Austral Gold Announces Drilling Results at Sierra Inesperada, Chile
Austral Gold Announces Drilling Results at Sierra
Inesperada, Chile
Highlights:
A mineralised NW structural Corridor has been identified at Sierra Inesperada as a result of the 2019 December
quarterly exploration program.
Sierra Inesperada represents a new exploration area for the Company - located SW of the Guanaco Mine area.
Attractive new intersections observed from the 4,806 meters reverse circulation ("RC") and diamond drill hole
("DDH") campaign included:
8.0m @ 4.26 g/t Au incl. 1m @ 19.17 g/t Au
14m @ 2.90 g/t Au incl. 1.0m @ 13.77 g/t Au
4.05m @ 3.99 g/t Au incl. 0.63m @ 13.80 g/t Au
Sydney, Australia--(Newsfile Corp. - January 30, 2020) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) ("
Austral
" or the
"
Company
") is pleased to announce exploration drilling results from its recent drill program at the Sierra Inesperada property,
which is located near the Company's Guanaco Mine.
Sierra Inesperada is located approximately seven kilometers southwest of the Guanaco Mine. During the fourth quarter of 2019,
the Company conducted a drill campaign comprising 48 holes and 4,806 meters, with 4,256 meters of RC and 550 meters of
DDH drilling.
Austral Gold's Chief Executive Officer Stabro Kasaneva said:
"Our technical team is very encouraged by these drilling
results. We will analyze these results further as we plan our next drilling program for Q1 2020, as well as metallurgical testing and
a geophysics campaign using ground magnetometry at Sierra Inesperada."
A mineralised structural corridor was identified, which is oriented N60 W / 85 SW, with a thickness that varies between 5 and 40
meters and an interpreted depth greater than 150 meters and strike of 200 meters.
The structures have brecciated textures with
fragments of gray quartz, vuggy silica and lithics. The wall rock is affected by an advanced argillic alteration with moderate to
intense silicification and a strong presence of alunite.
The oxidation zone is recognized by the presence of iron oxides that mostly correspond to hematite-jarosite and traces of
copper oxides. The sulphide zone is clearly represented by the weak to high presence of disseminated pyrite in irregular
veinlets.
Gray sulphides are observed as enargite and traces of chalcocite, which are arranged as a very thin patina in the pyrite.
The host rock of the mineralization corresponds to a pyroclastic sequence formed by layers of tuffs and lithic tuffs of andesitic-
dacitic composition, defined as Inesperada Hydro-magmatic Sequence. It covers a unit of green porphyric andesites with
medium-sized plagioclase phenocrystals.
The gold grades observed varied mostly in a range between 0.5 gr/t and 3 gr/t Au, with a maximum gold grade of 19.17 gr/t Au.
See Table 1 for all mineralized intercepts.
The Company assumes that the geological characteristics and orientation of the structural patterns observed in the veins will
provide an important exploration guide to recognize the mineral potential of the Sierra Inesperada. A location map of the Sierra
Inesperada project is set out in Figure 1.
Figure 1: Location map Sierra Inesperada
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/690/51953_db87bae354d408f3_002full.jpg
SIERRA INESPERADA PROJECT - Drilling Results*
Drill hole
From (m)
To (m)
Length (m)
Au (g/t)
Ag (g/t)
Cu (g/t)
Au Eq (g/t)
INES_7N
28
34
6
1.91
12
193
2.05
46
54
8
1.53
16
83
1.71
INES_8N
36
40
4
1.00
6
106
1.06
73
74
1
1.15
15
56
1.32
78
86
8
2.82
16
114
3.00
Including 78-79 (1m) : 3,90 g/t Au
Including 81-83m (2m): 4,79 g/t Au
Including 84-86 (2m) : 2,95 g/t Au
101
107
6
1.26
6
105
1.33
INES_15N
10
26
16
1.05
8
215
1.14
28
32
4
1.31
7
217
1.39
42
47
5
1.43
20
174
1.65
48
49
1
1.57
21
265
1.80
54
57
3
1.15
8
101
1.24
54
67
13
1.80
64
701
2.52
INES_16N
60
64
4
1.87
23
127
2.13
77
79
2
