Ausmex Mining Group Ltd (ASX:AMG) has confirmed that high-grade gold ore near the surface remains unmined at the historical Comstock gold mine in Queensland, with plan to bring the project quickly into production.
Assays from the first hole in a three-hole infill Diamond Drilling programme at Comstock, show that the company intersected five metres of gold at 7.65 g/t from 21 to 26m, including one metre at 28.34 g/t from 23 to 24m.
Results from the remaining two holes are waiting to be assayed.
The Comstock is one of the three historical Gold mines that Ausmex has planned to bring into cold production in the first Quarter of 2021. The Comstock, historically, recorded production in the Queensland mining journals, an average grade of 80.1g/t Au between 1932-1935. It is one of eight, high grade historical Gold mines that form a portion of a two km-wide mineralised zone, named the Golden Mile Gold Project.
The latest result indicates an abundance of high-grade cold is still in situ at the shallow level, confirming that mining in the early 1900’s only mined underground to shallow depths.
Managing Director, Aaron Day, said the high-grade dold at shallow depths, will contribute positively to early cash flows in mining operations.
All drilling at the three mines, on the Golden Mile, drilled so far, have intersected high grade gold at shallow depths.
Mr Day said the drilling and visual inspections confirms mining ceased at around eight to 15 metres depth on all three mines.
All mining at the turn of the century was mined by hand, with no mechanical mining equipment available.
Since 1935 these high-grade Gold mines have remained undiscovered. It was only in 2018 that they were rediscovered by an Ausmex Geologists in dense undergrowth and scrub.
The drilling to date has concentrated on shallow drilling, (50m depth) with the plan to bring the mines into cash flow as quickly as possible. The Golden Mile Project is a JV Ausmex 80% and Round Oak Minerals Pty Ltd, a subsidiary of one of Australia’s largest diversified investment groups, W.H. Soul Pattinsons Ltd.
All ore mined at the Golden Mile is to be processed under the JV agreement at the Round Oaks Minerals 650,000 tpa Gold processing CIP plant, located at Cloncurry in NWQ approx. 60klms by road.