resource drilling continues to define additional high ... · ~1 million tpa cip processing...

AusmexMiningGroupLimitedACN148860299�E|[email protected]|(02)92480104W|www.ausmexgroup.com.auA|Level14,309KentStreet,SydneyNSW2000

26thSeptember2019ASXReleaseResourcedrillingcontinuestodefineadditionalhigh-gradegoldattheMtFredaComplexaheadofMiningStudytocommenceinDecember2019.

Additionaloutstandingassaysprocessedinclude:

MtFredaOpenCutpitfloormineralisation

• DiamonddrillholeMF19DD177:[email protected]/tAu(103-115m)[email protected]/[email protected]/tAu(immediatelybelowthecurrentpitfloor).

• DiamonddrillholeMF19DD187:[email protected]/tAu(133-139m).LittleDukeIOCGtargetdrilling

• RCdrillholeLD19RC025:[email protected]/tAuwith0.5%Cu(19-25m)[email protected]/tAuwith1.2%Cu&493ppmCo(31-48m)wholeboggedat48mdepth.

• RCdrillholeLD19RC019:[email protected]/[email protected]/tAu(22-26m),northernstrikeextensiontoLittleDuke.

MiningStudytocommenceinDecemberandtoincludeallknownminingconditionsfromthepreviousMtFredapit.

DrillingatMtFredaconfirmsrecentlyreportedresultsincluding:(ReferASXrelease28thAugust2019)

• RCDrillHoleMF19RC170:[email protected]/tAu(198-203m)[email protected]/tAu.• DiamondDrillHoleMF19DD186:[email protected]/tAu(109-133m)including6m@

10.1g/tAu(113-119m)[email protected]/tAu(113-115m).• RCDrillHoleMF19RC183:[email protected]/tAu(147-154m)[email protected]/t

Au.• RCDrillHoleMF19RC179:[email protected]/tAu(165-175m)[email protected]/tAu

[email protected]/tAu.• RCDrillHoleMF19RC167:[email protected]/tAu(172-181m)[email protected]/tAu

[email protected]/tAu.

AusmexMiningGroup(ASX:AMG)(“Ausmex”or“TheCompany”)ispleasedtoannouncethatlaboratoriesaremakingheadwayonoutstandingdrillholeassaysforthecurrentresourcedefinitiondrillingprogramwithintheMtFredasuiteofMiningLeases.Additionalresultsincludingsamplesupto17.7g/tAuundertheMtFredaopencutfloor,confirmingadditionalhigh-gradegoldextendsfromthecurrentpitfloorandisstillopenatdepth.

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FurtherassaysprocessedfromtheLittleDukeprojectincludingmissingassaysfromrecentlyreportedRCholeLD19RC0025(ReferASXrelease28thAugust2019)[email protected]/tAuwith1.2%Cu&493ppmCo(31-48m).Thedrillrigwasboggedat48mdepthandtheholeterminatedinhighgradegold.TheLittleDukeprojectisprospectiveforGold,CopperandCobalt(IOCGstyletarget),withmineralisationstillopenalongstrikeandatdepth.

Figure1.ResourcedefinitiondrillinghasfocusedonprojectswithintheMtFredacomplex.MtFredaGoldMine

MtFredaopencutwaspreviouslyoperatedByDiversifiedMineralResourcesfrom1987-1991producingapproximately30,000Ozofgoldperannumatanaveragegradeof4g/tAu.Previousminingreportsindicaterecoveriesofgreaterthan95%goldviaCIPprocessing.Miningceasedin1991followingthefallingoldpricetohistoriclowsbelow~USD$300perOz.TheexistingMiningLeaseML2752is116Ha,iscurrentandgranteduntil2028.

TheMtFredaOpenCutMinelocatedwithingrantedMiningLeaseML2752hasanexistinghaulroadaccesstotwo,thirdpartygoldCIPoreprocessingfacilitieswithinCloncurrywithacombinedprocessingcapacityofapproximately1milliontonnesperannum(1Mtpa).OrefromMtFredahasrecentlybeenprocessedattheGreatAustralianMineoperatedbyRoundOakMineralsPtyLtd(subsidiaryofWHSoulPattisonASX:SOL),followingthesaleofalarge

MtFredaComplex

~30kmbyroadto~1milliontpaCIPprocessingfacilities

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stockpilein2018for$2.5millioncash.(ReferASXrelease27thFebruary2018).RoundOakMineralsPtyLimitedhastheoptiontoprocessalloreproducedfromtheGoldenMileprojectsattheRoundOakMineralsPtyLimitedGreatAustralian600ktpaGoldCIPprocessingplantinCloncurry.MtFredaOpencuthasacurrentExplorationTargetrangeof:

Project Location LowerTonnageRange

UpperTonnageRange

LowerAug/t

UpperAug/t

MtFreda GrantedMiningLease 3,503,500 5,000,000 2 4Table1.MtFredaExplorationTargetrange(ReferASXrelease9thSeptember2019fordetails).(TheJORCCoderequiresthatweadviseherethatthepotentialquantityandgradeoftheExplorationTargetisconceptualinnatureandthereforeisanapproximation.TherehasbeeninsufficientexplorationtoestimateaMineralResourceanditisuncertainif further explorationwill result in the estimation of aMineral Resource. The Exploration Target has been prepared andreportedinaccordancewiththe2012editionoftheJORCCode).

Figure2.MtFredaOpenCutLongSectionwithrecentdrillholeresultshighlightingthehigh-gradegoldupto24g/tunderthecurrentpitfloor,increasingupto32.7g/tAuatdepth.(ReferASXrelease28thAugust2019forpreviousresults).

