Ann: AUSMEX BREATHS LIFE INTO MT FREDA GOLD MINE, page-60

Eastwest,

A friend of a friend enlightened me who was also a Geo at the time working for DMR. He said the resource is far bigger than the one bought out recently by AMG. He said the 100,000 tonne Mt Freda waste dump alone was higher than 2.2g/t . He was right AMG sold the Mt Freda waste dump which was over 2g/t gold to a Cloncurry company 2 years ago for $2.5m he said. My guess is that AMG will proceed with getting Mt Freda into production and that once the Golden Mile leases are granted will open cut that straight away as it’s all surface high grade material. The processing of that ore is organised under agreement with a process plant in Cloncurry Just dig and truck it. Mt Freda is a proven performer, just takes time and money. I reckon these guys will get it done and in quick time. See below old underground workings below. Grades are in pennyweights, so to get to grams per tonne multiply by 1.5. Also I’m sure AMG have all of the data from DMR days including their engineering, and rock mechanics as DMR was also preparing to go underground. The announcement didn’t mention Mt Freda was going to be in production first by the new board. Just says that they will bring it into production as soon as possible. From what I have read in all announcements is that it was the intention to bring Golden Mile into production (as soon as ML’s granted) by open cut to get the shallow gold and process at the Round Oak minerals plant. That’s how I read it. I think that the new board know what needs to be done unlike the last one. To do all the work you refer to going underground, the pit needs be emptied. A lot easier to do mechanics below ground level and cheaper than doing it from 50m above the bottom of the pit full of water. All of the historical underground mining reports etc are still available at the mines department archives. I don’t know of a single mine in the. Cloncurry/Mt Isa Inlier that not had good ground. Mt Freda is surrounded by underground mines. Trevor Coombe the new Director is an underground mining specialist and Mining Engineer. Eastwest I think you can relax and not jump at shadows.





Historical Mt Freda underground workings. Grades are in DWT do multiply by 1.5 to get grams per tonne