AGLD.V · 2024-07-16 12:00:00

Austral Gold Updates Mineral Resource Estimate at Casposo

Resource Estimates

Austral Gold Updates Mineral Resource

Estimate at Casposo

Sydney, Australia--(Newsfile Corp. - July 16, 2024) -

Established gold producer Austral Gold

Limited's (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF)

(Austral or the Company) is pleased to

announce the positive results of its updated Mineral Resource Estimate prepared by independent

Qualified Person, Marcos Valencia FAusIMM in accordance with CIM Definitions 2014, National

Instrument 43-101 ("NI 43-101") and Joint Ore Reserves Committee Code, 2012 (JORC 2012) for the

Company's 100% owned Casposo-Manantiales Mine Complex in the province of San Juan, Argentina.

The updated Mineral Resource estimates will be supported by a technical report prepared in

accordance with NI 43-101 that will be filed on SEDAR (www.sedarplus.com) within 45 days of this news

release (the "Technical Report").

Summary of Mineral Resources Statement All Deposits - April 30, 2024

Measured + Indicated and Inferred

Classification

Tonnes

Grade

Contained Metal

(t)

(g/t Au)

(g/t Ag)

(g/t AuEq)

(oz Au)

(oz Ag)

(oz AuEq)

Measured

15,600

3.89

92.39

5.04

1,949

46,338

2,528

Indicated

1,052,869

2.69

106.69

4.02

91,067

3,611,544

136,212

M + I

1,068,469

2.71

106.48

4.04

93,016

3,657,882

138,740

Inferred

662,291

5.02

65.74

5.85

106,961

1,399,848

124,459

Notes:

Per Table 14.15 below

Chief Executive Officer of Austral, Stabro Kasaneva commented

, "We are pleased to share the

new mineral resource update at Casposo. The consolidation of Casposo's mineral resource inventory

brings us closer to a decision on restarting mining operations. We plan to continue keeping our

stakeholders informed with further updates as we progress."

The updated estimates are based on Company drilling and exploration activities, which mostly occurred

between 2020 and 2022, as well as metallurgical test work on the Casposo project.

Table 14.15: Casposo Au-Ag deposit Mineral Resource Statement (April 30, 2024).

Summary of Mineral Resources Statement All Deposits - April 30, 2024

Measured + Indicated and Inferred

Classification

Tonnes

Grade

Contained Metal

(t)

(g/t Au)

(g/t Ag)

(g/t AuEq)

(oz Au)

(oz Ag)

(oz AuEq)

Open Pit

Measured

15,600

3.89

92.39

5.04

1,949

46,338

2,528

Indicated

332,174

4.00

65.53

4.82

42,677

699,810

51,425

M + I

347,774

3.99

66.73

4.83

44,626

746,148

53,953

Inferred

119,233

10.80

23.90

11.10

41,419

91,610

42,564

Underground

Measured

Indicated

346,692

2.98

181.20

5.25

33,240

2,019,758

58,486

M + I

346,692

2.98

181.20

5.25

33,240

2,019,758

58,486

Inferred

543,059

3.75

74.93

4.69

65,542

1,308,238

81,895

Stockpile

Measured

Indicated

374,003

1.26

74.18

2.19

15,151

891,975

26,301

M + I

374,003

1.26

74.18

2.19

15,151

891,975

26,301

Inferred

Notes:

Effective date April 30, 2024

Stationary domains were modelled according the lithological and structural continuities.

Mineral Resources were classified and reported in accordance with the NI 43-101.

Indicated Resources was declared under a grid pattern of 25 m in the strike direction and 25 m in the dip direction.

Mineral Resources are defined via optimization for open pit and stockpile.

A cut-off grade of 1.0 g/t AuEq was defined to mine Stockpiles.

A cut-off grade of 1.5 g/t AuEq was defined to Open Pit Mining Method.

A cut-off grade of 2.0 g/t AuEq was defined to Underground Mining Method beneath the open pit shells and optimized using the Vulcan

Stope Optimizer.

Metallurgical recoveries were applied by deposit.

Selective Mining Unit were defined and built according to the underground optimization. Dilution has been incorporated into the SMU.

A bulk density of 2.5 ton/m3 has been ap

plied to all domains in open pit and underground and 1.8 ton/m3 for stockpile.

Numbers may not add due to rounding.

Table 14.16: Casposo Au-Ag deposit Mineral Resource Statement by Deposit (April 30, 2024).

