Austral Gold Reports Q2 2018 Results
Austral Gold Reports Q2 2018 Results
Sydney, Australia--(Newsfile Corp. - July 31, 2018) - Austral Gold Limited (the "Company") (ASX: AGD) (TSXV: AGLD) is
pleased to report results from its activities during its second quarter ended 30 June 2018.
Stabro Kasaneva, CEO of Austral Gold, said, "This has been a better quarter in line with our continuous improvement strategy
as production at Guanaco/Amancaya (Chile) increased due to the stabilization of the new agitation leaching plant that was
commissioned in 2017. Production at Casposo (Argentina) was below expectations, however, we are working towards solving
the setbacks at the underground mine and we forecast higher production for the second half of the year. We also continue to
evaluate and pursue strategic opportunities."
KEY HIGHLIGHTS
Combined gold and silver production (100% basis*)
for the June 2018
q
uarter
was 22,304 gold equivalent
ounces
(or 16,148 gold ounces and 485,238 silver ounces).
This represents an increase of 10% and 31%
compared
to quarters ended 31 March, 2018, and 30 June, 2017, respectively.
During the quarter, p
roduction at the new agitation leaching plant in the Guanaco
/Amancaya
mine complex
(Chile)
was fully
stabilized
with average monthly production of 5,158 gold equivalent ounces
while production at the
Casposo Mine (Argentina)
was
b
ehind schedule
with average monthly production of 2,277 gold equivalent ounces
due to setbacks at the underground mine.
Combined quarterly operating
cash cost (C1) and all-in-sustaining cost (AISC)
across all operations
were
US$1,
0
24
(Guanaco/Amancaya
:
US$
836; Casposo
:
US$1,450)
and
US$
1,
221
(Guanaco/Amancaya
:
US$991;
Casposo
:
US$1,742)
per gold equivalent ounce
respectively with average selling prices at US$1,305 per ounce of
gold and US$16.5 per ounce of silver.
Revised guidance for the year is estimated at 100,000 to 105,000 gold equivalent ounces (100% basis*) and 88,000 to
92,000 gold equivalent ounces (net basis*).
Guanaco and Amancaya Mines Production
Quarterly production
increased to
13,669
gold ounces and
142,246
silver ounces
(15,474 gold equivalent ounces)
compared to the 2018 March quarter where production was 11,606 gold ounces and 99,865 silver ounces (or 12,852 gold
equivalent ounces) along with a decrease in quarterly C1 and AISC to US$836 and US$991 from US$990 and $1,120 per
gold equivalent ounce, respectively.
On a quarter over quarter basis, production increased due to higher throughput and ore extracted from the mines at
Guanaco and Amancaya.
YTD Production
was
28,326 gold equivalent ounces
which is on track to meet our full year Guidance of 62,000
gold equivalent ounces for
2018
.
Casposo
Mine
Production
Quarterly production
(100% basis
*
)
decreased
to
2,479
gold ounces and
342,992
silver ounces
(6,830 gold
equivalent ounces) compared to the 2018 March quarter where production was 2,652 gold ounces and 386,726 silver
ounces (7,515 gold equivalent ounces). Austral Gold's share of production (70% basis) was 1,735 gold ounces and
240,094 silver ounces (4,781 gold equivalent ounces) in the 2018 June quarter along with Q2 quarterly C1 and AISC of
US$1,450 and US$1,742 per gold equivalent ounce, respectively (Q1 quarterly C1 of US$1,427 and ASIC of $1,903).
On a quarter over quarter basis, production decreased due to operational delays and lower ore extraction because of
poorer ground conditions on certain areas of the underground mine.
YTD Production
was
14,345 gold equivalent ounces
.
The Company estimates higher production in the second half of
the year and forecasts annual production of 38,000 to 43,000 gold equivalent ounces.
