activity report september quarter 2017 highlights: for ... · activity report september quarter...
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ACN 148 860 299 T | (02) 8315 3268 A | Level 13/50 Carrington Street, Sydney NSW 2000 E | [email protected]
31October2017
ASXMARKETRELEASE
ACTIVITYREPORT
SEPTEMBERQUARTER2017 HIGHLIGHTS:
Ø SUBMISIONTOQLDGOVERNMENTRELEVANTAGENCIESFORCIRCA200,000TONNEGOLDVATLEACHPROCESSATMTFREDAHASPOTENTIALTOGENERATESIGNIFICANTSHORTTERMCASHFLOWIN2018;
Ø EXTENSIVERCANDDIAMONDDRILLINGCAMPAIGNATMTFREDAANDGILDEDROSEHIGHGRADEGOLDMINES;
Ø NEW HIGH-GRADE GOLD AND COPPER MINERASLISED SYSTEMS IDENTIFIED WITHDRILLREADYTARGETSWITHINCLONCURRYEXPLORATIONTENEMENTSUITE;
Ø HISTORICAL QUEENSLAND MINES DEPARTMENT REPORTS IDENTIFY ~1.6KMIRONSTONERIDGETHATIS“COBALTBEARING”;
Ø ACQUISTIONOFTHREEHIGHGRADECOPPERLEASES;
Ø JVFARMINOPTIONFORHIGHGRADECOPPERANDGOLDTENUREATBURRASA;AND
Ø APPOINTMENT OF NEW CHAIRMAN MR JOSEPH (YOSSE) GOLDBERG.
HighgradecoppermineralisationatthenewlyacquiredBelgiumMineML2541
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INTRODUCTION
Ausmex Mining Group Limited (“Ausmex” or “the Company”) Directors welcomeshareholderstoourSeptemberQuarterlyReport.ThecompanyhashadaveryproductiveSeptember quarter generating a set of excellent exploration results and corporatetransactionswithinbothCloncurryQueenslandandBurraSouthAustralia.WiththeexperiencedanddynamicexplorationteambasedoutoftheCloncurrysiteofficetheCompanyhas rapidlyprogressedan intensiveresourcedefinitiondrillingprogramatboththeGildedRoseandtheMtFredaopenCuthigh-gradegoldmines.Initialexplorationresultsconfirmthehighgradeprospectivityoftheprojects.Aregionallow-impactfieldexplorationprogramwithintheCloncurrysuiteoftenementshasbeenfasttrackedidentifyingmultiplehigh-gradegoldandcopperdrillreadytargets.Furthermore, historical 1930’s Queensland Mining Department records have beenrecoveredthatidentifya~1.6kmironstoneridgethatis“containingcobaltplume”addingcobalttothehighlyprospectregionaldrillreadytargets.ApplicationhasbeenmadetorelevantQueenslandgovernmentagenciesforapprovalofuptoa200,000tonneVATLeachgoldprocessingfacilityatMtFreda.CurrentlyatMtFredathere is ~ 200kt of stockpiled oxide ore, remnant ore mined and stockpiled duringthlate1980’sbeforetheclosureofMtFredaopencutduetoafallinggoldprice.PreliminaryrandomsamplingofthestockpilebyAusmexproducedaveragegradesupto~5g/tgold.The low-costprocessingof thisoxideoreviaaVATLeachhas thepotential togeneratesignificantshorttermcashflowforAusmexinthefirsthalfof2018.ThreehighgradehistoricalcopperMiningLeaseswereacquiredduringthequarter,addingthepotentialofneartermshallow,highgradecopperoxideoreproductionandadditionalcashflowtoAusmex.ThecompanysuccessfullynegotiatedanoptionagreementwithPNXMetalstofarminonadjoiningAusmexcopperandgoldexplorationtenementsinBurraSouthAustralia.Addingto this thecompanyhasseveralexplorationpermitapplications inplacewith theSouthAustralianGovernment for additional groundwithin Burra, establishing a large regionalpresencewithintheprospectiveBurracopperandgoldsprovince.ManagingDirectorMattMorganstated:“Within approximately four months of re listing as Ausmex Mining Group Limited, thecompanyhasachievedremarkableresultsintheCloncurryCopperandgoldfieldwhichthecompanybelieves isoutstandingmineralisedground.Potentialnear-termcashflowfromearlygoldproductionatMtFredaviaaVATheapleachplannedforthefirsthalfof2018hasthe capacity to generate significant funds for further extensive exploration by Ausmex
