Bulletin
Investor Alert

New York Markets Close in:

March 28, 2022, 11:17 p.m. EDT

Austral Gold Updates Mineral Reserve and Resource Estimates in Chile

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Austral Gold Ltd. (AGLD)

or Cancel Already have a watchlist? Log In

Sydney, Australia, Mar 28, 2022 (Newsfile Corp via COMTEX) -- Sydney, Australia--(Newsfile Corp. - March 28, 2022) - Austral Gold Limited (asx:AGD) /zigman2/quotes/205808903/delayed CA:AGLD 0.00% (" Austral " or the " Company ")is pleased to announce the positive results of updated Mineral Reserve and Mineral Resource Estimates prepared by SLR Consulting (Canada) Ltd. (" SLR ") 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 Guanaco-Amancaya Operation in Chile. The Guanaco-Amancaya Operation consists of the Guanaco Mine (Guanaco) and Inesperada satellite deposit (Inesperada), the Amancaya Mine (Amancaya), and the Guanaco heap leach pads (Heap Reprocessing project). The updated Mineral Reserve and Mineral Resource estimates will be supported by a technical report prepared in accordance with NI 43-101 that will be filed on SEDAR ( www.sedar.com ) within 45 days of this news release (the " Technical Report ").

Highlights:

  • Proven and Probable Mineral Reserves for the Guanaco-Amancaya Operation are estimated to be 12.1 Mt grading 0.84 g/t Au and 4.89 g/t Ag and containing 0.326 million ounces (Moz) Au and 1.91 M oz Ag. The Heap Reprocessing material provides the majority of the increase from previous estimates.

  • Measured and Indicated Mineral Resources for the Guanaco-Amancaya Operation are estimated to be 14.9 million tonnes (Mt) grading 1.03 g/t Au and 5.89 g/t Ag

  • Inferred Mineral Resources are estimated to be approximately 2.4 Mt grading 1.18 g/t Au and 3.93 g/t Ag

  • After-Tax Net Present Value (NPV) at 6.89% discount rate is US$77.0 million

  • Undiscounted pre-tax free cash flows of US$132.7 million (post tax US$102.6 million)

  • All-in Sustaining Cost (AISC): US$1,050/oz Au

  • The mine life is 12 years, based on Mineral Reserves.

  • Combined estimated annual average production of 17,400 ounces recovered for gold and 52,800 ounces recovered for silver

  • Mine life capital totals US$20.9 million, consisting of installation of a new crusher and heap leach pad for heap reprocessing, capitalized waste stripping, and closure costs (offset by salvage value).

  • Average operating cost over the mine life is $17.51 per tonne milled.

  • Metallurgical recovery averages 60.4% for gold and 31.7% for silver over the LOM (the average is highly influenced by the Heap Reprocessing material, higher-grade feed has higher recoveries).

  • Metal prices: Life of Mine ("LOM") average of US$1,686/oz gold and US$22.88/oz silver, based on consensus of independent forecasts for annual prices.

*See tables below for assumptions used in the estimates.

Chief Executive Officer of Austral, Stabro Kasaneva, commented, "We are excited at the prospect of continuing to increase shareholder value by extending the mine life of Guanaco-Amancaya. The Heap Reprocessing project is expected to utilize excess processing capacity to provide a solid long-term basis for mine operations, covering costs and providing a return at current financial inputs. Opportunities for higher-grade ore sources from exploration or acquisition could be easily integrated into the Life of Mine plan, and would benefit from lower unit costs."

The updated estimates are based on Company infill drilling and exploration activities since the December 31, 2016 Technical Report filed on SEDAR, as well as metallurgical testwork and engineering studies on the Heap Reprocessing project.

Mining at Guanaco was discontinued in February 2020. Amancaya is currently in production, while Guanaco Heap Reprocessing and Inesperada are new projects that are anticipated to commence operations in 2023. Amancaya's Mineral Reserves are expected to be exhausted in 2023 when Inesperada commences production. It is anticipated that the Inesperada open pit Mineral Reserves will be exhausted by the end of 2025. Reprocessing of the heaps is scheduled to commence in 2023 and continue through to the end of mine life in 2033. Heaps I, II, and III are expected to be reprocessed in reverse order of their numbering, beginning with Heap III, continuing with Heap II, and finishing with Heap I. Approximately 15% of the Mineral Reserve contained ounces comes from Amancaya, 68% from Heaps Reprocessing, and 17% from Inesperada.