MtFredaOpenCut

“PitFloor”

(ReferDataAggregationmethodsinJORCTable1).

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Figure3.MtFredaschematicGeologicalLongSectionhighlightingtheshallowhigh-gradegoldinthecurrentpitfloor,withmineralisationstillopenatdepth.

(ReferASXrelease28thAugust2019forpreviousresults)For

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Figure4.LittleDukeprojectdownholeassaysforRCdrillholeLD19RC025indicatetheLittleDukeprojecthasthepotentialtohostsignificantIOCGstyleGold,Copper&cobaltmineralisationfromsurface.Notetheholewasterminatedinhighgrademineralisation.Thisholewillberedrilledandextended.

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Figure5.LD19RC019indicatesthatthemineralisationcontinuesalongstriketothenorthattheLittleDukeproject.(ReferFigure6belowforthelocation).

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Figure6.LittleDukedrillholelocationplanandsignificantdrillingresultstodate.(ReferASXrelease29thNovember2018&28thAugust2019forpreviousresults).

TheLittleDukeProject.TheLittleDukeprojectlocatedwithinGoldenMileapproximately800mnortheastoftheMtFredaOpenCutislocatedaboveasignificantconductivestructurepreviouslyidentifiedbyAusmex(ReferASXrelease14thMarch2019).Historicminingwaspreviouslyfocusedonhighgradegoldfromsurfacelocatedwithasteeplydippingquartzbreccia.MaidendrillingontheprojectbyAusmexin2018identifiedadeepergraphiticshale“shearzone”thathostsextensivegold,copperandcobaltmineralisation(IOCGstyle).TheCompanyhasidentifiedanexplorationtargetatLittleDuke:

Project Location LowerTonnage UpperTonnage LowerAug/t UpperAug/t

LittleDuke

GoldenMile

1,365,000 1,950,000 1.5 4

Table2.GoldenMileExplorationTarget range (ReferASX release9thSeptember2019 for details).(The JORCCoderequires thatweadvisehere that thepotential quantityandgradeof theExplorationTarget is conceptual innatureand therefore is anapproximation.TherehasbeeninsufficientexplorationtoestimateaMineralResourceanditisuncertainiffurtherexplorationwillresultin

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theestimationofaMineralResource.TheExplorationTargethasbeenpreparedandreportedinaccordancewiththe2012editionoftheJORCCode).

Figure7.TheGoldenMiletenementlocationplanwithsignificantintersectionstodateincludingLittleDuke.TheGoldenMileincludingtheLittleDukeprojecthasthecurrentExplorationtargetdefined:

ProjectLower

TonnageRange

UpperTonnageRange LowerAug/t UpperAug/t

GoldenMileCombined 13,000,000 18,000,000 1.7 3.4 Table3.GoldenMileExplorationTargetrange(ReferASXrelease9thSeptember2019fordetails).(TheJORCCoderequiresthatweadviseherethatthepotentialquantityandgradeoftheExplorationTargetisconceptualinnatureandthereforeisanapproximation.TherehasbeeninsufficientexplorationtoestimateaMineralResourceanditisuncertainiffurtherexplorationwillresultintheestimationofaMineralResource.TheExplorationTargethasbeenpreparedandreportedinaccordancewiththe2012editionoftheJORCCode).

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Figure8.MtFredaOpenCutrecentdrillingresultslocationplanwithingrantedMiningLeaseML2752.

FurtherWorkThecompanywillcontinuetoupdateshareholdersforbothCloncurryshallow,near-termproductiongoldprojectsandIOCGtargetdrillingresultsasindependentlaboratoriesprocessthecurrentbacklogofdrillholeassaysanticipatedoverthenextfourweeks.TheCompanyisprogressingtowardsacombinedMaidenJORCresourcesestimatefortheMtFredaComplexincludingtheGoldenMileprojectsbylateNovember2019,withtheaimofcommencingaminingstudyforMtFredaearlyDecember2019andthisStudywillbeaidedandadvancedbythecompany’sexistingknowledgeandaccesstoallnecessarydataonminingconditionsthatappliedintheoriginalMtFredaPit.Thecompanyiscommittedtofasttrackinggoldproductionin2020byutilizingcurrentinfrastructureandCIPprocessingcapacitywithinCloncurry.MetallurgicaltestworkwillcontinueonDiamondCorebulksamplesfromallgoldprojectscurrentlybeingdrilled.

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AppendicesTable4.DrillHolecollardetailsPROJECT HoleID DrillType Easting Northing RL Depth Dip AziMagLITTLEDUKE LD19RC019 RC 473710 7681190 258 54 -60 270

LITTLEDUKE LD19RC025 RC 473684 7681173 248 48 -60 93

PROJECT HoleID DrillType Easting Northing RL Depth Dip Azi_MagMTFREDA MF19DD177 DD 472887 7680212 263 152.4 -45 192

MTFREDA MF19DD187 DD 472903 7680214 264 175.23 -50 192Table5.Fullassayreporting(Notesamplingwasselectiveoverpotentialmineralizedzonesonly).