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focusingonlargeIOCGandPorphyrycoppergold,aswellasCobaltmineralisationtargets.Additionalcopperminingleasesaddfurtherpotentialforshorttermcashflowduring2018.Newly identifiedhighgradegoldsystemsandhistorically identifiedcobaltmineralisationhavegeneratedmultipledrillreadytargets.Additional ground acquired by application and JV options within the prospective Burraprovince, South Australia has allowed Ausmex to secure a substantial footprint in thisunderexploredcopperandgoldmineralfield.Itisincrediblehowmuchhasbeencompletedby the dedicated team within such a short time frame. The Company is aware thatshareholdersneedtobekeptuptodatewiththeactivitiesandexplorationachievementsoftheCompanyandcanassureallshareholdersthatthiswillcontinuetobeapriorityforthemanagementofAusmex”.CORPORATE
MrDavidWheeler resigned fromthepositionofNon-ExecutiveChairmanon1stAugust2017tofocusonothercommitments.TheCompanywasfortunatetoappointMr(Joseph)YosseGoldbergasNon-ExecutiveChairmanon2ndAugust2017.Mr Goldberg had a successful international career in Property Development In the UK,Spain,USA,andCanada.MrGoldberghasalsobeenaconsultantandmajorshareholderinanumberofcompanies.MrGoldberghasbeenaconsultanttoSydneyGasLimited,BlueEnergyLimited,KimberlyDiamondCompanyLimited,SundanceResourcesLimited,CuDecoLimited,GindalbieMetalsLtd includingresourceprojectssuchas ironore,oil&coalgasmethane,andCopper.MrGoldberg is currently aNon-ExecutiveDirector ofASX ListedCompany SouthPacificResources(ASX:SPB).Following the strong set of exploration results and identification ofmultiple drill readytargetswithin theCloncurry tenement suite, theCompanydecided to focusefforts andresourcesonthecurrentCloncurrytenementsuite,andelectednottoexercisetheNorthCloncurryOption,aspertheNorthCloncurryOptionagreementwithQueenslandMiningCorporationLimited.TheOptionexpiredon15thSeptember2017.EXPLORATIONCLONCURRYQLDNewGrantedMiningLeaseAcquisitions:Purchaseof3historicalGold/Copperproducingmines(CopperUpto25.59%CuandCobaltupto31,800g/tCo(3.18%Co)
In addition to the already granted mining leases and several EPM blocks, within the
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Cloncurry Mineral Field, the Company purchased 100% interest in 3 granted historicalminingleasesintheCloncurryMineralField.All threeprospects are located SouthofCloncurry andall threehavingbeenpreviouslyproducingCopperandGoldmineswithoneunknowingly, containingexceptionallyhigh-gradeCobaltupto31,800g/t,(3.18%Co)producedin2017byHandheldXRFanalyser.SelectedsamplesforCopper,fromthesmallopenpitononeofthenewacquisitions(Cobalt1) returned hand held XRF results of up to 25.59%Cu and up to 31,800g/t Co, (Cobalt3.18%).Theaveragegradefrom5Cobaltsampleswas20,060g/tCo(2.06%Co)andfrom7samplesassayedforCopper/Cobaltaveragedof7.78%Cu.(ReferASXannouncement6thJuly2017forresults).
Above: Screen results, from XRF NITON XL2. The assay analysis results are from rock chip sampling of Copper/Cobalt, from the newly acquired Mining Lease, located south of Cloncurry. The analysiswas taken across a 2mwide zone ofmanganesemineralisationwhichintrudesattheSWendofthesmallopencutandapproximately5mtothesouthfromthemain15mwidecopperfaceofthezoneofmineralisation.Thecompanywillbeairtrackdrillingtheprospecttoprovethestrikedirectionofbothzonesofmineralisation.(ReferASXannouncement6thJuly2017forresults).
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TRUMPCOPPERMINE-RECENTAQUISITION:GrantedMiningLeaseML2549.100%Ausmex,locatedSouthofCloncurryThe Trump ML2549 one of recent acquisitions by the Company during the quarter, is ahistoricalCopperminingoperation,located55kmssouthofCloncurry.Theminewasaformerhigh-gradecopperproducer.
