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Aerial Drone of NSS @ Work

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Ausmex Mining has started resource definition drilling at its Mt Freda project near Cloncurry, with RC and diamond rigs targeting high-grade gold extensions to former owner Queensland Mining Corporation’s previous estimate.

Diamond core drilling is specifically targeting high-grade gold under the floor of the site’s open pit.

Ausmex said the aim was to recover metallurgical test work samples to gauge the potential to restart mining.

The Mt Freda open-cut operated from 1986 to 1989, with mining ceasing when gold prices fell to $US260 per ounce.

“With the current escalating gold prices in excess of $AU2000 per ounce, the company intends to define further high-grade gold resources and review the potential to recommence mining at Mount Freda,” Ausmex said in a statement to the market.

It has simultaneously been progressing drilling at its Golden Mile project within the Mt Freda complex.

Ausmex says results support the potential for the complex to host significant high-grade gold mineralisation.

The Golden Mile consist of eight parallel north-south striking historical gold mines, dormant since 1939, across a 2km wide zone (image below).

The Golden Mile prospect is a joint venture between Ausmex (80 per cent) and Round Oak Minerals.

Gold price rise puts Mt Freda mining in new light