geoscience australia’s auslamp* program has … · 13/03/2018  · 3 ausmex mining group ltd asx:...

Ausmex Mining Group Limited ACN 148 860 299

T | (02) 8315 3268 A | Level 13/50 Carrington Street, Sydney NSW 2000 E | enquiries@ausmexgroup.com.au

13March2018

ASXMARKETRELEASE

GEOSCIENCE AUSTRALIA’S AUSLAMP* PROGRAM HAS IDENTIFIED A LARGECONDUCTIVETARGETUNDERTHEAUSMEXTENEMENTPACKAGEATBURRA,SOUTHAUSTRALIA,WHICHISSIMILARINAPPEARANCETOTHATASSOCIATEDWITHTHEWORLDCLASSIOCGDEPOSITATOLYMPICDAM.

Ø TheAusLAMP*explorationprogramconductedbyGeoscienceAustralia,UniversityofAdelaide,&theGeologicalSurveyofSouthAustraliahasidentifiedalargeconductivestructurebelowAusmex’sExplorationLicencesuiteatBurra.

Ø ConductivestructuresofsimilarmagnitudetothatbelowBurrahavealsobeenidentifiedbytheAusLAMPprogramintheGawlerundertheWorldClassIOCGdepositsatOlympicDam,CarrapateenaandProminentHill.

Ø OlympicDam,Carrapeteena,ProminentHillandBurraarealllocatedwithinthehighlyprospectiveG2Corridor.

Ø TheconductivetargetmayindicatealargesourceoftheknownBurraHighGradeCobalt,CopperandGoldmineralisation.

Ø Ausmexstrategicallyappliedforandwasawarded4additionalExplorationLicences(ELs6101,6102,6103and6116)tocovertheknownextentofthelargeconductivestructure.

Ø ThenewExplorationLicencescomplementandinterfacewithAusmex’soriginalEL5881andtheELsthataresubjecttotheOptionAgreementwithPNX(RefertoASXrelease07August2017).

Ø Ausmexhasacurrentapplication,ELA2018/00022tothesouth,knownasRiverton,whichisunderconsiderationbytheSAdepartment.

Ø These4additionalELstotal3033sq.kms,whichwhenaddedtoAMG’sEL5881andtheELsthatarethesubjectofthePNXOptionAgreementtotal4,722sq.kms.TheRivertonELAwouldaddafurther999sq.kms.whengrantedasanEL.F

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Ø AusLAMP is The Australian Lithospheric Architecture Magnetotelluric Project, acollaborative national survey that acquires magnetotelluric (MT) data aboutAustralia's geodynamic framework as well as valuable information for resourceexploration.

Figure 1 - Plan showing the red conductive structure approx. centred below Burra, asdefined by the recent AusLAMP program undertaken by Geoscience Australia, theGeologicalSurveyofSouthAustraliaandtheDepartmentofEarthSciencesattheUniversityofAdelaide.

Ref-Figures1&3havebeenderivedfromonethatwaspresentedbyDPCtotheDiscovery2017conferenceinAdelaide,butthesefigureshaveAusmex’sEL’shighlightedforclarity.Figures1and3includesomeshadingandcrosshatchingfromthesourcedocumentthatisirrelevanttothisannouncement.PleaserefertoFigure2fordetailsoftheCompany'sELsandELA.

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AusmexMiningGroupLtdASX:AMG(“TheCompany”)ispleasedtoannouncethatalargeAusLampconductivestructurehasbeenidentifiedbytheAusLAMPprogram,locatedunderAusmex’scurrentBurratenementsuite.Thecompanyhasnowstrategicallyaccumulatedasignificanttenementpackagecoveringthe largeregionalAusLAMPConductiveTargetthathas similar appearance to current AusLAMP anomalies under the threeworld class IOCGdeposits,OlympicDam,ProminentHill, andCarrapateena. The additional awarded4newExplorationLicencessurroundandadjoinAMG’soriginalEL5881andtheExplorationLicencesthatarethesubjectofAMG’sOptionAgreementwithPNX(RefertoASXrelease07August2017).ThesenewELstotalanareaof~3033sq.kms.andallarelocatedoveroraroundtheconductivestructurethatliesbelowBurra.

Figure2.AusmexBurratenementholdingsoverlainontheregionalstructure.

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Figure3-ShowingtheredconductiveAuslampstructureapprox.centredbelowBurra,withfurther details of the Ausmex Exploration Licences and towns in the Region. Note thecorrelationtoFigure5&6below,asimilarsignatureundertheWorldClassIOCGOlympicDam.

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Figure4.ToassistreaderstoconsiderthescaleoftheconductivestructurebelowBurra,asidentified by the red from the AusLAMP program, the above shows that conductivestructuretoscalerelativetoSydney,Melbourne&Adelaide.

Figure 5. Conductivity pathways revealed from high resolution broadband MT survey(UniversityofAdelaide,G.Heinson&P.Soeffkypers.Comm2016)acrosstheOlympicDamarea.PathwaysreachthesurfaceatthelocationofknownIOCGdeposits.

