Ausmex takes 60 per cent control of Burra

Image: Ausmex.

Ausmex Mining has gained 60 per cent control of PNX Metals Burra tenements in South Australia, while drilling work has also been suspended due to fire bans in the area.

The company had undertaken drilling ending on December 17 2019 at the Princess Royal Prospect, located 15 kilometres south of the Burra township.

This drilling took Ausmex past the JV farm-in agreement expenditure requirement with PNX Metals, earning the company a 60 per cent controlling interest in all of the Burra tenements.

Ausmex’s farm-in agreement with PNX Metals was entered into earlier in 2017, based upon the adjoined and nearby tenements in Burra.

The tenements presented were all held by PNX and included surrounding areas such as the Monster mine, the Princess Royal prospect, the Eagle Vale prospect and the Mongolata Goldfield.

Combining PNX and Ausmex’s tenements around Burra was initially planned to enhance the ability of Ausmex in Burra’s regional context.

When combining PNX’s 1190 square kilometres and AMG’s 970 square kilometres, the total created an exploration package of 2160 square kilometres over a highly prospective stretch of regional gold and copper field.

Ausmex’s exploration strategy to locate further examples of Burra mineralisation was described by several experts as “the other half” of the Monster mine orebody.

Once having met the milestone and notifying PNX of the company’s increased control in the operations, drilling work was later suspended due to fire bans declared around Burra.

The fire bans have been declared around Burra for December 19 to 21, with no further work to be undertaken over the three days.

The drillers have therefore demobilised and the suspension will be ongoing, with drilling to recommence approximately mid-January 2020 when temperatures drop, and the wellbeing of staff can be assured.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.