Austral Gold discovers two new gold veins at Amancaya, Chile

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Austral Gold Ltd. [AGLD-TSXV; AGLDF-OTC; NAGD-ASX] provided an update of its Amancaya drilling campaign following new assay results received from 11 drill holes. Initial drill results from the campaign were announced January 27, 2021.

Highlights

The Oeste Vein has been intersected by two core diamond drill holes: DAM-024 returned 2.41 metres of 10.19 g/t gold and 55.2 g/t silver. DAM-026 returned 1.17 metres of 24.98 g/t gold and 77.3 g/t silver.

The follow-up drilling of the previously reported DAM-008 confirmed the Este Vein continuity at least for 50 metres NW and SE, parallel to the Amancaya Sur Vein. Currently, four core diamond drill holes have intersected the Este Vein with the two new intercepts being DAM-019that returned 4.27 metres of 7.81 g/t gold and 33.0 g/t silver and DAM-016 that returned 1.8 metres of 3.1 g/t gold and 1.5 g/t silver.

Oeste Vein discovery

Drill holes DAM-024 and DAM-026 were drilled to test the southern part of the Sur Vein at depth. The Oeste Vein was recognized in the hanging wall of both drill holes at shallow depths. The results of DAM-024 and DAM-026 recognized the Oeste Vein being subparallel to the Sur Vein. The Oeste Vein strikes in NW direction and has been intersected by the two drill holes approximately 200 metres apart.

Este Vein discovery

Drill holes DAM-016 to DAM-021 were designed to confirm mineralization intercepted with DAM-008 drill holes in section 100SW. Drillholes DAM-016 and DAM-019 confirmed the continuity of the Este Vein. To date, four drill holes have intersected the Este Vein that is interpreted to strike in NW direction over approximately 50 metres. The new Este Vein is a subparallel structure located almost 200 metres northeast of the Sur Vein.

The exploration program for Q2 2021 will focus on establishing continuity and extending the Oeste and Este veins along strike and at depth.

CEO, Stabro Kasaneva said: “I am delighted with the exploration progress at Amancaya. We started the program six months ago and we have extended the Amancaya mineralization to depth and discovered two new veins. It was our goal to extend the life of mine at the Guanaco-Amancaya complex at the start of the exploration program in 2020, and we are now starting to identify the potential to achieve this milestone. Several other factors are important, including the high-grade Oeste Vein that was discovered near surface could result in lower cost mining methods; the newly identified NW striking direction of veins could unlock further potential; and the proximity of the new veins to the existing underground mining infrastructure.”

Amancaya is located approximately 60km southwest of the Guanaco mine. Underground operations at Amancaya started in 2018 and the ore at Amancaya is trucked to the agitation leaching plant at Guanaco for processing. Austral owns a 100% interest in the Guanaco/Amancaya mine.

 


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