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Photos from the TrumpMining LeaseML2549:Multiple Copper in quartz and ironstonematerial,(malachite/chrysacolla)andhistoricalminingshaftslocatedattheTrump.GILDEDROSEGOLDPROJECTCONTINUESTOPRODUCEHIGHGRADEROCKCHIPRESULTSAdditional exploration during the quarter produced rock chip sampling results along themineralisationfromtheGildedRosegoldprojectconfirmthecontinuoushigh-gradenatureofmineralisationalongstrike,withfollowuprockchipsamplingproducinggoldgradesofupto111g/t.(ReferASXannouncement12thJuly2017)
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GildedRosehighgraderockchipcollectedbyAusmexduringthequarterincludingupto111g/tgold.
GildedRosedrillcorefromthecurrentdrillingprogramwithmassivesulphideintersection.Samplingstillinprogress.
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BelgiumCoppermine,ML2541FacesamplingattheBelgiumCoppermine,ML2541(100%Ausmex),located~100kmsouthofCloncurryintheSelwynMineralField,produceda21-metre-long,highgradecopperresult([email protected]%Cu),(ReferASXannouncement23rdAugust2017forresults).One-metrecompositechannelsampleswerecollectedbyelectricchiselacrossatwenty-one-metre exposed face at the mine site. Samples were dispatched to SGS Laboratories inTownsvilleforanalysis.AstheBelgiumMiningLeasenowhasthepotentialtohostashallowoxidecopperoreresource,abulksamplingprogramhasbeenplannedformetallurgicaltestworktodeterminethesuitabilityforacidleaching.Ashallowresourcedrillingprogramisalsobeingdesignedtodeterminethefullextentofthesurfacecopperoxidemineralisation.
Samplingacrossthevisible21mwideorebodyintheBelgiumopencutusinganelectricchiseltosampleevery1metre. SGSassaysrecorded21maveraging2.93%[email protected]%Cu.SamplingbytheexplorationteamontheAusmex100%owned,BelgiumMLhasresultedinencouragingresults.Thehistoricalminewasoriginallyanundergroundmine,producinghighgradecopperintheearly1900’s.Inthemid1980’sasmallsyndicateproducedhighgradeoxidecopperoresellingdirecttoMtIsaMinesLtd.TheoperationceasedafterMtIsaMinesLtdstoppedacceptingcopperoxideorefromlocalminers.Theopenpitisonly4mdeepwith
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theorebodyexposedtotheNW.Theorebodyisvisibleacross21montheNWsideofthesmallopencut.HIGHGRADECOPPER&GOLDDISCOVEREDONEPM15858EPM15858islocatedNorthoftheAusmextenementEPM14163andencompassesthetwo-formerhigh-gradeCopperproducers,“TheJokerandTheJokerWest”.TheJokerprospectwasformerly a Mining Lease mined from 1927 to 1929. The average grade recorded onGovernmentrecordsduringproductionwas21%Cuand3.0g/tAu.TheJokerconsistsofworkingsandtwoshaftsalongavisible~200metrestrikelength,andatsurfaceappearsupto3.5mwidewithvisiblecopperintheformofmalachite.Thecopperisclearlyvisibleacrosstheorebody.Inplaces,itappearsthattheyhaveminedalongthestrikelength,righttothesurface.Assaygradesofupto8.98%Cuand3.23g/tAuwerereturnedfromchipsampling.TheAusmexTeamfoundfurtherpreviouslyunrecordedmineralisation~350mtothenorthoftheJokerthatreturned12.2%Cu.Rock chip samples from the secondworkings approx. 100m to theWest, the JokerWestprospectweresampledandreturnedassaygradesofupto6.17%Cuandupto6g/tAu.(ReferASXannouncement23rdAugust2017forresults).TheJokerlastoperatedasaproducingminein1929withanaveragegradeof21%Cuintheoxidezoneandonreachingtheprimaryzoneconsistingofchalcopyrite/pyrite inaganguematerialwithabulkgradeof8%Cu.ExtractsfromGovernmentrecords:“Thelodeoccupiesafissurewhichstrikesatapprox.180Nanddipsataround800totheWest.Forthegreaterportionofitslengththeloadcrossesanamphibolitebandwhichstrikesat900Ninthisvicinityhasawidthofapprox.120m.Recordsshowthatthemainshaftwassunktoadepthof120ft(36m)”.TheJokerWestprospectislocatedapproximately100mtotheNorthWestisaparallellodeandoccursinthesameamphibolitebelt.
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EPM15858RockChipCopperAssayresults:
• TheJokerprospectassayresultsincludedupto8.98%Cu.• TheJokerWestprospectassayingupto6.17%Cu.• Mineralisation~350metresnorthoftheJokerprospectreturned12.2%Cu.
