Ausmex Mining Group (ASX: AMG) has continued drilling at the Little Duke IOCG-style copper-gold prospect within the Golden Mile project in Queensland after activities were halted last month.
In September, the company announced a drill rig at the prospect, located near Cloncurry, had intersected 6 metres at 1.3 grams per tonne gold with 0.5% copper and 17m at 4.1g/t gold with 1.2% copper and 493 parts per million cobalt.
Reverse circulation rods on the rig had become bogged at 48m depth and the hole was terminated in high-grade gold.
The hole was recently re-entered and extended with diamond core, intersecting an additional 84m downhole of the previous results, with drilling continuing in mineralisation.
Visual inspection and logging of additional core indicates the IOCG-style mineralisation continues downhole to 132m.
Diamond core has been dispatched for gold-copper-cobalt analysis as drilling continues.
Mining lease application
Ausmex’s confidence in the prospect has resulted in a draft mining lease application.
“As Little Duke is prospective for [IOCG-style] gold, copper and cobalt with mineralisation still open along strike and at depth, [we have] commenced drafting an additional mining lease application over the project area,” the company said today.
Little Duke is located within the Golden Mile project, approximately 800 metres north-east of Ausmex’s historic Mt Freda open pit, located above a significant conductive structure previously identified by Ausmex.
Golden Mile is a joint venture between Ausmex (80% equity) and Round Oak Minerals Pty Ltd (20%) whereby Round Oak has the option to process all ore produced from Golden Mile projects including Little Duke at its Great Australia 600 kilotonnes per annum gold carbon-in-pulp processing plant at Cloncurry.
The company said it was committed to fast-tracking gold production in 2020 by utilising current infrastructure and CIP processing capacity within Cloncurry.
It is currently targeting completion of a combined maiden resource estimate for the Mt Freda Complex and Golden Mile by next month.
At mid-morning, shares in Ausmex Mining Group were trading 32.18% higher at $0.115.