1.14
36
131
1.55
80
87
7
2.17
44
159
2.67
Including 85-86m (1m): 5,03 g/t Au
92
100
8
1.2
8
158
1.27
102
103
1
1.2
21
336
1.45
INES_18N
12
16
4
1.3
24
686
1.57
64
65
1
1.2
5
36
1.21
66
68
2
1.2
14
33
1.31
INES_19N
38
46
8
1.2
48
53
1.71
52
58
6
1.3
16
63
1.49
60
67
7
1.9
32
93
2.28
67
76
9
4.6
31
73
4.98
Including 69-73m (4m): 6,0 g/t Au
Including 75-76m (1m): 6,4 g/t Au
INES_20N
26
28
2
1.03
9
117
1.13
INES_21N
40
42
2
1.06
5
38
1.12
44
46
2
1.08
10
50
1.19
50
54
4
1.65
25
51
1.93
56
59
3
1.22
13
84
1.37
INES_22N
38
40
2
1.20
8
49
1.29
46
52
6
1.14
12
57
1.28
Drill hole
From (m)
To (m)
Length (m)
Au (g/t)
Ag (g/t)
Cu (g/t)
Au Eq (g/t)
INES_24N
DDH
52.1
52.5
0.4
12.05
126
130
13.47
53.75
61.77
8.02
1.45
13
51
1.59
75
75.34
0.34
1.11
13
120
1.26
122.85
134.8
11.95
2.66
41
11136
3.13
Including 123,47-124,44m (0,97m): 8,83 g/t Au
Including 127,31-139,11m (1,8m): 6,86 g/t Au
149.45
150.8
1.35
2.16
21
16026
2.39
153.43
155.1
1.67
1.04
20
10334
1.26
180.52
181.32
0.8
3.08
9
2780
3.18
184.37
186.44
2.07
1.48
14
6752
1.64
188.17
190.12
1.95
1.94
36
2586
2.34
INES_26N
39
40
1
1.47
56
141
2.10
44
45
1
4.45
21
102
4.69
52
54
2
1.38
22
116
1.63
56
60
4
1.55
25
68
1.83
INES_27N
11
16
5
1.29
10
156
1.41
33
35
2
1.40
19
161
1.62
63
79
16
2.29
12
107
2.42
Including 77-79m (2m): 6,64 g/t Au
81
95
14
2.90
33
107
3.27
Including 84-85m (1m): 13,77 g/t Au
INES_28N
24
28
4
1.92
6
98
1.99
31
38
7
2.04
6
65
2.11
45
52
7
2.47
22
37
2.72
Including 46-47m (1m): 7,77 g/t Au
56
57
1
1.66
19
71
1.88
INES_29N
12
24
12
2.08
26
558
2.37
Including 12-13m (1m): 8,30 g/t Au
37
38
1
3.63
70
173
4.42
INES_31N
14
15
1
1.60
9
142
1.70
17
20
3
1.61
7
83
1.69
23
28
5
1.60
4
95
1.65
32
36
4
1.15
3
90
1.18
38
39
1
2.18
7
93
2.26
42
43
1
1.62
22
79
1.87
INES_32N
21
22
1
1.40
9
317
1.50
49
54
5
1.31
39
220
1.74
56
57
1
1.07
10
287
1.19
INES_35N
DDH
42.6
45.58
2.98
1.12
16
94
1.30
56.95
61.03
4.08
1.85
35
190
2.25
65.5
75.75
10.25
1.97
23
97
2.23
Drill hole
From (m)
To (m)
Length (m)
Au (g/t)
Ag (g/t)
Cu (g/t)
Au Eq (g/t)
INES_36N
DDH
25.78
27.45
1.67
2.35
4
40
2.40
36.45
38.6
2.15
1.27
4
20
1.31
40.6
54
13.4
2.68
13
61
2.83
Including 40,6-42,6m (2m): 5,71 g/t Au
INES_37N
38
39
1
1.03
30
49
1.37
47
54
7
1.60
3.6
74
1.64
INES_38N
38
40
2
1.45
49
88
2.00
45
51
6
2.45
20
78
2.67
Including 48-49m (1m): 5,62 g/t Au
53
64
11
1.54
4
92
1.59
67
75
8
4.26
21
106
4.50
Including 67-68m (1m): 19,17 g/t Au
INES_40N
22
24
2
1.76
41
346
2.22
34
37
3
2.12
29
104
2.45
61
69
8
2.18
8
137
2.27
76
79
3
3.42
75
135
4.26
Including 78-79m (1m): 6,90 g/t Au
87
88
1
1.11
6
57
1.18
INES_41N
45
48
3
1.88
8
210
1.97
50
51
1
1.92
10
210
2.04
52
56
4
1.24
6
161
1.31
59
65
6
1.71
8
96
1.80
INES_42N
DDH
44.4
47.5
3.1
1.05
4
114
1.10
58.8
68.1
9.3
1.27
25
163
1.55
71.25
73.2
1.95
1.05
15
200
1.22
75.05
82.6
7.55
2.08
16
171
2.26
Including 79,63-81m (1,37m): 5,48 g/t Au
85.55
86.43
0.88
8.18
36
200
8.59
88
89.74
1.74
1.91
8
83
2.00
91.09
93.87
2.78
3.43
30
164
3.77
Including 92,65-93,2m (0,55m): 8,08 g/t Au
97.68
101.73
4.05
3.99
22
163
4.24
Including 101,1-101,73m (0,63m): 13,80 g/t Au
103.22
104.18
0.96
1.18
24
130
1.45
INES_43N
2
3
1
1.72
2
37
1.74
22
24
2
3.62
13
263
3.76
Including 23-24m (1m): 5,57 g/t Au
31
37
6
1.54
11
111
1.66
INES_44N
39
41
2
1.35
22
174
1.60
46
50
4
1.19
14
104
1.35
INES_45N
39
44
5
1.52
5
120
1.58
Drill hole
From (m)
To (m)
Length (m)
Au (g/t)
Ag (g/t)
Cu (g/t)
Au Eq (g/t)
114
115
1
4.10
49
47
4.65
117
118
1
1.50
6
27
1.57
INES_47N
126
127
1
2.12
32
113
2.48
INES_48N
25
27
2
3.99
11
138
4.12
35
36
1
1.61
16
65
1.79
INES_49N
2
3
1
5.20
23
1921
5.46
9
11
2
2.20
46
370
2.72
16
19
3
1.75
25
189
2.03
23
24
1
1.96
13
212
2.11
26
28
2
1.27
8
239
1.36
INES_50N
DDH
43.86
51.5
7.64
1.96
7
65
2.04
55.93
57.26
1.33
1.48
6
90
1.54
60.52
61.96
1.44
1.47
8
80
1.56
63.21
64.24
1.03
4.83
28
60
5.15
71.6
90
18.4
1.63
11
99
1.75
Including 80,42-81,8m (1,38m): 6,22 g/t Au