(ReferASXannouncement23rdAugust2017forresults).
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EPM15858RockChipGoldAssayresults.
• TheJokerprospectassayresultsincludedupto3.23g/tAu.• TheJokerWestprospectassayingupto6g/tAu.(ReferASXannouncement23rd
August2017forresults).
EPM14163:PromisingstartwithtwonewgoldmineralisedsystemsidentifiedonEPM14163,withassaygradesofupto79.8g/tgoldproducedfromrandomrockchipsampling.EPM14163isahighlymineralisedgoldandcopperzoneintheCloncurryMineralFieldwithnumeroushistoricalmineswithinitsboundarieswhichiscontrolledbyAusmex.Thereare15historicalprospects,asreportedbytheQueenslandMinesDepartmentthatminedtheoxidecopperoresonly.One of the two potential Gold systemswas identified south of the historical King BrownGold/Copperprospectandtracedforover700mtodatetotheeast,strikingtowardstheMtFredaGoldProject.Randomrockchipsamples,weretakenfromfourabovegroundquartzbrecciaoutcropsalongthepossiblestrikelength.AllsampleswereassayedforGoldbySGSLaboratoriesinTownsville,withsamplesreturninghighgradegoldassaysupto79.80g/tAu.(ReferASXannouncement7thAugust2107forindividualsamplegrades)
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Thisprospecthasbeenmarkedasapriorityforfollow-upworkexplorationwork.ThesecondgoldsystemwasidentifiedatthehistoricalCarpetmine.Themineralisedstructurewastracedandassayedalong~1,000meters,strikingNorth/Southwithgradesupto23.4g/tAuand11.6%Cu.(ReferASXannouncement27/07/2017forhighgradecoppergrades).Highlightsofhistoricalcopper/goldminesInvestigatedwithintheEPM14163todateinclude:
• CARPETProspect:17samplestakenandassayedalonga~1,000mstrikelength.Thehighestgradewas10.80%Cu:Theaveragegradefromthe17sampleswas5.82%Cu.
• JIYERProspect:3samplesweretakenwithanaveragegradeof10.96%Cu.• ADDERProspect:3samplesweretakenwithanaveragegradeof2.88%Cu.• LOMASProspect:2samplesweretakenwithanaveragegradeof16.55%Cu.
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Coppersampleassaygradesreportedas%Cu,takenfromtheSouthernportionof
EPM14163
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Coppersampleassaygradesreportedas%CufromsamplestakenontheNorthern
portionofEPM14163
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SeveraladditionalcopperprospectshaverecentlybeenlocatedwithintheEPM14163,Highgraderesultsfromtheseinclude:
• KINGBROWNProspect: 2samplestakenaveraging2.39%Cu.• MTSHEELITEProspect: 1sampleassayed1.90%Cu.• TIGERProspect: 1sampleassayed9.76%Cu.(ForallcopperrockchipresultsfromtheEPM14163pleaseASXAnnouncement27thJuly2017).
Photo1:SampleWW98:1.05g/tAuPhoto2:SampleWW97:9.68g/tAu
Photo3:SampleWW101:79.8g/tAuPhoto4:SampleWW102:0.45g/tAu
Photos1-4displayingtheabovegroundoutcroppingquartzbrecciaalongthe+700mE/WstrikelengthsouthoftheHistoricKingBrownGold/Coppermine.
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EPM14163SouthwithSGSassayGoldgradesalongbothpossiblecontinuousgoldsystems.System1commencesSouthof“KingBrown”prospectfor~700Meast/weststrike.System2strikesnorth/southcommencingatthe“CARPET”prospectfor~1,000m.(ReferASXannouncement7thAugust2017forassayresults).
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EPM14163displayingthefullextentofgoldassaysreturnedfromrockchipsampling,clearlydisplayingthehighlyprospectivepotentialofthetenement.(ReferASXannouncement7thAugust2017forassayresults).
DrillingCommencedatMountFreda
Thecompanywaspleasedtoreporttoshareholdersthata6,000mRCdrillingprogramattheMtFredaGoldProjecthascommencedduringthequarter.Thefirstphaseofthe6,000mMtFreda resourcedrillingprogram, includingup to2,000mofRCdrilling (phase1), isaimedatconfirmingmineralisationbelowtheoldshallowopenpit.DrillingisalsoaimedattestingfurthermineralisationthatiscurrentlyopenalongstrikeanddowndipfromtheMtFredaOpenPit.TheMtFredagoldmineceasedoperationsin1988whenthegoldpricefellto$250oz.WheninproductiontheMtFredaopencutminewasprocessingoreonsiteviaCarbon-in-PulpCyanideleachprocess.Theaveragegraderecoveredwas4g/tAuwithrecoveriesof98%Au.
