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.
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For The Rum Rebellion