080314 final massive 3d geophysical conductive structure ... · Ø 3d model has delineated a...

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Ausmex Mining Group Limited ACN 148 860 299 E | [email protected] T | (02) 9248 0104 W | www.ausmexgroup.com.au A | Level 14, 309 Kent Street, Sydney NSW 2000 14 th March 2019 ASX MARKET RELEASE 3D Geophysical Modelling identifies massive >2,000 m long, < 400 m wide conductive structure (the conductor), entirely on Ausmex’s tenements in addition to the Tier 1 IOCG “Canteen” target Ausmex shares with Newcrest Mining Limited. Ø Independent Brisbane based, Geophysical Consultants, GeoDiscovery Group complete 3D geophysical modelling combining historic heliSAM survey, detailed regional magnetic data and VTEM survey data. Ø 3D model has delineated a >2,000 m strong conductive drill target up to 400 m wide, and ranging from an approximate 200 m to >500 m depth, entirely within Ausmex’s mining tenements including the Golden Mile plunging South towards Newcrest “Canteen” and appears to extend under the Mt Freda Mining Lease. Ø 3D model results just completed, support Independent expert Emeritus Professor Ken Collerson Ph.D FAusIMM previous findings – “potential for a large IOCG or ISCG mineral source below the Golden Mile.” (Refer ASX release 25 th February 2019) Figure 1. Representative views of the 3D SAM MMC model and strong >2,000 m conductive feature. Golden Mile Drilling For personal use only

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Ausmex Mining Group Limited ACN 148 860 299E | [email protected] T | (02) 9248 0104 W | www.ausmexgroup.com.au A | Level 14, 309 Kent Street, Sydney NSW 2000

14thMarch2019

ASXMARKETRELEASE

3DGeophysicalModellingidentifiesmassive>2,000mlong,<400mwideconductivestructure(theconductor),entirelyonAusmex’stenementsinadditiontotheTier1IOCG“Canteen”targetAusmexshareswithNewcrestMiningLimited.Ø Independent Brisbane based, Geophysical Consultants, GeoDiscovery Group complete 3D

geophysicalmodellingcombininghistoricheliSAMsurvey,detailed regionalmagneticdataandVTEMsurveydata.

Ø 3Dmodelhasdelineateda>2,000mstrongconductivedrill targetup to400mwide,andranging from an approximate 200 m to >500 m depth, entirely within Ausmex’s miningtenements including the Golden Mile plunging South towards Newcrest “Canteen” andappearstoextendundertheMtFredaMiningLease.

Ø 3D model results just completed, support Independent expert Emeritus Professor KenCollersonPh.DFAusIMMpreviousfindings–“potentialforalargeIOCGorISCGmineralsourcebelowtheGoldenMile.”(ReferASXrelease25thFebruary2019)

Figure1.Representativeviewsofthe3DSAMMMCmodelandstrong>2,000mconductivefeature.

GoldenMileDrilling

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Figure2:Representativeplanviewofthe3DSAMMMCoutputwithintheGoldenMileSubblocks.Notetherelativeshallowdrilltargetdepthsastheconductivetargetplungesfrom~200mfromsurfaceinthenorthadjacenttheGoldenMileto>500mtothesouthundertheAusmexcontrolledMtFredaMiningLicense,withfurthergeologicalinterpretationpossiblyextendstowardsNewcrest“Canteen“drilling.

Projection:GDA(Zone54)

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Figure3.SchematicGeologicalinterpretationthatthelargeConductivestructureundertheGoldenMilemaybethesourceofmineralisation.

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Ausmex Mining Group (ASX: AMG) (“Ausmex” or “The Company”) recently engaged theGeoDiscovery Group to conduct geophysical processing and 3D modelling based on variousgeophysical data sets, including a detailed heliSAM survey, detailed regionalmagnetic data and aVTEMsurvey.

Thesubsequent3Dmodellingproducedanoutstandingresult,identifyingalargeconductivestructure>2,000minlengththatcorrelateswiththepreviousannouncedindependentexpert’sinterpretationfromProfessorKenCollersonthatalargeIOCGorISCGmineralisedsystemiscloselyassociatedwiththe Golden Mile mineralisation (Refer ASX release 19th February 2019). Professor Ken CollersondescribesthepotentialindetailviathefollowingvideolinkfromtheCompanywebsite:ProfessorKenCollersondiscussesAusmexsignificantIOCGpotential

IOCGdepositsareoftendescribedas“longribbon-likebrecciaormassiveironoxidedepositswithinfaultsorshears”.(Source:“TheGeophysicsoftheErnestHenryCu-Audeposit(N.W)QLD.M.Webb&P.Rowston;ExplorationGeophysics26(3)51-59Published1995.)