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Additionaldrillinghasbeendesignedtotesttwopossible450m(apossibletotalofapprox.900m)extensionstotheeastandwestofthecurrentMtFredaOpenCut,previouslyidentifiedbyhistoricalgeophysicalsurveys.Thehistoricalgeophysicalsignaturesbareasimilarresemblanceto the Mt Freda orebody. No historical drilling on these possible extensions has beendocumented.
AusmexManagingDirectorMattMorganatMtFredaGoldprojectattendstheearlymorningcommencementofthefirstphaseofthe6,000mRCdrillprogram.
MtFredadiamondcoretypicalofpreviouslyminedoxidizedhighgradefromtheOpenCut
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BURRACOPPERANDGOLDPROJECTSA
AUSMEX ENTERS INTOANOPTION FORA JOINTVENTUREOVERADJOININGGROUNDATBURRATheCompanyexecutedabindingtermsheetwithPNXMetalsLtd(PNX)foranOptiontoenterintoaJointVenturetocoverthefollowingtenements,whichadjoinorareclosetoAusmex’sEL5881aroundBurra,SouthAustralia,(ReferASXannouncement7thAugust2017).
PNXtenementssubjecttotheOptionagreementwithAMX.TheELsthatarethesubjecttothisOptionareallthosethatarepresentlyheldbyPNXMetalsLtd(PNX)intheBurraregionandincludetheareasurroundingBurraandtheMonsterMine,thePrincessRoyalprospect,theEagleValeprospectandtheMongolataGoldfield.ThecombinationofthesePNXELswiththeAusmexELaroundBurrawillenhancetheabilityofAusmextoconsiderBurrainaregionalcontext.ThePNXELscompriseatotalareaof1190sqkm.WhencombinedwithAusmex’s970sqkm,thetotalcreatesanexplorationpackageof2160sqkmoverthehighlyprospectiveBurraregionalgoldandcopperfield.TheadditionaltenementsuiteadvancesAusmex’scurrentexplorationstrategytolocatefurtherexamplesoftheknownBurramineralisation,includingwhathasbeendescribedbyseveralexpertsontheareaas“theotherhalf”oftheMonsterMineorebodywhichexpertgeologistsbelievehasbeendisplacedbytheKingstonFault.
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LocationoftheMonstermineandhistoricgoldandcopperworkingswithinAusmextenementEL5881&PNXMetals(Ausmexoption)tenements
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TargetIPanomaliespreviouslyidentifiedbyPNXMetals,northandsouthoftheMonsterMine.(ReferPNX:ASXrelease13thDecember2012)F
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Highgradecopperore,Burraopencut.
TermsoftheBindingOptionagreementinclude:
• InitialOptionfeecomprisingAusmexcompletearegionalgeophysicalprogramthatwillinvolvetheexpenditureof$30,000to$50,000overthenext12monthsorthedurationofthegeophysicalprogram,whicheveristheshorter.
• PNXwillimmediatelymaketheirdatabaseandpastexplorationdataavailabletoAusmexandAusmexwillmaketheresultsoftheoptionperiodgeophysicalprogramavailabletoPNXfortheirusethereafter.
• AusmexmayexercisetheOptionatanytimeduringtheOptionperiodormaywithdraw
fromtheOption,orthesubsequentJV,atanytimewithoutpenalty.
• ShouldAusmexexercisetheOptioncreatingtheJointVenture,the1stStagefarm-inwillinvolveAusmexearninga60%interestintheJointVenturethroughundertaking1,500mofcoreddrilling,orotherexploration toanequivalentvalue,within12monthsofexercisingtheOption.
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• OncompletionofAusmexearning60%oftheJointVentureatthecompletionofStage1, PNXmay opt to contribute thereafter on a 60/40 basis or if that is not the case,Ausmexcanearn90%oftheJointVentureinaStage2farm-inbythefurthercompletionof 1,500m of cored drilling, or other exploration to an equivalent value, within 12monthsofcompletingStage1.