100.07
106.35
6.28
2.10
18
150
2.30
Including 100,88-102,15 (1,27m) : 2,32 g/t Au
Including 102,78-104,2 (1,42m) : 2,05 g/t Au
Including 104,95-106,35 (1,4m) : 3,17 g/t Au
*
Reporting Criteria:
Intercepts reported are Au > 1.0ppm (1 g/t Au) and a minimum 1m downhole width with maximum
consecutive internal dilution of 2m. Please refer to Appendix 1 (JORC Table) for further information on sampling techniques and
data and reporting of exploration results.
The table above displays selected analytical results from a total of 48 RC and DDH drill holes.
Complete drill results have been
posted on the Company's website
www.australgold.com
.
Figure 2: Drilling holes with grade intervals of Au > 1.0ppm (1 g/t Au)
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/690/51953_db87bae354d408f3_003full.jpg
Competent Persons
The scientific and technical content of this news release has been prepared by, or under the supervision of Robert Trzebski,
MAusIMM , and has been reviewed and approved by him. Dr. Trzebski is a Geologist and Member of Australian Institute of
Mining and Metallugists and Director of Austral Gold Limited. Dr. Trzebski is a "competent person" for purposes of the JORC
Code and of National Instrument 43-101, Standards of Disclosure for Mineral Projects.
About Austral Gold
Austral Gold Limited is a growing precious metals mining, development and exploration company building a portfolio of
quality assets in Chile and Argentina. The Company's flagship Guanaco/Amancaya project in Chile is a gold and silver
producing mine with further exploration upside. The company also holds the Casposo Mine (San Juan, Argentina), a
~22.48% interest in the Rawhide Mine (Nevada, USA) and an attractive portfolio of exploration projects including the
Pingüino project in Santa Cruz, Argentina (100% interest) and the San Guillermo and Reprado projects near Amancaya
(100% interest). With an experienced local technical team and highly regarded major shareholder, Austral's goal is to
continue to strengthen its asset base through acquisition and discovery. Austral Gold Limited is listed on the TSX Venture
Exchange (TSXV: AGLD), and the Australian Securities Exchange. (ASX: AGD). For more information, please consult the
company's website
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.
On behalf of Austral Gold Limited:
"Stabro Kasaneva"
CEO
For Further Information please contact:
Jose Bordogna
Chief Financial Officer
Austral Gold Limited
54 11 4323 7558
David Hwang
Company Secretary
Austral Gold Limited
61 2 9698 5414
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 the Company's plan to review and analyze the results as it plans its next drill program, metallurgical testing, a
geophysics campaign at Sierra Inesperada, and the Company's anticipation that the geological characteristics and orientation
of the structural patterns will provide an important exploration guide to the geological potential at Sierra Inesperada.
All of 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, 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.
Appendix 1: JORC Table
Sierra Inesperada Exploration
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).
Industry standard practices were used for
sampling of reverse circulation and
diamond drilling.
The diamond drilling core was recovered
from drill tubes and stored in core boxes,
where it was geologically logged
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 commodities or
mineralisation types (eg submarine
nodules) may warrant disclosure of detailed
information.
For sampling half core, samples were taken
using a mechanical core splitter, bagged
and sent to the external laboratory.
Diamond drill (DDH) samples were
assayed for gold and base metals at ALS
external laboratory. RC drill holes were
assayed for gold and base metals at
internal laboratory.
