At the time of writing, shares of Ausmex Mining Group Ltd [ASX:AMG] are up by 79.41% for the day, to 6.1 cents per share.
Why did Ausmex Mining Group Ltd shares do this?
Ausmex Mining Group tapped the copper motherlode today, sending it share price skyrocketing. A drill hole (TR17RC07) hit 153 metres, grading 1.02% copper from surface. That’s not a bad result ― especially in this weak commodities market. TR17RC07 also intersected gold and cobalt, which could enhance the economics of the overall project.
What now for Ausmex Mining Group Ltd?
Following the successful maiden drill campaign at the Trump Mining Lease in February, the company drilled two additional holes at the project. One drill (TR17RC07), as discussed above, re-entered a hole that was drilled to a depth of 60 metres in late December 2017. The last hole finished in high-grade copper. The latest result clearly demonstrates the economic potential of the project. But are we looking at a ‘one hole wonder’ in the making?
It’s too early to say.
Keep in mind, TR18RC001 ― the second hole drilled in the program ― intersected three zones of copper. And it averaged 1.03% of copper across 77 metres.
That’s not bad.
In this case, rather than the copper grade, the key to this story is the thickness and shallow depth of the copper. The Trump Mining Lease could host a large mineralised deposit at shallow depth, open along strike. But more drilling is needed to prove this thesis.
If the company delivers similar results in the future, the Trump Mining Lease could be worth hundreds of millions. The project is located close to road access and rail facilities, and within trucking distance to several third-party gold and copper processing facilities.
The bottom line: Today’s drill result was good, but we need to see more of the same for the share price to really take off.
On a different note, this drill result could be the ‘spark’ the junior resource desperately needs. It’s been tough few months for resource punters. But, thanks to this result, the junior copper sector might see a comeback in the months ahead.
Resources Analyst, Markets & Money
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