PROJECT Hole_ID From To Aug/tSignificantIntersections Cu%

Coppm

MTFREDA MF19DD177 76 77 0.01 0.03 46MTFREDA MF19DD177 77 78 0.005 0.01 46MTFREDA MF19DD177 78 79 0.005 0.03 83MTFREDA MF19DD177 79 80 0.02 0.11 52MTFREDA MF19DD177 80 81 0.01 0.02 45MTFREDA MF19DD177 81 82 0.01 0.02 50MTFREDA MF19DD177 82 83 0.01 0.01 72MTFREDA MF19DD177 83 84 0.01 0.00 56MTFREDA MF19DD177 84 85 0.01 0.01 61MTFREDA MF19DD177 85 86 0.005 0.01 54MTFREDA MF19DD177 86 87 0.01 0.00 53MTFREDA MF19DD177 87 88 0.005 0.01 52MTFREDA MF19DD177 88 89 0.01 0.02 53MTFREDA MF19DD177 89 90 0.01 0.02 49MTFREDA MF19DD177 90 91 0.005 0.02 55MTFREDA MF19DD177 91 92 0.01 0.02 55MTFREDA MF19DD177 92 93 0.01 0.02 65MTFREDA MF19DD177 93 94 0.005 0.01 55MTFREDA MF19DD177 94 95 0.01 0.02 67MTFREDA MF19DD177 95 96 0.005 0.01 79MTFREDA MF19DD177 96 97 0.01 0.05 61MTFREDA MF19DD177 97 98 0.01 0.01 217MTFREDA MF19DD177 98 99 0.01 0.00 201MTFREDA MF19DD177 99 100 0.02 0.01 54MTFREDA MF19DD177 100 101 0.03 0.02 152MTFREDA MF19DD177 101 102 0.03 0.01 76MTFREDA MF19DD177 102 103 0.05 0.02 213MTFREDA MF19DD177 103 104 0.55 [email protected]/t

Au(103-115m)including3m@

11.6g/tAu

0.02 429MTFREDA MF19DD177 104 105 2.6 0.04 708MTFREDA MF19DD177 105 106 3.05 0.04 553MTFREDA MF19DD177 106 107 1.754 0.02 269.6

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MTFREDA MF19DD177 107 108 1.757 0.02 74MTFREDA MF19DD177 108 109 0.4 0.01 64MTFREDA MF19DD177 109 110 0.46 0.02 75MTFREDA MF19DD177 110 111 10.734 0.09 599.4MTFREDA MF19DD177 111 112 17.66 0.07 272.5MTFREDA MF19DD177 112 113 6.316 0.08 401.1MTFREDA MF19DD177 113 114 3.431 0.24 332.6MTFREDA MF19DD177 114 115 0.346 0.79 118.2MTFREDA MF19DD177 115 116 0.14 0.37 309MTFREDA MF19DD177 116 117 0.1 0.20 227MTFREDA MF19DD177 117 118 0.34 0.27 75MTFREDA MF19DD177 118 119 0.03 0.08 82MTFREDA MF19DD177 119 120 0.005 0.01 72MTFREDA MF19DD177 120 121 0.01 0.01 74MTFREDA MF19DD177 121 122 0.02 0.10 64MTFREDA MF19DD177 122 123 0.01 0.01 65MTFREDA MF19DD177 123 124 0.005 0.01 61MTFREDA MF19DD177 124 125 0.04 0.06 55MTFREDA MF19DD177 125 126 0.04 0.32 123MTFREDA MF19DD177 126 127 0.01 0.02 40MTFREDA MF19DD177 127 128 0.05 0.25 95.5MTFREDA MF19DD177 128 129 0.64 0.23 58.5MTFREDA MF19DD177 129 130 0.178 0.42 43.9MTFREDA MF19DD177 130 131 0.005 0.03 57.5MTFREDA MF19DD177 131 132 3.481 [email protected]/t

Au(131-133m)0.35 38.3

MTFREDA MF19DD177 132 133 1.495 0.15 67.8MTFREDA MF19DD177 133 134 0.03 0.34 74MTFREDA MF19DD177 134 135 0.005 0.00 74MTFREDA MF19DD177 135 136 0.06 0.12 81MTFREDA MF19DD177 136 137 0.58 0.52 64MTFREDA MF19DD177 137 138 0.466 0.47 107.2MTFREDA MF19DD177 138 139 0.03 0.82 79MTFREDA MF19DD177 139 140 0.01 0.12 46MTFREDA MF19DD187 63 64 0.005 0.01 44MTFREDA MF19DD187 64 65 0.01 0.04 87MTFREDA MF19DD187 65 66 0.005 0.05 72MTFREDA MF19DD187 66 67 0.006 0.03 66MTFREDA MF19DD187 67 68 0.005 0.00 45MTFREDA MF19DD187 68 69 0.009 0.01 70MTFREDA MF19DD187 69 70 0.41 0.01 301MTFREDA MF19DD187 70 71 0.005 0.02 50MTFREDA MF19DD187 71 72 0.005 0.02 73MTFREDA MF19DD187 72 73 0.005 0.01 101MTFREDA MF19DD187 73 74 0.008 0.01 68MTFREDA MF19DD187 74 75 0.005 0.01 53MTFREDA MF19DD187 75 76 0.005 0.04 102MTFREDA MF19DD187 76 77 0.005 0.02 64MTFREDA MF19DD187 77 78 0.005 0.01 50MTFREDA MF19DD187 78 79 0.027 0.08 381

