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Drilling commenced at Dixon gold prospect

• Geophysics recently detected >200 metre long chargeability anomaly Dixon-gold-prospectcoincident with gold mineralisation at Dixon
       o Sulphide body, such as gold-bearing pyritic quartz veining, is the potential source of this anomaly

• Reverse circulation (RC) drill program of chargeability zone has commenced
       o Five holes totalling 1,100 metres
       o Testing potential strike length of high-grade gold mineralisation at Dixon

• Diamond core drill program on schedule to commence this weekend
       o Targeting depth continuity of auriferous quartz vein system


Australian Mines Limited (“Australian Mines” or “the Company”) is pleased to advise shareholders that the Company has commenced its reverse circulation (RC) drilling program of the emerging Dixon gold prospect, where previous drilling by Australian Mines returned an encouraging 10 metres @ 8.79 g/t gold from 130 metres down hole.

The Dixon gold prospect is situated within the Company’s Doolgunna-Marymia Project in Western Australia, part of a joint venture with Riedel Resources (ASX: RIE), and located within 50 kilometres of Northern Star’s 7 million ounce Plutonic Gold Mine .

Having successfully drilled the discovery hole at Dixon in late 2015, Australian Mines recently completed a detailed geophysical (induced polarisation, or “IP”) survey over the prospect area to ascertain the potential strike length and depth continuity of the Dixon gold mineralisation.

This IP survey subsequently detected a 200 metre long chargeability zone coincident with the gold mineralisation at Dixon, which based on the anomaly’s geophysical characteristics, is likely to be caused by a sulphide (pyrite) body that may represent as a gold-bearing sulphidic (pyrite + arsenopyrite) quartz vein system.

Australian Mines has, therefore, commenced an initial five-hole RC drill program at its Dixon gold prospect, which is designed to confirm the source of this IP anomaly and, in turn, test the possible strike extension of this high-grade gold system.
This RC drill program, totalling 1,100 metres, is expected to take two weeks to complete and the Company anticipates receiving the assay results from this program by mid-April.
Australian Mines is similarly on schedule to commence its diamond core drill program at Dixon this weekend.
The diamond drilling program will initially comprise a single hole, located along strike of the MMRC016 discovery hole, and is targeting the depth continuity of the bedrock-hosted gold mineralisation.
The core obtained from this hole will also provide the Company with valuable information regarding the geological factors controlling the auriferous veins at Dixon. Such information will greatly assist Australian Mines to potentially discover repetitions of Dixon-style gold mineralisation across the 6 kilometre long prospective dolerite corridor present within Australian Mines’ Doolgunna-Marymia project area.
Australian Mines looks forward to updating shareholders on the results of the current diamond core and RC drill program as they become available.

 

 

 

 

 

 

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