PRESS RELEASE: Independent Consultant Confirms Gold!
25th February 2019
ASX RELEASE
Independent Expert Report indicates a large IOCG or ISCG mineral system at depth below the Mt Freda Complex
Independent Expert Emeritus Professor Kenneth D Collerson (PhD., FAusIMM) has presented findings validating the significance of a large IOCG (Iron Ore Copper Gold) or ISCG (Iron Sulphide Copper Gold) mineral source below the Little Duke Gold Mine, located within the Ausmex controlled Mt Freda Complex
Key Findings Include:
The RC drilling data indicates that Little Duke, one of 9 parallel historical Gold mineralised systems (and the most eastern drilled to date), located within the Golden Mile Project which forms part the Mt Freda Complex, is proximal to a deeper and fertile IOCG or ISCG mineral system.
The Little Duke drilling data (LD18RC006) is highly significant, and it is recommended that diamond core drilling should continue in the RC holes (Pre-collars already drilled at the Little Duke), to target the deeper IOCG (Olympic Dam style) or ISCG (Eloise style) alkaline igneous source of the metal anomalism.
Little Duke drill hole LD18RC006 combined Gold and Copper down hole mineralisation : (Refer ASX Release 29th November 2018)
o 67 m @ 1.33 g/t Au and 0.47% Cu
o Gold assays up to 8.00 g/t Gold, 1,100 ppm Cobalt and 1.43% Copper.
Little Duke Drill Hole LD18RC006 was possibly drilled into the contact of a Tier 1 IOCG target that Ausmex shares with Newcrest Mining Limited (ASX:NCM) (Refer ASX 19th February 2019).
Ausmex Mining Group (ASX: AMG) (“Ausmex” or “The Company”) is pleased to announce the findings from Independent Expert Emeritus Professor Kenneth D Collerson who was engaged to evaluate and interpret multi-element assay results from recent drilling of the Little Duke breccia, and to better understand the origin of Mesoproterozoic Cu-Ni-Co-Au- PGE-REE mineral systems in Ausmex’s tenure south of Cloncurry (The full report is available on the Ausmex website).
Figure 1. Drill Hole location plan at the Little Duke Gold prospect where drill hole LD18RC006 intersected significant gold and copper mineralisation as the hole was drilled into the contact of a Tier 1 IOCG prospect. Data interpretation by Professor Kenneth D Collerson indicates the Little Duke may be in close proximity to an IOCG source. (Refer ASX releases on the 14th June 2018 and the 29th November 2018 for additional results). Source: QLD Gov. Mt Isa TMI GSQ open file dataset Survey GSQ1029 & Exco IOCG Roadshow release 2012
Little Duke
Massive Tier 1 IOCG Target previously Identified by Exco in 2012, now being drilled by Newcrest.
Newcrest 2018 Drilling
Figure 2. Location Plan for the Little Duke drilling. Note the close proximity of the Golden Mile and the Little Duke drilling to the massive 3 km x 5 km Tier 1 IOCG target that Ausmex shares with Newcrest Mining Limited.
Professor Ken Collerson states: “The Little Duke drilling data (LD18RC006) is highly significant, and it is recommended that diamond core drilling should continue in the RC holes (Pre-collars already drilled at the Little Duke), to target the deeper IOCG (Olympic Dam style) or ISCG (Eloise style) alkaline igneous source of the metal anomalism (Refer to ASX releases on 30th August 2018, 10th September 2018, 8th & 26th October 2018, 9th & 15th November 2018, for Mt Freda Complex Exploration drilling results).
Source: QLD Gov. Mt Isa TMI GSQ open file dataset Survey GSQ1029 & Exco IOCG Roadshow release 2012
Cross Section 1. Geological interpretation and cross section through RC drill hole LD18RC006 & LD18RC005, describing the extensive gold and copper sulphide mineralisation within the large graphitic black shale shear zone, a potential host to significant copper, gold and cobalt mineralisation that may radiate out from the adjoining massive IOCG prospect.(Refer ASX Release 29th November for results). Professor Kenneth D Collerson recommends that diamond core drilling should continue in the RC holes to target the deeper IOCG or ISCG alkaline igneous source of the metal anomalism.
This report was commissioned to:
(1) to evaluate and interpret multi-element assay results from recent RC drilling of the Little Duke breccia (Refer ASX Release 29th November 2018 for results); (2) to better understand the origin of Mesoproterozoic Cu-Ni-Co-Au-PGE-REE mineral systems in Ausmex’s tenure south of Cloncurry; (3) to gain insight into possible IOCG (or ISCG) proximal and distal geochemical vectors, and (4) to comment on the metallogenic significance of electrical conductivity structures identified with magnetotelluric data below IOCG deposits in the Cloncurry area.
