On 26 October 2018, Ausmex Mining Group Limited (ASX: AMG
) announced that it has discovered two additional high-grade gold systems within the Golden Mile project. The Shamrock and Mt Scheelite which are high-grade gold and tungsten mines were never been drilled before. The first-time drilling by Ausmex has produced an excellent result of up to 2m at 23.5 grams per tonne – 37 metres from surface. Following the release of this news, the share price of the company increased by 12.245 percent as on 26 October 2018.
Geologists have discovered an additional 400m of drilling targets that are now prospective for both gold and tungsten at Mt Scheelite. The Golden Mile project is a part of the Mt Freda Gold Complex and the latest results have increased the current width of the Golden Mile to 2km with a combined strike length of mineralized reefs of more than 8km. Till now the golden mile project consists of 8 parallel north-south striking zones of mineralization all of them were historically producing high-grade gold mines. The drilling at Shamrock has increased its southern strike length with drill hole SH18RC008 which is located at the previous southern limit of the Shamrock pits and historical workings. Drilling is also currently extending the Shamrock mineralization to the North with east-west fence drilling.
As per Managing Director Mr. Matt Morgan, Mt Scheelite has never been drilled previously yet the first two drill holes completed by the Company have produced excellent grades near surface including up to 0.4 percent Tungsten with gold. With Tungsten prices currently sitting at AUD$ 40,000 per tonne, 0.5% could possibly contain up to AUD$2,000 per tonne of material. These grades have the potential to significantly add to the economics of any shallow surface gold mineralization and reflect the previously untested prospectively identified by the company within the Golden Mile and the Mt Freda Complex.
On 16 October 2018, the company announced that currently 14 percent of 3D modelling has been completed to date by the University of Adelaide with a large 30km long conductive drilling target already identified. This is extremely encouraging as there is still 86% of the 3D modelling to be completed, including modelling around the Burra Monster Copper Mine and the Princess Royal high-grade copper and gold mine. More importantly, the 3D modelling results are a proof of Concept that the MT survey can identify large, near surface conductive drilling targets.
In FY 2018, Company reported operating loss after tax of $3.5 million which was a loss of $10.8 Mn in FY 2017. The operating loss was significantly impacted by the valuation of share-based payments of $2.05 million and listing costs of $6.21 million which increased under reverse acquisition accounting requirements. The Net cash outflow from operating activities increased from $1.1 million in FY 2017 to $4.62million in FY 2018.
In the last three months, the share price of the company increased by 32.43 percent as on 25 October 2018. AMG’s shares traded at $0.055 with a market capitalization of circa $19.82 million as on 26 October 2018 (AEST 4:00 PM).
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