Newcrest Mining has commenced Tier 1 drilling at a highly prospective IOCG (iron ore-copper-gold) target in Cloncurry, Queensland.
The gold miner’s drilling at the prospect (named Canteen) is located in the Mt Isa Inlier and fulfils part of a farm-in agreement with company Exco Resources, which first identified the prospect in 2012.
Newcrest’s involvement with Canteen was briefly mentioned in a list of Australian option, farm-in and joint venture projects in its presentation from the 2018 Diggers and Dealers mining forum held in Kalgoorlie in August.
The target is particularly significant for neighbouring junior Ausmex Mining Group. Around 30 per cent of the target area identified by Exco intersects Ausmex’s Mt Freda mineral complex, which hosts shallow gold, copper, cobalt and rare earth minerals and is expected to produce a JORC result imminently.
Ausmex managing director Matt Morgan confirmed Newcrest’s drill start as “a wonderful outcome” for Ausmex, calling it “the moment all junior listed companies wait for”.
“The Ausmex team always suspected that we were sitting on a very large mineralised system at the Mt Freda complex,” he said.
“To have this confirmed by a leading international mining house such as Newcrest Mining Limited, whom themselves have identified the Canteen project that adjoins the Mt Freda complex as a Tier 1 IOCG drilling target, is exceptional.”