Austral Gold 11 .77 g/t gold over 6.1 metres at Casposo, Argentina

Austral Gold Ltd. [AGLD-TSXV; AGD-ASX] reported results from its recent drilling campaign at the Casposo-Manantiales project located in the province of San Juan, Argentina. The Company drilled 4,265 metres of diamond drilling (DD) in 15 DD holes.

Highlights: Completed a 4,000-metre diamond drill program at the Casposo-Manantiales Project to test follow up targets at the Manantiales vein where high gold grades were previously intersected.

The program indicated shallow mineralisation and possible continuity at depth. The best intercepts were drill hole MDH-22-72 that returned 6.10 metres of 11.77 g/t gold and 10.0 g/t silver. MDH-22-68 returned 2.40 metres of 7.39 g/t gold and 18.0 g/t silver

Next steps are to review and analyze historical exploration data and mineral structures prior to the design of the next drilling campaign scheduled for later this year. The company’s objective is to establish sufficient mineral reserves to restart mining operations at the Casposo-Manantiales Project.

The focus of the drilling program was to follow up on the results achieved in previous drilling campaigns at the Manantiales vein disclosed in the 27Jul22 and 26Oct21 announcements. The follow-up drilling program at the Manantiales vein intercepted high gold grades at the top and bottom of the central ore-shoot, indicating possible continuity at depth. The best two holes intercepted high-grade gold confirming the continuity of mineralisation in the central ore-shoot and opening the upside at depth. During 2022, 6,585 metres were drilled in 27 DD holes and total exploration costs were US$2.8 million.

At Cerro Amarillo, which is close to the Manantiales vein, two holes were drilled; one in Awada (152 metres), and the other in La Puerta (326 metres) to test for new structural and ore controls. Favourable alteration was intercepted with discrete gold anomalies.

The AWD-22-003 hole located in the western sector of Awada recognised strong silicification in approximately 50 metres, although with low gold anomalies. At La Puerta, the objective of drill hole LPO-22-004 was to intercept the veins in more favourable host rock, however the structures were intercepted in Oveja Negra Fm without significant gold values.

Stabro Kasaneva, CEO, said, “We are pleased to complete the 2022 drilling program of approximately 7,000 metres over two phases at the Casposo-Manantiales project. The outcome of the program was positive with some encouraging assays reported, and we look forward to the design of our next drilling campaign considering our objective to restart mining operations at the Casposo-Manantiales project.”

Austral Gold is a gold and silver explorer and mining producer whose strategy is to expand the life of its cash generating assets in Chile, restart its Casposo-Manantiales mine complex in Argentina and build a portfolio of quality assets in Chile, the USA and Argentina organically through exploration and via acquisitions and strategic partnerships. Austral owns a 100% interest in the Guanaco/Amancaya mines in Chile and the Casposo-Manantiales mine complex (currently on care and maintenance) in Argentina, a non-controlling interest in the Rawhide Mine in Nevada, USA and a non-controlling interest in Ensign Gold which holds the Mercur project in Utah, USA.

In addition, Austral owns and has options on an attractive portfolio of exploration projects in the Paleocene Belt in Chile (including the Jaguelito project in San Juan, Argentina, projects acquired in the 2021 acquisition of Revelo Resources Corp.), a non-controlling interest in Pampa Metals and a 51% interest in the Sierra Blanca project in Santa Cruz, Argentina.