AusmexpreviouslyidentifiedalargegraphiticshearzoneassociatedwiththeLittleDukegoldminewithGoldassaysupto8.00g/tGold,1,100ppmCobaltand1.43%CopperwithinDrillholeLD18RC006,[email protected]/tGold!(ReferASXrelease29thNovember2019).TheLittleDukeGoldmineisdirectlyeastabovethelargeconductivestructure,referFigure2above.

Astagetwo3DmodellingprogramiscurrentlybeingdesignedtocontinuemodellingtheconductivestructurefurthersouthtotheEveningStarregion.ThemodellingmayrequirefurtherfieldsurveysincludingSAMandElectromagnetic(EM)andVTEMsurveys.TheEveningStarprojectisapproximately800mnorthoftheNewcrestMiningLimited“Canteen”deepIOCGdrillingcompletedinAugust2018.NewcresthavenotyetreleasedtheCanteendrillingresults.

AUSMEX2019DrillingprogramTheCompanywillcommenceamajordeep(250-650mdepth)10,000metre,RCanddiamondcoredrillingprogramtotestthe2,000mlongConductivestructuredescribedherein,commencingassoonaspracticable,withforwardplanningandrigcontractingalreadyunderwaywiththeassistanceofthirdpartyindependentgeologicalconsultantsinconsultationwiththeAusmexgeologicalteam.Drillingwillalsocontinueonthecompany’sothermajorprojectsincludingtheTrump,EveningStarandGoldenMileoveralreadyidentifiedandknownoxidemineralizationprospects.TheGoldenMileprojectisaJointVenture(AMG80%withEXCO20%)withExcoResources(QLD)PtyLtd(EXCO),a100%subsidiaryofWashingtonH.SoulPattinson,onthetwosubblocksCLON825P&CLON825UfromwithinEPM15923(ReferASXrelease16thApril2018).TheDrillingtodatecompletedbyAusmexwithintheGoldenMilecontinuestodelivershallow,highgradegoldresults,atdepthspotentiallyamenabletoabulkminingoperation.Ends.Forfurtherinformation,pleasecontact:

MattMorgan

ManagingDirector

AusmexMiningGroupLtd

[email protected]

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ForwardLookingStatements

Thematerialsmayincludeforwardlookingstatements.Forwardlookingstatementsinherentlyinvolvesubjective judgement, and analysis and are subject to significant uncertainties, risks, andcontingencies,manyofwhichareoutsidethecontrolof,andmaybeunknownto,thecompany.

Actualresultsanddevelopmentsmayvarymateriallyfromthatexpressedinthesematerials.Thetypesofuncertaintieswhicharerelevanttothecompanymayinclude,butarenot limitedto,commodityprices,politicaluncertainty,changestotheregulatoryframeworkwhichappliestothebusinessofthecompanyandgeneraleconomicconditions.Giventheseuncertainties, readersarecautionednottoplaceunduerelianceonforwardlookingstatements.

Any forward-looking statements in thesematerials speak only at the date of issue. Subject to anycontinuingobligationsunderapplicablelaworrelevantstockexchangelistingrules,thecompanydoesnot undertake any obligation to publicly update or revise any of the forward-looking statements,changesinevents,conditionsorcircumstancesonwhichanystatementisbased.

CompetentPersonStatement

Statements contained in this report relating to exploration results and potential are based oninformation compiled byMr.MatthewMorgan, who is amember of the Australasian Institute ofMiningandMetallurgy(AusIMM). Mr.Morgan is theManagingDirectorofAusmexMiningGroupLimitedandGeologistwhomhassufficientrelevantexperienceinrelationtothemineralisationstylesbeingreportedontoqualifyasaCompetentPersonasdefinedintheAustralianCodeforReportingofIdentifiedMineralresourcesandOrereserves(JORCCode2012).Mr.Morganconsentstotheuseofthisinformationinthisreportintheformandcontextinwhichitappears.