• OncompletionofAusmexearning90%oftheJointVentureatthecompletionofStage
2, PNXmay opt to contribute thereafter on a 90/10 basis or if that is not the case,Ausmexwillobtain100%andPNXbeentitledtoa2%NetSmelterReturnroyaltyonanyproductionfromthePNXELareas.
• ShouldAusmexexercisetheOptionandearnajointventureinterestintheTenements,
thepre-existingPNXTenementAcquisitionandRoyaltyAgreements(asdetailedinPNX’sAnnualReports)willbeassumedbyAusmex,intheformrequiredinaccordancewiththeTermSheetandAusmex’sproportionateshareof theobligationsassociatedwithsuchagreements.
LocationPlanofAusmex100%ownedBurraProjectsuitewithinthe
ProspectiveG2StructuralCorridor
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MONGOLIANGOLDANDTUNGSTENPROJECT
ChuluunKhoroottungstendepositandgoldoccurrence,XV-015591.Nofieldworkwascompletedduring thequarteron theprospectiveTungstenandGoldproject. Further expressions of interest by several parties to potentially purchase theprojecthavebeenreceived,inthelightofrisingTungstenprices,theBoardisreviewingalloptionsfortheprojectandmayconsiderdivesting.
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CloncurrySouthGroupofTenements
Tenement
Project Name
Holder
Ausmex Beneficial Interest
(%)
Grant Date
Expiry Date
Area
(km2/ha)
Status
EPM14163 White Range #2 Mt Norma Mining Company Pty Ltd1
80 19/10/2004 18/10/2019 17 Granted
EPM14475 White Range #4 Spinifex Mines Pty Ltd2 80 27/06/2005 26/06/2017 36 Renewal Lodged 23/03/2017
EPM15858 Sunny Mount QMC Exploration Pty Ltd3 80 23/10/2008 22/10/2018 17 Granted
EPM18286 Elder Creek Flamingo Copper Mines Pty Ltd 80 14/01/2013 13/01/2018 20 Granted
ML2517 Answer North Queensland Mines Pty Ltd 1004 01/12/1973 30/11/2025 8.09 Granted
ML2541 Belgium Qld Mining Corporation Limited 100 01/02/1974 31/01/2021 4.05 Granted
ML2549 The Trump North Queensland Mines Pty Ltd 100 01/02/1974 31/01/2021 12.14 Granted
ML2709 Gilded Rose Spinifex Mines Pty Ltd 80 21/01/1982 31/01/2024 2.03 Granted
ML2713 Gilded Rose Extd East Spinifex Mines Pty Ltd 80 21/01/1982 31/01/2024 18.21 Granted
ML2718 Gilded Rose Extd West Spinifex Mines Pty Ltd 80 20/09/1984 30/09/2026 14.17 Granted
ML2719 Gilt Edge Extd East 1 Spinifex Mines Pty Ltd 80 29/03/1984 31/03/2026 32.00 Granted
ML2741 Mt Freda Spinifex Mines Pty Ltd 80 29/05/1986 31/05/2028 3.80 Granted
ML2742 Evening Star Spinifex Mines Pty Ltd 80 29/05/1986 31/05/2028 8.09 Granted
1MtNormaMiningCompanyPtyLtdisawhollyownedsubsidiaryofQldMiningCorporationLimited2SpinifexMinesPtyLtdisawhollyownedsubsidiaryofQldMiningCorporationLimited3QMCExplorationPtyLtdisawhollyownedsubsidiaryofQldMiningCorporationLimited4SeeASXannouncement06/07/2017
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ML2750 Evening Star North Extd Spinifex Mines Pty Ltd 80 26/01/1989 31/01/2028 5.14 Granted
ML2752 Mt Freda Extd Spinifex Mines Pty Ltd 80 23/02/1989 29/02/2028 116.48 Granted
ML2763 Evening Star North Spinifex Mines Pty Ltd 80 08/06/1989 30/06/2028 8.00 Granted
Burra Project Group of Tenements
Tenement ProjectName Holder StatusAusmexBeneficial
InterestArea(sqkm)
ApplicationDate GrantDate
ExpiryDate
EL4970 PNXBurraNorth PNXMETALSRenewalPending Optiontoearn60% 300 3/6/2012 3/5/2017
EL5382PNXBurraCentral PNXMETALS Granted Optiontoearn60% 84 2/24/2014 2/23/2019
EL5411 PNXMongolata PNXMETALS Granted Optiontoearn60% 60 3/10/2014 3/9/2019
EL5473 PNXBagotWell PNXMETALS Granted Optiontoearn60% 71 8/5/2014 8/4/2019
EL5557 PNXWashpool PNXMETALS Granted Optiontoearn60% 135 11/10/2014 11/9/2019
EL5874 PNXBurraWest PNXMETALS Granted Optiontoearn60% 69 7/25/2016 7/24/2018
EL5881 BurraAUSMEXMINING Granted 100% 970 11/4/2016 11/3/2018
EL5910 PNXSpalding PNXMETALS Granted Optiontoearn60% 157 1/2/2017 1/1/2019
EL5918PNXPrincessRoyal PNXMETALS Granted Optiontoearn60% 314 11/23/2016 11/22/2018
ELA2017/00111 BurraEast
AUSMEXMINING Application 100% 926 6/2/2017
ELA2017/00112
BurraNorthWest
AUSMEXMINING Application 100% 985 6/2/2017
ELA2017/00113
WorldsEndSouth
AUSMEXMINING Application 100% 986 6/2/2017 F