Mineral Resources Statement Measured + Indicated and Inferred - Manantiales

Classification

Tonnes

Grade

Contained Metal

(t)

(g/t Au)

(g/t Ag)

(g/t AuEq)

(oz Au)

(oz Ag)

(oz AuEq)

Open Pit

Measured

Indicated

21,017

4.85

27.82

5.19

3,275

18,798

3,509

M + I

21,017

4.85

27.82

5.19

3,275

18,798

3,509

Inferred

22,858

9.05

40.13

9.55

6,647

29,492

7,016

Underground

Measured

Indicated

8,612

4.37

12.29

4.53

1,211

3,404

1,254

M + I

8,612

4.37

12.29

4.53

1,211

3,404

1,254

Inferred

316,904

4.33

15.51

4.52

44,108

157,984

46,082

Mineral Resources Statement Measured + Indicated and Inferred - Mercado

Classification

Tonnes

Grade

Contained Metal

(t)

(g/t Au)

(g/t Ag)

(g/t AuEq)

(oz Au)

(oz Ag)

(oz AuEq)

Open Pit

Measured

Indicated

141,963

1.77

116.68

3.23

8,097

532,557

14,754

M + I

141,963

1.77

116.68

3.23

8,097

532,557

14,754

Inferred

5,978

2.21

17.99

2.43

425

3,457

468

Underground

Measured

Indicated

28,518

1.49

157.89

3.46

1,363

144,768

3,173

M + I

28,518

1.49

157.89

3.46

1,363

144,768

3,173

Inferred

17,177

2.28

68.94

3.14

1,257

38,072

1,733

Mineral Resources Statement Measured + Indicated and Inferred - Julieta

Classification

Tonnes

Grade

Contained Metal

(t)

(g/t Au)

(g/t Ag)

(g/t AuEq)

(oz Au)

(oz Ag)

(oz AuEq)

Open Pit

Measured

Indicated

169,194

5.76

27.29

6.10

31,305

148,455

33,161

M + I

169,194

5.76

27.29

6.10

31,305

148,455

33,161

nferred

90,397

11.82

20.18

12.07

34,347

58,661

35,080

Underground

Measured

Indicated

91,557

4.29

22.22

4.57

12,636

65,409

13,454

M + I

91,557

4.29

22.22

4.57

12,636

65,409

13,454

Inferred

23,047

5.11

24.44

5.42

3,788

18,108

4,014

Mineral Resources Statement Measured + Indicated and Inferred - B-Vein

Classification

Tonnes

Grade

Contained Metal

(t)

(g/t Au)

(g/t Ag)

(g/t AuEq)

(oz Au)

(oz Ag)

(oz AuEq)

Open Pit

Measured

15,600

3.89

92.39

5.04

1,949

46,338

2,528

Indicated

M + I

15,600

3.89

92.39

5.04

1,949

46,338

2,528

Inferred

Underground

Measured

15,600

3.89

92.39

5.04

1,949

46,338

2,528

Indicated

209,773

2.57

260.75

5.83

17,332

1,758,606

39,314

M + I

225,373

2.66

249.10

5.77

19,281

1,804,944

41,843

Inferred

121,885

2.59

221.93

5.36

10,141

869,679

21,012

Mineral Resources Statement Measured + Indicated and Inferred - Remaining Inca (2A + 2B + 2CD)

Classification

Tonnes

Grade

Contained Metal

(t)

(g/t Au)

(g/t Ag)

(g/t AuEq)

(oz Au)

(oz Ag)

(oz AuEq)

Open Pit

Measured

Indicated

M + I

Inferred

Underground

Measured

Indicated

8,231

2.63

179.76

4.88

697

47,571

1,292

M + I

8,231

2.63

179.76

4.88

697

47,571

1,292

Inferred

64,046

3.03

108.98

4.40

6,249

224,394

9,054

Mineral Resources Statement Measured + Indicated and Inferred - Stockpile

Classification

Tonnes

Grade

Contained Metal

(t)

(g/t Au)

(g/t Ag)

(g/t AuEq)

(oz Au)

(oz Ag)

(oz AuEq)

Open Pit

Measured

Indicated

374,003

1.26

74.18

2.19

15,151

891,975

26,301

M + I

374,003

1.26

74.18

2.19

15,151

891,975

26,301

Inferred

Underground

Measured

Indicated

M + I

Inferred

TECHNICAL CONTENT AND QUALIFIED PERSON

The Technical Report for the Casposo Mine referenced in this news release was prepared by Marcos

Valencia FAusIMM, Registered Member ChMC, an Independent "Qualified Person" as defined by NI 43-

101 (the "QP").

