Diamond drilling returns gold and silver intercepts at Jaguelito Project, Argentina
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
24 April 2023
Diamond drilling returns gold and silver intercepts at
Jaguelito Project, Argentina
HIGHLIGHTS
• Gold and silver mineralisation intersected by diamond drilling at the Jaguelito Project,
located within Argentina’s prolific El Indio Gold Belt close to the Barrick’s Veladero gold mine
and Altura’s project.
• Best intercepts from assays of seven drill holes received:
Capote-Alcatraz target
(Norte Zone)
DJN-003: 26m @ 0.60 grams per tonne (gpt) gold and 7 gpt silver
Including 1.5m @ 1.12 gpt gold and 45 gpt silver
DJN-004: 21m @ 1.24 gpt gold and 1 gpt silver
Including 3.0m@ 3.32 gpt gold and <0.5 gpt silver
La Cuña Norte target
(Norte Zone)
DJN-006: 4m@ 1.40 gpt gold and 26 gpt silver
Established gold producer Austral Gold Limited (the “Company” or “Austral”) (ASX:AGD;
TSX-V:AGLD) has encountered gold and silver mineralisation in drilling at the Jaguelito Project,
within Argentina’s prolific El Indio Gold Belt.
In accordance with our option agreement with Mexplort Perforaciones Mineras SA (“Mexplort”) 1,
Austral has completed 3,744m over 14 holes of its 5,000m diamond drilling campaign since
December 2022 to acquire 50% of the advanced exploration project, which has a high-potential
for high-sulfidation epithermal gold and silver deposits.
Up to eight targets have been identified across two zones, Norte and Sur. Further drilling is
underway at La Cuña Norte (Norte) and Sagitario (Sur) targets.
Austral Gold’s Chief Executive Officer, Stabro Kasaneva said: “We are encouraged by the
program, the initial results confirm our geological understanding of the structural mineralisation
controls of the project related to the northwest direction, which are key in the development of
important HS-type epithermal deposits during the Miocene period in the region. We expect to
complete the drill program and announce the remaining assay results in Q2 2023.”
1 Refer Media Release dated 2 December 2022 Austral Gold begins drilling at Jaguelito in Argentina
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Figure 1. Jaguelito Project
in close proximity to
Barrick’s Veladero Gold
Mine and Alturas project.
Figure 2. Jaguelito Project
showing Norte and Sur
geographical target areas.
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FIRST EXPLORATION STAGE
5,000m drilling program in Jaguelito Norte and Jaguelito Sur target areas.
Jaguelito Norte Target Area
Five drilling targets were identified and three targets were tested, Alcatraz, La Cuña Norte, and
La Cuña Sur.
The program prioritises the Capote - Alcatraz sector under a new concept of gold ore controlled
northwest direction and drilling of the La Cuña maar-diatreme complex, which we recently
identified as the major control of the hydrothermal system in the region. The third target
corresponds to the satellite body of the Guanaco Breccia.
Figure 3. Jaguelito Norte target area showing Alcatraz and La Cuña drill targets.
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Alcatraz target
• This target consists of a 120 x 80m mineralised body controlled by the contact between
phreatomagmatic breccias and a dacite dome, developed mainly in the dacitic rocks.
• Results from drill hole DJN-003 validate Au mineralisation (< 1gpt) in the phreatomagmatic
breccia, vectoring eastward towards the high-grade shell hosted on dacitic rocks.
• Drillhole DJN-004 intercepted mineralisation associated to strongly advanced argillic
alteration (vuggy silica ± quartz-alunite + Jar/Hem), confirming the presence of
mineralisation hosted in dacites in the contact zone with phreatomagmatic breccias and the
continuity of the Alcatraz >1gpt Au mineralisation to the Northwest.
La Cuña Norte target
• Drill holes DJN-006 and DJN-010 intersected extensive columns of phreatomagmatic rocks
from surface, with mineralised intercepts associated with the contact between the dacite
domes and the basement (Choiyoi), similar to the structural control validated in the Capote-
Alcatraz targets.