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MTFREDA MF19DD187 79 80 0.005 0.03 128MTFREDA MF19DD187 80 81 0.007 0.03 72MTFREDA MF19DD187 81 82 0.005 0.01 77MTFREDA MF19DD187 82 83 0.005 0.01 54MTFREDA MF19DD187 98 99 0.005 0.01 61MTFREDA MF19DD187 99 100 0.005 0.02 66.8MTFREDA MF19DD187 100 101 0.005 0.02 55.8MTFREDA MF19DD187 101 102 0.005 0.02 47.8MTFREDA MF19DD187 102 103 0.024 0.06 51MTFREDA MF19DD187 103 104 0.016 0.02 44MTFREDA MF19DD187 104 105 0.02 0.09 41MTFREDA MF19DD187 105 106 0.005 0.00 37MTFREDA MF19DD187 106 107 0.005 0.00 32MTFREDA MF19DD187 107 108 0.029 0.06 47MTFREDA MF19DD187 108 109 0.018 0.06 60MTFREDA MF19DD187 109 110 0.005 0.00 45MTFREDA MF19DD187 110 111 0.005 0.01 77MTFREDA MF19DD187 111 112 0.005 0.05 225.9MTFREDA MF19DD187 112 113 0.0118 0.12 248.6MTFREDA MF19DD187 113 114 0.01 0.01 135MTFREDA MF19DD187 114 115 0.01 0.02 79MTFREDA MF19DD187 115 116 0.01 0.00 63MTFREDA MF19DD187 116 117 0.01 0.02 93MTFREDA MF19DD187 117 118 0.01 0.01 107MTFREDA MF19DD187 118 119 0.01 0.01 87MTFREDA MF19DD187 119 120 0.01 0.02 127MTFREDA MF19DD187 120 121 0.01 0.01 100MTFREDA MF19DD187 121 122 0.02 0.04 137MTFREDA MF19DD187 122 123 0.05 0.07 72MTFREDA MF19DD187 123 124 0.01 0.03 101MTFREDA MF19DD187 124 125 0.02 0.03 122MTFREDA MF19DD187 125 126 0.01 0.01 121MTFREDA MF19DD187 126 127 0.04 0.03 104MTFREDA MF19DD187 127 128 0.02 0.02 129MTFREDA MF19DD187 128 129 0.01 0.01 168MTFREDA MF19DD187 129 130 0.01 0.01 230MTFREDA MF19DD187 130 131 0.04 0.02 176MTFREDA MF19DD187 131 132 0.13 0.02 141MTFREDA MF19DD187 132 133 0.24 0.01 169MTFREDA MF19DD187 133 134 4.54

[email protected]/tAu(133-139m)

0.06 589MTFREDA MF19DD187 134 135 6.88 0.13 639.5MTFREDA MF19DD187 135 136 4.99 0.12 689.5MTFREDA MF19DD187 136 137 2.28 0.08 527MTFREDA MF19DD187 137 138 1.14 0.01 239.5MTFREDA MF19DD187 138 139 1.49 0.01 188.5MTFREDA MF19DD187 139 140 0.18 0.02 97MTFREDA MF19DD187 140 141 0.03 0.01 81MTFREDA MF19DD187 141 142 0.01 0.00 55MTFREDA MF19DD187 142 143 0.01 0.00 70

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MTFREDA MF19DD187 143 144 0.01 0.00 57MTFREDA MF19DD187 144 145 0.01 0.01 53MTFREDA MF19DD187 145 146 0.01 0.01 49MTFREDA MF19DD187 146 147 0.02 0.10 67MTFREDA MF19DD187 147 148 0.01 0.01 88MTFREDA MF19DD187 148 149 0.01 0.02 55MTFREDA MF19DD187 149 150 0.02 0.08 74MTFREDA MF19DD187 150 151 0.01 0.00 77MTFREDA MF19DD187 151 152 0.02 0.01 67MTFREDA MF19DD187 152 153 0.01 0.00 59MTFREDA MF19DD187 153 154 0.01 0.01 69MTFREDA MF19DD187 154 155 0.02 0.02 48MTFREDA MF19DD187 155 156 0.01 0.01 52MTFREDA MF19DD187 156 157 0.08 0.05 64MTFREDA MF19DD187 157 158 0.01 0.01 77MTFREDA MF19DD187 158 159 0.01 0.01 67MTFREDA MF19DD187 159 160 0.06 0.11 101MTFREDA MF19DD187 160 161 0.10 0.26 55MTFREDA MF19DD187 161 162 0.01 0.04 73MTFREDA MF19DD187 162 163 0.01 0.04 62MTFREDA MF19DD187 163 164 0.73 0.07 50MTFREDA MF19DD187 164 165 0.01 0.01 97MTFREDA MF19DD187 165 166 0.01 0.01 56MTFREDA MF19DD187 166 167 0.01 0.01 43MTFREDA MF19DD187 167 168 0.03 0.10 56MTFREDA MF19DD187 168 169 0.01 0.08 63MTFREDA MF19DD187 169 170 0.14 0.14 76MTFREDA MF19DD187 170 171 0.03 0.06 49MTFREDA MF19DD187 171 172 0.01 0.02 38MTFREDA MF19DD187 172 173 0.01 0.03 40MTFREDA MF19DD187 173 174 0.04 0.56 54MTFREDA MF19DD187 174 175 0.01 0.01 38LITTLEDUKE LD19RC019 0 1 0.02 0.02 109LITTLEDUKE LD19RC019 1 2 0.02 0.02 46LITTLEDUKE LD19RC019 2 3 0.01 0.02 46LITTLEDUKE LD19RC019 3 4 0.02 0.01 39LITTLEDUKE LD19RC019 4 5 0.02 0.01 40LITTLEDUKE LD19RC019 5 6 0.01 0.00 37LITTLEDUKE LD19RC019 6 7 0.02 0.00 40LITTLEDUKE LD19RC019 7 8 0.01 0.01 39LITTLEDUKE LD19RC019 8 9 0.01 0.00 44LITTLEDUKE LD19RC019 9 10 0.01 0.01 47LITTLEDUKE LD19RC019 10 11 0.01 0.01 49LITTLEDUKE LD19RC019 11 12 0.02 0.01 45LITTLEDUKE LD19RC019 12 13 0.02 0.01 47LITTLEDUKE LD19RC019 13 14 0.01 0.01 60LITTLEDUKE LD19RC019 14 15 0.01 0.01 59LITTLEDUKE LD19RC019 15 16 0.01 0.02 56LITTLEDUKE LD19RC019 16 17 0.01 0.02 85