Key findings are as follows:
Principal conclusions of this review are as follows:
• The Little Duke breccia system is a high-level epithermal system that is proximal to an ultramafic to mafic igneous source of halogen-rich fluids and metals that include Co, Ni, Cu, As, Au, Ag, PGEs.
• Although earlier studies of the IOCG mineral system in the Cloncurry area suggested that Cu, Au, F, U, P and REEs, as well as S were derived from the Williams Naraku Granite via a magmatic-hydrothermal fluid (Williams et al., 2015), given the element association (Co, Ni, PGE’s and Au), a more plausible explanation is that metals in the system were derived from an ultramafic to mafic alkaline igneous source.
• High levels of positively correlated Ni, Co and Cu confirm the role of olivine fraction in the igneous source of the Little Duke breccia. This metal association simply cannot be explained by a granitic source.
• Positively correlated S with Ni, Co, Cu and as also confirms the involvement of magmatic/hydrothermal processes below Little Duke.
• Correlations between Te, Bi and Sb with Au, indicates that the breccia system is proximal to the igneous source of the Little Duke mineral system.
• Halogen-rich fluids that form halogen complexes are conducive to fluid – metal transport. These fluids are interpreted to have existed at Little Duke, where dissociation of halogen complexes likely occurred in response to changes of the hydrothermal environment such as fluid–rock interaction, fluid mixing, cooling, and phase separation.
• Molar Cu/Au ratios are controlled initially by magma source chemistries and subsequently by the physical-chemical evolution of the ore forming hydrothermal fluids. Little Duke samples with molar Cu/Au ratios between ~30,000 and 100,000 are typical of alkaline igneous systems.
• La/Yb – HREE systematics also support an ultramafic to mafic igneous source and suggest the possible presence of HREE enriched alteration haloes proximal to the Little Duke breccia system.
• Sub-and super-chondritic Y/Ho ratios indicate the involvement of halogen-rich hydrothermal fluids in the Little Duke breccia system.
• Primitive mantle normalized highly siderophile element abundance (Ni, PGE, Au and Cu) plots exhibit similar levels of enrichment and fractionation patterns to deposits in the Mary Kathleen Belt. This suggests that both Cloncurry belt and the adjacent Mary Kathleen Belt were influenced by the same metal fertile plume magmatic source. Given this similarity, it is considered highly improbable that any of the HSEs were derived from an alkaline granitic source as suggested by Kendrick et al., (2007) and Williams et al., (2015).
• The presence of a log normal Ag/Au distribution reflects precious metal transport in boiling solutions, confirming a high level epithermal depositional environment associated with hot springs (Cole and Drummond, 1986).
• The epithermal deposits along the Golden Mile, from Gilded Rose to Mount Freda are Au rich. Covariation of Au with Bi and Te indicates the close relationship to an igneous source (Marinova et al., 2013).
• The presence of these features indicates that hot springs occurred above IOCG source intrusions in the Cloncurry area and explains the occurrence of high concentrations of Au in the district.
• The presence of a large magnetotelluric conductive anomaly below the Ernest Henry IOCG deposit (Wang et al., 2018) is similar to the MT anomaly below Olympic Dam and likely reflects the lithospheric response of the metal migration regime associated with this plume generated world class IOCG system (Heinson et al., 2018).
• Thus, it is likely that the same fluorine-rich and oxidizing hydrothermal fluids that formed the Olympic Dam IOCG deposits remained active as the plume track migrated to the north east and generated the Cloncurry Belt IOCG mineralisation.
• The data indicates that Little Duke is likely to be proximal to a deeper and fertile IOCG mineral system.
• Thus, Little Duke data is highly significant, and it is recommended that diamond core drilling should continue in the RC holes to target the deeper source IOCG or ISCG alkaline igneous of the metal anomalism.
Managing Director Matt Morgan Stated:
“Ausmex Shareholders have previously been informed that they have significant exposure to a Tier One IOCG within the Mt Freda Complex that is being drilled by Newcrest Mining Limited (Refer ASX announcement 27th September 2018 & 19th February 2019). Now Independent Expert Emeritus Professor Kenneth D Collerson has validated the Companies interpretation that drilling data to date indicates the Little Duke gold prospect may be within close proximity to such an IOCG or ISCG source. Furthermore, Professor Kenneth D Collerson recommends further deeper drilling under the Little Duke project targeting IOCG mineralisation.
