Vancouver, British Columbia--(Newsfile Corp. - June 8, 2017) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) ("Austral" or the
"Company") is pleased to announce that Roscoe Postle Associates Inc. ("RPA") has completed a new independent resource and reserve
estimate in accordance with CIM Definition Standards, 2014 as incorporated in National Instrument ("NI") 43-101 and Joint Ore
Reserves Committee Code, 2012 (JORC12) for the Company's 100% owned Amancaya project and Guanaco Mine, Chile. The Amancaya reserve
estimate is the first in that project's existence.
Highlights:
Amancaya*:
●
|
Total Indicated resource at Amancaya of 804,690 tonnes at 9.64 g/t gold and 80.7 g/t silver for 277,352
Gold Equivalent ("AuEq") ounces, including;
|
o
|
A maiden probable reserve of 948,053 tonnes grading 6.77 g/t gold and 63.2 g/t silver for
232,074 AuEq ounces, including;
|
o
|
A maiden open pit probable reserves of 254,596 tonnes grading 7.56 g/t gold and 119.5 g/t
silver for 74,993 AuEq ounces
|
●
|
Total inferred resource at Amancaya of 959,554 tonnes at 6.79 g/t gold and 36.1 g/t Ag for 220,000 AuEq
ounces.
|
Guanaco*:
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Measured and Indicated resource of 2,193,000 tonnes grading 2.9 g/t gold and 13.0 g/t silver for
217,000 AuEq ounces, including;
|
●
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Total reserves of 489,635 tonnes grading 2.99 g/t gold and 3.6 g/t silver for 47,907 AuEq
ounces, including;
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o
|
Proven reserve of 189,613 tonnes grading 3.41 g/t gold and 4.1 g/t silver for 21,106 AuEq
ounces, and,
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o
|
Probable reserve of 300,022 tonnes grading 2.73 g/t gold and 3.4 g/t silver for 26,801 AuEq
ounces.
|
●
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Inferred resource: 1,200,000 tonnes grading 2.6 g/t gold and 12.9 g/t silver for 110,000 AuEq
ounces.
|
*See tables below for assumptions used in the estimates.
"We are very pleased with this maiden reserve and resource estimate at Amancaya. It confirms the high grade nature of the
Amancaya project and our expectation that Amancaya will play a significant part in our growth plans," stated Stabro Kasaneva, CEO
of Austral Gold. "The Amancaya project is a unique asset; high grade gold and silver vein outcropping at surface that is fully
permitted, pre-stripping has commenced and ore is being stock piled, pending the imminent commissioning of the new processing
plant. The pre-feasibility study that evaluates the combined production from the Amancaya project with the operating Guanaco mine,
including its new processing plant, is expected shortly. We are expecting that this study will reveal a financially robust combined
operation located in a very attractive jurisdiction."
Amancaya Reserve and Resource Estimate
RPA undertook the study based on company infill drilling and exploration activities completed in 2016 and previous work done on
the project by other companies. Full details and assumptions used will be available when the Technical Report summarizing the
Pre-Feasibility study is filed on SEDAR and ASX within 45 days.
Table 15 Amancaya Mineral Reserves — as at December 31, 2016
Austral Gold Ltd. — Guanaco and Amancaya Gold Project
Category |
|
|
Grades |
Contained Metal Ounces |
Area
|
Tonnage
(t) |
Au |
Ag |
AuEq |
Au |
Ag |
AuEq |
Underground:
Probable |
(g/t) |
(g/t) |
(g/t) |
(oz) |
(oz) |
(oz) |
Veta Central Norte |
418,205 |
6.96 |
47.9 |
7.61 |
93,642 |
644,422 |
102,277 |
Probable |
Veta Central Sur |
275,253 |
5.74 |
34.2 |
6.19 |
50,754 |
302,259 |
54,804 |
Total |
Underground |
693,457 |
6.48 |
42.5 |
7.05 |
144,396 |
946,681 |
157,081 |
Open Pit:
Probable |
Open Pit |
254,596 |
7.56 |
119.5 |
9.16 |
61,887 |
978,062 |
74,993 |
Total |
All |
948,053 |
6.77 |
63.2 |
7.61 |
206,283 |
1,924,742 |
232,074 |
Notes:
1. Mineral Reserves followed CIM Definitions, 2014 and are compliant with the JORC Code, 2012.
2. Underground Mineral Reserves are estimated at a break-even cut-off grade of 2.5 g/t AuEq for stopes and an incremental cut-off
grade of 1.5 g/t AuEq for drifts. Open Pit Mineral Reserves are estimated at a cut-off grade of 1.53 g/t AuEq.