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JORC TABLE 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria JORCCodeExplanation DepositSpecificInformationSamplingtechniques

• Natureandqualityofsampling(eg cut channels, random chips, orspecific specialised industry standardmeasurement tools appropriate to theminerals under investigation, such asdownholegammasondes,orhandheldXRF instruments, etc). These examplesshould not be taken as limiting thebroadmeaningofsampling.• Include reference to measurestaken to ensure sample representivityand the appropriate calibration of anymeasurementtoolsorsystemsused.• Aspectsofthedeterminationofmineralisation thatareMaterial to thePublic Report. In caseswhere ‘industrystandard’ work has been done thiswould be relatively simple (eg ‘reversecirculationdrillingwasusedtoobtain1m samples from which 3 kg waspulverisedtoproducea30gchargeforfire assay’). In other cases, moreexplanation may be required, such aswhere there is coarse gold that hasinherent sampling problems. Unusualcommoditiesormineralisationtypes(egsubmarine nodules) may warrantdisclosureofdetailedinformation.

• 3D potential field andelectromagnetic modelling of historicalgeophysical datasets was undertakenincluding:

• A HeliSAM survey was flown in2011 by GAP Geophysics at 50m linespacing with a line direction of 90degrees.• An airborne electromagnetic(VTEM)surveyflownbyUTSGeophysicsin2015at150mflightlinesspacingwithalinedirectionof90degrees.

Drillingtechniques

• Drill type (eg core, reversecirculation, open-hole hammer, rotaryairblast,auger,Bangka,sonic,etc)anddetails (eg core diameter, triple orstandard tube,depthofdiamond tails,face-samplingbitorothertype,whethercore is oriented and if so, by whatmethod,etc).

• No drilling results are beingreported.

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Criteria JORCCodeExplanation DepositSpecificInformationDrillsamplerecovery

• Method of recording andassessing core and chip samplerecoveriesandresultsassessed.• Measures taken to maximisesample recovery and ensurerepresentativenatureofthesamples.• Whether a relationship existsbetween sample recovery and gradeand whether sample bias may haveoccurredduetopreferentialloss/gainoffine/coarsematerial.

• No drilling results are beingreported.

Logging • Whethercoreandchipsampleshave been geologically andgeotechnicallyloggedtoalevelofdetailto support appropriate MineralResourceestimation,miningstudiesandmetallurgicalstudies.• Whether logging is qualitativeor quantitative in nature. Core (orcostean,channel,etc)photography.• Thetotallengthandpercentageoftherelevantintersectionslogged.

• No drilling results are beingreported.

Sub-samplingtechniquesandsamplepreparation

• Ifcore,whethercutorsawnandwhetherquarter,halforallcoretaken.• If non-core, whether riffled,tube sampled, rotary split, etc andwhethersampledwetordry.• Forallsampletypes,thenature,quality and appropriateness of thesamplepreparationtechnique.• Quality control proceduresadopted for all sub-sampling stages tomaximiserepresentivityofsamples.• Measures taken toensure thatthesamplingisrepresentativeofthein-situ material collected, including forinstance results for fieldduplicate/second-halfsampling.• Whether sample sizes areappropriate to the grain size of thematerialbeingsampled.

• No drilling/sampling results arebeingreported.

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Criteria JORCCodeExplanation DepositSpecificInformationQualityofassaydataandlaboratorytests

• The nature, quality andappropriateness of the assaying andlaboratory procedures used andwhether the technique is consideredpartialortotal.• For geophysical tools,spectrometers, handheld XRFinstruments, etc, the parameters usedin determining the analysis includinginstrument make and model, readingtimes, calibrations factors applied andtheirderivation,etc.• Nature of quality controlprocedures adopted (eg standards,blanks, duplicates, external laboratorychecks) andwhether acceptable levelsof accuracy (ie lack of bias) andprecisionhavebeenestablished.

• 3D potential field modellingprovidesanon-unique,smoothsolutiontothe measured magnetic / MMC field andthemodelresolutiondecreaseswithdepth(due to longer wavelengths), the 3D TMImagneticsusceptibilitymodellingapproachis considered to be a reliable method ofmodelling magnetic data to indicate theposition of magnetic sources whereremanenceisnotdominant.• Profile modelling of the multi-channel AEM data using programs likeMaxwell is a reliable method forinterpreting depths, attitude andconductivity parameters of anomalousfeatures identified in RDI cross-sectionsand/orprofiledata.