A summary of key operational parameters for the
June
2018 and 2017
and
March
201
8
reporting periods is set out in
the following table for comparative purposes:
Operations
Guanaco/
Amancaya Mines
Casposo
Mine
(100% basis)
Net to Austral
Gold*
June
Quarter
2018
Mar
Quarter
2018
June
Quarter
2017
June
Quarter
2018
Mar
Quarter
2018
June
Quarter
2017
June
Quarter
2018
Mar
Quarter
2018
June
Quarter
2017
Processed (t)
76,072
60,573
78,407
44,499
51,107
65,124
107,221
96,348
123,994
Gold produced (Oz)
13,669
11,606
7,404
2,479
2,652
4,360
15,404
13,462
10,456
Silver produced (Oz)
142,246
99,865
15,651
342,992
386,726
374,583
382,340
370,573
277,859
Gold-Equivalent
(
Oz
) ***
15,474
12,852
7,617
6,830
7,515
9,441
20,25
5
18,113
14,226
C1 Cash Cost (US$/AuEq
Oz
) **
836
990
1,122
1,450
1,427
981
1,024
1,151
1,044
All-in Sustaining Cost (US$/Au Oz) #
991
1,120
1,263
1,742
1,903
1,311
1,221
1,409
1,290
Realised gold price (US$/Au Oz)
1,306
1,322
1,263
1,300
1,329
1,254
1,305
1,324
1,260
Realised silver price (US$/Ag Oz)
17
17
18
17
17
17
17
17
17
* Austral Gold owns 70% of Casposo since March 2017
** The cash cost (C1) includes: Mine, Plant, On-Site G&A, Smelting, Refining, and Royalties (excludes Corporate G&A)
# The All-in Sustaining Cost (AISC) includes: C1, Sustaining Capex, Brownfield Exploration, and Mine Closure Amortisation
*** AuEq ratio is calculated at 79:1 Ag:Au for June Quarter 2018; 80:1 Ag:Au for March Quarter 2018; 74:1 Ag:Au for June
Quarter 2017
YTD
2018
and Forecasted
Calendar
2018 Production
and Costs
:
The table below provides actual results for YTD 2018 and forecasted production amounts for calendar year 2018.
Total
YTD 2018
combined production
was
42,671
gold equivalent ounces (100% basis) or
38,3
68
(net to Austral
Gold*)
.
This represents
84%
compliance
with
the
combined
2018 Guidance
prorated
for the first half of the year.
Operations
Guanaco/
Amancaya Mines
Casposo Mine
(100% basis)
Net to Austral
Gold*
YTD 2018Actual
Calendar
2018Forecasted
YTD 2018Actual
Calendar
2018Forecasted
YTD 2018Actual
Calendar
2018Forecasted
Gold produced (Oz)
25,275
57,000
5,131
19,000-24,000
28,866
76,000-81,000
Silver produced (Oz)
242,111
520,000
729,718
1,400,000
752,913
1,500,000
Gold-Equivalent (Oz) ***
28,326
62,000
14,345
38,000-43,000
38,368
88,600-92,100
C1 Cash Cost (US$/AuEq Oz) **
963
700-800
1,438
950-1,100
1,085
800-900
All-in Sustaining Cost (US$/Au Oz)
#
1,106
900-1,100
1,816
1,200-1,350
1,306
1,000-1,200
Sustaining Capital ($000's)
3,084
10,000
5,310
12,500
7,777
22,500
Realised gold price (US$/Au Oz)
1,313
1,250
1,316
1,250
1,312
1,250
Realised silver price (US$/Ag Oz)
17
17
17
17
17
17
*
Austral Gold owned 70% of Casposo since March 2017
** The cash cost (C1) includes: Mine, Plant, On-Site G&A, Smelting, Refining, and Royalties (excludes Corporate G&A)
# The All-in Sustaining Cost (AISC) includes: C1, Sustaining Capex, Brownfield Exploration, and Mine Closure Amortisation
*** AuEq ratio is calculated at 79:1 Ag:Au for the six months ended 30 June 2018; 79:1 for the six months ended 30 June 2017
****Revised from 43,000 Oz reported in Q1 for the Casposo mine
Actual production costs were higher than forecasted for the year. However,
the Company expects production costs to
decrease throughout the balance of the year and to meet its guidance range by year-end.