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LITTLEDUKE LD19RC019 17 18 0.01 0.02 55LITTLEDUKE LD19RC019 18 19 0.01 0.03 82LITTLEDUKE LD19RC019 19 20 0.02 0.06 75LITTLEDUKE LD19RC019 20 21 0.02 0.05 43LITTLEDUKE LD19RC019 21 22 0.04 0.08 40LITTLEDUKE LD19RC019 22 23 20.70 [email protected]/t

Au(22-26m)including1m@

20.7g/tAu

0.49 138LITTLEDUKE LD19RC019 23 24 4.39 0.15 116LITTLEDUKE LD19RC019 24 25 0.17 0.08 119LITTLEDUKE LD19RC019 25 26 0.49 0.11 48LITTLEDUKE LD19RC019 26 27 0.11 0.06 45LITTLEDUKE LD19RC019 27 28 0.03 0.03 22LITTLEDUKE LD19RC019 28 29 0.03 0.03 48LITTLEDUKE LD19RC019 29 30 0.03 0.04 143LITTLEDUKE LD19RC019 30 31 0.05 0.05 63LITTLEDUKE LD19RC019 31 32 0.02 0.04 73LITTLEDUKE LD19RC019 32 33 0.02 0.04 71LITTLEDUKE LD19RC019 33 34 0.02 0.02 55LITTLEDUKE LD19RC019 34 35 0.02 0.03 59LITTLEDUKE LD19RC019 35 36 0.02 0.06 69LITTLEDUKE LD19RC019 36 37 0.03 0.04 51LITTLEDUKE LD19RC019 37 38 0.02 0.02 37LITTLEDUKE LD19RC019 38 39 0.02 0.03 47LITTLEDUKE LD19RC019 39 40 0.02 0.06 65LITTLEDUKE LD19RC019 40 41 0.02 0.04 55LITTLEDUKE LD19RC019 41 42 0.02 0.04 49LITTLEDUKE LD19RC019 42 43 0.02 0.04 51LITTLEDUKE LD19RC019 43 44 0.06 0.02 39LITTLEDUKE LD19RC019 44 45 0.02 0.02 42LITTLEDUKE LD19RC019 45 46 0.02 0.01 40LITTLEDUKE LD19RC019 46 47 0.01 0.04 73LITTLEDUKE LD19RC019 47 48 0.02 0.02 39LITTLEDUKE LD19RC019 48 49 0.02 0.01 46LITTLEDUKE LD19RC019 49 50 0.02 0.01 34LITTLEDUKE LD19RC019 50 51 0.02 0.01 33LITTLEDUKE LD19RC019 51 52 0.02 0.01 41LITTLEDUKE LD19RC019 52 53 0.01 0.02 47LITTLEDUKE LD19RC019 53 54 0.01 0.02 47LITTLEDUKE LD19RC025 0 1 0.03 0.02 40LITTLEDUKE LD19RC025 1 2 0.01 0.01 38LITTLEDUKE LD19RC025 2 3 0.37 0.01 36LITTLEDUKE LD19RC025 3 4 0.01 0.01 35LITTLEDUKE LD19RC025 4 5 0.01 0.01 36LITTLEDUKE LD19RC025 5 6 0.01 0.02 43LITTLEDUKE LD19RC025 6 7 0.01 0.03 83LITTLEDUKE LD19RC025 7 8 0.01 0.02 69LITTLEDUKE LD19RC025 8 9 0.01 0.03 44LITTLEDUKE LD19RC025 9 10 0.02 0.03 63LITTLEDUKE LD19RC025 10 11 0.01 0.04 79LITTLEDUKE LD19RC025 11 12 0.01 0.03 56

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LITTLEDUKE LD19RC025 12 13 1.01 0.11 221LITTLEDUKE LD19RC025 13 14 0.06 0.07 164LITTLEDUKE LD19RC025 14 15 0.01 0.03 148LITTLEDUKE LD19RC025 15 16 0.05 0.03 44LITTLEDUKE LD19RC025 16 17 0.02 0.04 221LITTLEDUKE LD19RC025 17 18 0.02 0.05 234LITTLEDUKE LD19RC025 18 19 0.09 0.14 186LITTLEDUKE LD19RC025 19 20 0.65

[email protected]/tAuwith0.5%Cu(19-

25m)

0.57 504LITTLEDUKE LD19RC025 20 21 0.10 0.41 612LITTLEDUKE LD19RC025 21 22 0.22 0.51 508LITTLEDUKE LD19RC025 22 23 0.82 0.57 383LITTLEDUKE LD19RC025 23 24 1.88 0.27 189LITTLEDUKE LD19RC025 24 25 3.86 0.39 317LITTLEDUKE LD19RC025 25 26 0.01 0.10 77LITTLEDUKE LD19RC025 26 27 0.20 0.05 47LITTLEDUKE LD19RC025 27 28 0.18 0.04 59LITTLEDUKE LD19RC025 28 29 0.05 0.07 69LITTLEDUKE LD19RC025 29 30 0.08 0.07 91LITTLEDUKE LD19RC025 30 31 0.12 0.33 52LITTLEDUKE LD19RC025 31 32 0.61

