Austral Gold Restarts Production at Casposo, Argentina

Executive Summary

• Austral Gold announced the resumption of commercial production at its 100%-owned Casposo Mine in Argentina following completion of a plant refurbishment funded by a US$7 million bank loan.
• The commissioning phase produced approximately 230 gold‑equivalent ounces (GEOs) of doré, and full‑scale production for Q4 2025 is forecast at 4,000–6,000 GEOs.
• The company is negotiating a local contractor agreement to transition the mine to open‑pit mining under Austral’s supervision, which is expected to enhance cash flow and strengthen its financial position.

Key Details

• Plant refurbishment: Completed; commissioning began end of Dec 2024.
• Commissioning output: ~230 GEOs of doré smelted from residual plant material and historical samples returned by Argentine customs.
• Production guidance Q4 2025 (Casposo): 4,000 – 6,000 GEOs total, including the 230 GEOs from commissioning; average monthly production ≈1,800 GEOs.
• Funding: US$7 million bank loan received to support refurbishment and restart.
• Mining transition plan: Negotiations underway with a local contractor to provide open‑pit mining services under Austral’s supervision; agreement expected soon.
• Metallurgical assumptions: Recovery rates – 90.3% for gold, 85.8% for silver (agitation leaching).
• Grade forecasts: Average head grades – 1.88 g/t Au and 80.73 g/t Ag.
• Metal split: Expected production composition – 70% gold, 30% silver.
• CEO comment (Stabro Kasaneva): Emphasized the restart as a “significant milestone,” highlighting expected cash‑flow improvements and strengthened financial position.

Notable Quotes

“We are pleased to announce the restart of operations at Casposo, marking a significant milestone for the company as we expand our production base along existing mining operations at Guanaco. This development positions us to generate improved cash flow and strengthen our financial position.” – Stabro Kasaneva, CEO, Austral Gold Limited.