Revised production guidance for the Casposo mine
is
3
8
,000 to 43,000 gold equivalent ounces for calendar
year 2018 while production guidance for the Guanaco/Amancaya mines remain
s
at 62,000 gold equivalent
ounces.
Exploration
Exploration in Chile was focused on drilling the extensions of the Dumbo and Perseverancia open pits mineralised
structures at the Guanaco mine, and the Central vein at Amancaya mine to help improve the resource calculated mainly
with reverse circulation drill holes. The Central vein was studied in detail with geological sections and geophysics, defining
interpreted extension of the mineralization north and south of the vein to be tested with in-house IP equipment in Q3 2018.
Alteration mapping at Sierra Inesperada, an intensely hydrothermally altered range located 6 Km SW of the Guanaco area,
indicates a potential for ENE-striking high sulphidation structures.
Exploration in Argentina was focused on the Casposo mine surrounding area, testing the extensions of the MV1 vein at the
Mercado area, and confirming the potential of the Julieta vein brownfield target. Reinterpretation of previous IP geophysics
at Kamila area defined a series of blind targets. Four vein areas were investigated for potentially shallow mineralisation
with mapping and sampling of the Cerro Norte Sur and Amanda veins. A 6-hole drill program at the Amanda vein started
during the quarter for further testing.
Financial
Sales proceeds for the quarter were US$30m of which the Guanaco/Amancaya mines contributed US$20m and the
Casposo mine US$10m.
Cash and cash equivalents at 30 June, 2018, was US$3.2m.
Total consolidated financial debt at 30 June, 2018, was US$23m (of which US$11m is long term debt). Net debt
repayments during the quarter totalled US$2.3m.
Further details can be found in the Company's Quarterly Activity Report filed at
www.australgold.com
,
http://www.asx.com.au
and
on
www.sedar.com
.
* Non-IFRS Measures
The Company has included certain non-IFRS measures, including "Cash cost per gold ounce sold" and "All-in sustaining cost
per gold ounce sold" in this press release. Cash cost per gold ounce sold is equal to production costs less silver sales divided
by gold ounces sold. All-in sustaining cost per gold ounce sold is equal to production costs less silver sales plus general and
administrative expenses, exploration expenses, accretion of reclamation provision and sustaining capital expenditures divided
by gold ounces sold. The Company believes that these measures provide investors with an improved ability to evaluate the
performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS. Therefore,
they may not be comparable to similar measures employed by other companies. The data is intended to provide additional
information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance
with IFRS.
Qualified Persons
The scientific and technical content of this news release has been prepared by, or under the supervision of Michael Brown,
MAIG, and has been reviewed and approved by him. Mr Brown is a Geologist and Member of Australian Institute of
GeoScientists and a consultant of Austral Gold Limited. Mr. Brown is a "qualified person" for the purposes 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 project in Chile is a gold and silver producing mine
with further exploration upside. The Company is also operator of the underground silver-gold Casposo mine in San Juan,
Argentina. 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 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 additional information please contact:
Jose
Bordogna
Chief Financial Officer
Austral Gold Limited
+54 (11) 4323 7558
Andrew Bursill
Company Secretary
Austral Gold Limited
+61 (2) 9380 7233
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 Company's 2018 forecasted production guidance and costs, the Company's expectations that production costs
will decrease throughout the balance of the year and to meet its forecast by year-end. 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
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
Suite 2, Level 10 70 Phillip St, Sydney NSW 2000 |
T
+61 2 9380 7233 |
F
+61 2 9251 7455 |
|
www.australgold.com