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ELA2017/00170 BurraFarSouth
AUSMEXMINING Application 100% 128 8/10/2017
Mongolian Project Tenement
XV-015591 ChuluunKhorootCentrevilleLLC 100 Granted
Tenement Project Name Registered Holder Ausmex
Beneficial Status Interest (%)
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AusmexBurraEL5881locationplan
End.Forfurtherinformation,pleasecontact:MatthewMorganManagingDirectorAusmexMiningGroupLtd
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ForwardLookingStatementsThe materials may include forward looking statements. Forward looking statementsinherently involve subjective judgement, and analysis and are subject to significantuncertainties,risks,andcontingencies,manyofwhichareoutsidethecontrolof,andmaybeunknownto,thecompany.
Actualresultsanddevelopmentsmayvarymateriallyfromthatexpressedinthesematerials.Thetypesofuncertaintieswhicharerelevanttothecompanymayinclude,butarenotlimitedto, commodity prices, political uncertainty, changes to the regulatory framework whichapplies to the business of the company and general economic conditions. Given theseuncertainties, readers are cautioned not to place undue reliance on forward lookingstatements.Anyforward-lookingstatementsinthesematerialsspeakonlyatthedateofissue.Subjecttoanycontinuingobligationsunderapplicablelaworrelevantstockexchangelistingrules,thecompanydoesnotundertakeanyobligationtopubliclyupdateorreviseanyoftheforward-lookingstatements,changesinevents,conditionsorcircumstancesonwhichanystatementisbased.
CompetentPersonStatementStatementscontainedinthisreportrelatingtoexplorationresultsandpotentialarebasedoninformationcompiledbyMr.MatthewMorgan,whoisamemberoftheAustralasianInstituteofMiningandMetallurgy(AusIMM).Mr.MorganistheManagingDirectorofAusmexMiningGroup Limited and Geologist whom has sufficient relevant experience in relation to themineralisationstylesbeingreportedontoqualifyasaCompetentPersonasdefined intheAustralianCodeforReportingof IdentifiedMineral resourcesandOrereserves (JORCCode2012).Mr.Morgan consents to the use of this information in this report in the form andcontextinwhichitappears.
JORC Code, 2012 Edition – Table 1 report Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary
Sampling techniques
• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
• Random Rock chip
samples taken by G pick • XRF analysis was by
Niton XL2 hand held • Samples were selected
from outcrops within the Gilded Rose mining, the Belgium mining area, EPM15858, & 14163
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Criteria JORC Code explanation Commentary • Include reference to measures taken to
ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the Public Report.
• In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
Rock chips were located randomly in the field for exploration, yet chiseled by jack hammer over 1m composites for the Belgium copper mine. Samples were submitted to SGS laboratory where 50g charges were collected for Fire assay and ICP analysis
Drilling techniques
• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
• No drilling, logging or sampling was conducted as part of this release.
Drill sample recovery
• Method of recording and assessing core and chip sample recoveries and results assessed.
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.
• No drilling, logging or sampling was conducted as part of this release
Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
• The total length and percentage of the relevant intersections logged.
• No drilling, logging or sampling was conducted as part of this release
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Criteria JORC Code explanation Commentary
Sub-sampling techniques and sample preparation
• If core, whether cut or sawn and whether quarter, half or all core taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
• Whether sample sizes are appropriate to the grain size of the material being sampled.
