Austral Commences Drilling at Morros Blancos, Chile
Austral Commences Drilling at Morros
Blancos, Chile
Sydney, Australia--(Newsfile Corp. - January 11, 2022) - AustralGold Limited (ASX: AGD) (TSXV:
AGLD) ("
Austral
" or the "
Company
") is pleased to announce that the Company commenced the first
phase of the drilling program at the Morros Blancos project located in the Paleocene Mineral Belt in
northern Chile and close to the Guanaco/Amancaya operating mines.
The drilling program is pursuant to the option agreement (the "Agreement") with Pampa Metals
Corporation (CSE:PM) (FSE:FIRA) (OTCQX:PMMC) ("Pampa") as announced on 28 July 2021. The
Agreement with Pampa entitles Austral to acquire up to an 80% interest in Pampas' Morros Blancos and
Cerro Blanco properties which comprise ~7,300 and ~6,500 hectares, respectively. Since signing the
Agreement, we have incurred ~US$0.5 million in exploration expenditure on both properties. To acquire
the first 60% interest in both properties, exploration expenses of US$1M must be incurred in year 1 and
US$2M in year 2.
Drilling Program:
The first phase of the drilling activities will involve approximately 2,000m of diamond drilling (DD) in 5
holes at the delineated target of Rosario del Alto. The targeting process from a semi-regional
exploration program was based on the definition of the structural framework and remote sensing
reprocess. Three prospective areas identified at the intersection of first order NE and NW striking, thick
skinned faults and a 15x3 km NE favorable alteration corridor.
Delineation has been completed at Rosario del Alto, where key elements of high-sulphidation systems
have been field validated, including four maar-diatreme structures, multiplicity of phreatomagmatic
breccias extending ~2x1 km and a preserved structural block based on shallow volcanic features and
high-level alteration.
Systematic surface geochemistry prospection with 297 rock chip samples and over 450 spectrometry
measurements validated extensive advanced argillic alteration (~4x3 km) with preserved shallow levels.
Low Au values were detected corresponding with the exposure level of the system. A pathfinder anomaly
is concentrated on the central zone and apparently controlled by the border of suggested crater.
Newly acquired high-resolution ground magnetic data collected on 38 North-South oriented lines (100 m
spacing) is being processed by an external consultant. Preliminary results show demagnetized areas,
presumably due to an acidic hydrothermal alteration with spatially matching phreatomagmatic features.
Five East -West oriented CSAMT lines (totalling ? 12 km) were surveyed over favorably altered centers
and confirmed subvertical cone-shaped resistors over 10,000 ohms/m in 1D and 2D inversions.
MORROS BLANCOS
Rosario del Alto Target
Figure 1
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/690/109647_austral2.jpg
Competent Person
Technical Information in this press release has been reviewed by Robert Trzebski, who is a member of
the Australasian Institute of Mining and Metallurgy (AusIMM)and qualifies as a Competent Person as
defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves'. Robert Trzebski consents to the inclusion of the technical information that
he has reviewed and approved.
Robert Trzebski has sufficient experience which is relevant to the style of mineralisation and types of
deposits under consideration and to the activity which he has undertaken to qualify as a Competent
Person as defined in the JORC Code 2012.
About Morros Blancos
The project is located along the Paleocene Mineral Belt of northern Chile, south of the prominent El
Peñon gold-silver mining district. The project is prospective for high-sulphidation epithermal gold-silver
(+/- copper) and possibly deep porphyry copper (+/- gold +/-molybdenum) deposits. The project is
characterised by a relatively small-scale outcropping hill displaying "lithocap", spatially coincident with a
significant magnetic high and surrounded by extensive post-mineral cover materials.
About Austral Gold
Austral Gold Limited is a growing gold and silver mining, development and exploration company
whose strategy is to expand the life of its cash generating assets in Chile, restart its Casposo mine in
Argentina and build a portfolio of quality assets in Chile, the USA and Argentina organically through a
Tier 1 or 2 exploration strategy and via acquisitions and strategic partnerships. Austral owns a 100%
interest in the Guanaco/Amancaya mine in Chile and the Casposo Mine (currently on care and
maintenance) in Argentina, a non-controlling interest in the Rawhide Mine in Nevada, USA and a
non-controlling interest in Ensign Gold which holds the Mercur project in Utah, USA. In addition,
Austral owns an attractive portfolio of exploration projects in the Paleocene Belt in Chile (including
those acquired in the recent acquisition of Revelo Resources Corp), a non-controlling interest in
Pampa Metals and a 100% interest in the Pingüino project in Santa Cruz, Argentina. Austral Gold
Limited is listed on the TSX Venture Exchange (TSX-V: AGLD) and the Australian Securities
Exchange. (ASX: AGD). For more information, please consult Austral's website at
www.australgold.com
.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Release approved by the Chief Executive Officer of Austral Gold, Stabro Kasaneva.
For additional information please contact:
Jose Bordogna
Chief Financial Officer
Austral Gold Limited
+61 466 892 307
Ben Jarvis
Director
Austral Gold Limited
+61 413 150 448
Forward Looking Statements
Statements in this news release that are not historical facts are forward-looking statements. Forward-
looking statements are statements that are not historical and consist primarily of projections - statements
regarding future plans, expectations and developments. Words such as "expects", "intends", "plans",
"may", "could", "potential", "should", "anticipates", "likely", "believes" and words of similar import tend to
identify forward-looking statements. Forward-looking statements in this news release include our plans
to complete the first phase of approximately 2,000m of diamond drilling in 5 holes at the priority
delineated target Rosario del Alto.
These forward-looking statements are subject to a variety of known and unknown risks, uncertainties and
other factors that could cause actual events or results to differ from those expressed or implied,
including, without limitation, business integration risks; uncertainty of production, development plans and
cost estimates, commodity price fluctuations; political or economic instability and regulatory changes;
currency fluctuations, the state of the capital markets especially in light of the effects of the novel
coronavirus, uncertainty in the measurement of mineral reserves and resource estimates, Austral's ability
to attract and retain qualified personnel and management, potential labour unrest, reclamation and
closure requirements for mineral properties; unpredictable risks and hazards related to the development
and operation of a mine or mineral property that are beyond the Company's control, the availability of
capital to fund all of the Company's projects and other risks and uncertainties identified under the
heading "Risk Factors" in the Company's continuous disclosure documents filed on the ASX and on
SEDAR. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions which
may have been used. Austral cannot assure you that actual events, performance or results will be
consistent with these forward-looking statements, and management's assumptions may prove to be
incorrect. Austral's forward-looking statements reflect current expectations regarding future events and
operating performance and speak only as of the date hereof and Austral does not assume any obligation
to update forward-looking statements if circumstances or management's beliefs, expectations or
opinions should change other than as required by applicable law. For the reasons set forth above, you
should not place undue reliance on forward-looking statements.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/109647