Verificationofsamplingandassaying

• The verification of significantintersectionsby either independentoralternativecompanypersonnel.• Theuseoftwinnedholes.• Documentation of primarydata, data entry procedures, dataverification,data storage (physical andelectronic)protocols.• Discussanyadjustmenttoassaydata.

• No drilling/sampling results arebeingreported.

Locationofdatapoints

• Accuracyandqualityofsurveysused to locate drill holes (collar anddown-hole surveys), trenches, mineworkings and other locations used inMineralResourceestimation.• Specificationofthegridsystemused.• Quality and adequacy oftopographiccontrol.

• No drilling/sampling results arebeingreported.• All geophysical data has beenprocessed using Geocentric Datum ofAustralia(GDA94)Zone54.

Dataspacinganddistribution

• Data spacing for reporting ofExplorationResults.• Whetherthedataspacing,anddistributionissufficienttoestablishthedegree of geological and gradecontinuity appropriate for theMineralResource and Ore Reserve estimationprocedure(s)andclassificationsapplied.

3D modelling of historical geophysicaldatasetsundertakenatacellsizeof20mintheXYdirectionand10mintheZdirection.This levelofspacing isoptimalfor levelofexplorationresultsreported.

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Criteria JORCCodeExplanation DepositSpecificInformation• Whether sample compositinghasbeenapplied.

Orientationofdatainrelationtogeologicalstructure

• Whether the orientation ofsamplingachievesunbiasedsamplingofpossible structures and the extent towhich this is known, considering thedeposittype.• Iftherelationshipbetweenthedrillingorientationand theorientationof key mineralised structures isconsidered to have introduced asampling bias, this should be assessedandreportedifmaterial.

• Geophysical data was collected ineast-west oriented grid lines. The knownmineralised structures in the area of thegeophysicalsurveysisbroadlynorth-south.Theorientationofthesurveylineswasthuschosentobebroadlyperpendiculartothestrike ofmineralised structures to reducebias.

Samplesecurity • Themeasures taken to ensuresamplesecurity.

• No drilling/sampling results are beingreported.

Auditsorreviews • The results of any audits orreviews of sampling techniques anddata.

• No audit of the geophysical datahasbeenundertakentodate.

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)

Criteria Explanation DepositSpecificInformationMineraltenementand land tenurestatus

• Type,referencename/number,location and ownership includingagreements or material issues withthird parties such as joint ventures,partnerships, overriding royalties,native title interests, historical sites,wilderness or national park andenvironmentalsettings.• Thesecurityofthetenureheldatthetimeofreportingalongwithanyknown impediments to obtaining alicencetooperateinthearea.

• ML 2718, ML 2709, ML 2713, ML2719, ML 2741, ML 2752, ML 2742, ML2763,ML2750andEPM14163areownded100% by Spinifex Mines Pty Ltd. AusmexMining Group Ltd owns 80% of SpinifexMines Pty Ltd. Queensland MiningCorporation Ltd owns 20% of SpinifexMines. Exploration is completed under anincorporatedJointVenture.• Ausmex holds a beneficial interestinsub-blocksCLON825U&CLON825Pfrom

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Criteria Explanation DepositSpecificInformation EPM 15923 under an 80/20 Joint Venture

withCopperChem.• EPM 14475, EPM15858 & EPM18286 are held by Queensland MiningCorporationPtyLtd(QMC).AusmexMiningGroupown80%ofQMC.QMCown20%ofSpinifex Mines Pty Ltd. Exploration iscompleted under an incorporated JointVenture.• ML2549,ML2541andML2517areowned100%byAusmexMiningGroup.• Alltenementsareingoodstanding.

Exploration donebyotherparties

• Acknowledgment andappraisal of exploration by otherparties.

• Thefollowingairbornegeophysicaldatasets were acquired as part of pastcompany exploration (by Exco Resources)andhavebeenusedtoassistinterpretationanddelineateregionsofinterest.• AHeliSAMsurveywasflownin2011by GAP Geophysics and the standardproduct suite includes the Magnetic TMI,the SAM MMC (magneto-metricconductivity) and SAM TFEM (total-fieldEM)channels.• An airborne electromagnetic(VTEM)surveyflownbyUTSGeophysics in2015at150mflightlinesspacing.Aspartofthe standard product suite, a database oftheResistivityDepthImaging(RDI)derivedoverthestudyregionwassuppliedbyUTSGeophysics.• AuxiliaryairbornegeophysicaldatawastakenfromQDME(Cloncurry)openfilesurvey magnetics flown in 2017 (at linespacingof100m).