Summary of Mineral Resources - December 31, 2021Austral Gold Limited- Guanaco-Amancaya Operation

  Classification   Tonnes
(000 t)
  Grade   Contained Metal
  (g/t Au)   (g/t Ag)   (000 oz Au)   (000 oz Ag)
  Guanaco
 Underground          
 Measured  581  2.61  12.67  48.7  236.6
 Indicated  868  2.31  17.67  64.5  492.9
  M + I   1,448   2.43   15.67   113.3   729.5
 Inferred  250  3.42  6.26  27.6  50.4
Amancaya
 Underground          
 Measured  49  7.96  16.60  12.6  26.4
 Indicated  249  6.32  15.96  50.6  127.9
  M+I   299   6.59   16.06   63.3   154.3
 Inferred  61  5.05  11.02  9.9  21.5
Amancaya Julia and Cerro Amarillo Projects
Underground




Measured - - - - -
Indicated 72 5.36 9.50 12.4 21.9
M+I 72 5.36 9.50 12.4 21.9
Inferred 91 5.80 13.04 16.9 38.0
Inesperada
Open Pit




Measured - - - - -
Indicated 1,682 1.05 14.38 56.7 778.0
M+I 1,682 1.05 14.38 56.7 778.0
Inferred 74 0.91 12.40 2.2 29.5
Heap Leach Pads
Measured 11,417 0.67 3.10 247.5 1,139.1
Indicated - - - - -
M+I 11,417 0.67 3.10 247.5 1,139.1
Inferred 1,907 0.55 2.64 33.6 161.8






Total Measured 12,047 0.80 3.62 308.9 1,402.1
Total Indicated 2,871 2.00 15.39 184.2 1,420.7
Total M+I 14,918 1.03 5.89 493.0 2,822.8
Total Inferred 2,383 1.18 3.93 90.1 301.3

 

Notes:

  1. Mineral Resources followed CIM (2014) definitions and are compliant with the JORC Code.

  2. Mineral Resources are reported on a 100% ownership basis.

  3. Mineral Resources are inclusive of Mineral Reserves.

  4. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

  5. Mineral Resources are estimated at the following cut-off grades:

  6. Mineral Resources at Guanaco and Amancaya are estimated using a long-term gold price of US$1,750/oz and a silver price of US$22/oz. Mineral Resources at Inesperada and Heap Leach Pads are estimated using a long-term gold price of US$1,750/oz.

  7. Gold equivalency (AuEq) was calculated as follows:

  8. Metallurgical recoveries are 93% for gold and 79% for silver for Amancaya, 95% for gold and 80% for silver for Guanaco, 80% for gold for Inesperada, and 54%, 70%, and 46% for gold for Heaps I, II, and II, respectively.

  9. A minimum mining width of 1.5 m is used for resource underground shapes for the Amancaya and Guanaco mines.

  10. Bulk densities are 2.5 t/m3 for Amancaya and Guanaco, 2.44 t/m3 for Inesperada, and 1.77 t/m3 for Heap I, 1.50 t/m3 for Heap II, and 1.70 t/m3 for Heap III, respectively.

  11. Numbers may not add due to rounding.

Guanaco-Amancaya Operation Mineral Reserves - December 31, 2021Austral Gold Limited- Guanaco-Amancaya Operation

Underground (Amancaya)
Proven 47 5.74 11.51 9 17
Probable 251 5.01 12.95 40 105
Subtotal Underground 298 5.13 12.72 49 122
Open Pit (Inesperada)
Proven - - - - -
Probable 1,607 1.05 14.39 54 744
Subtotal Open Pit 1,607 1.05 14.39 54 744
Guanaco Heap Leach Pads
Proven 10,240 0.68 3.17 223 1,043
Probable - - - - -
Subtotal Heap Leach Pads 10,240 0.68 3.17 223 1,043
Total
Proven Total 10,287 0.70 3.21 232 1,060
Probable Total 1,859 1.58 14.2 95 848
Total Proven + Probable 12,146 0.84 4.89 326 1,909
/zigman2/quotes/205808903/delayed
CA : Canada: TSX Venture
$ 0.05
0.00 0.00%
Volume: 100,000
Aug. 4, 2022 9:45a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$24.66 million
Rev. per Employee
N/A
loading...
1 2
This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.