[email protected]/tAuwith1.2%Cu&493ppmCo(31-48m)

0.47 89LITTLEDUKE LD19RC025 32 33 1.64 0.51 406LITTLEDUKE LD19RC025 33 34 0.33 0.31 490LITTLEDUKE LD19RC025 34 35 2.92 0.38 504LITTLEDUKE LD19RC025 35 36 8.60 1.15 562LITTLEDUKE LD19RC025 36 37 5.18 2.34 412LITTLEDUKE LD19RC025 37 38 3.36 3.05 398LITTLEDUKE LD19RC025 38 39 7.51 2.31 476LITTLEDUKE LD19RC025 39 40 2.86 1.53 615LITTLEDUKE LD19RC025 40 41 4.65 1.23 665LITTLEDUKE LD19RC025 41 42 5.54 0.85 390LITTLEDUKE LD19RC025 42 43 2.36 1.42 572LITTLEDUKE LD19RC025 43 44 5.43 0.75 656LITTLEDUKE LD19RC025 44 45 7.98 0.94 699LITTLEDUKE LD19RC025 45 46 4.40 0.91 615LITTLEDUKE LD19RC025 46 47 1.09 0.73 431LITTLEDUKE LD19RC025 47 48 4.73 1.03 402

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ForwardLookingStatements

Thematerialsmay include forward looking statements. Forward looking statements inherently involvesubjectivejudgement,andanalysisandaresubjecttosignificantuncertainties,risks,andcontingencies,manyofwhichareoutsidethecontrolof,andmaybeunknownto,thecompany.

Actualresultsanddevelopmentsmayvarymateriallyfromthatexpressedinthesematerials.Thetypesofuncertaintieswhicharerelevanttothecompanymayinclude,butarenotlimitedto,commodityprices,politicaluncertainty,changestotheregulatoryframeworkwhichappliestothebusinessofthecompanyandgeneral economic conditions.Given theseuncertainties, readersare cautionednot toplaceunduerelianceonforwardlookingstatements.

Any forward-looking statements in these materials speak only at the date of issue. Subject to anycontinuingobligationsunderapplicablelaworrelevantstockexchangelistingrules,thecompanydoesnotundertakeanyobligationtopubliclyupdateorreviseanyoftheforward-lookingstatements,changesinevents,conditionsorcircumstancesonwhichanystatementisbased

CompetentPersonStatement

StatementscontainedinthisreportrelatingtoexplorationresultsandpotentialarebasedoninformationcompiledbyMr.MatthewMorgan,whoisamemberoftheAustralasianInstituteofMiningandMetallurgy(AusIMM).Mr.MorganistheManagingDirectorofAusmexMiningGroupLimitedandGeologistwhomhassufficientrelevantexperienceinrelationtothemineralizationstylesbeingreportedontoqualifyasaCompetentPersonasdefinedintheAustralianCodeforReportingofIdentifiedMineralresourcesandOrereserves(JORCCode2012).Mr.Morganconsentstotheuseofthisinformationinthisreportintheformandcontextinwhichitappears.

JORC Code, 2012 Edition – Table 1 report Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria JORCCodeexplanation Commentary

Samplingtechniques

• Nature and quality of sampling (eg cut

channels, random chips, or specific specialised

industry standard measurement tools

appropriate to the minerals under

investigation, such as down hole gamma

sondes, or handheld XRF instruments, etc).

These examples should not be taken as limiting

the broad meaning of sampling.

• Include reference to measures taken to ensure

sample representivity and the appropriate

calibration of any measurement tools or

• Drilling has returned HQ

Diamond Core • Core is cut and sampled “half

core” • Samples were ~2-3kg in

weight • Pulverised to produce a 30 g

charge for a gold fire assay and ICP for Cobalt and Copper.

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systems used.

• Aspects of the determination of mineralisation

that are Material to the Public Report.

• In cases where ‘industry standard’ work has

been done this would be relatively simple (eg

‘reverse circulation drilling was used to obtain

1 m samples from which 3 kg was pulverised to

produce a 30 g charge for fire assay’). In other

cases, more explanation may be required, such

as where there is coarse gold that has inherent

sampling problems. Unusual commodities or

mineralisation types (eg submarine nodules)

may warrant disclosure of detailed information.

• Sample analysis completed at ALS laboratory QLD

• RC Drilling chip samples recovered via cyclone and splitter.

• Potential ore zone samples selected for analysis

• Samples were ~2-3kg in weight • reverse circulation drilling was

used to obtain 1 m samples for targeted ore zones, rom which ~3 kg was pulverised to produce a 30 g charge for ICP analysis for Copper and Cobalt plus Fire Assay for Gold.

• Samples analysis completed at ALS laboratory QLD

• Samples were 1.5 -2.5 kg in weight and pulverised to produce a 30 g charge for ICP analysis for Copper and Cobalt plus Fire Assay for Gold.

• Samples analysis completed at ALS laboratory QLD

Drillingtechniques

• Drill type (eg core, reverse circulation, open-

hole hammer, rotary air blast, auger, Bangka,

sonic, etc) and details (eg core diameter, triple

or standard tube, depth of diamond tails, face-

sampling bit or other type, whether core is

oriented and if so, by what method, etc).

• HQ Diamond Core drilling, triple tube and orientated, ball marker

• RC drilling was via reverse circulation

Drillsamplerecovery

• Method of recording and assessing core and

chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery

and ensure representative nature of the

samples.

• Whether a relationship exists between sample

recovery and grade and whether sample bias

may have occurred due to preferential loss/gain

of fine/coarse material.

