Ausmex Mining Group (ASX: AMG) has intersected a 70m zone with visible sulphides at its 80%-owned Golden Mile project in Queensland, with Ausmex managing director Matt Morgan claiming the zone could host “significant” copper, gold and cobalt mineralisation.
According to Ausmex, the intersection comprises a continuous graphitic black shale shear section and was identified while the company was carrying out reverse circulation drilling at the Little Duke historic gold mine.
“The drilling at the historic Little Duke gold mine located in the Golden Mile was originally aimed at targeting down dip extensions to the gossan-rich quartz breccia associated with the gold mine,” Mr Morgan said.
“It was not anticipated to intersect a major lithological contact and a 70m continuous graphitic black shale shear zone that contains extensive visible sulphides.”
Mr Morgan added that due to the target’s proximity to its 30%-owned Canteen iron oxide copper gold prospect, Ausmex anticipates the 70m zone could host “significant” copper, gold and cobalt.
“As the company is awaiting sample analysis and interpretation, the immediate future may prove very exciting for Ausmex shareholders,” he said.
A 72m hole has also been drilled about 25m south of this discovery and Ausmex is now fast-tracking analysis of the drill sample.
Meanwhile, Ausmex has also carried out field work across the prospect, with samples returning up to 35.4 grams per tonne gold and 4.6% copper.
On a broader scale, preliminary field exploration across the entire Golden Mile project delivered assays up to 76g/t gold, 8.25% copper, and 12,300 parts per million cobalt. These high-grade assays arose from the Jewel, Shamrock and Iron Duke prospects within the project.
Initial drilling at the Golden Mile during the September quarter unearthed numerous high-grade gold intercepts such as: 8m at 6.32g/t gold, including 3m at 15g/t gold; and 7m at 7.6g/t gold, with a higher grade interval of 3m at 12.01g/t gold.
Canteen iron-oxide copper, gold prospect
Earlier this week, Ausmex reported exploration of the Canteen prospect was continuing, which it has labelled a “massive Tier 1” iron oxide copper gold target.
Canteen lies within the Mt Freda Complex, with Newcrest Mining (ASX: NCM) owning the remaining 70%.
Two deep diamond core holes are planned for Canteen in early 2019.
The positive news flow pushed Ausmex’s share price up more than 10% during intraday trade, before settling at $0.07 by late afternoon.