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
(63.5mm) and cutting sample for RC drill
holes.
Criteria
JORC Code Explanation
Commentary
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 core and cuttings recoveries >
95%.
All core was carefully placed in HQ sized
core boxes and transported a short distance
to a core processing area where core
recovery, depth markup and photography
could be completed.
Cuttings were carried out from rigs and
stored separated by drill hole.
Logging
Whether core and chip samples have been
geologically and geotechnically logged to a
level of detail to support appropriate Mineral
Resource estimation, mining studies and
metallurgical studies.
Whether logging is qualitative or quantitative
in nature. Core (or costean, channel, etc)
photography.
The total length and percentage of the
relevant intersections logged.
Diamond drill core and reverse circulation
drill holes were geologically logged using
predefined logging codes for lithological,
mineralogical, and physical characteristics.
Drill core logging, structural and
geotechnical measurements and the
estimation of recoveries, was quantitative in
nature.
Drill core was photographed and digitally
stored for visual reference.
All holes are logged from start to finish and
were conducted on site.
Sub- sampling
techniques and sample
preparation
If core, whether cut or sawn and whether
quarter, half or all core taken.
If non-core, whether riffled, tube sampled,
rotary split, etc and whether sampled wet or
dry.
For all sample types, the nature, quality and
For the Diamond core, sample intervals
were marked, and the core was split with a
mechanical splitter. Half core samples were
placed in plastic bags and tagged with a
unique sample number. The other half of the
core was returned to the core box and
appropriateness of the sample preparation
technique.
Quality control procedures adopted for all
sub-sampling stages to maximise
representivity of samples. Measures taken
to ensure that the sampling is representative
of the in situ material collected, including for
instance results for field duplicate/second-
half sampling.
Whether sample sizes are appropriate to
the grain size of the material being
sampled.
securely stored.
For RC drill holes, samples were placed in
plastic bags and tagged with unique sample
number. Bags with sample A were sent to
laboratory while sample B bags were
securely stored.
Criteria
JORC Code Explanation
Commentary
Quality of assay data
and laboratory tests
The nature, quality and appropriateness of
the assaying and laboratory procedures
used and whether the technique is
considered partial or total.
For geophysical tools, spectrometers,
handheld XRF instruments, etc, the
parameters used in determining the
analysis including instrument make and
model, reading times, calibrations factors
applied and their derivation, etc.
Nature of quality control procedures
adopted (eg standards, blanks, duplicates,
external laboratory checks) and whether
acceptable levels of accuracy (ie lack of
bias) and precision have been established.
Reverse circulation drill samples were
collected and bagged and sent to the
internal laboratory at the Guanaco site.
There they were crushed and prepared.
Gold assays were done using FA-AAS
procedure on a 30g sample. Base metal
assaying was done by Aqua regia 2gr
100
with final determination by AAS.
Diamond drill holes samples were collected
and bagged and sent to ALS external
laboratory.
Gold assays were done using
FA-AAS procedure on a 30g sample. Base
metals assaying was done by four acids
with final determination by atomic
adsorption AAS.
Internal laboratory checks are made
regarding sample preparation and assaying
procedures, using the external laboratory.
Verification of sampling
and assaying
The verification of significant intersections
by either independent or alternative
company personnel.
The use of twinned holes.
Documentation of primary data, data entry
procedures, data verification, data storage
(physical and electronic) protocols.
Discuss any adjustment to assay data.
10% of the mineralized RC intercept above
1 g/t Au were sent to external Lab for
validation.
Three twin holes were drilled using DDH to
validate the RC information.
Logged on paper and entered manually into
electronic spreadsheets. Data then directly
from laboratory entered into CSV Database
and validated before being processed by
industry standard software packages such
as Vulcan.
No adjustments are made to assay data.
Location of data points
Accuracy and quality of surveys used to
locate drill holes (collar and down-hole
surveys), trenches, mine workings and other
locations used in Mineral Resource
estimation.
Specification of the grid system used.
Quality and adequacy of topographic
control.
Drilling collar survey used Trimbl Geodesic
GPS Model R6, doble frecuency, +- 5mm
precision.
The Datum used was PSAD56.
Downhole surveys are completed by
downhole methods (Reflex multishot) at
regular intervals (30m).
Sample locations recorded using
underground surveying.
Data spacing and
distribution
Data spacing for reporting of Exploration
Results.
Whether the data spacing and distribution is
sufficient to establish the degree of
geological and grade
continuity appropriate
for the Mineral Resource and Ore Reserve
estimation procedure(s) and classifications
applied.
The drill hole spacing is 30m in lateral
extent.
Data spacing and distribution are sufficient
to establish the degree of geological and
grade continuity a
ppropriate for the Mineral
Resource and Ore Reserve estimation
procedures.
No sample compositing is applied to