The scientific and technical information contained in this news release is extracted from

the Technical Report.

The Technical Report to support the updated Mineral Resource estimates for the

Casposo Mine, prepared in accordance with NI 43-101, will be filed on SEDAR+ (

www.sedarplus.ca

)

within 45 days of this news release.

COMPETENT PERSON'S STATEMENT

For the purposes of Listing Rule 5.22, the Company confirms that the updated Mineral Resource

estimate for the Casposo Mine was based on work reviewed or compiled by Marcos Valencia, an

independent "Qualified Person" as defined by NI 43-101 and a "Competent Person" as defined in the

JORC (2012) Code, either as a Member of the Australian Institute of Geoscientists, or members in good

standing of Recognised Professional Organisations in Canada and the United States.

The Competent Person is a consultant of Wampeso Holdings Inc.

The Competent Person consents to the inclusion in this announcement of the matters based on his

information in the form and context in which it appears.

The Competent Person has sufficient experience which is relevant to the style of mineralisation and

types of deposits under consideration and to the activities undertaken to qualify as a Competent Person

as defined in the JORC (2012) Code.

Data Verification:

All information contained in this technical report was generated by Austral and was previously verified in

the technical report prepared by RPA in 2016. The scientific and technical information included in the

Technical Report, which forms the basis of this news release disclosure, was reviewed by the QP who

determined that the disclosure is in accordance with the guidelines established by the CIM and falls

under the requirements of NI 43-101 for publication to the market.

The data verification was carried out by taking the original information, comparing it with what was

reported in the 2016 technical report, and also reviewing the procedures that Austral applied during its

drilling and quality assurance activities.

All information captured and processing procedures and protocols have been developed to detect

deviations in the early stages of the process and to apply corrective measures for mitigation and to

minimize the sources of risk of failures in the information generated and declared as public.

A site visit was undertaken by the QP. However, it was not possible to oversee the drilling procedures

and processes for data collection. The QP reviewed the protocols and procedures and determined that

are in line with industry standards.

Analytical laboratories for the project have not been inspected at this stage. A thorough Quality

Assurance and Quality Control ("QA/QC") program adhering to internationally accepted standards was

completed for Austral drilling over the past phases. The QP is satisfied with the QA/QC methods

employed for the internal data validation and for the purpose of the mineral resource estimate.

The QP considers that the sample preparation, security, and analytical procedures adopted for the

resource drilling provide an adequate basis for the current mineral resource estimate and that the

QA/QC program and procedures developed by the Austral geology team and reviewed by the QP are

adequate.

The QP considers that the data contained in the drill hole database were generated and collected

according to the industrial standards and Austral applied proper programs to keep the security of the

data developed by the Austral geology team and reviewed by the QP.

Further information

For the purposes of listing Rule 5.8.1, the Company wishes to provide the following additional

information which is to be read together with the JORC (2012) Code Table 1 for the Mineral Resource

estimate.

Geology and Geological Interpretation

Casposo

The Casposo District is situated within the Cordillera Principal which runs along the border between

Argentina and Argentina for approximately 1,500 km in a volcanic and seismic active zone. Basement is

formed by Permian-Triassic rocks characterized by calk-alkaline affinity intrusive and volcanic rocks of

andesitic to rhyolitic composition regionally known as Choiyoi Group. These and younger Jurassic-

Cretaceous sediments were thickened by compression and trusting since the Late Cretaceous in a thin-

skinned fold trust belt.

In the Mine area, the Cordillera Frontal is underlain by marine metasediments (shales, sandstones, and

conglomerates) of La Puerta Formation (Carboniferous-Lower Permian). It correlates with the Agua

Negra Formation to the north.

The Casposo gold-silver mineralization occurs in both the rhyolite and underlying andesite, where it is

associated with banded quartz-chalcedony veins, typical of Low Sulphidation Epithermal environments.

