Austral Discovers TWO New Veins at the Amancaya MINE
Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | [email protected] |
www.australgold.com
MEDIA RELEASE
Austral Gold Limited
19 May 2021
AUSTRAL DISCOVERS TWO NEW VEINS AT THE AMANCAYA MINE
Austral Gold Limited (the “Company” or “Austral”) (ASX: AGD; TSX -V: AGLD) is pleased to
announce an update of its Amancaya drilling campaign following new assay results received from
eleven drill holes. Initial drill results from the campaign were announced on 27 January 2021.
Highlights from reported assays:
• The Oeste Vein has been intersected by two core diamond drill holes:
DAM-024 2.41 meters @ 10.19 g/t gold and 55.2 g/t silver
DAM-026 1.17 meters @ 24.98 g/t gold and 77.3 g/t silver
• The follow -up drilling of the previously reported DAM -008 confirmed the Este Vein
continuity at least for 50 meters NW and SE, parallel to the Amancaya Sur Vein. Currently,
four core diamond drill holes have intersected the Este Vein with the two new intercepts
shown below:
DAM-019 4.27 meters @ 7.81 g/t gold and 33.0 g/t silver
DAM-016 1.8 meters @ 3.1 g/t gold and 1.5 g/t silver
Oeste Vein discovery
Drill holes DAM-024 and DAM-026 were drilled to test the southern part of the Sur Vein at depth.
The Oeste Vein was recognized in the hanging wall of both drill holes at shallow depths. See
the Cross-Section in the Amancaya Mine 2021 Plan View Map below. The results of DAM-024
and DAM-026 recognized the Oeste Vein being subparallel to the Sur Vein. The Oeste Vein
strikes in NW direction and has been intersected by the two drill holes approximately 200 meters
apart.
Este Vein discovery
Drill holes DAM-016 to DAM-021 were designed to confirm mineralization intercepted with DAM-
008 drill holes in section 100SW. Drillholes DAM-016 and DAM-019 confirmed the continuity of
the Este Vein. To date, four drill holes have intersected the Este Vein that is interpreted to strike
in NW direction over approximately 50 meters. See Table 1 for more detailed drill results and
the Plan View Map for surface projections of the newly discovered veins. The new Este Vein is
a subparallel structure located almost 200 meters to the northeast of the Sur Vein.
The exploration program for Q2 2021 will focus on establishing continuity and extending the
Oeste and Este veins along strike and at depth.
Chief Executive Officer, Stabro Kasaneva commented: “I am delighted with the exploration
progress at Amancaya . We started the program six months ago and we have extended the
Amancaya mineralization to depth and discovered two new veins. It was our goal to extend the
life of mine at the Guanaco-Amancaya complex at the start of the exploration program in 2020,
Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | [email protected] |
www.australgold.com
and we are now starting to identify the potential to achieve this milestone. Several other factors
are important, including the high-grade Oeste Vein that was discovered near surface could result
in lower cost mining methods; the new ly identified NW striking direction of veins could unlock
further potential ; and the proximity of the new veins to the existing underground mining
infrastructure.”
Table 1: Additional Drill Intersections
Hole East North RL Dip Azimuth EoH Sector Section Intercept Width (m) Depth (m) Au gpt Ag
0.48 193.77 1.54 1.2
1.24 217.84 7.46 30.1
Include 0.41 217.84 14.19 44.6
1.82 377.45 3.11 1.5
1.89 383.46 1.98 2.1
0.05 390.15 2.67 0.6
0.38 393.35 1.90 11.5
0.34 397.32 3.71 1.0
0.29 398.15 1.13 1.2
0.69 399.49 2.99 1.3
0.46 404.69 2.06 0.6
DAM-017 418367.0 7171861.6 1904.79 -63 105 552.15 Central Vein 150SW
0.66 352.36 1.88 3.3
0.62 354.48 3.86 6.2
0.64 231.13 5.64 44.6
0.31 232.54 19.33 82.1
4.27 249.77 7.81 33.0
Include 0.21 252.09 39.80 81.20
Include 0.72 253.00 14.63 47.37
DAM-020 418678.2 7171883.8 1913.30 -70 235 444.55 Este Vein 200NW 0.35 375.50 4.69 2.32
DAM-021A 418360.7 7171915.0 1906.00 -66 105 435.55 Central Vein 100SW
other vein 200SE 0.43 44.53 1.71 11.10
Sur Vein 200SE 0.61 246.60 6.02 26.05
0.51 60.94 2.12 1.79
0.45 95.55 2.96 0.79
Sur Vein 250SE 0.54 266.73 1.51 3.68
2.41 20.32 10.19 55.20
Include 0.75 21.61 17.40 78.10
0.21 123.55 1.12 7.48
Sur Vein 150SE 0.97 316.40 1.92 7.97
New Vein 100SE 0.69 29.45 4.55 53.03
0.63 249.14 1.73 13.00
0.76 302.56 3.38 11.58
0.21 303.61 1.67 3.89
1.02 309.42 8.50 23.75
Include 0.42 310.02 12.52 24.10
0.44 310.87 3.54 26.40
1.17 52.55 24.98 77.26
Include 0.50 52.55 36.10 76.60
No significant intercepts
55 325 Oeste Vein 25SE
55 334.55 Sur Vein 100SE
150SEOeste Vein
339.5555
270.55
55 282.55
DAM-025 418556.5 7171422.5 1913 -65
DAM-026 418480 7171461 1911 -60
DAM-023
DAM-024
418627.5 -65 557171289.5 1916.00
418585.0 7171381.5 1913.50 -68
DAM-022 418625.5 7171348.5 1914.50 -65
No significant intercepts
1912.48 -65 285 501.15
125SW
Este Vein 125SW
418372.4 7171886.5 1904.93 -65 105 420.15
429.15
418642.1 7171839.5
DAM-016
Central Vein
Other Vein
AMANCAYA RESULTS
Significant intercepts reported at 1 gpt Au cutoff; include at 3 gpt Au cutoff, sub-include at 10 gpt Au cutoff
Central Vein
DAM-018
DAM-019
Este Vein 100SW
75SWEste Vein
75SW
418382.9 7171935.1 1907.26 -63 105
Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | [email protected] |
www.australgold.com
AMANCAYA MINE
2021 Plan View Map
Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | [email protected] |
www.australgold.com
AMANCAYA MINE
Schematic Cross-Section: Follow-up drilling program
Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | [email protected] |
www.australgold.com
Quality Assurance
Industry standard practices were used for sampling of diamond drilling. Drilling Samples were
sent to the Activation Geological Services (AGS) chemical laboratory, located in the city of
Coquimbo, Chile, where the samples were mechanically prepared (crushed and pulverized
according to standard protocol). Chemical gold analyzes were performed using Au50 FA -AAS
procedures (50 gram weight used for assays). Fusion with final determination performed by
Atomic Absorption; The results obtained equal to or greater than 5gr / ton., we re analyzed by
Au30GRAV, fusion with final gravimetric determination. For the base metal assays, acid
digestion was performed with final determination by ICPMS (Ultra -trace multi -element
package). AGS has NCh 17025-2005 accreditation for the aforementioned tests and its central
laboratory is located at Avenida La Cantera 2270, Coquimbo, Chile.
