Austral Gold Extends Amancaya High Grade to Depth Highlights from reported assays: DAM -
Austral Gold Extends Amancaya High Grade to
Depth
Highlights from reported assays:
DAM
-
002 1.35 meters @14.65 g/t gold and 50.60 g/t silver including 42.43 g/t gold and
124 g/t silver over 0.44 meters
DAM
-
003 2.07 meters @12.13 g/t gold and 57.50 g/t silver including 21.01 g/t gold and
142.8 g/t silver
over 0.88 meters
DAM
-
008 2.53 meters @12.18 g/t gold and 8.50 g/t silver in the Central Vein and 30m at
4.04 g/t gold and 7.50 g/t silver including 4.14 meters @23.50 g/t gold and 29.30 g/t silver
in a newly discovered mineralized breccia zone at depth
DAM
-
012 0.40 meters @41.89 g/t gold and 7.50 g/t silver
Sydney, Australia
--
(Newsfile Corp.
-
January 26, 2021)
-
Austral Gold Limited (ASX: AGD) (TSXV:
AGLD) (the
"Company"
or
"Austral"
) is pleased to announce that it has received assay results for
the first
fifteen drill holes reflecting 4,806m at its Amancaya mine.
Extending the known veins to depth
The drilling program started in the fourth quarter of 2020 in order to extend resources and reserves at
the Amancaya mine at depth. Previous exploration was no
t successful in intercepting the veins at
depth when drilling was performed from east to west. Austral mapped out the contact between two
breccia zones at the location of the veins and observed a steepening of this contact zone.
Consequently, drilling was
undertaken from west to east, and intersected the vein with similar widths
and tenor that is currently being mined 50m to 100m under previous intersections. See attached
longitudinal sections.
New Discovery
-
New Mineralized Breccia Zone
In addition, drill
hole DAM
-
008 successfully extended the eastern edge of the Amancaya diatreme as
a major mineralization control, intercepting 30m @ 4.04 gpt Au which contains high
-
grade veins and
hydrothermal injection breccias. This zone also included a high
-
grade inters
ection on the hanging wall
of 4.1m of 23.5 g/t Au and 29 g/t Ag.
Chief Executive Officer, Stabro Kasaneva commented:
"I am delighted with the success of the
exploration team
-
they discovered a new wide zone of hydrothermal breccia that could transform the
production profile at the Amancaya mine and are on the right track to extend the mine life of this low
cost operation."
Table 1: Drill Intersections
Hole
Sector
Section
Intercept
From (m)
To (m)
Length (m)
Au gpt
Ag
Significant intercepts reported at 1
gpt Au cutoff; include at 3 gpt Au cutoff, sub
-
include at 10 gpt Au
cutoff
True widths are 30
-
50% of drilled widths
DAM
-
002
Veta Sur
150 SE
70.21
71.56
1.35
14.65
50.7
Include
71.12
71.56
0.44
42.43
124.0
DAM
-
003
Veta Sur
200 SE
307.89
309.96
2.07
12.13
57.5
Include
308.38
309.26
0.88
21.01
142.8
DAM
-
004
Veta Norte
175 NE
348.80
349.96
1.16
4.02
3.0
DAM
-
005
Veta Norte
325 NE
No significant intercepts
DAM
-
006
Veta
Central
0
313.37
314.42
1.05
4.18
3.5
DAM
-
007
Veta
Central
100 NE
311.38
312.68
1.30
6.97
6.0
DAM
-
008
Veta
Central
100 SW
266.08
268.61
2.53
12.18
8.5
New Zone
100 SW
308.85
312.99
4.14
23.50
29.3
Include
309.24
310.14
0.90
17.24
50.59
Include
311.29
312.99
1.70
44.46
25.25
sub
-
include
312.47
312.99
0.52
89.70
44.30
314.98
316.93
1.95
3.55
4.6
Include
315.32
315.66
0.34
10.81
16.20
319.37
321.60
2.23
3.77
11.1
332.81
334.06
1.25
2.90
5.8
334.60
337.57
2.97
3.04
6.7
DAM
-
009
Veta Sur
50 NW
No significant intercepts
DAM
-
010
Veta Sur
175 NW
98.78
99.13
0.35
4.88
0.6
DAM
-
011
Veta Sur
250 SE
119.27
119.92
0.65
2.78
0.5
DAM
-
012
Veta Sur
200 SE
104.21
104.61
0.40
41.89
7.5
DAM
-
013A
Veta Sur
175 SE
66.05
66.36
0.31
19.25
0.3
DAM
-
014
Veta Sur
126 SE
No significant intercepts
DAM
-
015
Veta Sur
250 SE
192.56
194.65
2.09
6.56
13.3
Include
192.56
193.18
0.62
12.36
12.5
AMANCAYA MINE Plan View Map
To view an enhanced version of this map, please visit:
https://orders.newsfileco
rp.com/files/690/72922_99f07904842c38f2_002full.jpg
AMANCAYA MINE DAM
-
008 Section
–
New Mineralized Breccia Zone
To view an enhanced version of this graphic, please visit:
https://orders.newsfilecorp.com/files/690/72922_99f07904842c38f2_004full.jpg
AMANCAYA MINE North, Central & Sur Veins
–
Au Longitudinal Sections
–
Image 1
To view an enhanced version of th
is graphic, please visit:
https://orders.newsfilecorp.com/files/690/72922_99f07904842c38f2_006full.jpg
AMANCAYA MINE North, Central & Sur Veins
–
Au Longitudinal Sections
–
Image 2
To view an enhanced version of this graphic, please visit:
https://orders.newsfileco
rp.com/files/690/72922_99f07904842c38f2_007full.jpg
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 per
formed by Atomic Absorption; The results
obtained equal to or greater than 5gr / ton., were 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 Explor
ation 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 reviewed by Robert Trzebski, who is a member
of the Australian I
nstitute 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 Reserves'. Robert Trzebski consents to the inclusion in this prese
ntation 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 qual
ify 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 concessio
ns
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
Aus
tral 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 100% interest in
the Guanaco/Amancaya mine in Chile and the Casposo Mine (care a
nd maintenance) in Argentina,
and a 26.46% interest in the Rawhide Mine in Nevada. In addition, Austral owns an attractive portfolio
of exploration projects in the Paleocene Belt in Chile and a 100% interest in the Pingüino project in
Santa Cruz, Argentina
. Austral Gold Limited is listed on the TSX Venture Exchange (TSXV: AGLD),
and the Australian Securities Exchange. (ASX: AGD). For more information, please consult Austral's
website at (
www.au
stralgold.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 Execu
tive Officer of Austral Gold, Stabro Kasaneva.
For additional information please contact:
Jose Bordogna
Chief Financial Officer
Austral Gold Limited
+54 (11) 4323 7558
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
-
look
ing 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 exploration team discovered a new wide zone of hydrothermal breccia that could
transform the product
ion profile at the Amancaya mine and are on the right track to extend the mine
life of this low cost operation.
These forward
-
looking statements are subject to a variety of known and unknown risks, uncertainties
and other factors that could cause actual ev
ents 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 regul
atory
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, t
he 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 forego
ing 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
circumsta
nces 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.
AMANCAYA MINE EXPLORATION
JORC Code, 2012 Edi
tion
-
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 no
t 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 Mate
rial 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 othe
r 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.
Industry standard practic
es 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 t
he laboratory.
Samples were assayed for gold, and
ICP
-
Mass (58 elements package) at
a certified external laboratory, AGS
(Chile).