Austral Gold Announces Updated Guanaco Technical Report
Austral’s Guanaco Technical Report extends mine life to 14 years with an all-in sustaining cost of $2,114 per ounce gold equivalent.
Austral Gold Limited (AGLD) has released an updated NI 43-101 Technical Report for its Guanaco Mine in Chile, establishing a 14-year life-of-mine plan spanning from January 2026 to February 2040. The updated report supersedes the 2022 Technical Report, extending the mine life from 12 to 14 years and increasing the after-tax net present value (NPV) at a 10% discount rate from US$77 million to US$192.1 million.
The new Proven and Probable Mineral Reserves total 18.1 million tonnes, grading 0.84 g/t gold and 5.43 g/t silver, containing approximately 352,000 ounces of gold and 1.493 million ounces of silver. Measured and Indicated Mineral Resources total 17.0 million tonnes, grading 0.94 g/t gold and 6.11 g/t silver.
The economic model utilizes life-of-mine average price assumptions of US$3,135 per ounce for gold and US$42 per ounce for silver. The All-in Sustaining Cost (AISC) is calculated at US$2,114 per ounce AuEq, with an operating cost (C1) of US$1,978 per ounce AuEq. Life-of-mine capital expenditure is estimated at US$13.9 million, which is heavily weighted toward closure and reclamation activities.
Permitting risk remains a key factor, as District Mining Authority (DIA) and sectoral permits for the Inesperada and Dumbo areas are outstanding. Approval for these areas is targeted for the fourth quarter of 2026 or the first quarter of 2027. These areas account for approximately 32% of reserve tonnes, 53% of reserve gold, and 55% of reserve silver.
A technical report for Austral Gold Limited (AGLD) validates a 14-year mine life and nearly doubles the net present value (NPV) from the 2022 baseline, establishing a foundation for the Guanaco asset. However, the all-in sustaining cost (AISC) of US$2,114 per ounce of gold equivalent (AuEq) remains elevated for a junior producer, particularly when modeled against a conservative gold price of US$3,135 per ounce.
Permitting dependencies for the Inesperada and Dumbo areas present a material overhang; losing these areas would eliminate over half of the gold reserves. The stock has declined approximately 48% from its January 2026 high of $0.23 to $0.12, indicating the market has already priced in prior operational setbacks and is waiting for permitting clarity.
Austral Gold Limited is a producing precious metals company operating across two clusters in South America. Its Guanaco Mine in Chile is an open-pit and heap leach operation focused on gold and silver. The company also operates the Casposo-Manantiales Complex in Argentina, which was recently restarted in October 2025 following a US$7M plant refurbishment. Additionally, Austral Gold holds a 100%-owned silver-gold exploration project, the Juncal Project, located approximately 70 km south of Guanaco, and maintains an equity investment in Unico Silver.