• Drill holes DJN-008 and DJN-009 intersected several intervals of phreatomagmatic tuff
breccias with intermittent alteration to vuggy silica ± quartz-alunite and silicification. The
Company interprets this as peripheral facies of a larger phreatomagmatic system located to
the southeast (Cerro Jaguelito), and also limits the southward extension of the La Cuña
Norte phreatomagmatic complex.
La Cuña Sur target
• D rill holes DJN-011 and DJN-012, aimed to intercept diatremes associated with crater
facies identified on the surface at elevations greater than 4,500 m.a.s.l., traversed thick
columns of dacitic rocks, suggesting the presence of post-phreatomagmatic domes
emplaced within the ducts.
Guanaco Breccia target
• Drill hole DJN-005 confirmed the existence of a concealed phreatomagmatic system. At
least two brecciation events where identified which imply a multistage evolution. Both the
strong illite-smectite-pyrite alteration and the lack of fertile advanced argillic alteration in the
expected mineralisation level (3,915 to 3,990 m.a.s.l.) suggests an extension towards the
La Cuña target in the East.
Jaguelito Sur Target Area
Preliminary work identified five structures related to phreatomagmatic activity that suggest
alteration and potential mineralisation in the sector. Three targets will be tested by
approximately 1,500m of drilling.
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Sagitario target
• Sagitario target shows, in outcrops and historical drillings, conduit facies of a
phreatomagmatic complex with intense silicification and coincident geochemical anomalies
of gold, silver and toxic elements. Initial drilling is currently underway.
Alumbre target
• Alumbre target is located in the central part of Jaguelito Sur and consists of at least three
phreatomagmatic breccia conduits that cut the andesitic basement. Five historic drill holes
(1,777m) only superficially tested the edges of the area.
Brecha Siete target
• Brecha Siete, located on the eastern slope of Jaguelito Sur, is an early-stage target
characterised by strongly altered phreatomagmatic breccias that cut through the basement
following a NW structural control.
Figure 4. Jaguelito Sur target area showing Alumbre and Sagitario drill targets.
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Table 1: Jaguelito Drill results
JAGUELITO OPTION AGREEMENT OVERVIEW
The drill program is being conducted in accordance with the option agreement with Mexplort
announced on 11 February 2022 whereby Austral may acquire a 50% interest in the Jaguelito
Project by performing the following work commitments within the next three years:
• US$2 million in exploration expenditures, including drilling a minimum of 5,000m at Jaguelito
by 10 August 2024, two years after the Agreement was approved by the Instituto Provincial
de Exploraciones y Explotaciones Mineras de la Provincia de San Juan IPEEM, and
• US$2 million in exploration expenditures within two years after completing the First Stage
(the “Second Stage").
Austral has invested US$2.7 million and drilled 3,744m of the 5,000m required in the First
Stage. Any funds exceeding the initial US$2.0 million will be allocated towards the Second
Stage.
