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New estimates take the resource at Ausmex Mining Group’s Mount Freda complex near Cloncurry to 124,300oz of gold as the company continues to fine-tune mining plans.

Ausmex said it was focused on completing the feasibility study for the historical Mount Freda mine, with the possibility of an open-cut mining operation to extend the pit as well as underground mining by decline

Previous open-pit operations there ceased production in 1991 due to plummeting gold prices.

The company is also waiting for the granting of the mining lease for the nearby Golden Mile project, which includes the Comstock, Shamrock and Falcon historical gold mines.

These are located roughly 500m to the north of Mount Freda and are included in its Mount Freda Complex global resource.

The company today announced an updated Mount Freda mineral resource estimate of 1.01 million tonnes at 2.66 g/t gold for 86,000oz of gold, taking the new resources for the wider project to 124,300oz.

The company said infill drilling in late 2020 had provided valuable information on mineralisation continuity.

This enabled re-interpretation of the Mount Freda lode, where the mineralisation was still open at depth, it said.

In a statement reporting the resource upgrade, Ausmex said the directors’ strategy had been to prove a shallow resource at Mount Freda of about 100,000oz gold.

This would pave the way to commence gold production as soon as possible and to recommence drilling to increase the resource once in production.

Cyanide leaching test work carried out by Amdel Mineral Laboratories using the Mount Freda ore produced high yields of above 90 per cent, the company said.

The historical operator of the Mount Freda mine, Diversified Mineral Resources, reported CIP recoveries of 95 per cent.