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Austral Gold Ltd
Symbol AGLD
Shares Issued 566,065,407
Close 2021-01-26 C$ 0.20
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Austral Gold drills 2.53 m of 12.18 g/t Au at Amancaya

2021-01-26 20:06 ET - News Release

Mr. Stabro Kasaneva reports


Austral Gold Ltd. has received assay results for the first 15 drill holes reflecting 4,806 metres at its Amancaya mine.

Highlights from reported assays:

  • DAM-002 1.35 metres at 14.65 grams per tonne gold and 50.60 g/t silver including 42.43 g/t gold and 124 g/t silver over 0.44 metre;
  • DAM-003 2.07 metres at 12.13 g/t gold and 57.50 g/t silver including 21.01 g/t gold and 142.8 g/t silver over 0.88 metre;
  • DAM-008 2.53 metres at 12.18 g/t gold and 8.50 g/t silver in the Central vein and 30 m at 4.04 g/t gold and 7.50 g/t silver including 4.14 metres at 23.50 g/t gold and 29.30 g/t silver in a newly discovered mineralized breccia zone at depth;
  • DAM-012 0.40 metre at 41.89 g/t gold and 7.50 g/t silver.

Extending the known veins to depth

The drilling program started in the fourth quarter of 2020 in order to extend resources and reserves at the Amancaya mine at depth. Previous exploration was not successful in intercepting the veins at depth when drilling was performed from east to west. Austral mapped out the contact between two breccia zones at the location of the veins and observed a steepening of this contact zone. Consequently, drilling was undertaken from west to east, and intersected the vein with similar widths and tenor that is currently being mined 50 m to 100 m under previous intersections.

New discovery -- new mineralized breccia zone

In addition, drill hole DAM-008 successfully extended the eastern edge of the Amancaya diatreme as a major mineralization control, intercepting 30 m at 4.04 g/t Au which contains high-grade veins and hydrothermal injection breccias. This zone also included a high-grade intersection on the hangingwall of 4.1 m of 23.5 g/t Au and 29 g/t Ag.

Chief executive officer Stabro Kasaneva commented, "I am delighted with the success of the exploration team -- they discovered a new wide zone of hydrothermal breccia that could transform the production profile at the Amancaya mine and are on the right track to extend the mine life of this low-cost operation."

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 five grams per tonne, were analyzed by Au30GRAV, fusion with final gravimetric determination. For the base metal assays, acid digestion was performed with final determination by ICPMS (ultratrace multielement package). 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 Mr. 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." Mr. Trzebski consents to the inclusion in this presentation of the technical information that he has reviewed and approved.

Mr. Trzebski has sufficient experience which is relevant to the style of mineralization and types of deposits under consideration and to the activity which he has undertaken to qualify as a competent person as defined in the Joint Ore Reserves Committee code 2012.

About Amancaya

Amancaya is located approximately 60 kilometres southwest of the Guanaco mine. Amancaya is a low sulphidation epithermal gold-silver deposit consisting of eight mining exploration concessions covering 1,755 hectares (and a further 1,390 hectares of second layer mining claims). Underground operations at Amancaya started in 2018 and the ore at Amancaya is trucked to the agitation leaching plant at Guanaco for processing.

About Austral Gold Ltd.

Austral Gold is a growing gold and silver mining, development and exploration company building a portfolio of quality assets in Chile, the United States and Argentina. Austral owns a 100-per-cent interest in the Guanaco/Amancaya mine in Chile and the Casposo mine (care and maintenance) in Argentina and a 26.46-per-cent interest in the Rawhide mine in Nevada. In addition, Austral owns an attractive portfolio of exploration projects in the Paleocene belt in Chile and a 100-per-cent interest in the Pinguino and Sierra Blanca projects in Santa Cruz, Argentina. Austral Gold is listed on the TSX Venture Exchange and the Australian Securities Exchange.

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