Austral Gold Limited (the “Company”) (ASX: AGD; TSX-V: AGLD) is pleased to report results from its activities during its Q4 2019 Quarterly Activity Report. The Report is available under the Company’s profile at www.asx.com.au and www.sedar.com and on the Company’s website at www.australgold.com.
Stabro Kasaneva, CEO of Austral Gold said "We are pleased with the results of our fourth quarter. We generated record cash flow through the realisation of higher gold and silver prices, solid production and lower operating cash costs. These factors contributed to the strengthening of our financial position. This was the first time that we made such an extensive commitment to exploration. Some encouraging results were obtained in Chile at Sierra Inesperada and Amancaya and we expect to continue or increase this level of exploration in 2020 including further exploration activities at Casposo and Pinguino.
We also met certain strategic objectives by entering the North American market with an investment in the Rawhide gold and silver mine and completion of the full acquisition of the Casposo mine in Argentina.”
KEY QUARTERLY HIGHLIGHTS
• Continued sound operational performance at the Guanaco and Amancaya Mine complex. Quarterly production increased by 2.3% from the December 2018 quarter and 0.4% from the September 2019 quarter to 17,953 gold equivalent ounces (16,578 gold ounces and 116,380 silver ounces). Production for year 2019 reached 67,004 gold equivalent ounces (60,665 gold ounces and 543,914 silver ounces vs. 2019 Production Guidance of 70,000-75,000 gold equivalent ounces).
• Record cash generation with quarterly Operating Cash Flow of US$13.9 million and US$9.2 million of cash & cash equivalents at 31 December 2019. Operating margins increased with quarterly Operating cash cost (C1) and All-in-sustaining cost (AISC) at US$551 and US$843 respectively per gold equivalent ounce. The average selling price for the December 2019 quarter was US$1,493/oz reflecting the upward trend of the price of gold and silver. Average C1 and AISC for 2019 was US$661 and US$899 respectively per gold equivalent ounce with selling prices averaging US$1,403/oz.
• Exploration success with the identification of a mineralised NW structural Corridor at the Guanaco´s property in the Sierra Inesperada area located 7km from the Guanaco Mine as announced on 30 January 2020.
• Completion of the quarterly exploration drilling program with 11,363 meters of drilling within the Company´s main projects in Argentina and Chile. Significant new intersections identified from drilling at Sierra Inesperada including:
? Guanaco_INES_38N 8.0m @ 4.26 g/t Au incl. 1m @ 19.17 g/t Au
? Guanaco_INES_27N 14m @ 2.90 g/t Au incl. 1.0m @ 13.77 g/t Au and 16m@ 2.29 g/t Au incl. 2.0m @ 6.64 g/t Au
? Guanaco_INES_42N-DDH 4.05m @ 4.33 g/t Au incl. 0.63m @ 13.80 g/t Au
• Closed pro-rata Rights issue offering which raised gross proceeds of approximately US$1.4 million from eligible shareholders.
• Purchase of a 22.48% (21.28% on a fully diluted basis) interest in Rawhide Acquisition Holding LLC (“Rawhide”), a privately held Delaware limited liability company that owns Rawhide Mining LLC which in turn owns the Rawhide Mine located ~50 miles outside of Fallon, Nevada, United States for US$3,957,406. In addition, the Company entered into three option agreements with existing Unit owners to acquire up to an additional 3.795 % for an aggregate of US$750,813.
• The remaining 30% interest in the Casposo mine in Argentina was acquired for $0.2 million.
• Combined net debt (borrowings and financial leases net of cash & cash equivalents) decreased from US$16.8 million in December 2018 to US$6.3 million in December 2019.
Quarterly Production figures
see & read more on
https://www.australgold.com/wp-content/uploads/2019-December-31-Quarterly-Activity-Report.pdf

AND
Austral Gold Announces Drilling Results at Sierra Inesperada, Chile
Highlights:
• A mineralised NW structural Corridor has been identified at Sierra Inesperada as a result of the 2019 December quarterly exploration program.
• Sierra Inesperada represents a new exploration area for the Company - located SW of the Guanaco Mine area.
• Attractive new intersections observed from the 4,806 meters reverse circulation (“RC”) and diamond drill hole (“DDH”) campaign included:
o 8.0m @ 4.26 g/t Au incl. 1m @ 19.17 g/t Au
o 14m @ 2.90 g/t Au incl. 1.0m @ 13.77 g/t Au
o 4.05m @ 3.99 g/t Au incl. 0.63m @ 13.80 g/t Au
Austral Gold Limited (“Austral” or the “Company”) (ASX: AGD; TSX-V: AGLD) is pleased to announce exploration drilling results from its recent drill program at the Sierra Inesperada property, which is located near the Company’s Guanaco Mine.
Sierra Inesperada is located approximately seven kilometers southwest of the Guanaco Mine. During the fourth quarter of 2019, the Company conducted a drill campaign comprising 48 holes and 4,806 meters, with 4,256 meters of RC and 550 meters of DDH drilling.
Austral Gold’s Chief Executive Officer Stabro Kasaneva said: “Our technical team is very encouraged by these drilling results. We will analyze these results further as we plan our next drilling program for Q1 2020, as well as metallurgical testing and a geophysics campaign using ground magnetometry at Sierra Inesperada.”
A mineralised structural corridor was identified, which is oriented N60 W / 85 SW, with a thickness that varies between 5 and 40 meters and an interpreted depth greater than 150 meters and strike of 200 meters. The structures have brecciated textures with fragments of gray quartz, vuggy silica and lithics. The wall rock is affected by an advanced argillic alteration with moderate to intense silicification and a strong presence of alunite.
The oxidation zone is recognized by the presence of iron oxides that mostly correspond to hematite-jarosite and traces of copper oxides. The sulphide zone is clearly represented by the weak to high presence of disseminated pyrite in irregular veinlets. Gray sulphides are observed as enargite and traces of chalcocite, which are arranged as a very thin patina in the pyrite.
The host rock of the mineralization corresponds to a pyroclastic sequence formed by layers of tuffs and lithic tuffs of andesitic-dacitic composition, defined as Inesperada Hydro-magmatic Sequence. It covers a unit of green porphyric andesites with medium-sized plagioclase phenocrystals.
The gold grades observed varied mostly in a range between 0.5 gr/t and 3 gr/t Au, with a maximum gold grade of 19.17 gr/t Au. See Table 1 for all mineralized intercepts.
The Company assumes that the geological characteristics and orientation of the structural patterns observed in the veins will provide an important exploration guide to recognize the mineral potential of the Sierra Inesperada. A location map of the Sierra Inesperada project is set out in Figure 1.
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https://www.australgold.com/wp-content/uploads/2020-01-30-AGD-News-release-Sierra-Inesperada-Drilling-results.pdf