Ausmex to expand Cloncurry foothold ahead of gold production

Ausmex mining leases Source: Ausmex

Ausmex Mining Group has formed a strategic alliance with Activex in a bid to bring its Mt Freda gold complex in Queensland into production this year.

Both parties will team up to identify and acquire gold ore processing facilities in Cloncurry.

The collaboration will run for a period of four months but can be mutually extended.

Ausmex holds 12 granted mining leases within the Cloncurry region with a combined area of more than 200 hectares, which are all within hauling distance to third party ore processing facilities.

Any partnership or joint venture to be entered into as a result of the strategic alliance will be formed with Ausmex acquiring a 75 per cent interest and Activex holding a 25 per cent interest.

The Mt Freda open cut mine was previously operated by Diversified Mineral Resources from 1987 to 1991, producing approximately 30,000 ounces of gold a year at an average grade of four grams per tonne.

Mining ceased in 1991 following a fall in gold price to historic lows below $US300 ($466) per ounce.

In August last year, Ausmex applied for a 225 hectare mining lease over the Golden Mile high-grade gold project located within the Mt Freda complex.

The combination of the Golden Mile application and the current Mt Freda mining leases will allow Ausmex to schedule a development of a multi pit, mining hub facility within hauling distance of Cloncurry clean-in-place (CIP) processing facilities.

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