Sydney, Australia, Oct 26, 2021 (Newsfile Corp via COMTEX) -- Sydney, Australia--(Newsfile Corp. - October 26, 2021) - Austral Gold Limited (asx:AGD) /zigman2/quotes/205808903/delayed CA:AGLD +12.50% (the "Company" or "Austral" ) is pleased to provide an update on its on-going exploration programs in Chile and Argentina.
At Amancaya , three of six drill holes in the Sur vein confirmed the continuity of DAM-003 as previously announced on 27 January 2021 and two of the five follow-up drillholes in the Oeste vein confirmed the continuity of the structure at depth. The most significant results obtained were:
0.60 meters @ 84.25 g/t gold and 7.0 g/t silver (Sur Vein)
DAM-029 0.81 meters @ 24.70 g/t gold and 1.9 g/t silver (Sur Vein)
DAM-032 2.26 meters @ 5.72 g/t gold and 5.3 g/t silver (Sur Vein)
DAM-035 1.50 meters @ 20.06 g/t gold and 4.8 g/t silver (Oeste Vein)
DAM-036 2.82 meters @ 6.13 g/t gold and 2.5 g/t silver (Oeste Vein)
At Sierra Inesperada , the latest drilling results confirmed silver mineralisation vectoring to potential blind gold mineralisation in the Purisima breccia complex. The most significant results obtained were:
DIN-018B 98.50 meters @ 19.2 g/t silver
(Include 24.0 meters @ 51.5 g/t silver and sub-include 8.20 meters @ 0.25 g/t gold)
DAM-027 129.00 meters @ 34.0 g/t silver
(Include 55.0 meters @ 63.6 g/t silver and sub-include 4.00 meters @ 0.27 g/t gold)
At Casposo - Manantiales district, the first phase of drilling was completed in five vein targets. At Manantiales vein , a blind ore-shoot was intercepted opening the upside to the south. The most significant results obtained were:
MDH-021-56 1.44 meters @ 6.88 g/t gold and 10.6 g/t silver
MDH-021-57 1.50 meters @ 5.05 g/t gold and 10.3 g/t silver
At Sierra Blanca , the first tranche to acquire 51% of the project was completed. To date the Company has incurred exploration expenses of US$145,000 and is focused on acquiring the next 29% interest, which requires an additional US$555,000 in exploration expenses be incurred over the next two years.
The exploration activities are designed with a focus on the Company's growth strategy as follows:
Expand the resource at the Guanaco/Amancaya mine complex,
Explore Tier I or Tier II high sulfide ("HS") projects (Sierra Inesperada, Cerro Buenos Aires, Cerro Blanco, and Morros Blancos),
Restart the Casposo-Manantiales mine complex, and
Increase the mineral resources inventory at the Pinguino-Sierra Blanca cluster
Chief Executive Officer, Stabro Kasaneva commented: "We have seen excellent results on exploration activities in Argentina and Chile. Of particular interest are the high-grades and shallower depths that have been intersected in the Oeste structure at Amancaya, with more drilling to follow. At Sierra Inesperada, we are vectoring into a potential gold source at the complex, having intersected a silver halo surrounding the potential feeder. In addition, we look forward to receiving our updated mineral resource and mineral reserve estimates at our Guanaco-Amancaya mine complex during Q1 2022."
Amancaya Mine Exploration
During Q3 2021, follow-up and categorisation programs at Amancaya were completed with 14 drill holes (DAM-027 to DAM-040). The most significant results were obtained in the Oeste Vein, where two follow-up drill holes confirmed 100 meters of vertical continuity of the structure in the previous drilled sections, while a third drill hole (DAM-040) in a section in between, cut the structure in depth where a narrow structure with a low grade was observed.
At Veta Este, the continuity of the structure on the proposed strike was not confirmed, as the follow-up program intercepted only narrow veins with drillholes DAM-33 and DAM-034. The interpretation suggests that it is a gently east dipping splay structure between the North and South veins.
Paleocene HS Districts Exploration
At Sierra Inesperada , four targets were tested with 20 diamond drillholes in two phases, confirming HS hydrothermal activity controlled by phreatomagmatic complexes and associated with silver mineralisation. Integration of geological, geophysical, and geochemical interpretations suggest potential blind gold mineralisation which we plan to test during Q4 2021.
At Cerro Buenos Aires , three drilling targets were defined with delineation activities that included detailed geological mapping, CSAMT geophysical survey and systematic rock geochemistry. A first phase of five drillholes was initiated and preliminary geological drilling results provide evidence of multi-event phreatomagmatic breccias, greater than 300 meters of oxidized HS alteration column including greater than 100 meters of strong silicification and relict vuggy silica.
At Morros Blancos , the targeting process defined three prospective HS areas. Delineation began in Rosario del Alto, which we ranked as having the greatest potential. Initial geological mapping recognized four maar - diatreme complexes with favorable alteration at the right level preservation. Systematic rock geochemistry and CSAMT survey was initiated and we plan to commence a drilling program in Q4 2021 if positive results are received.
Figure 1: Amancaya: Plan View Map - Follow-up Drilling Program
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Figure 2: Amancaya: 25SE Section - Oeste Vein Follow-up Drillholes
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Figure 3: Sierra Inesperada: Targeting - Discovering a Blind Deposit
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Figure 4: Sierra Inesperada: 439,400E Section - Conceptual Model
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Casposo - Manantiales District Exploration