The NT tenement is within an area of historical gold, silver and uranium mineralisation within the Pine Creek Orogen.
The NSW tenements are within the Lachlan Fold Belt, which is the primary focus for most gold exploration in the State. The porphyry style copper-gold potential of the Ordovician rocks of the Lachlan Fold Belt is highlighted by such mines as Northparkes, Cadia, Cowal, Wyoming, Gooleys North and Newcrest’s new porphyry system at Buryon, northwest of Bathurst (196 metres @ 0.26% copper and 1.6 grams/tone of gold). In the western area of the Fold Belt the major Cobar base metal mineral field has likewise produced some major exploration success from both near-mine and greenfields exploration such as at Hera and Wonawinta and at Mt Boppy.
Many of these discoveries are the result of further investigations of previously explored areas to test extensions of known mineralisation.
Examples of this successful brownfields exploration include the east Cadia and Ridgeway deposits and Cadia is now ranked amongst the top ten porphyry and epithermal copper-gold systems in the world. There were also many smaller discoveries that seem likely to amply reward shareholders for the exploration risk of going over ground already well explored in the past.
The total resource at Cadia-Ridgeway now totals 2,475 million tonnes @0.5 grams /tone of gold, 0.3% copper, (2008) containing 39.4 million ounces of gold and 6.96 million tonnes of copper. Importantly, Ausmon holds 249 square kilometres in the Cumnock EL directly to the north of Cadia, covering Ordovician age shoshonitic volcanics similar to those found at Cadia. This EL extends to Wellington adjacent to the Copper Hill porphyry copper style deposit.
NSW is second to Western Australia in gold production and the Fraser Institute rates NSW third in the world for world-class mineral provinces and as a preferred destination for mining companies. This is seen in exploration expenditure which reached $96 million in 2004; gold production in 2007 reached 32 tonnes.
In NSW the cost of production of gold per ounce is the lowest of any State in Australia at US$187. The cost of discovery in NSW is also extremely low by international standards.
The higher levels of expenditure are attributed to government initiatives and notable new discoveries with major drill intersections.
Ausmon Resources has a proposed expenditure program which will adequately advance the exploration of the tenements and delineate drill targets at an early stage and has access to an experienced group of consultants to carry out the work.