Adularia in the main veins gives an age date of 280 ± 0.8 Ma (K/Ar), very close to the published age

dates for the andesite unit. Post-mineralization dykes, of rhyolitic, aphanitic-felsic and trachytic

compositions which affects all the deposits Manantiales, Julieta, Mercado and B-Vein often cut the vein

systems. These dykes, sometimes reaching up to 30 m thickness, are usually steeply dipping and north-

south oriented. The mineralization at Casposo is typical of a low sulfidation type and is interpreted to be

of a multi-stage, open space filling epithermal origin resulting in mineralized veins, hydrothermal

breccias, stockworks or veinlets.

About Austral Gold

Austral Gold is a growing gold and silver mining producer building a portfolio of quality assets in the

Americas. Austral continues to lay the foundation for its growth strategy by advancing its attractive

portfolio of producing and exploration assets. For more information, please visit the Company's website

at 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.

Release approved by the Chief Executive Officer of Austral Gold, Stabro Kasaneva.

For additional information please contact:

Stabro Kasaneva

Chief Executive Officer

Austral Gold Limited

[email protected]

+56 9 9822 3563

Jose Bordogna

Chief Financial Officer

Austral Gold Limited

[email protected]

+61 466 892 307

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 in this

news release include the intention to file the Technical Report within 45 days of the news release, we

plan to continue keeping our stakeholders informed with further updates as we progress and, Austral

continues to lay the foundation for its growth strategy by advancing its attractive portfolio of producing

and exploration assets, the prospects for exploration and development of the Casposo Mine, and

mineralization prospects.

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, uncertainty of exploration programs, development plans and cost

estimates, results of further exploration; commodity price fluctuations; political or economic instability

and regulatory 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 resources and reserves and

other risks and hazards related to the exploration of a mineral property, and the availability of capital.

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.

JORC CODE (2012) TABLE 1

Section 3 Estimation and Reporting of Mineral Resources

Criteria

JORC Code explanation

Commentary

Database integrity

Measures taken to ensure that data has not

been corrupted by, for example, transcription or

keying errors, between its initial collection and

its use for Mineral Resource estimation

purposes.

Data validation procedures used.

Initial data collection was completed in MS

Excel, visual review and inspections using

formulas for errors were completed before import

into Vulcan. For drill hole validation to check for

issues such as overlapping intervals, missing

intervals and intervals beyond hole depth. The

validated data was protected and passed to a

server workspace to preserve the integrity of the

information in charge of the IT department and

controlled by the corporate database

administrator.

All lab assay data was imported into the

database and paired with sample data by

sample ID.

The final database was again validated in

Vulcan for overlapping intervals, intervals

beyond hole depth, non-consecutive intervals,

missing intervals etc. A visual inspection of drill

hole locations was completed.

Site visits

Comment on any site visits undertaken by the

Competent Person and the outcome of those

visits.

If no site visits have been undertaken indicate

why this is the case.

A site visit was undertaken by the Competent

Person of this Technical Report between March

to 14

, 2024. The Competent Person has

been on site, and can review drill holes from

each deposit, and can develop a field visit to the

location of each deposit, which ones were

subject and matter of study in this report also.

Geological interpretation

Confidence in (or conversely, the uncertainty of)

the geological interpretation of the mineral

deposit.

Nature of the data used and of any assumptions

made.

The effect, if any, of alternative interpretations

on Mineral Resource estimation.

The use of geology in guiding and controlling

Mineral Resource estimation.

The factors affecting continuity both of grade

and geology.

Reasonable and well developed understanding

of geology and morphology of the

mineralization was stablished and it was done

using geological constrain to identify the

geological ore bodies using textures and metal

contents, further works were developed to a

better understanding of the mineralization based

on the hangingwall and footwall geological

features that commonly presents brecciation and

low grade mineralization in the Casposo Dacite

unit also, felsic and andesitic dikes cut the

mineralisation which is possible to follow at

different levels and sections. Outcrop of the

main veins and subordinated structures are well

exposed in surface and in oldest open pits and

in the underground. Faulting is well identified

and well understood of its actions in the main

ore bodies at this time. Some faults may

constrain the bounds of the mineralization and

offset it vertically and horizontally in places.

Dimensions

The extent and variability of the Mineral

Resource expressed as length (along strike or

otherwise), plan width, and depth below surface

to the upper and lower limits of the Mineral

Resource.

Resource block model ranges from surface to

approximately 600 m below surface over a strike

length ranging of approximately 700 m to 1000

m and from width length from 400 to 550 m.

Thickness of the structures are typically between

0.5 and 5 m.