Geology • Deposit type, geological

settingandstyleofmineralisation.

• Various prospects within theprojectareaoccur,predominantlyasshearhostedandhydrothermalveindeposits(Au-Cu-Co), and intrusion-related Au-Cu-Codeposits.

Drill holeInformation

• A summary of all informationmaterial to the understanding of theexploration results including atabulationofthefollowinginformationforallMaterialdrillholes:eastingandnorthingofthedrillholecollar

• No drilling/sampling results arebeingreported.F

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Criteria Explanation DepositSpecificInformation• elevationorRL(ReducedLevel–elevationabovesealevelinmetres)ofthedrillholecollar• dipandazimuthofthehole• down hole length andinterceptiondepth• holelength.• If the exclusion of thisinformationisjustifiedonthebasisthattheinformationisnotMaterialandthisexclusion does not detract from theunderstanding of the report, theCompetent Person should clearlyexplainwhythisisthecase.

Data aggregationmethods

• In reporting ExplorationResults, weighting averagingtechniques, maximum and/orminimumgradetruncations(egcuttingofhighgrades)andcut-offgradesareusuallyMaterialandshouldbestated.• Where aggregate interceptsincorporateshortlengthsofhigh-graderesultsandlongerlengthsoflow-graderesults, the procedure used for suchaggregationshouldbestatedandsometypicalexamplesofsuchaggregationsshouldbeshownindetail.• The assumptions used for anyreporting of metal equivalent valuesshouldbeclearlystated.

• Nodrilling/samplingresultsarebeingreported.

Relationshipbetweenmineralisationwidths andinterceptlengths

• These relationships areparticularly important inthereportingofExplorationResults.• If the geometry of themineralisationwithrespecttothedrillholeangle isknown, itsnatureshouldbereported.• If it isnotknownandonlythedownhole lengthsarereported,thereshould be a clear statement to thiseffect(eg‘downholelength,truewidthnotknown’).

• No drilling/sampling results arebeingreported.

Diagrams • Appropriatemapsandsections(with scales) and tabulations ofintercepts should be included for anysignificant discovery being reportedTheseshouldinclude,butnotbelimited

• Appropriatemapsanddiagramsareprovidedinthebodyofthisreport.

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Criteria Explanation DepositSpecificInformationto a plan view of drill hole collarlocations and appropriate sectionalviews.

Balancedreporting

• Where comprehensivereporting of all Exploration Results isnot practicable, representativereportingofbothlowandhighgradesand/or widths should be practiced toavoid misleading reporting ofExplorationResults.

• No drilling/sampling results arebeingreported.

Other substantiveexplorationdata

• Other exploration data, ifmeaningful and material, should bereportedincluding(butnotlimitedto):geological observations; geophysicalsurvey results; geochemical surveyresults; bulk samples – size andmethod of treatment; metallurgicaltestresults;bulkdensity,groundwater,geotechnical and rock characteristics;potentialdeleteriousorcontaminatingsubstances.

• Ausmex Mining has had availablegeophysical information reprocessed,enhanced images produced and themagnetic, MMC and the electromagneticdatamodelled in 3D by the GeoDiscoveryGroup. 3Dmodel parameters are detailedbelow:• Detailed3Dmagneticsusceptibilitymodelusinga20mvoxelcellsizeintheX-Ydirection and 10m voxel cell size in the Zdirection.• 3D MMC model using monopolepotential field software where currentdensityisanalogoustodensity,usinga20mvoxelcellsizeintheX-Ydirectionand10mvoxelcellsizeintheZdirection.• Regional magnetic susceptibilitymodelusing30mvoxel cell size in theX-Ydirection and 15m voxel cell size in the Zdirection.• Detailed plate modeling has beenundertaken on the multi-channel profileelectromagnetic data profile data todeterminelocationofconductivesource.

Furtherwork • The nature and scale ofplanned further work (eg tests forlateralextensionsordepthextensionsorlarge-scalestep-outdrilling).• Diagrams clearly highlightingthe areas of possible extensions,including the main geologicalinterpretations and future drillingareas,providedthisinformationisnotcommerciallysensitive.

• Drilling to test geophysical targetsgeneratediscurrentlybeingplanned.

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