• No drilling, logging or sampling was conducted as part of this release
Quality of assay data and laboratory tests
• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
• Industry standard Fire assays were completed by SGS laboratories for Gold and ICP analysis for metals including copper.
• Duplicate and checks were conducted by SGS laboratories whilst completing the analysis
Verification of sampling and assaying
• The verification of significant intersections by either independent or alternative company personnel.
• The use of twinned holes. • Documentation of primary data, data entry
procedures, data verification, data storage (physical and electronic) protocols.
• Discuss any adjustment to assay data.
• No drilling, logging or sampling was conducted as part of this release
• No assays were adjusted
Location of data points
• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
• Specification of the grid system used.
• Rock Chip sample locations were determined by hand- held GPS readings at the location of each sample (accuracy +/- 5m) and recorded in MGA94, Zone 54
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Criteria JORC Code explanation Commentary • Quality and adequacy of topographic
control. datum
Data spacing and distribution
• Data spacing for reporting of Exploration Results.
• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
• Whether sample compositing has been applied.
• Rock chip samples were taken randomly along ~ outcrop at Gilded Rose, EPM15858 & EPM141, yet 1m composites were collected at the Belgium copper mine.
• Data spacing and distribution is NOT sufficient for Mineral Resource estimation
• No sample compositing has been applied.
Orientation of data in relation to geological structure
• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
• The orientation of samples is not likely to bias the assay results.
Sample security
• The measures taken to ensure sample security.
• Samples were taken to Cloncurry by company personnel and dispatched by courier to the SGS Laboratory in Townsville
Audits or reviews
• The results of any audits or reviews of sampling techniques and data.
• No audits or reviews have been undertaken at this stage.
Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status
• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
• ML2718, ML2709, ML2713, ML2719, ML2741 & EPM14163 are owned 100% by Spinifex Mines Pty Ltd. Ausmex Mining Group Limited owns 80% of Spinifex Mines Pty Ltd. Queensland Mining Corporation Limited own 20% of Spinifex Mines. Exploration is completed under an incorporated Joint Venture.
• EPM14475, EPM15858, &
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Criteria JORC Code explanation Commentary EPM18286 are held by QMC
Exploration Pty Limited. Ausmex Mining Group Limited owns 80% of QMC Exploration Pty Limited. Queensland Mining Corporation Limited own 20% of Spinifex Mines. Exploration is completed under an incorporated Joint Venture.
• ML2549, ML2541, ML2517 are 100% owned by Ausmex.
Exploration done by other parties
• Acknowledgment and appraisal of exploration by other parties.
• All exploration programs conducted by Ausmex Mining Group Limited
Geology • Deposit type, geological setting and style of mineralisation.
• ML2718, ML2709, ML2713, ML2719 hosts the Gilded Rose sheer hosted quartz reef. There are several gold mineralised hydrothermal quartz reefs within the deposit.
• ML2741 hosts the shear hosted quartz rich Mt Freda Gold deposit containing Au, Cu, & Co.
• ML2549, ML2541, ML2517 host copper mineralisation associated with carbonate intrusions into altered mafic host rocks
Drill hole Information
• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill
hole collar o elevation or RL (Reduced Level –
elevation above sea level in metres) of the drill hole collar
o dip and azimuth of the hole o down hole length and interception
depth o hole length.
• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the
• No drilling, logging or sampling was conducted as part of this release.
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Criteria JORC Code explanation Commentary understanding of the report, the
Competent Person should clearly explain why this is the case.
Data aggregation methods
• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.
• No drilling, logging or sampling was conducted as part of this release
• No material information is excluded.
• No intersections have been reported as part of this release.
• All sample 65 sample locations and fire assay Au results have been displayed.
• An average sample grade was displayed from the total samples taken, yet not a weighted average.
Relationship between mineralisation widths and intercept lengths
• These relationships are particularly important in the reporting of Exploration Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
• No drilling, logging or sampling was conducted as part of this release
• No material information is excluded.
• No intersections have been reported as part of this release.
Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
• Maps showing the location of all Ausmex tenements projects are presented in the announcement
Balanced reporting
• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
• All comprehensive Fire assay results for Gold and ICP results for copper, plus screen shots of Cobalt readings were reported.
Other substantive exploration data
• Other exploration data, if meaningful and material, should be reported
• Historical mining grades from have been
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Criteria JORC Code explanation Commentary including (but not limited to):
geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
stated. •
Further work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
• Additional mapping, costeans, geophysical surveys, RC and Core drilling
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