Extract from report
“The ore reserves and were calculated employing the end area sectional method, a cut off of 1g/t Au and a cutting factor of 10g/t (geometric mean + 2 x standard deviations). This was considered appropriate at the time as the RC drilling had not allowed the higher grade material to be geologically differentiated. Recent diamond drilling has however, shown that the higher grade material is commonly fault gouge breccia or medium graded quartz jasper breccia, with sulphides or siliceous ironstone breccia. Lower grade material occurs within the altered country rock and coarse quartz/jasper or quartz carbonate at depth. Consequently it can be seen that two grade distribution populations exist and therefore cutting factors are probably not applicable. This also gives confidence to selective underground mining as it is believed the higher grade fault material can be distinguished from the lower grade mineralized rock. At this stage “reserves” are presented as a geological resources to the categories of measured and indicated and inferred. These have been calculated on the bases of a dry density of 2.7t/m3 and a cut-off 1g/t Au with a polygonal model of long section as presented.
Measured and Indicated Resource: 600,600 tonnes @5.65g/t Au
Inferred Resource: 497,340 tonne @ 4.96 g/t Au
Two Diamond holes are currently being drilled, which will allow these resources to be upgrade to reserves for both the open pit and underground mining with appropriate cut-offs dependent on mining method.”
Wardley Report ends.
Ausmex also announced to shareholders on 24th June 2020, that it has commenced the dewatering of the Mt Freda open cut and pumping the water into 4 evaporation cells.
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What about Burra
There has been a fair bit of hype attached to the Ausmex Burra exploration. When asked about where that project was at the moment Mr Day informed us of the following – The area that the company explores (7,000 square Km) has been the subject of major bushfires and now having restrictions on the drilling by the Covid 19 Government restriction. The Company has advised *****gold, that Ausmex will commence drilling as soon as the restrictions are lifted and he could not wait to put a deep hole into the anomaly created by the magnetotulluric survey that identified a massive magnetic and conductive anomaly over 14 km wide and 6 km long. Mr Day said that its certainly hot ground given its location in the G2 Corridor where the BHP Olympic Dam mine is located. “We are hopeful “,he said. The indications from the Survey have identified a large magnetic and conductive anomaly, so we know there is something down there, with real size, but we wont know what is giving us the data, until we drill it. Mr Day said the Company had also applied for $300,000 drilling grant offered by the South Australian Government to be spent in the Burra area.