3. Mineral Reserves are estimated using an average long-term gold price of US$1,300 per ounce and silver price of US$20 per ounce.
4. Gold Equivalents (AuEq) were calculated as AuEq = Au + 0.0134 x Ag, based on a Au and Ag price of $1,300/oz and $20/oz and
recoveries of Au and Ag of 92% and 80%, respectively.
5. A minimum mining width of 1.5 m was used for stopes and 3.5 m for drifts.
6. Stope dilution: 0.5 m in the hanging wall and 0.5 m in the footwall (1.0 m total).
7. Drift dilution: 0.25 m in each of the side walls (0.5 m total).
8. Bulk density is 2.5 t/m3.
9. Numbers may not add due to rounding.
Table 14-1 Amancaya Mineral Resources —as at December 31, 2016
Austral Gold Ltd. — Guanaco and Amancaya Gold Project
|
Category |
Tonnes |
Grades |
Ounces |
|
|
(kt) |
Au
(g/t) |
Ag
(g/t) |
AuEq
(g/t) |
Au
(koz) |
Ag
(koz) |
AuEq
(koz) |
Open Pit |
Measured |
- |
- |
- |
- |
- |
- |
- |
Indicated |
171.5 |
11.24 |
177.5 |
13.61 |
62.0 |
978.9 |
75.1 |
Total M + I |
171.5 |
11.24 |
177.5 |
13.61 |
62.0 |
978.9 |
75.1 |
Inferred |
60 |
7.6 |
110.0 |
9.0 |
15 |
210 |
20 |
|
|
|
|
|
|
|
|
|
Underground |
Measured |
- |
- |
- |
- |
- |
- |
- |
Indicated |
633.2 |
9.21 |
54.5 |
9.94 |
187.4 |
1,109.5 |
202.3 |
Total M + I |
633.2 |
9.21 |
54.5 |
9.94 |
187.4 |
1,109.5 |
202.3 |
Inferred |
900 |
6.7 |
31.0 |
7.2 |
195 |
910 |
210 |
|
|
|
|
|
|
|
|
|
Total |
Measured |
- |
- |
- |
- |
- |
- |
- |
Indicated |
804.7 |
9.64 |
80.7 |
10.72 |
249.4 |
2,088.4 |
277.4 |
Total M + I |
804.7 |
9.64 |
80.7 |
10.72 |
249.4 |
2,088.4 |
277.4 |
Inferred |
960 |
6.8 |
36.0 |
7.3 |
210 |
1,110 |
220 |
Notes:
1. Mineral Resources followed CIM definitions, 2014 and are compliant with the JORC Code.
2. Mineral Resources are reported inclusive of Mineral Reserves.
3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
4. Open pit Mineral Resources are reported at a cut-off grade of 1.5 g/t AuEq. Pit optimization shells were used to constrain the
resources. Underground Mineral Resources are estimated at a cut-off grade of 2.5 g/t AuEq beneath the open pit shells.
5. Mineral Resources are estimated using a long-term gold price of US$1,300 per ounce, and a silver price of US$20 per ounce.
6. Gold Equivalents (AuEq) were calculated as AuEq = Au + 0.0134 x Ag, based on a gold and silver price of $1,300/oz and $20/oz and
recoveries of gold and silver of 92% and 80%, respectively.
7. Minimum width for the open pit resource is 1.0 m and 1.5 m for the underground resource.
8. Bulk density is 2.50 t/m3.
9. Numbers may not add due to rounding.
The very high conversion rate (approximately 87%) of the Indicated resource into reserves in the Amancaya maiden reserve
estimate is a result of the consistent form and grade of the deposit.
