Ausmon Resources (AOA)

Shares / Stock Code

AOA

Stock Exchange / Sharemarket

ax

Ausmon Resources (AOA) is a new Australian exploration company which aims to grow by acquiring interests in prospective precious and base metals, energy related resources and other minerals tenements, exploring, evaluating, developing and proving mineral resources and, in time, mining the resources. The company was listed on Australian Stock Market on 31 March, 2009. Investors can trade Ausmon Resources shares on the Australian Stock Exchange (ASX).

With an initial focus on gold, silver, copper and other base metals in the Lachlan Fold Belt in NSW, Australia the Company acquired under a Farmin Agreement 85% interest in four exploration licences EL 6413 (Pooraka), EL 6415 (Tindarey), EL 6416 (Mt Burrow) and EL 6417 (Cumnock). The licences are within the Lachlan Fold Belt which hosts a number of major mineral deposits, including Cadia/Ridgeway near Orange.The Company also acquired, for cash consideration, 100% interest in a licence in NT (EL 26007 Mary River) with potential for gold, silver and uranium.

The company's current strategy is to carry out exploration work programs within its five ELs beyond the minimum licence work commitments and Farmin Agreement funding commitments to seek early results for assessment of prospectivity. As exploration expands with increasing funding requirements, the Company may consider farming out part of its current interests in the acquired ELs to farmin partners to contribute to the costs of the exploration programs as part of a prudent risk management strategy.

Seek to grow by investing in additional ventures in the mining industry in Australia and overseas, including China, and to expand and enhance the Company’s asset portfolio. In the future, when the Company has identified appropriate new investment opportunities for participation, the Company may have to raise further new capital, debt and/or equity, for example by issuing new Shares.

Ausmon Resources - Orogrande Shear Zone - Buffalo Gulch Gold Project

Buffalo Gulch is located within the 26 mile long Orogrande Shear Zone. Gold was originally discovered near Elk City, Idaho in 1861 and the Orogrande Shear zone has produced approximately 4,000,000 oz of gold and currently hosts 213 registered mineral workings. Premium Exploration entered a Letter of Intent to joint venture with Clearwater Mining Company to earn a 50% interest in the property.

Extensive soil sampling, geophysical surveys and drill programs have defined a disseminated gold deposit containing both oxide and sulfide mineralization. The gold deposit is open along strike and at depth into sulfide mineralization. To date, deep drilling has not been conducted to test the extent of the sulfide mineralization and only 10% of the surface geochemical anomaly appears to have been drill tested by previous operators. Premium believes that substantial potential exists to significantly increase the scale of this gold deposit.

Geological interpretation compares similarities between that gold vein structure associated with the north Orogrande Shear zone the high-grade gold vein structure intersected on the southern extension of Orogrande Shear zone, where initial drilling returned 21.3m averaging 9.9 g/ton gold mineralization, including 1.5m of 67.89 g/ton.

Based on extensive metallurgical testing program, previous operators calculated a non 43-101 compliant “mineable reserve” of 4,800,000 tons of oxide ore, containing approximately 100,000 ounces of gold at a low stripping ratio of 0.88 waste to ore. The property previously received all of the necessary permits for the construction and operation of an open pit gold mine from the various United States federal and state regulatory agencies in 1991, all of which have been kept current to date.

To date, no drilling has been conducted on this prominent IP anomaly. Premium is preparing the permit application to undertake drilling to test for the source of the IP anomaly which may be associated with high grade gold mineralization. Drilling will commence upon receipt of the permits.