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Austral Gold Announces Updated Mineral Reserve and Resource Estimate for Casposo Mine
Newsfileยท2025-10-14 02:56

Core Viewpoint - Austral Gold Limited announced an updated Mineral Reserve and Resource Estimate for its Casposo Mine in Argentina, indicating a positive outlook for advancing the project towards renewed production [2][4][5]. Group 1: Mineral Reserve and Resource Estimates - Proven and Probable Mineral Reserves for the Casposo Mine are estimated at 2.149 million tonnes (Mt) with a grade of 1.31 g/t Au and 58.52 g/t Ag, containing approximately 80,000 ounces (Koz) of recoverable gold and 3.276 million ounces of silver [4][6]. - Measured and Indicated Mineral Resources are estimated at 2.258 Mt with a grade of 1.48 g/t Au and 59.91 g/t Ag [4][6]. - Inferred Mineral Resources are approximately 0.173 Mt with a grade of 7.52 g/t Au and 68.54 g/t Ag [4][6]. Group 2: Financial Metrics - The After-Tax Net Present Value (NPV) at an 11.8% discount rate is US$72.7 million, based on a gold price of US$2,855 per ounce [4][6]. - Undiscounted pre-tax free cash flows are projected at US$137.9 million, with post-tax cash flows of US$92.7 million [4][6]. - The All-in Sustaining Cost (AISC) is estimated at US$1,695 per ounce of gold [4][6]. Group 3: Production and Operational Details - The mine life is projected to be 74 months based on Mineral Reserves, with an estimated annual average production of 11,495 ounces of gold and 468,434 ounces of silver [4][6]. - Life of mine capital expenditures total US$10.8 million, primarily for sustaining capital related to reprocessing mineralized material and closure costs [4][6]. - Average operating costs over the life of the mine are estimated at US$85 per tonne milled or US$1,517 per gold equivalent ounce [4][6]. Group 4: Market Context - The announcement comes at a time when gold and silver prices are robust, which enhances the project's economic viability [5][6]. - The updated estimates are based on infill drilling and exploration activities conducted since the last technical report filed on June 30, 2016 [6].