Guanaco Reserve and Resource Estimate
Reserves:
Table 15-a Guanaco Mineral Reserves — as at December 31, 2016
Austral Gold Ltd. — Guanaco and Amancaya Gold Project
|
|
|
Grades |
Contained Metal Ounces |
Category |
Area |
Tonnage |
Au |
Ag |
AuEq |
Au |
Ag |
AuEq |
|
|
(t) |
(g/t) |
(g/t) |
(g/t) |
(oz) |
(oz) |
(oz) |
Underground |
|
|
|
|
|
|
|
|
Proven |
Cachinalito West |
172,468 |
3.47 |
2.9 |
3.51 |
19,238 |
15,876 |
19,451 |
Probable |
Cachinalito West |
281,971 |
2.77 |
3.0 |
2.81 |
25,141 |
27,302 |
25,507 |
Total |
Cachinalito West |
454,439 |
3.04 |
3.0 |
3.08 |
44,379 |
43,178 |
44,958 |
|
|
|
|
|
|
|
|
|
Proven |
Dumbo West |
11,178 |
3.38 |
4.7 |
3.44 |
1,215 |
1,695 |
1,238 |
Probable |
Dumbo West |
14,256 |
2.29 |
7.5 |
2.39 |
1,049 |
3,446 |
1,095 |
Total |
Dumbo West |
25,434 |
2.77 |
6.3 |
2.85 |
2,264 |
5,141 |
2,333 |
|
|
|
|
|
|
|
|
|
Proven |
Perseverencia |
5,967 |
1.67 |
37.8 |
2.18 |
321 |
7,242 |
418 |
Probable |
Perseverencia |
3,795 |
1.43 |
14.4 |
1.63 |
175 |
1,755 |
198 |
Total |
Perseverencia |
9,762 |
1.58 |
28.7 |
1.96 |
496 |
8,998 |
616 |
|
|
|
|
|
|
|
|
|
Total Proven |
All |
189,613 |
3.41 |
4.1 |
3.46 |
20,774 |
24,813 |
21,106 |
Total Probable |
All |
300,022 |
2.73 |
3.4 |
2.78 |
26,365 |
32,503 |
26,801 |
Total Reserves |
All |
489,635 |
2.99 |
3.6 |
3.04 |
47,139 |
57,316 |
47,907 |
Notes:
1. Mineral Reserves followed CIM definitions, 2014 and are compliant with the JORC Code.
2. Mineral Reserves are estimated at a break-even cut-off grade of 2.0 g/t AuEq for stopes and an incremental cut-off grade of 1.0
g/t AuEq for drifts.
3. Mineral Reserves are estimated using an average long-term gold price of US$1,300 per ounce and silver price of US$20 per ounce.
4. Gold Equivalents (AuEq) were calculated as AuEq = Au + 0.0134 x Ag, based on a Au and Ag price of $1,300/oz and $20/oz and
recoveries of Au and Ag of 92% and 80%, respectively.
