive structure.
“These assays are indicative of vectors which point to something fairly significant at depth … which will yield fairly significant returns,” the findings said.
At mid-afternoon, shares in Ausmex Mining Group were up 10.71% to $0.155.