Dec 18, 2020

Ausmex firms plans for Comstock gold start

Ausmex firms plans for Comstock gold start Costean work in and around old Comstock workings.

Ausmex Mining Group is continuing to head for an early 2021 start to production at its Comstock gold mine, after a final draft feasibility study indicating a ‘highly robust return on investment’.

Comstock is an historical high-grade gold mine that forms part of the Golden Mile project area and lies about 500m north of the Ausmex flagship Mount Freda project near Cloncurry.

Ausmex said the final draft feasibility study of the Comstock, Falcon and Shamrock mines was very positive, even though it was based on the current JORC resource estimates.

New upgraded resource estimates are expected for Comstock by the end of January and Ausmex is targeting a start to mining within the first quarter of the year.

An infill drilling program is in progress at Comstock, with an expected an increase in gold grades.

“The updated data from the resource upgrade drilling will allow the completion of the final feasibility study,” Ausmex said in a statemnet to the ASX.

“The current draft feasibility study already concludes the Comstock to be an extremely viable gold mining project.”

Pit design and pit optimisation studies indicate a low waste to ore ratio of 4:1.

The Comstock, Falcon and Shamrock mines are part of a joint venture between Ausmex Mining Group (80 per cent) and Round Oak Minerals.

The ore from the Comstock is to be transported to the Round Oak Minerals processing facility in Cloncurry.

Ausmex said the joint venture partnership allowed the mining of the projects to be fast forwarded, without the need to raise additional capital
to construct a gold processing facility.

“Working in a JV with Round Oak Minerals is highly beneficial for both companies. The JV agreement allows the near-new Round Oak Minerals gold processing plant to be recommissioned, thus providing a cash flow for both companies and combining the facilities for mutual benefit.”