Competent Person
The information in this press release that relates to Exploration Results listed in the table above
is based on work supervised, or compiled on behalf of Robert Trzebski, a Director of the
Company. Technical Information in this press release has been revie wed by Robert Trzebski,
who is a member of the Australian Institute of GeoScientists (MAIG) 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 Reserve s’. Robert Trzebski consents to the
inclusion in this presentation 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 Amancaya
Amancaya is located approximately 60km south-west of the Guanaco mine. Amancaya is a low
sulphidation epithermal gold-silver deposit consisting of eight mining exploration concessions
covering 1,755 hectares (and a further 1,390 hectares of second layer mining claims).
Underground operations at Amancaya started in 2018 and the ore at Amancaya is trucked to
the agitation leaching plant at Guanaco for processing.
About Austral Gold
Austral Gold Limited is a growing gold and silver mining, development and exploration company
building a portfolio of quality assets in Chile, the USA and Argentina. Austral owns a 100%
interest in the Guanaco/Amancaya mine in Chile and the Casposo Mine (currently on care and
maintenance) in Argentina, and a non-controlling interest in the Rawhide Mine in Nevada, 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 19.2%
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.
Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | [email protected] |
www.australgold.com
Neither 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 Ben Jarvis
Chief Financial Officer Director
Austral Gold Limited Austral Gold Limited
[email protected] [email protected]
+54 (11) 4323 7558 +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 deve lopments. 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 inclu de our
exploration plans for Q2 2021, the high-grade Oeste vein that was discovered near surface could result
in lower cost mining methods and the newly identified NW striking direction of veins could unlock further
potential.
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.
Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | [email protected] |
www.australgold.com
AMANCAYA MINE EXPLORATION
JORC Code, 2012 Edition – Table 1 Report
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code Explanation Commentary
Sampling
techniques
• Nature and quality of sampling
(eg cut channels, random
chips, or specific specialised
industry standard
measurement tools appropriate
to the minerals under
investigation, such as down
hole gamma sondes, or
handheld XRF instruments,
etc). These examples should
not be taken as limiting the
broad meaning of sampling.
• Include reference to measures
taken to ensure sample
representivity and the
appropriate calibration of any
measurement tools or
systems used.
• Aspects of the determination
of mineralisation that are
Material to the Public Report.
• In cases where ‘industry
standard’ work has been done
this would be relatively simple
(eg ‘reverse circulation drilling
was used to obtain 1m samples
from which 3kg was pulverised
to produce a 30g charge for fire
assay’). In other cases more
explanation may be required,
such as where there is
coarse gold that has
inherent sampling
problems. Unusual
• Industry standard practices were used for
sampling of diamond drilling.
• The diamond drilling core was recovered
from drill tubes and stored in core wood
boxes, where it was geologically logged
then half core samples were taken using
an automatic core splitter, bagged and
sent to the laboratory.
• Samples were assayed for gold, and ICP-
Mass (58 elements package) at a certified
external laboratory, AGS (Chile).
Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD
Level 5 126 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | [email protected] |
www.australgold.com
Criteria JORC Code Explanation Commentary
commodities or
mineralisation types
(eg submarine
nodules) may warrant
disclosure of detailed
information.
Drilling
techniques
• Drill type (eg core,
reverse circulation,
open-hole hammer,
rotary air blast,
auger, Bangka,
sonic, etc) and
details (eg core
diameter, triple or
standard tube, depth
of diamond tails,
face- sampling bit or
other type, whether
core is oriented and
if so, by what
method, etc).
• Drilling techniques used were surface core
drilling rig producing core at HQ size.
Drill sample
recovery
• Method of recording
and assessing core
and chip sample
recoveries and
results assessed.
• Measures
taken to
maximise
sample
recovery and
ensure
representative
nature of the
samples.
• Whether a
relationship exists
between sample
recovery and grade
and whether sample
bias may have
occurred due to
preferential loss/gain
of fine/coarse
material.
• Sample recovery is generally >95%.
• The mineralised zone appeared to be quite competent
and core recoveries were excellent.
• All core was carefully placed in HQ sized core
wooden boxes and transported a short distance to a
core processing-sampling area where core recovery,
depth markup and photography could be completed.