Austral Gold Receives Final Infill Drilling Assays at Amancaya Project (Chile): Intersects 3.1 m Grading 58.93 g/t Gold
Austral Gold Receives Final Infill Drilling Assays at
Amancaya Project (Chile): Intersects 3.1 m Grading
58.93 g/t Gold
VANCOUVER, BRITISH COLUMBIA--(Newsfile – January 25, 2017) Austral Gold Limited (ASX:
AGD) (TSX-V:AGLD) (the "Company" or "Austral") is pleased to announce the final batch of
assay results from the infill drilling program at its 100% owned high grade gold and silver
Amancaya project (“Amancaya”) located in Chile.
Two new high grade shoots discovered.
High grade zone of Central Vein extended by approximately 400 metres.
Infill drilling program project complete – 13,312 metres drilled and all assays received and
reported.
Results will be used to finalise pre-feasibility study for Amancaya in Q1 2017.
The infill program, which commenced on September 8 th, 2016, targeted the Central and Julia
veins, which host the gold and silver epithermal inferred resource that is the focus of an ongoing
pre-feasibility study expected to be completed by the first quarter of 2017.
Amancaya is located 60 km southwest of the Company’s Guanaco underground gold mine, which
is approximately 220 km from Antofagasta in northern Chile.
Highlights from these reported assays:
AM-082: 3.1 metres @ 58.93 g/t gold and 94.7 g/t silver from 72.4 metres,
AM-053: 3 metres @ 45.48 g/t gold and 966.70 g/t silver from 132 metres,
AM-055: 6.7 metres @ 14.6 g/t gold and 83.2 g/t silver from 20 metres, plus
4.4 metres @ 11.65 g/t gold and 62.8 g/t silver from 45.2 metres,
AM-067: 1.77 metres @ 49.41 g/t gold and 61.6 g/t silver from 170.2 metres
AM-052: 3 metres @ 24.69 g/t gold and 363.7 g/t silver from 102 metres
“We are very pleased with the results from the infill program, which has significantly extended the
high grade zones on the Central Vein, with the discovery of two new high grade shoots. The
significant expansion and consistency of the high grade mineralisation exhibited from this drilling
at the Central Vein is extremely encouraging”, stated Stabro Kasaneva, CEO of Austral Gold.
“The high grade and continuity of the mineralisation indicate that Amancaya may have the
potential to be a very significant part of Austral’s future plans to grow production into a medium
sized precious metal producer. We are looking forward to seeing the results of this drilling
incorporated into a new independent mineral resource estimate and pre-feasibility study, which
should be completed prior to the end of the first quarter, 2017.”
The infill program of approximately 13,312 m was completed on November 30 th, 2016. A total of
93 holes were drilled, most of which were initially drilled with reverse circulation collaring and
converted to diamond drilling as they approached the vein target areas. This resulted in
approximately 87% of the drilled metres being comprised of reverse circulation, and 13%
represented as diamond drilling. Assay results for the final 44 of these holes, on the Central and
Julia Vein, have been received and are reported in this news release.
The drill program was designed to test and confirm the presence and consistency of
mineralisation within the inferred resource that was previously reported at Amancaya in the
amended Technical Report (“Amancaya Technical Report”) “Guanaco Gold Project, Antofagasta
Province, Region II, Chile, NI 43-101 Technical Report”, which has an effective date of November
24, 2015 and which was amended June 30, 2016 and filed on July 25, 2016 on the Company’s
profile on www.sedar.com.
Summary of significant results from the drilling with assays from the final 44 holes:
HOLE Id Location From To
Total
Length
True
Width* Au g/t Ag g/t
(m) (m)
AM-050 Central vein 139.94 142.32 2.38 1.55 13.63 182.8
AM-051 Central vein 89.00 94.00 5.00 3.50 9.04 89.2
AM-052 Central vein 102.00 105.00 3.00 2.10 24.69 363.7
AM-053 Central vein 132.00 135.00 3.00 2.16 45.48 966.7
AM-054 Central vein 44.47 50.42 5.95 3.87 10.35 65.9
AM-055 Central vein
20.00 26.70 6.70 4.69 14.60 83.2
29.90 31.28 1.38 0.97 2.24 4.1
45.24 49.70 4.46 3.12 11.65 62.8
52.05 52.74 0.69 0.48 19.51 47.3
AM-056 Central vein 151.97 163.85 11.88 7.72 3.24 9.5
AM-058 Central vein 209.23 211.00 1.77 1.24 6.24 11.4
AM-060 Central vein 77.60 80.39 2.79 1.81 13.54 96.2
AM-061 Central vein 20.00 24.00 4.00 2.60 7.14 64.4
AM-062 Central vein 45.00 46.13 1.13 0.73 3.03 22.6
AM-065 Central vein 86.00 88.00 2.00 1.30 4.05 10.9
114.00 116.00 2.00 1.30 2.52 10.6
