Ausmex says it expects to commence mining at its Golden Mile and Mt Freda projects in Queensland following regulatory and land court decisions.
The company said the period to transition from explorer to gold producer had been “frustrating”.
“After completing exhausting regulatory and landowner compensation agreements, including having a recent favourable determination for compensation by land courts, (now determined) the company can now move a giant step towards the commencement of mining,” Ausmex said.
The Mt Freda complex contains assays from 5 metres at 7.53 grams per tonne of gold from 79 metres, including 1 metre at 29.30 grams per tonne of gold.
It contains 113,000 ounces of indicated and inferred resources, according to Ausmex’s maiden global mineral resource estimate.
Ausmex has an 80 per cent interest in the Golden Mile joint venture (JV) project with Exco Resources.
In February, the company intersected high-grade gold from five metres at 7.56 grams per tonne of gold from 21 to 26 metres.
Ausmex will submit its final plan of operations to the Queensland Government for approval.
“These events have been frustrating to shareholders and the board to say the least. The Ausmex board can only apologise for the unanticipated holdups, due to these events, which were out of the board’s control,” Ausmex stated.
“At this time, the company is expecting the mining lease (MLA 100201) for Golden Mile will be granted shortly.”
“The company can now complete and submit the final plan of operations for approval by the Queensland Government.”
Once approved, Ausmex will begin mining and production.
The Mt Freda mine operated in the early 1900s and the 1980s until the gold price crashed in 1989.