Block Size: Parent: 2.5mx2.5mx2.5m and sub-

block 0.5mx0.5mx0.5m

Following tables indicate the Origin, Rotation and offset:

Deposit

Origin

X coord

Y coord

coord

Manantiales

2,431,900

6,552,300

2,900

Julieta

2,434,050

6,551,300

3,050

Mercado

2,431,825

6,548.275

2,150

B-Vein

2,439,430

6,547,440

1,900

Deposit

Rotation

Bearing

Plunge

Dip

Manantiales

Julieta

Mercado

B-Vein

Deposit

Offset

X length

Y length

length

Manantiales

400

700

Julieta

400

850

450

Mercado

500

900

450

B-Vein

550

1,000

600

Estimation and modelling

techniques

The nature and appropriateness of the

estimation technique(s) applied and key

assumptions, including treatment of extreme

grade values, domaining, interpolation

parameters and maximum distance of

extrapolation from data points. If a computer

assisted estimation method was chosen include

a description of computer software and

parameters used.

The availability of check estimates, previous

estimates and/or mine production records and

whether the Mineral Resource estimate

takes appropriate account of such data.

The assumptions made regarding recovery of by-

products.

Estimation of deleterious elements or other non-

grade variables of economic significance (eg

sulphur for acid mine drainage characterisation).

In the case of block model interpolation, the

block size in relation to the average sample

spacing and the search employed.

Any assumptions behind modelling of selective

mining units.

Any assumptions about correlation between

variables.

Description of how geological interpretation

was used to control the resource estimates.

Discussion of basis for using or not using grade

cutting or capping.

The process of validation, the checking process

used, the comparison of model data to drill hole

data, and use of reconciliation data if available.

A detailed explanation of the estimation and

modelling techniques is given in Section 14 of

the technical report relating to this resource

estimate. It is not practical to describe all aspects

of the estimation in JORC Table 1.

Estimation was completed using block modelling

and ordinary kriging, these methods are

considered appropriate. Top cutting and high-

grade restrictions were applied by domains, hard

boundary to constrain the main geology feature

was applied to prevent smearing the high grades

into the low-grade area.

Vulcan software was used for 3D estimation and

geological modelling.

A Block model with the parent cell size

2.5 m x 2.5 m x 2.5 m and sub-cell size 0.5 m x

0.5 m x 0.5 m was generated over the deposit

area and restricted to wireframe models. Cell

size based on the approximate 25 to 30 m drill

spacing of mineralization. Sub blocking was

applied to better fit wireframe models.

A variable search geometry was used to follow

the strike and dip variations of the deposit where

it follows the geometry of the vein structures. A

semi-parametric variography model was applied

to the deposits.

A univariate estimate was completed.

Geology was used to separate the different

geological and stationary domains named as:

MQV: Massive Quartz Vein

BX: Hydrothermal breccia

VLT: Veinlet

Additional Kriging Parameters are as follows

defining 5 passes.

Interpolation was conducted at the

parent and sub-block scale

Discretization 4x4x4

Negative weights were not set to zero

Maximum of 1 composite and minimum

of 2 or 1 composites per drill hole to

estimate

Maximum of 6, 4, 2 or 1 composite per

search.

Search Radius:

Pass 1: 16 x 0.5 x 16 m

Pass 2: 32 x 0.5 x 32 m

Pass 3: 64 x 1.0 x 64 m

Pass 4: 80 x 1.0 x 80 m

Pass 5: 120 x 2.0 x 120 m.

The model was validated by visual inspection of

input and output data as well as statistical

validation using boundary analysis and

declustered mean comparison.

Moisture

Whether the tonnages are estimated on a dry

basis or with natural moisture, and the method

of determination of the moisture content.

Bulk density Is based on dry values

Cut-off parameters

The basis of the adopted cut-off grade(s) or

quality parameters applied.

Austral will process the material exploited in

their own plant facility and all the mineral

deposits are in the vicinity of the plant, with a

maximum distance of 5 km.

A cutoff grade is based on both metals and the

definition of income is based on gold equivalent

(AuEq). Prices used were USD $2,000 per oz

gold and USD $20 per oz silver. Recoveries were

applied according to the deposits (see chapter

13).

Open pit cut-off was defined as 1.5 gpt AuEq

and Underground cut-off was defined as 2.0 gpt

AuEq (for further details, see section 14.12).

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