AM-066 Central Vein 163.00 165.00 2.00 1.30 9.20 17.6
AM-067 Central vein 170.23 172.00 1.77 1.15 49.41 61.6
AM-068 Julia vein 155.09 156.09 1.00 0.65 16.89 12.9
AM-069 Julia vein 126.00 127.00 1.00 0.65 1.87 3.6
AM-070 Julia vein 85.60 86.50 0.90 0.59 1.75 6.6
AM-071 Julia vein 126.15 127.50 1.35 0.94 1.85 1.2
AM-072 Julia vein 161.00 162.00 1.00 0.70 4.60 3.9
AM-073 Julia vein 155.81 157.00 1.19 0.83 1.88 0.6
AM-075 Julia vein 87.00 90.00 3.00 2.10 8.40 5.7
AM-076 Julia vein 70.00 71.00 1.00 0.70 1.21 1.1
AM-077 Julia vein 159.00 160.00 1.00 0.70 1.91 2.8
AM-078 Julia vein 147.06 147.72 0.66 0.46 6.29 6.8
AM-079 Julia vein 87.20 87.60 0.40 0.28 1.42 3.0
AM-080 Central vein 37.23 37.85 0.62 0.43 2.48 48.4
AM-081 Julia vein 136.00 139.00 3.00 2.10 4.08 7.9
AM-082 Central vein 72.42 75.50 3.08 2.16 58.93 94.7
77.31 78.60 1.29 0.90 2.10 3.4
AM-083 Central vein 121.22 123.31 2.09 1.46 3.01 4.7
AM-084 Julia vein 155.00 159.00 4.00 2.80 3.31 2.3
AM-085 Julia vein 66.00 68.00 2.00 1.40 1.35 3.9
AM-086 Julia vein 174.00 180.55 6.55 4.59 5.04 4.2
AM-087 Julia vein 104.05 105.75 1.70 1.19 1.80 5.4
AM-088 Central vein 63.00 64.59 1.59 1.11 6.92 44.2
118.06 125.51 7.45 5.22 6.16 41.6
incl. 121.97 125.51 3.54 2.48 11.07 66.2
AM-089 Julia vein 159.00 160.00 1.00 0.70 1.55 5.2
AM-091 Julia vein 114.15 114.80 0.65 0.45 3.12 5.9
AM-092 Julia vein 66.70 71.00 4.30 3.01 7.05 26.2
AM-093 Julia vein 98.00 100.00 2.00 1.40 4.36 6.8
*True width refers to horizontal width and is inferred as being 70% of the down-hole intercept, although
ranges from 65-89% subject to intersection with sub-vertical veins and drilling dip.
Holes not listed above had no significant results.
The Central Vein
The Central Vein is the principal vein at the project, hosting the majority of the resource
discovered to date. The drilling program was focused on narrowing drill spacing within the known
mineralisation (Figure 2) in order to maximize the chances of upgrading inferred resources to
indicated resources for the ongoing pre-feasibility study. It was very successful identifying two
new high grade shoots and broadening an existing high grade shoot. The most significant of
these new shoots is located in the northern half of the vein. This shoot plunges gently to the north
and is essentially horizontal, with a strike length of approximately 500 metres (see Figure 4). Hole
AM067 (1.77 metres at 49.41 g/t gold and 61.6 g/t silver ) intercepted a new high grade zone,
that appears open at depth following the southerly plunge. The drilling also broadened the
existing higher grade zone that plunges more steeply south in the southern half of the vein
(compare Figure 3 and 4).
The Julia Vein
A modest exploration resource existed at Julia and this was not included in the Amancaya
Technical Report (see Figure 6). Figure 4 shows the location of infill drilling undertaken in this
program, which has identified higher grade mineralisation within a broad, gently north plunging
mineralized zone (see Figure 7). Mineralisation remains open at depth to the north down plunge.
Development Update
The Company has been advancing site activities at Amancaya in preparation for pre-stripping
and potential open pit mining by mid-2017. As previ ously stated, the company is envisioning
trucking mineralized material 73 kilometres on existing public roads to the new agitation leach
plant at Guanaco, which is expected to commence commissioning tests by the end of the first
quarter of 2017. The Amancaya project is fully per mitted and currently the estimated capital costs
for construction are envisioned to be funded from ca sh flow from operations from the Company’s
treasury. A pre-feasibility study, currently bei ng undertaken by Roscoe Postle & Associates, is
expected to be completed by the end of first quarter of 2017, covering the potential combined
operation of Amancaya and Guanaco mines with all material being treated in the new agitation
leach plant at Guanaco.
Figure 1: Amancaya Project Location
Figure 2: Central Vein Drilling Plan and Reported Results
Figure 3: Long section of Central Vein Prior to Infill Drill Program: Gold (g/t) x true width Contours
Figure 4: Long section of Central Vein Including Infill Drill Program: Gold (g/t) x true width Contours
Figure 5: Julia Vein Drilling Plan and Reported Results
Figure 6: Long section of Julia Vein Prior to Infill Drill Program: Gold (g/t) x width Contours
Figure 7: Long section of Julia Vein Including Infill Drill Program: Gold (g/t) x width Contours