Ausmex Mining Group Share Price Heats up Ahead of Production
The share price of microcap gold explorer Ausmex Mining Group Ltd [ASX:AMG] has shot up today on high-grade results from its Mt Freda project in Queensland.
Further results from AMG’s Gold Mine Project were also released ahead of mining to begin early next year, also spurring on the share price.
Unlike many small-cap Aussie gold miners we cover at The Daily Reckoning Australia, AMG’s share price faired well in the face of historically high gold prices.
At time of writing, AMG shares are up 12.82% to 4.4 cents per share, though the explorer has still recorded a negative 12-month return of ~51%.
Is the Ausmex share price poised to rebound?
AMG owns a series of projects across Queensland and South Australia, with its primary focus to transform the gold projects of Mt Freda and Golden Mile into production as quickly as possible.
Today, the explorer reaffirmed mining would commence in the first quarter in 2021 alongside the release of results from JORC resource upgrade drilling.
Highlights from Mt Freda include:
- 11 meters at 3.60 grams of gold per tonne (g/t) from 41m, including 2m at 13.80g/t
- 12 meters at 3.54g/t from 43m, including 4m at 8.34g/t
- 5 meters at 11.24g/t from 133m, including 3m at 18.59g/t
AMG said that infill drilling at the project is almost complete with five drill holes already completed and assays just received from three.
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Mt Freda is a historical open pit mine in operation during the 1980s, recording a head grade of over 5g/t.
The project is currently undergoing a massive dewatering program of the historical open cut mine with over 150,000,000 litres removed.
The explore also gave further details of its Golden Mile Project, a group of eight historic high-grade gold mines with a total approximate combined strike length of 8km.
Specifically, AMG said that the historical gold mine’s open cut pit shells have now been completed with the pre-feasibility study indicating high margins from mining and processing.
Outlook for Ausmex Mining
A resource upgrade for Mt Freda was expected to be delivered last month, however due to drill rig availability we may not see that upgrade until the New Year.
AMG said all the remaining holes required for the JORC upgrade will be completed on 8 December.
Things are looking positive at Mt Freda too.
Including the latest assays already received, AMG say if the next holes remain consistent they are expected to vastly increase the Mt Freda gold grade.
Which could mean we see nice moves in the AMG share price over the coming months. With gold still at historic highs, Australia is looking to knock China off the top spot as the undisputed global leader in gold exploration, mining and production. In her latest report, gold expert Shae Russell breaks down what Australia becoming the new gold ‘epicentre’ means for gold and Aussie gold stocks like Ausmex Mining. Click here to download the free report.
For The Daily Reckoning Australia