Newcrest Mining has commenced Tier 1 drilling at an iron ore-copper-gold target south east of Cloncurry in Queensland.

Australian Mining is reporting the gold miner’s drilling at the Canteen prospect fulfils part of a farm-in agreement with company Exco Resources, which first identified the prospect in 2012.

The target is particularly significant for neighbouring junior Ausmex Mining Group. Around 30 per cent of the target area identified by Exco intersects Ausmex’s Mt Freda mineral complex, which hosts shallow gold, copper, cobalt and rare earth minerals and is expected to produce a JORC result imminently.

Ausmex managing director Matt Morgan confirmed Newcrest’s drill start as ‘a wonderful outcome’ for Ausmex, calling it, ‘the moment all junior listed companies wait for’.

“The Ausmex team always suspected that we were sitting on a very large mineralised system at the Mt Freda complex,” he said.

“To have this confirmed by a leading international mining house such as Newcrest Mining Limited, whom themselves have identified the Canteen project that adjoins the Mt Freda complex as a Tier 1 IOCG drilling target, is exceptional.”