August 28, 2019
The company had gold gradings of up to 32.7 g/t as it looked below the mine pit.
The open cut gold mine historically produced 30,000 ounces of gold a year.
The Sydney-based company is undertaking resource definition drilling at the Mt Freda mining leases on Mt Freda Complex.
Significant drilling results from below the pit floor included a diamond drill hole featuring 24 metres grading 2.8 g/t from 109 metres, including 6 metres at 10.1 g/t gold from 113 metres with 2 metres at 24.0 g/t, also from 113 metres.
Reverse circulation drilling had stand-out intersections of 5 metres at 7.9 g/t from 198 metres, including 1-metre at 32.7 g/t; 7 metres at 5.2 g/t from 147 metres, including 3 metres at 11.0 g/t; 10 metres at 2.8 g/t from 165 metres, including 6 metres at 3.8 g/t and 1 metre at 8.7 g/t; and 9 metres at 2.3 g/t from 172 metres, including 4 metres at 3.6 g/t and 1-metre at 5.3 g/t.
Ausmex has a series of projects along the Mt Freda Complex, such as those housed at the Mt Freda mine, Drillers Hut, Canteen and Evening Star tenements.
Mt Freda mine was previously operated by Diversified Mineral Resources NL (ASX:DMR) for four years from 1987 and produced about 30,000 ounces of gold a year at a 4 g/t grading.
Recoveries were about 95% using a carbon-in-pulp (CIP) processing method.
The mine was shuttered in 1991 after gold prices fell to a level below US$300 an ounce.
Spot gold prices are about US$1,543.15 today.
Historical drilling indicated there were significant amounts of gold beneath the pit floor, where Ausmex is finding high-grade gold.