Austral Gold Announces Updated Mineral Reserve and Resource Estimate for Casposo Mine

Executive Summary

• Austral Gold released an updated NI 43‑101/JORC‑compliant mineral reserve and resource estimate for its 100% owned Casposo Mine in Argentina.
• Proven & probable reserves total 2.149 Mt at 1.31 g/t Au and 58.52 g/t Ag, containing 80 koz Au and 3.276 Moz Ag; indicated resources add another 2.258 Mt at 1.48 g/t Au and 59.91 g/t Ag.
• The update yields an after‑tax NPV (11.8% discount) of US$72.7 M, undiscounted pre‑tax cash flow of US$137.9 M, a 74‑month mine life, and an average annual production of ~11,495 oz Au and 468,434 oz Ag.

Key Details

• Reserves (Proven & Probable):
• 2.149 Mt @ 1.31 g/t Au, 58.52 g/t Ag → 80 koz Au, 3.276 Moz Ag recovered.
• Resources:
• Measured & Indicated: 2.258 Mt @ 1.48 g/t Au, 59.91 g/t Ag (107 koz Au, 4,349 koz Ag).
• Inferred: 0.173 Mt @ 7.52 g/t Au, 68.54 g/t Ag (42 koz Au, 381 koz Ag).
• Economic Assumptions:
• Gold price US$2,855/oz; Silver US$35/oz (consensus forecasts).
• After‑tax NPV (11.8% discount) = US$72.7 M.
• Undiscounted pre‑tax cash flow = US$137.9 M (post‑tax US$92.7 M).
• All‑in Sustaining Cost (AISC): US$1,695/oz Au.
• Mine Life & Production:
• Mine life: 74 months based on reserves.
• Average annual output: 11,495 oz Au and 468,434 oz Ag recovered.
• Capital & Operating Costs:
• Life‑of‑mine sustaining capital = US$10.8 M (stockpile processing, reclamation, closure).
• No open‑pit capex – contract mining to be used.
• Average operating cost: US$85/t milled or US$1,517 per gold‑equivalent oz.
• Metallurgical Recoveries:
• Gold 88 % (overall), Silver 81 % (overall).
• Assumptions & Cut‑offs:
• Variable cut‑off grades applied by sector (e.g., Julieta 1.303 g/t AuEq).
• Bulk densities: 2.5 t/m³ (in‑situ), 1.8 t/m³ (stockpile), 1.4 t/m³ (DCS).
• Dilution 10 %; mining recovery 95 %.
• Technical Report:
• Prepared under NI 43‑101 by qualified persons Marcos Valencia, Guillermo Valdés, and Francisco Pavez.
• To be filed on ASX and SEDAR+ within 45 days of release.

Notable Quotes

“This mineral reserve estimate for the Casposo Operation marks a significant step forward in our strategy to advance the project towards production… The favorable pricing environment enhances the economics of the project and positions us to deliver meaningful value to our shareholders.” – Stabro Kasaneva, Executive Officer, Austral Gold.