Well this may help understand what went wrong. Yesterday I spoke to a geologist who was one of the original Geologists at DMR and followed the QMN ownership of Mt Freda and said he was very surprised to see the grade and tonnes from Mt Freda current 2012 AMG JORC. He said Mt Freda was a East/West weathered Oxide Quartz, iron deposit that when drilled in 1987 was consistently bringing grades of 4 to 15g/t from the current pit and cannot for the life of him (his words) know how they came up with such a low Au grade. Added to this he said it appears whoever was handling the resource data for Ausmex didn’t seem to put much effort in and seems they left out all the DMR holes and QMN holes from the calculations when given to the independent resource geologist. He said QMN in their JORC resource in 2009 had a resource 120,000 (more than Ausmex after more drilling of high grades)ounces of Gold. Seems to me, he said is pure laziness on the side of the management of Ausmex not going to the trouble and time to furnish the externalGeology company with all the previous drill holes and data including historical assays and have them all certified. He said all of the holes that should have been added in were all drilled and assayed at certified laboratories by listed ASX companies. He said, the data should have been added. (Only reason it’s not is laziness and slackness). So now after all the drilling by Ausmex we have a lower resource than the previous resource. This needs to be addressed and addressed immediately he said. Heads need to roll. His final parting shot was “ how can a company mine Mt Freda in the mid to late 80’s and recover gold at 4.4g/t Gold with drilling showing grade increasing at depth come up with an average grade of 2.6g/t. I can tell you what he said. Lazy management at Ausmex, that’s why. Too lazy to get out of their own way. DMR that owned Mt Freda he said had a market capitalisation of $270m (150m @ $1.68) now $20m for same mine. He said the gold hasn’t gone anywhere just the fools running the show. All promises and no delivery. Same as Burra drill 200m into a 14klm x 6klms major geophysical anomaly and don’t go back to finish the hole to 500m, 6 months later still waiting. What the hell!!
AMG Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
