Ausmex Mining Group (ASX: AMG) has discovered shallow high grade cobalt, copper and gold at its Mt Freda project in Queensland.
The 1km strike discovery was a result of mapping, sampling and a review of historical drilling data, followed by an eight hole reverse circulation drilling program.
Better results from the program returned 6m grading 1,108 grams per tonne (0.12%) cobalt from surface including a 1m interval grading 2,030g/t (0.22%) cobalt.
One drill hole intersected 9m grading 400g/t (0.04%) cobalt, 1.01g/t gold and 3.16% copper.
Additional field mapping and sampling has identified a 12m wide outcrop, with rock chip samples returning up to 1,610g/t (0.17%) cobalt, 32.7% copper and 33.4g/t gold.
Meanwhile, the project’s former owner Queensland Mining Corporation reported it had recovered 1 million pounds of cobalt at the Mt Freda mine in 2011, which is about 500m north of the new discovery.
Commenting on the discovery, Ausmex managing director Matt Morgan said an explorer could not want for more than a cobalt, copper and gold discovery.
“These latest results, combined with historical gold and cobalt mineralisation previously estimated by Queensland Mining Corporation in 2011 (including up to 1 million pounds of cobalt at Mt Freda) indicate the company may be sitting on a very large mineralised system – a system of scale,” Mr Morgan added.
Mt Freda encompasses 120.28 hectares and includes a 200,000 tonne stockpile of gold, copper and cobalt mineralisation.
A previous owner Diversified Mineral Resources managed to produce about 350kg of gold from the mine.
Ausmex is investigating a low-cost mining operation to excavate Mt Freda gold and process the ore through its nearby Gilded Rose plant. However, this may change if the cobalt discovery proves extensive.
Formerly Eumeralla, Ausmex debuted on the ASX at the end of May securing A$6 million on listing through the issue of 75 million shares at A$0.08 each.
The capital raised has funded exploration at Ausmex’s projects in Queensland, South Australia and Mongolia, plus increasing Ausmex’s interest in Mt Freda to 80%.
A major drilling campaign at Mt Freda has been planned to start early next year to test mineralisation at depth and along strike of the recent discovery.
Ausmex has pointed out the significance of the cobalt discovery at its gold project with cobalt currently trading around US$65,500 a tonne, which is almost 10 times more than the current copper price.
In late afternoon trade, Ausmex’s share price was up more than 26% at A$0.082.