Ausmex Share Price is Up 10% as it Closes in on Gold Production

The share price of Ausmex Mining Group Ltd [ASX:AMG] is up 9.52% today after the company announced it is inching closer to gold production. At time of writing, AMG shares are trading at $0.069, up from today’s open at $0.063.

What did Ausmex say?

The Golden Mile gold project comprises eight mines and is a joint venture between Ausmex, which has an 80% stake, and Round Oak Minerals, a subsidiary of Washington H Soul Pattinson, which holds the remaining share.

The company said it’s preparing for Shamrock, Comstock and Falcon — three of the most historical gold mines in the project — to start gold production this quarter. Of course, this all depends on Ausmex getting the mining lease.

The company said it’s in the process of delivering a resource upgrade for some of its mines in the Golden Mile, along with Mt Freda. Mt Freda is located about 500 metres south of the Golden Mile, also in Queensland.

According to the agreement, Round Oak Minerals will be processing all of the ore mined from both sites at its processing plant. The plant is 60 kilometres away, in Cloncurry, and has a capacity of 650,000 tonnes per annum.

The company said this arrangement is beneficial for both entities. Ausmex doesn’t have a need to build a processing plant, while for Round Oak it’s a way to utilise its processing plant and get some money from the projects.

What could happen next?

 Ausmex is expecting its upgraded JORC resource estimates for Falcon and Shamrock two weeks after getting the results from the mineral lab, with a possible increase in the gold grade. With regard to Mt Freda, the company said it recently finished the JORC upgrade drilling and the results are now with the independent resource geologist.

Gold started the year with a bang, with prices hitting close to US$2,000, but the rally has since subdued. Yet with the promise of more stimulus coming from the US, we may see gold prices move higher this year.

It’s not easy to pick winning gold stocks. That’s why The Rum Rebellion editor Greg Canavan has prepared a ‘How to pick winning gold stocks’ guide for you.

You can access the free report here.


 Selva Freigedo,

For The Rum Rebellion

Selva Freigedo is a research analyst for The Rum Rebellion.

Born in Argentina, her passion for economic analysis started at a young age. Her father was an economist for the Argentinean governments and the family used to discuss politics and economics at the dinner table.

Argentina is a country with an unusual economic history. Growing up there gave Selva first-hand experience on different economic phenomena such as hyperinflation, devaluation and debt default.

Selva has also lived in Brazil, Spain and the USA.

Back in 2000 she was living in the US as the dot com bubble popped…
And in 2008 she was in Spain as the property market exploded and then collapsed…

She has seen first-hand what happens when bubbles burst.

Selva joined Fat Tail Investment Research’s team in 2016, as an analyst. She now writes from her vantage point in Australia, where she settled in 2015.

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