• Geotechnical logging of drill core

was completed with sample recovery measurements. Zones of core loss have been recorded. Samples recovered via cyclone and spitter; sample weights indicate representative for 1m.

Logging • Whether core and chip samples have been

geologically and geotechnically logged to a level

of detail to support appropriate Mineral

Resource estimation, mining studies and

• All drill core has been geologically and geotechnically logged to a level appropriate for Mineral Resource estimation.

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metallurgical studies.

• Whether logging is qualitative or quantitative

in nature. Core (or costean, channel, etc)

photography.

• The total length and percentage of the relevant

intersections logged.

• Logging data is captured in the company digital database.

• All drill core has been photographically recorded

• RC chip samples were geologically logged at 1 m intervals

Sub-samplingtechniquesandsamplepreparation

• If core, whether cut or sawn and whether

quarter, half or all core taken.

• If non-core, whether riffled, tube sampled,

rotary split, etc and whether sampled wet or

dry.

• For all sample types, the nature, quality and

appropriateness of the sample preparation

technique.

• Quality control procedures adopted for all sub-

sampling stages to maximise representivity of

samples.

• Measures taken to ensure that the sampling is

representative of the in-situ material collected,

including for instance results for field

duplicate/second-half sampling.

• Whether sample sizes are appropriate to the

grain size of the material being sampled.

• HQ core was cut using brick saw and half core taken, the other half retained. As per industry standard.

• Samples intervals defined by geologist and representative of geology.

• Where composite samples exceeded 2m, ¼ Core was sampled.

• Field duplicates, blanks and standards entered for analysis indicate representative sampling and analysis

• Sample size is considered appropriate for the material. Field duplicates and standards were entered for analysis with the results indicating that representative sampling and subsequent analysis were completed.

Qualityofassaydataandlaboratorytests

• The nature, quality and appropriateness of the

assaying and laboratory procedures used and

whether the technique is considered partial or

total.

• For geophysical tools, spectrometers, handheld

XRF instruments, etc, the parameters used in

determining the analysis including instrument

make and model, reading times, calibrations

factors applied and their derivation, etc.

• Nature of quality control procedures adopted

(eg standards, blanks, duplicates, external

laboratory checks) and whether acceptable

levels of accuracy (ie lack of bias) and precision

have been established.

• Industry standard ICP analysis was completed for Copper and Cobalt& REE plus Fire Assay for Gold samples and subsequent assays

• Repeat and checks were conducted by ALS laboratories whilst completing the analysis.

• Standard and duplicates entered by Ausmex

• The level of accuracy of analysis is considered adequate with no bias samples reported.

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Verificationofsamplingandassaying

• The verification of significant intersections by

either independent or alternative company

personnel.

• The use of twinned holes.

• Documentation of primary data, data entry

procedures, data verification, data storage

(physical and electronic) protocols.

• Discuss any adjustment to assay data.

• Significant intersections inspected and verified by JORC competent personnel

• No assays were adjusted • There were no twinned holes

drilled • All drill hole logging was

completed on site by Geologists, with data entered into field laptop and verified as entered into a geological database

• Significant intersections for gold was reported as a combined down hole interval average received assay grade and are not down hole weighted averages.

• As all significant intersections reported for gold were average down hole assays, with no internal waste has been calculated or assumed.

Locationofdatapoints

• Accuracy and quality of surveys used to locate

drill holes (collar and down-hole surveys),

trenches, mine workings and other locations

used in Mineral Resource estimation.

• Specification of the grid system used.

• Quality and adequacy of topographic control.

• The drill collars have been surveyed by handheld GPS. (accuracy +/- 3m)

• The drill collars will be surveyed by a permanent base station (accuracy +/- 150mm) and recorded in MGA94, Zone 54 datum

Dataspacinganddistribution

• Data spacing for reporting of Exploration

Results.

• Whether the data spacing, and distribution is

sufficient to establish the degree of geological

and grade continuity appropriate for the

Mineral Resource and Ore Reserve estimation

procedure(s) and classifications applied.

• Whether sample compositing has been applied.

• Data spacing, and distribution is NOT sufficient for Mineral Resource estimation

• No sample compositing has been applied.

Orientationofdatainrelationtogeologicalstructure

• Whether the orientation of sampling achieves

unbiased sampling of possible structures and

the extent to which this is known, considering

the deposit type.

• If the relationship between the drilling

orientation and the orientation of key

• The orientation of samples is not likely to bias the assay results.

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mineralised structures is considered to have

introduced a sampling bias, this should be

assessed and reported if material.

Samplesecurity

• The measures taken to ensure sample security. • Samples were taken to Cloncurry by company personnel and despatched by courier to the ALS Laboratory in Townsville

Auditsorreviews

• The results of any audits or reviews of

sampling techniques and data.

• No audits or reviews have been undertaken at this stage.

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)


Mineraltenementandlandtenurestatus

• Type, reference name/number, location

and ownership including agreements

or material issues with third parties

such as joint ventures, partnerships,

overriding royalties, native title

interests, historical sites, wilderness or

national park and environmental

settings.

• The security of the tenure held at the

time of reporting along with any

known impediments to obtaining a

licence to operate in the area.

• ML2718, ML2709, ML2713, ML2719, ML2741 & EPM14163 are owned 100% by Spinifex Mines Pty Ltd. Ausmex Mining Group Limited owns 80% of Spinifex Mines Pty Ltd. Queensland Mining Corporation Limited own 20% of Spinifex Mines. Exploration is completed under an incorporated Joint Venture.