Ref,PosterpresentedbytheGeologicalSurveyofSouthAustraliaattheirDiscoveryDay,titled“ScalereducingMTexplorationfundedbyPACECopper”byKateRobertson&StephanThielfromtheGeologicalSurveyofSouthAustraliaandbyGrahamHeinsonandBenKayfromtheUniversityofAdelaide.F

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Figure6.Theresultsofaninversionof74PACECopperfundedlong-period(10-10000s)AusLAMPsites(Robertsonetal.,2016,2017;Fig1yellowrectangle).TheinversionrevealedalargeconductorthroughoutthecrustoftheCurnamonaProvinceofverylowresistivity(~1 Ohm.m; the Curnamona Conductor), and is investigated by the Curnamona InfillTransect.

Ref,PosterpresentedbytheGeologicalSurveyofSouthAustraliaattheirDiscoveryDay,titled“ScalereducingMTexplorationfundedbyPACECopper”byKateRobertson&StephanThielfromtheGeologicalSurveyofSouthAustraliaandbyGrahamHeinsonandBenKayfromtheUniversityofAdelaide.

AMG Comment - Note similarity in appearance of these structures to the conductivestructurebelowBurra.PleaserefertoFigures8fortheapprox.locationoftheGawlerandCurnamonaCratons.

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Figure7(FromtheCurnamona).Top:Resistivitymodelfrom2DinversionofCCMT-17datawithBouguergravityshownforperspective.Bottom:ResistivitycrosssectionofAusLAMP3DmodelacrosstheCCMT-17transectwithRTPTMIforperspective.YellowtrianglesshowCCMT-17sitelocation.

Ref,PosterpresentedbytheGeologicalSurveyofSouthAustraliaattheirDiscoveryDay,titled“ScalereducingMTexplorationfundedbyPACECopper”byKateRobertson&StephanThielfromtheGeologicalSurveyofSouthAustraliaandbyGrahamHeinsonandBenKayfromtheUniversityofAdelaide.Ausmex comment - Showing further interpretation and mineral pathways in theCurnamona.

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Figure8.TheG2StructuralCorridorLocationPlan.NoteBurrasharestheG2StructuralCorridorwiththreeWorldClassIOCGdeposits.TheseThreeWorldClassDepositsalsosharesimilarAusLampconductivestructuralpathwaystothoseidentifiedatBurra.

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ManagingDirectorMattMorganstated:

“AusmexholdsahighlyprospectiveBurratenementsuiteintheG2StructuralCorridorthatwenowunderstand,followingtherecentAusLAMPSurvey,sharessimilardeepconductivestructurestothosebelowtheWorldClassIOCGdepositsOlympicDam,ProminentHillandCarrapateena.

WiththerecentWillalohighgradeCobaltdiscoveryplusthecombinationofthehistoricBurraMonsterCopperMine,thePrincessRoyalCopperdeposit,andtheGoldatBlackHillsandTheMongolata, the AusLAMP deep conductive structure may now be an indication that thesourcetotheBurramineralProvincemaybeadeepseatedIOCGtarget.

The breadth of themineralisation throughout the Burra region, in both area and nature,excitedAusmexfromthedatethatthecompanywasfoundedandledustosuspectthattheremaybesomemajorundiscoveredmineralisationorpathwaysunderoraroundBurra.

WearealsoawarethatwhileminersandexplorerswereactivearoundBurrainthemid-late1800’s and the early 1900’s, they were limited to outcrops and there has been limitedexplorationthroughoutthisareaandalmostallofthoseeffortswereconcentratingonCopperandGold.

Whilethenorthernsectionofourtenementsareundercoverwhichhaspreviouslylimitedexploration,ourworkalsoindicatesveryinterestingchangesofstructuretothenorthofBurrawhichwesuspectmayprovideidealconditionsformineralisation“Traps”.

Ausmex has spent considerable time during 2017 not only understanding the history ofexploration and mining throughout the district but also examining modern explorationtechniquesthathavepotentialtoexploreallofourgroundaroundBurra.WeparticularlywishtopaytributetotheassistancethathasbeenprovidedtousbytheUniversityofAdelaideDepartment of Earth Sciences, theGeological Survey of SouthAustralia and theMineralssectionsattheSADepartmentofPremierandCabinet.

Ascanbeseenfromthisannouncement,theMagnetotellurictechniques(MT)thatwereusedfortheAusLAMPsurvey(asperformedbytheabovedepartmentsworkingwithGeoscienceAustralia)hasproventobeabletodefineconductivestructuresintheAdelaideGeosynclineandmineralisationpathwaystothesurface&outlineIOCGdepositsunderSouthAustralianconditions.

Ausmex hopes that shareholders will see the value in the strategic work that has beenundertakentoarriveatthisannouncement,togetherwiththepartnershipsthathavebeenformedwiththevitalandprovenorganisationswiththenecessaryexpertisetoallowAusmextonowpressaheadinBurra.

Ausmex now has a small team located in South Australia and we look forward to theinformationflowthatweshouldprovidetoshareholdersoverthecomingmonths.”

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Ends

Forfurtherinformation,pleasecontact:

MattMorgan

ManagingDirector

AusmexMiningGroupLtd

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 speakonly at thedate 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 theManagingDirectorofAusmexMiningGroupLimitedandGeologistwhomhassufficientrelevantexperienceinrelationtothemineralizationstylesbeingreportedontoqualifyasaCompetentPersonasdefinedintheAustralianCodeforReportingofIdentifiedMineralresourcesandOrereserves(JORCCode2012).Mr.Morganconsentstotheuseofthisinformationinthisreportintheformandcontextinwhichitappears.

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