As recently announced (Refer ASX release 19th February 2018) Ausmex is now in final stages of completing 3D Geophysical modelling on the IOCG target, aimed at generating a target specific exploration drilling programme into the Tier 1 “Canteen” IOCG deposit targeting massive sulphide copper and gold mineralisation and geological criteria supporting an IOCG deposit style. These holes will be located adjacent to Newcrest’s 2018 completed drill hole locations to date. Newcrest’s assay results have not yet been reported to date.
Forward Looking Statements
The materials may include forward looking statements. Forward looking statements inherently involve subjective judgement, and analysis and are subject to significant uncertainties, risks, and contingencies, many of which are outside the control of, and may be unknown to, the company.
Actual results and developments may vary materially from that expressed in these materials. The types of uncertainties which are relevant to the company may include, but are not limited to, commodity prices, political uncertainty, changes to the regulatory framework which applies to the business of the company and general economic conditions. Given these uncertainties, readers are cautioned not to place undue reliance on forward looking statements.
Any forward-looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or relevant stock exchange listing rules, the company does not undertake any obligation to publicly update or revise any of the forward- looking statements, changes in events, conditions or circumstances on which any statement is based.
Competent Person Statement
Statements contained in this report relating to exploration results and potential are based on information compiled by Mr. Matthew Morgan, who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr. Morgan is the Managing Director of Ausmex Mining Group Limited and Geologist whom has sufficient relevant experience in relation to the mineralization styles being reported on to qualify as a Competent Person as defined in the Australian Code for Reporting of Identified Mineral resources and Ore reserves (JORC Code 2012). Mr. Morgan consents to the use of this information in this report in the form and context in which it appears.
Competent Person Statement
Statements contained in this report relating to exploration results and potential are based on information compiled by Professor Ken Collerson, who is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM). Professor Ken Collerson is an independent consultant to Ausmex Mining Group Limited and Geologist whom has sufficient relevant experience in relation to the mineralization styles being reported on to qualify as a Competent Person as defined in the Australian Code for Reporting of Identified Mineral resources and Ore reserves (JORC Code 2012). Professor Ken Collerson consents to the use of this information in this report in the form and context in which it appears.
ENDS.
Appendix 1:
1.1 Analytical Techniques
Assay data in this report are from Ausmex recently completed RC drilling campaign at Little Duke. Samples are from drill hole LD18RC006 and cover the depth interval from 48 m to 132 m. They were analysed by Australian Laboratory Services Pty Ltd. at Stafford in Brisbane.
Major and trace element data were obtained using the techniques listed in Table 1. Element detection limits are also reported in Table 1.
JORC Code, 2012 Edition – Table 1 report
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques • 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 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.
• RC Drilling chip samples recovered via cyclone and splitter
• Samples were ~2-3kg in weight
• reverse circulation drilling was used to obtain 1 m samples for targeted ore zones, and 4 m cumulative samples between ore zones from 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
Drilling techniques • 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). • Reverse Circulation drilling with cyclone and splitter.
Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed.
• Measures taken to maximise sample recovery and ensure • Samples recovered via cyclone and spitter, sample weights indicate representative for 1m.
Criteria JORC Code explanation Commentary
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.
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 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. • RC chips were geologically logged every 1 m.•
Sub-sampling techniques and sample preparation • 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. • No sub sampling taken from 1 metre RC chips.
• Field duplicates and standards were entered for analysis with the results indicating that representative sampling and subsequent analysis were completed.
Quality of assay data and laboratory tests • 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, • Industry standard ICP analysis was completed for Copper and Cobalt 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
Criteria JORC Code explanation Commentary
duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. adequate with no bias samples reported.
Verification of sampling and assaying • 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.
Location of data points • 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
Data spacing and distribution • 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.
Orientation of data in relation to • 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 • The orientation of samples is not likely to bias the assay results.
Criteria JORC Code explanation Commentary
geological structure of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
Sample security • 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
Audits or reviews • 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.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status • 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.
Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties. • All exploration programs conducted by Ausmex Mining Group Limited.
• Reference to historical mining
Criteria JORC Code explanation Commentary
Geology • Deposit type, geological setting and style of mineralisation. • ML2718, ML2709, ML2713, ML2719 hosts the Gilded Rose sheer hosted 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
Drill hole Information • 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
Criteria JORC Code explanation Commentary
Data aggregation methods • 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 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 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