• 80% beneficial interest in sub blocks CLON825U & CLON825P from EPM15923 & 80/20 JV with CopperChem

• EPM14475, EPM15858, & EPM18286 are held by QMC Exploration Pty Limited. Ausmex Mining Group Limited owns 80% of QMC Exploration Pty Limited. Queensland Mining Corporation Limited own 20% of Spinifex Mines. Exploration is completed under an incorporated Joint Venture.

• ML2549, ML2541, ML2517 are 100% owned by Ausmex.

Explorationdonebyotherparties

• Acknowledgment and appraisal of

exploration by other parties.

• All exploration programs conducted by Ausmex Mining Group Limited.

• Reference to historical mining

Geology • Deposit type, geological setting and

style of mineralisation.

• ML2718, ML2709, ML2713, ML2719 hosts the Gilded Rose sheer hosted

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quartz reef. There are several golds mineralised hydrothermal quartz reefs within the deposit.

• ML2741 hosts the shear hosted quartz rich Mt Freda Gold deposit containing Au, Cu, & Co.

• ML2549, ML2541, ML2517 host copper mineralisation associated with carbonate intrusions into altered mafic host rocks

• EPM14163 & EPM 15858 contain There are several gold mineralised hydrothermal quartz reefs within the deposit containing Au, Cu, & Co

DrillholeInformation

• A summary of all information material

to the understanding of the

exploration results including a

tabulation of the following information

for all Material drill holes:

o easting and northing of the drill

hole collar

o elevation or RL (Reduced Level –

elevation above sea level in metres)

of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception

depth

o hole length.

• If the exclusion of this information is

justified on the basis that the

information is not Material and this

exclusion does not detract from the

understanding of the report, the

Competent Person should clearly

explain why this is the case.

• Details within tables within the release

Dataaggregationmethods

• In reporting Exploration Results,

weighting averaging techniques,

maximum and/or minimum grade

truncations (eg cutting of high grades)

and cut-off grades are usually

Material and should be stated.

• Where aggregate intercepts

incorporate short lengths of high-grade

results and longer lengths of low-

grade results, the procedure used for

• Significant average combined down hole assay intersections have been reported as part of this release for Cu & Au. These average intersections are not weighted averages. No weighted down hole averages were reported.

• Where Au is <LD, 50% of LD was used for data aggregation i.e. if LD=0.01 then <LD = 0.005

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such aggregation should be stated and

some typical examples of such

aggregations should be shown in

detail.

• The assumptions used for any

reporting of metal equivalent values

should be clearly stated.

• Significant intersections for all minerals were reported are an average received assay grade for that down hole significant intersection.

• The average combined down hole significant intersection did not have an internal Cut-off grade for gold, therefore there was no minimum individual sample cut off, yet only a combined down hole intersection average > 2.0g/t Au. Within these reported Cu intersections there were individual assays < 0.1 G/t Au.

• Significant intersections for copper and gold were based on the average grade for the same intersection, as it may be assumed, they represent a combined potential mining unit in the future.

• As all significant intersections reported for Copper were a combined total average down hole grade, no internal waste has been calculated or assumed.

• Length weighted composite mineralised intersections were calculated for each drillhole using a nominal 0.5 g/t Au cut-off. Drill holes with intercepts that did not meet this cut-off criteria were included based on a geological interpretation of the mineralised zone to constrain mineralisation through the gridding process and to enforce geological continuity. No adjustments for true thickness were made. The midpoint of each composite intersection was then used as the datapoint, with the data gridded within MapInfo Professional Discover using ID2. The data was gridded based on a value determined by multiplying Au g/t x thickness of the mineralised intersection, using a cell size of 6m to force continuity throughout the drill

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pattern. The grid generated was then constrained by topography by clipping to a topographic surface derived from existing high-resolution digital elevation data (Figure 2 in report). •

Relationshipbetweenmineralisationwidthsandinterceptlengths

• These relationships are particularly

important in the reporting of

Exploration Results.

• If the geometry of the mineralisation

with respect to the drill hole angle is

known, its nature should be reported.

• If it is not known and only the down

hole lengths are reported, there should

be a clear statement to this effect (eg

‘down hole length, true width not

known’).

• No material information is excluded. • intersections have been displayed

reported as part of this release. • Interpreted X sections attached to the

announcement displaying the geometry of mineralisation.

•

Diagrams • Appropriate maps and sections (with

scales) and tabulations of intercepts

should be included for any significant

discovery being reported These should

include, but not be limited to a plan

view of drill hole collar locations and

appropriate sectional views.

• Maps showing the location of the EPMs and MLs are presented in the announcement

• Appropriate relevant and labelled X sections attached

Balancedreporting

• Where comprehensive reporting of all

Exploration Results is not practicable,

representative reporting of both low

and high grades and/or widths should

be practiced to avoid misleading

reporting of Exploration Results.

• All comprehensive ICP and Fire Assay analytical results for Copper, cobalt and Gold were reported.

Othersubstantiveexplorationdata

• Other exploration data, if meaningful

and material, should be reported

including (but not limited to):

geological observations; geophysical

survey results; geochemical survey

results; bulk samples – size and

method of treatment; metallurgical test

results; bulk density, groundwater,

geotechnical and rock characteristics;

potential deleterious or contaminating

substances.

Furtherwork • The nature and scale of planned

further work (eg tests for lateral

• Additional mapping, costeans, geophysical surveys, RC and Core

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extensions or depth extensions or

large-scale step-out drilling).

• Diagrams clearly highlighting the

areas of possible extensions, including

the main geological interpretations

and future drilling areas, provided this

information is not commercially

sensitive.

drilling

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resource drilling continues to define additional high ... · ~1 million tpa cip processing...

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