Hole East North RL Dip Azimuth EoH Sector Section Intercept Width (m) Depth (m) Au gpt Ag gpt
34.0 70.0 0.44 19.6
Include 3.0 83.00 1.23 23.7
5.0 120.0 0.6 12.1
Include 1.0 123.00 1.32 20.9
9.0 36.0 0.45 <0.5
6.0 108.00 0.36 27.7
18.0 125.0 0.42 6.5
26.0 173.0 0.60 6.9
Include 1.0 184.00 1.09 2.7
Include 1.5 196.50 1.12 44.8
21.0 58.0 1.24 1.4
Include 1.0 64.00 1.01 2.3
Include 2.0 67.00 1.69 7.6
Include 3.0 72.00 3.32 <0.5
DJN-005 2,440,835 6,707,573 4,060 -70 60 178 Bx Guanaco 200 NW
2.0 266.0 0.56 9.7
4.0 276.0 1.40 26.3
DJN-007 2,441,691 6,708,184 4,365 -70 240 380 La Cuña 300 NW
DJN-008 2,441,582 6,708,005 4,396 -70 240 372 La Cuña 200 NW
DJN-009 2,441,668 6,707,783 4,476 -70 240 449 La Cuña 025 SE
DJN-010 2,441,925 6,708,089 4,395 -70 60 275 La Cuña 100 NW
DJN-011 2,441,850 6,707,525 4,572 -70 130 365 La Cuña 100 SW
DJN-012 2,441,790 6,707,550 4,562 -70 60 317 La Cuña 300 SE
Assays pending
Assays pending
Assays pending
Assays pending
Assays pending
Capote-Alcatráz 350 SE
INESPERADA RESULTS
Significant intercepts reported at 0.2 gpt Au cutoff; include at 1.0 gpt Au cutoff, sub-include at 3.0 gpt Au cutoff
Significant silver intercepts reported at 5 gpt Ag cutoff (longer than 30 meters); include at 15 gpt Ag cutoff (longer than 5 meters)
DJN-001 2,440,771 6,706,902 4,092 -65 240 216
No significant intercepts
No significant intercepts
190 Capote-Alcatráz 400 SE
DJN-003 2,440,978 6,706,733 4,140 -70 60 302
DJN-002 2,440,818 6,706,870 4,097 -65 240
Capote-Alcatráz 600 SE
DJN-004 2,440,945 6,706,829 4,085 -70 60 229 Capote-Alcatráz 500 SE
DJN-006 400 NWLa Cuña320240-704,3216,708,1702,441,470
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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 more information please contact:
Jose Bordogna Gareth Quinn
Chief Financial Officer Media and Investor Relations
Phone: +61 466 892 307 Phone +61 417 711 108
[email protected] [email protected]
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 the Company’s expectations to complete the drill program and announce the remaining
assay results in Q2 2023 and the Company’s interpretations of drill results as peripheral facies of a
larger phreatomagmatic system located to the southeast (Cerro Jaguelito).
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 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, 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
the ASX and 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 f orward-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.
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Competent Person
Technical information in this media release that relates to Exploration Results is based on work
supervised, or compiled on behalf of Robert Trzebski, a Director of the Company. Dr. Trzebski, who is a
member of the Australasian Institute of Mining and Metallurgy (AusIMM) and qualifies as a C ompetent
Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves’ consents to the inclusion of the technical information that he has
reviewed and approved or has been compiled on his behalf.
About Jaguelito
The Jaguelito Project is an advanced exploration stage project located in located in one of the main
districts of precious metals worldwide; the El Indio – Pascua Lama district in the Province of San Juan,
Argentina. Its deposits, of the high sulfidation epithermal type of Miocene age, include mines in
production, construction and exploration.
The Jaguelito project covers an area of 11,000 approximately hectares, and over 150 holes (~30,000m)
were drilled by previous owners (Minera Peñoles, Minera IRL) between 1996 and 2009. It is located
approximately 225km northwest of the city of San Juan in Valle del Cura, Iglesias Department, San Juan
Province, Argentina. Its central coordinates are 29° 46' 20" West Latitude, 69° 38' 15 South Longitude
and a variable altitude between 3,600 and 4,300 meters above sea level. Jagüelito is a high sulfidation
epithermal deposit related to a Miocene volcanism hosted in basement of Permo- Triassic age. Its
mineralisation is related to a hydrothermal system controlled by northeast-southwest oriented faults and
hosted in porouspermeable volcaniclastic units. These rocks allowed the circulation of precursor acidic
hydrothermal fluids that strongly altered the rocks through which they circulated, generating a secondary
porosity or vuggy silica, in the alteration cores. The high porosity product of the alteration served as a
conduit for the posthumous hydrothermal fluids responsible for the mineralisation of gold and silver.