e8a30cc2-94f7-415f-a65c-a530903df287.pdf
18 April 2016
RC drill results received from Dixon gold prospect
Australian Mines Limited ("Australian Mines" or "the Company") advises that the Company has received the assay results from its reverse circulation (RC) drill program at the emerging Dixon gold prospect - part of its joint venture with Riedel Resources (ASX: RIE)1.
This five-hole RC drill program, which was completed last month, was principally designed to test a chargeability 'high' that appeared to be coincident with a zone of high-grade gold mineralisation as intersected by Australian Mines during its maiden drill hole at Dixon in late 20152.
As announced by the Company on 29 March 20163, this five-hole drill program confirmed that the source of the geophysical anomaly is a thick corridor of disseminated iron sulphides (pyrite +/- pyrrhotite) occurring within the prospective dolerite geology.
The discovery of such a wide and laterally continuous sulphidic corridor at Dixon is considered significant as it indicates that a large-scale auriferous fluid system may exist within the prospect area.
The assay results recently received by the Company confirm that these inflowing hydrothermal fluids were indeed gold bearing, albeit at sub-economic concentrations.
1 Australian Mines Limited, Australian Mines secures majority ownership of Marymia Project, released 29 May 2015
2 Australian Mines Limited, High-grade gold zone extended at Dixon prospect, released 6 November 2015
3 Australian Mines Limited, Drilling confirms extensive sulphidic corridor at Dixon, released 29 March 2016
Australian Mines' drill hole DXRC003, for example, returned 106 metres @ 0.22 g/t gold from 115 metres down hole4.
Having now confidently determined the conduit used by the gold-bearing hydrothermal fluids at Dixon via the recent RC drilling, the Company's exploration program has therefore progressed to identifying (and drill testing) the secondary structures where these mineralising fluids may have concentrated to ultimately form potential ore bodies.
The assay results from the Dixon Diamond drill hole DXDD01 (which the Company expects to receive within the fortnight) will further enhance Australian Mines' understanding of these important secondary structures.
Managing Director, Benjamin Bell commented, "Whilst the assays returned from the RC drill program did not replicate the results of the initial drill hole where high-grade gold was intersected over a significant thickness, these drill results nonetheless go a long way in furthering our understanding of the potential controls of mineralisation within the Dixon gold system as well as the broader Doolgunna- Marymia area.
This information, together with the pending assay results from the Diamond drill hole, should therefore greatly assist our on-going exploration and enable the Company to maximise the success of future drill programs across this promising gold region".
***ENDS***
For further information, shareholders and media please contact:
Benjamin Bell Managing Director Ph: +61 8 9481 5811
E: [email protected]
4 No upper or lower cut was applied, and four-metre internal dilution has been used for this specific intersection calculation
Figure 1: The Dixon gold prospect is situated within 50 kilometres of Northern Star's Plutonic Gold Mine, and is located within Australian Mines (AUZ) and Riedel Resources (RIE) joint venture tenement E52/2394 where Australian Mines is currently earning an 80% interest.
Figure 2: Schematic image showing the location of Australian Mines' recent reverse circulation (RC) and Diamond core drill program at its Dixon gold prospect.