Ausmex Mining Group Ltd. has executed a non-binding heads of agreement (HoA) with Activex Ltd. to identify and acquire gold ore processing facilities in Cloncurry, Queensland, Australia. The strategic alliance provides the opportunity for both companies to share their in-house expertise and potentially partner in long-term gold production.
The terms of the alliance are as follows:
• Ausmex and Activex have formed the strategic alliance to identify, review, consider and acquire suitable gold processing facilities within the Cloncurry region.
• Any partnership or other joint venture to be entered into as a result of the strategic alliance will be formed with Ausmex having a 75 per cent interest and Activex having a 25 per cent interest.
• On a satisfactory outcome under the strategic alliance, the parties intend to enter into a joint venture for any potential acquisition or transaction of the plant.
• The parties agree to work together cooperatively for the purposes of this strategic alliance on the terms of this heads of agreement.
• The current term is four months yet can be mutually extended.
Currently, Ausmex holds 12 granted mining leases within the Cloncurry region with nine of these mining leases with a combined area of over 200 hectares, all within hauling distance to third-party ore processing facilities.
Mt Freda open cut was previously operated by Diversified Mineral Resources from 1987 to 1991 producing approximately 30,000 Oz of gold per annum at an average grade of 4 g/t Au. Previous mining reports indicate recoveries of greater than 95 per cent gold via CIP processing. Mining ceased in 1991 following the fall in gold price to historic lows below US$300 per Oz. The current Mining Lease ML 2752 is 116 hectares and granted until 2028.
The combination of the Golden Mile ML100201 application and the current Mt Freda Mining Leases provides the potential for Ausmex in the short term to schedule development of a multi-pit, mining hub facility within hauling distance of Cloncurry CIP processing facilities.