Ausmex to expand Cloncurry foothold ahead of gold production

According to Mining News Pro - Both parties will team up to identify and acquire gold ore processing facilities in Cloncurry.

The collaboration will run for a period of four months but can be mutually extended.

Ausmex holds 12 granted mining leases within the Cloncurry region with a combined area of more than 200 hectares, which are all within hauling distance to third party ore processing facilities.

Any partnership or joint venture to be entered into as a result of the strategic alliance will be formed with Ausmex acquiring a 75 per cent interest and Activex holding a 25 per cent interest.

The Mt Freda open cut mine was previously operated by Diversified Mineral Resources from 1987 to 1991, producing approximately 30,000 ounces of gold a year at an average grade of four grams per tonne.

Mining ceased in 1991 following a fall in gold price to historic lows below $US300 ($466) per ounce.

In August last year, Ausmex applied for a 225 hectare mining lease over the Golden Mile high-grade gold project located within the Mt Freda complex.

The combination of the Golden Mile application and the current Mt Freda mining leases will allow Ausmex to schedule a development of a multi pit, mining hub facility within hauling distance of Cloncurry clean-in-place (CIP) processing facilities.