Business Model and Strategy

Business Model and Strategy

Ausmex is planning two key strategies as corporate objectives: (a) to secure exploration projects that have potential to host giant world class IOCG or porphyry copper gold deposits such as Ernest Henry or Rocklands in Queensland, Olympic Dam in South Australia or Cadia – Ridgeway in New South Wales; and (b) allied and conducive to such exploration, secure gold/copper production opportunities on smaller gold projects to fund exploration and asset growth.

Studies of both IOCG and porphyry copper gold deposits in Queensland, South Australia and other mineral provinces have allowed geologists to formulate typical IOCG models or porphyry models based on the significant number of copper gold discoveries in those regions. Many of the largest copper gold deposits show atypical features however, which suggest a transition from porphyry or mesothermal conditions or indicating overprinting of a hydrothermal system on a porphyry environment. IOCG signatures have also allowed key indicator profiles to be built as exploration pathfinder tools.

The two key mineral provinces in which Ausmex projects are located are the Mt Isa Inlier, Queensland and the G2 Structural Corridor in South Australia. The geological model and structural controls for each province can be interpreted by reference to tectonic setting and the evolution of the volcanic arcs in each region. In particular, deposit form, vein texture and mineralogy coupled with growing knowledge of the hydrothermal alteration which accompanies the formation of these type of copper gold deposits, are useful tools available now to explorers in those provinces towards recognising the key features of copper gold-bearing geological environments. Thus an ‘indicator checklist’ of IOCG or porphyry features in Queensland and South Australia can be utilised in exploration.

Ausmex plans to focus on geochemical sampling and geological mapping against which the typical geochemical, geophysical and geological profiles will be compared in search for a match in focusing the best drilling targets.

Business Description

Ausmex will undertake exploration in Queensland targeting gold, copper, & cobalt resources by focussing on exploration projects that have potential to host giant world class IOCG deposits. The geological model and structural controls of such deposits can be interpreted by reference to tectonic setting and the evolution of the volcanic arcs in the region. In particular, expert knowledge within the company of deposit form, vein texture and mineralogy coupled with growing evidence of the hydrothermal alteration which accompanies the formation of these type of copper gold deposits provide great potential for discoveries. Once resources are established Ausmex plans a value adding strategy through the use of feasibility studies which can also be used to secure finance to proceed to large scale operation. There is Cobalt mineralisation in some of Ausmex’s Queensland tenements justifying inclusion of Cobalt as a third target alongside gold and copper.

At the same time Ausmex will try to develop gold/copper/cobalt production opportunities on smaller projects to fund exploration and allow to pursue new business opportunities such as potential acquisitions and mergers.

South Australia

Similar comments quoted for Ausmex Queensland projects, about geological model and structural controls of large IOGC copper and gold deposits apply to Company’s South Australian projects.

Ausmex will be targeting IOCG or porphyry copper-gold targets, Burra-style base metal deposits and vein-style gold deposits at its projects near Burra in South Australia. Due to the size of the tenements and present status of the exploration database, a different exploration strategy will be employed. Geophysical modelling, IP, rock density may be done. Advanced geochemical exploration such as mobile metal ion (MMI) technology would be considered. This type of exploration technology is of interest to Ausmex as being more appropriate for the type of geology in South Australia.

MMI is an extremely effective exploration technique that identifies more precise drill hole targets than current methods for a fraction of the cost.

Ausmex may consider some form of cooperation with The Deep Exploration Technologies Cooperative Research Centre (DET CRC) in Perth, which cooperates with the University of Adelaide and DMITRE (South Australian Department of Manufacturing, Innovation, Trade, Resources, and Energy) developing and trialling world leading geochemical exploration technology in South Australia.

Prospectivity for phosphate in one of Ausmex’ tenement EL5881 will be investigated , and is regarded as a potentially important commodity due to increasing food demand by growing world population.