AMG – Ausmex Gold the one to watch

Ausmex Mining Group has been putting out some unbelievable Gold assay results from their drilling at their Mt Freda and Golden Mile and IOCG targets in far North West of Queensland in the Cloncurry mineral Field. It seems that on every occasion that the company reports promising results, waves of selling seems to hit the market on the open and on the close. Goldtalk has made some enquiries and it seems that there is a stockholder formerly a promoter of Ausmex that handled the merger between Eumeralla before it became Ausmex. From what Goldtalk can report is that the former promoter from WA has been the big seller together with some punters that punted early results from the IOCG drilling. Actually 6 holes drilled into the IOCG have intersected great Gold/Copper/Cobalt results over 50 to 70m of continuous mineralisation in 6 holes. Seems the former promoter is telling the punters that Ausmex is not doing what they did and blaming the company for the price being sold off on announcements, when in fact he is the seller. So a bit of a big pump and dump and put the blame on Ausmex. That has been confirmed by Gold talk. That’s a real shame because from what we can see at Goldtalk is that the stock price is severely undervalued. The announcement released by the company on 28th is further making this stock the most undervalued company on the ASX. Combined the above with the company having an agreement with Round Oak Minerals (sub of giant WH Soul Pattison) to process all of the ore from the Ausmex’s Mt Freda complex. This will fast track mining approval because no treatment of the ore will be on site. No need for capital to build a process plant. The Round Oak CIP processing plant is only 40 klms from the Mt Freda mine.

The Drilling results just announced were from under the old Mt Freda open cut Gold mine just announcement (28/8/19) was a great Gold producer and operated in the mid to late 80’s. The Mt Freda Gold Mine was originally mined underground in the early 1930’s until the mid 1940’s. It was one of the Cloncurry mineral fields top producer with an average grade mined of 24g/t treating the high grade with a 10 head stamp battery processing system. In mid 1980’s it was purchased by a local miner who operated a heap leach gold plant and eventually sold it to ASX listed company DMR, who subsequently constructed a CIP plant. The CIP processing of Mt Freda ore was amenable to CIP cyanide processing with metallurgical recoveries of over 98% and poured 99.7% Gold bars on site. It was renowned at the time, as the perfect gold mine. However, the Gold price was not kind to them with the mine closing in 1990. Not because of the gold grade, but because the Gold price had collapsed to under $300 ounce.

DMR when listed, only owned two mining tenements that were converted to Mining Leases. The Company owned the Mt Freda Group and the Gilded Rose Group. DMR at the time had 180m shares issued and was trading at one time at $1.65 (with only these two tenements) giving them a market capitalisation of $297 million. Today Ausmex owns both Mt Freda and the Gilded Rose Group all located in the Cloncurry mineral field and only a short distance to the regional township of Cloncurry. Today with the Gold price hovering above $A2,300 (almost 10 times the Gold price when DMR owned it (market cap of $297m) and today the same properties owned by Ausmex has a market cap of $48m. The numbers speak for themselves, it is obvious to the obliterated that someone or some group are deliberately for whatever reason crashing the stock on every opportunity, primarily when the company makes ASX announcements. Anyone who has been following Ausmex must be scratching their heads. What amazes Goldtalk is where are the smart brokers? Surely, the ones that have analysts would be soaking up all the shares put up for sale as quick as they can put them in their bag. There is no question that there is manipulation going on with this stock, but I guess we will have to wait to find out the reason why.?


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