Austral Gold provides Update on Exploration Activities
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 | [email protected] | www.australgold.com
MEDIA RELEASE
Austral Gold Limited
26 October 2021
Austral Gold provides Update on Exploration Activities
Austral Gold Limited (the “Company” or “Austral”) (ASX: AGD; TSX- V: AGLD) is pleased to
provide an update on its on-going exploration programs in Chile and Argentina.
Highlights:
• At Amancaya, three of six drill holes in the Sur vein confirmed the continuity of DAM-
003 as previously announced on 27 January 2021 and two of the five follow-up drillholes
in the Oeste vein confirmed the continuity of the structure at depth. The most significant
results obtained were:
DAM-028 0.60 meters @ 84.25 g/t gold and 7.0 g/t silver (Sur Vein)
DAM-029 0.81 meters @ 24.70 g/t gold and 1.9 g/t silver (Sur Vein)
DAM-032 2.26 meters @ 5.72 g/t gold and 5.3 g/t silver (Sur Vein)
DAM-035 1.50 meters @ 20.06 g/t gold and 4.8 g/t silver (Oeste Vein)
DAM-036 2.82 meters @ 6.13 g/t gold and 2.5 g/t silver (Oeste Vein)
• At Sierra Inesperada, the latest drilling results confirmed silver mineralisation vectoring
to potential blind gold mineralisation in the Purisima breccia complex. The most significant
results obtained were:
DIN-018B 98.50 meters @ 19.2 g/t silver
(Include 24.0 meters @ 51.5 g/t silver and sub-include 8.20 meters @ 0.25 g/t gold)
DAM-027 129.00 meters @ 34.0 g/t silver
(Include 55.0 meters @ 63.6 g/t silver and sub-include 4.00 meters @ 0.27 g/t gold)
• At Casposo – Manantiales district, the first phase of drilling was completed in five vein
targets. At Manantiales vein, a blind ore-shoot was intercepted opening the upside to the
south. The most significant results obtained were:
MDH-021-56 1.44 meters @ 6.88 g/t gold and 10.6 g/t silver
MDH-021-57 1.50 meters @ 5.05 g/t gold and 10.3 g/t silver
• At Sierra Blanca, the first tranche to acquire 51% of the project was completed. To date
the Company has incurred exploration expenses of US$145,000 and is focused on
acquiring the next 29% interest, which requires an additional US$555,000 in exploration
expenses be incurred over the next two years.
The exploration activities are designed with a focus on the Company´s growth strategy as follows:
• Expand the resource at the Guanaco/Amancaya mine complex,
• Explore Tier I or Tier II high sulfide (“HS”) projects (Sierra Inesperada, Cerro Buenos Aires,
Cerro Blanco, and Morros Blancos),
• Restart the Casposo-Manantiales mine complex, and
• Increase the mineral resources inventory at the Pinguino-Sierra Blanca cluster
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 | [email protected] | www.australgold.com
Chief Executive Officer, Stabro Kasaneva commented: "We have seen excellent results on
exploration activities in Argentina and Chile. Of particular interest are the high -grades and
shallower depths that have been intersected in the Oeste structure at Amancaya, with more
drilling to follow. At Sierra Inesperada, we are vectoring into a potential gold source at the
complex, having intersected a silver halo surrounding the potential feeder. In addition, we look
forward to receiving our updated mineral resource and mineral reserve estimates at our Guanaco-
Amancaya mine complex during Q1 2022.”
Amancaya Mine Exploration
During Q3 2021, follow -up and categorisation programs at Amancaya were completed with 14
drill holes (DAM-027 to DAM-040). The most significant results were obtained in the Oeste Vein,
where two follow-up drill holes confirmed 100 meters of vertical continuity of the structure in the
previous drilled sections, while a third d rill hole ( DAM-040) in a section in between, cut the
structure in depth where a narrow structure with a low grade was observed.
At Veta Este, the continuity of the structure on the proposed strike was not confirmed, as the
follow-up program intercepted only narrow veins with drillholes DAM -33 and DAM -034. The
interpretation suggests that it is a gently east dipping splay structure between the North and South
veins.
Paleocene HS Districts Exploration
At Sierra Inesperada , four targets were tested with 20 diamond drillholes in two phases,
confirming HS hydrothermal activity controlled by phreatomagmatic complexes and associated
with silver mineralisation. Integration of geological, geophysical, and geochemical interpretations
suggest potential blind gold mineralisation which we plan to test during Q4 2021.
At Cerro Buenos Aires, three drilling targets were defined with delineation activities that included
detailed geological mapping, CSAMT geophysical survey and systematic rock geochemistry. A
first phase of five drillholes was initiated and preliminary geological drilling results provide
evidence of multi-event phreatomagmatic breccias, greater than 300 meters of oxidized HS
alteration column including greater than 100 meters of strong silicification and relict vuggy silica.
At Morros Blancos, the targeting process defined three prospective HS areas. Delineation began
in Rosario del Alto, which we ranked as having the greatest potential. Initial geological mapping
recognized four maar – diatreme complexes with favorable alteration at the right level
preservation. Systematic rock geochemistry and CSAMT survey was initiated and we plan to
commence a drilling program in Q4 2021 if positive results are received.
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 | [email protected] | www.australgold.com
Amancaya: Plan View Map – 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 | [email protected] | www.australgold.com
Amancaya: 25SE Section – Oeste Vein Follow-up Drillholes
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 | [email protected] | www.australgold.com
Sierra Inesperada: Targeting – Discovering a Blind Deposit
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 | [email protected] | www.australgold.com
Sierra Inesperada: 439,400E Section – Conceptual Model
Casposo – Manantiales District Exploration
The first phase of drilling was completed in five vein targets including 14 holes in 2,800 meters.
At the Manantiales vein, a blind ore-shoot was intercepted opening the upside to the south and
the exploration potential to the north in the protected block related to the Vallecito reverse fault.
The holes drilled at Valentina, Julieta, Awada and Maya did not i ntercept significant
mineralisation. However, the composition and textures of the intercepted veins suggest potential
at depth. A second drill phase is under review and is expected to be completed during Q4 2021.
Pinguino – Sierra Blanca District Exploration
Preliminary targeting of the district, based on geological mapping, Aster interpretation, and
geophysics resulted in a new target structurally protected. The follow-up activities on the new
target confirmed favorable alteration related to Dome -Breccia complex. Our planned Q4 2021
activities are focused on relogging and reinterpretation of historical data.
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 | [email protected] | www.australgold.com
Casposo – Manantiales: Targeting – Testing High-grade Vein Systems
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 | [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., 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).
Silver results equal to or greater than 100gr / ton., were analyzed by Ag30GRAV, fusion with
final gravimetric determination. 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 reviewed 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 Reserves’. 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.