5. A minimum mining width of 1.5 m was used for stopes and 3.5 m for drifts.
6. Stope dilution: 0.5 m in the hanging wall and 0.5 m in the footwall (1.0 m total).
7. Drift dilution: 0.25 m in each of the side walls (0.5 m total).
8. Bulk density is 2.5 t/m3.
9. Numbers may not add due to rounding.
Resources
Table 14-2 Guanaco Mineral Resources — as at December 31, 2016
Austral Gold Ltd. — Guanaco & Amancaya Gold Project
|
Tonnes |
Grades |
Ounces |
Deposit |
(kt) |
Au (g/t) |
Ag (g/t) |
AuEq (g/t) |
Au (koz) |
Ag (koz) |
AuEq
(koz) |
Measured |
|
|
|
|
|
|
|
Cachinalito Central |
111.4 |
4.37 |
3.7 |
4.42 |
15.6 |
12.4 |
15.8 |
Cachinalito West |
164.0 |
3.03 |
3.5 |
3.08 |
16.0 |
18.3 |
16.2 |
Defensa |
81.9 |
2.52 |
25.7 |
2.86 |
6.63 |
67.5 |
7.54 |
Dumbo West |
102.9 |
3.43 |
9.7 |
3.56 |
11.3 |
31.9 |
11.8 |
Perseverancia |
180.8 |
2.17 |
23.4 |
2.48 |
12.6 |
136 |
14.5 |
Natalia |
- |
- |
- |
|
- |
- |
- |
Total Measured |
641 |
3.02 |
12.9 |
3.19 |
62.2 |
266 |
65.8 |
Indicated |
|
|
|
|
|
|
|
Cachinalito Central |
235.3 |
3.98 |
3.9 |
4.03 |
30.1 |
29.4 |
30.5 |
Cachinalito West |
350.0 |
2.91 |
3.6 |
2.95 |
32.7 |
41.0 |
33.2 |
Defensa |
303.0 |
2.56 |
22.3 |
2.86 |
25.0 |
217 |
27.9 |
Dumbo West |
320.8 |
3.13 |
10.6 |
3.28 |
32.3 |
110 |
33.8 |
Perseverancia |
- |
- |
- |
|
- |
- |
- |
Natalia |
342.5 |
2.03 |
23.0 |
2.34 |
22.4 |
253 |
25.8 |
Total Indicated |
1,552 |
2.86 |
13.0 |
3.03 |
143 |
650 |
151 |
Inferred |
|
|
|
|
|
|
|
Cachinalito Central |
197 |
3.9 |
4.7 |
3.9 |
24 |
29 |
25 |
Cachinalito West |
94 |
2.7 |
4.0 |
2.7 |
8 |
12 |
8 |
Defensa |
31 |
2.4 |
22.0 |
2.7 |
2 |
21 |
3 |
Dumbo West |
693 |
2.4 |
17.0 |
2.7 |
54 |
369 |
59 |
Perseverancia |
134 |
2.1 |
10.0 |
2.2 |
9 |
45 |
10 |
Natalia |
45 |
2.2 |
12.0 |
2.4 |
3 |
17 |
3 |
Total Inferred |
1,200 |
2.6 |
12.9 |
2.8 |
100 |
500 |
110 |
Underground |
|
|
|
|
|
|
|
Measured |
641 |
3.02 |
12.9 |
3.19 |
62 |
266 |
65.8 |
Indicated |
1,552 |
2.86 |
13.0 |
3.03 |
143 |
650 |
151 |
Total M + I |
2,193 |
2.90 |
13.0 |
3.08 |
205 |
916 |
217 |
Inferred |
1,200 |
2.6 |
12.9 |
2.8 |
100 |
500 |
110 |
Notes:
1. Mineral Resources followed CIM definitions, 2014 and are compliant with the JORC Code.
2. Mineral Resources are reported exclusive of Mineral Reserves and do not include dilution.
3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
4. Mineral Resources are reported at a 1.5 g/t AuEq cut-off grade where AuEq = Au + (0.0134 * Ag).
5. Mineral Resources are estimated using a long-term gold price of US$1,300 per ounce, and a silver price of US$20 per ounce.
6. Gold Equivalents (AuEq) were calculated as AuEq = Au + 0.0134 x Ag, based on a Au and Ag price of $1,300/oz and $20/oz and
recoveries of Au and Ag of 92% and 80%, respectively.
7. A minimum mining width of 1.5 m was not used for the estimation of the Mineral Resource.
8. Bulk density is 2.50 t/m3.
9. Numbers may not add due to rounding.
There are no known legal, political, environmental, or other risks that could materially affect the potential development of the
Guanaco and Amancaya mineral resources or mineral reserves.
QUALIFIED PERSONS
The Amancaya and Guanaco Reserve and Resource Estimate was prepared in accordance with CIM Definitions 2014 in NI 43-101 and a
Technical Report will be filed under the Company's profile on SEDAR and ASX within 45 days of this press release. The RPA Qualified
Persons (QPs) for the Amancaya and Guanaco Reserve and Resource Estimate include:
●
|
Jason J. Cox, P.Eng. (Mineral Reserves)
|
●
|
Ian Weir, P.Eng. (Mineral Reserves)
|
●
|
Chester M. Moore, P.Eng., (Mineral Resources)
|
This press release has been reviewed and approved by the RPA Qualified Persons.
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 low-cost 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, where
it has 70% ownership. 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
(TSX-V: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 Further Information Please Contact:
Alison Crealy
info@australgold.com.au
+61 (2) 9380
7233
Mike Brown
mike.brown@australgold.com
+1 604 568 2496
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 expectation that the project will play a significant part in its growth plans, its expectation the
commissioning of its new processing is imminent, its expectation that the complete pre-feasibility study the combined production at
Amancaya and Guanaco is expected shortly, as well as its expectation of what that study will reveal. 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.