Why Ausmex Mining Group Ltd Jumped 79% Today

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.

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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.

Jason Stevenson,
Resources Analyst, Markets & Money

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Jason Stevenson is Markets & Money’s resource analyst. He shares over a decade’s worth of investing and trading experience across resource stocks and commodity futures and options. He originally studied accounting and finance at Curtin University, where he was awarded a first-class honours degree. His professional background stems across high-net-worth, top tier accounting (corporate finance, tax and auditing), and sell-side equities research. Before joining the team at Markets and Money, Jason worked at boutique firms which advised fund managers and high-net-worth clients on where to invest. Whether it’s gold, crude oil, copper or an obscure metal like vanadium, you can rely on an in-depth analysis in Markets and Money. Jason also brings you extensive macro, political and geopolitical analysis from around the world. He leaves no stone unturned when it comes to telling the truth. Jason is also the lead analyst of Gold Stock Trader, a premium service for investors serious about precious metal stocks. Websites and financial e-letters Jason writes for:

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