Austral Gold drills 18.65 g/t gold over 4.40 metres at Casposo-Manantiales, Argentina

Austral Gold drills 18.65 g/t gold over 4.40 metres at Casposo-Manantiales, Argentina

Austral Gold Ltd. [AGLD-TSXV; AGLDF-OTC; AGD-ASX] reported exploration results at its 100%-owned Casposo-Manantiales project in Argentina.

Highlights at the Manantiales vein, the follow-up drilling program, intercepted high gold grades for the first time, opening the upside at depth and indicating the continuity of mineralisation in the south ore-shoot. MDH-02-63 returned 4.40 metres at 18.65 g/t gold and 58 g/t silver, including 3.12 metres at 26.04 g/t gold and 37 g/t silver, sub-including 0.75 metres at 76.26 g/t gold and 75 g/t silver.

MDH-02-64 returned 2.35 metres at 15.61 g/t gold and 81 g/t silver, including 1.58 metres at 22.30 g/t gold and 116 g/t silver. MDH-02-60 returned 2.50 metres at 9.73 g/t gold and 49 g/t silver, including 0.90 metres at 25.48 g/t gold and 125 g/t silver, sub-including: 0.45 metres at 48.16 g/t gold and 192 g/t silver.

At the Cerro Amarillo project, the delineation process continued with rock-chip sampling providing gold grades up to 149.74 g/t gold and 622 g/t silver at the La Puerta, Awada and Fabiola targets. The channels with the best results by area are La Puerta that returned 6.20 metres at 11.22 g/t gold and 76 g/t silver; Awada with 2.60 metres at 19.62 g/t gold and 54 g/t silver; Fabiola with 1.50 metres at 19.70 g/t gold and 12 g/t silver.

The first phase of drill testing in La Puerta, Awada and Fabiola were completed. At La Puerta, the three holes drilled had no significant results, while the results from the three holes in Fabiola and one in Awada have not yet been received.

To date, a total of 2,321.3 metres were drilled in 12 diamond drill holes and assays from 8 drill holes have been received to date. The company plans to resume the drilling program in September 2022 when weather conditions improve, which we expect to include infill drilling program at the Manantiales vein, follow-up drilling program at the best targets at the Cerro Amarillo project and revisit of remaining mineral resources in the Casposo mine.

CEO, Stabro Kasaneva, commented: “We are encouraged with the latest assay results from our exploration program at the Casposo-Manantiales cluster. These results indicate that we are on the path towards achieving our strategic objective of re-starting mining operations at Casposo. We will keep our shareholders informed on further drill results and our next drilling

Results from the drill holes MDH-22-060 and MDH-22-064 confirmed the continuity of the blind ore-shoot previously intercepted by drill holes MDH-22-057/058. The next drilling campaign is being planned to define the upside of the northern and southern ore-shoots and to explore the potential to the South and North at the protected blocks related to the Vallecito reverse faulting.

At Cerro Amarillo, the delineation process continued with rock chip sampling showing high gold values in the La Puerta, Awada and Fabiola sectors. Results of reconnaissance sampling in veinlets and veins from 2 to 60 cm obtained the following results: At La Puerta, Sample 9935 returned 149.74 g/t gold and 622 g/t silver; Sample 10098 returned 106.39 g/t gold and 1,110 g/t silver; Sample 9959 returned 89.11 g/t gold and 441 g/t silver; and Sample 9897 returned 68.11 g/t gold and 200 g/t silver.

At Awada, Sample 0122 returned 38.22 g/t gold and 65 g/t silver; Sample 10124 returned 27.36 g/t gold and 65 g/t silver; Sample 10125 returned 6.61 g/t gold and 12 g/t silver; and Sample 9411 returned 6.52 g/t gold and 12 g/t silver.

At Fabiola, Sample 9207 returned 5.12 g/t gold and 11 g/t silver; and Sample 9589 returned 1.03 g/t gold and 201g/t silver.

Subsequent follow-up channel sampling confirmed high-grade mineralisation associated with intense silicification and the presence of veining. Highlights of the results from the channels are as follows: At La Puerta, Channel LP04 returned 6.20 metres at 11.22 g/t gold and 76 g/t silver, including 5.10 metres at 13.47 g/t gold and 91 g/t silver, sub-including: 2.90 metres at 20.06 g/t gold and 127 g/t silver. Channel LP17 returned 0.80 etres at 45.07 g/t gold and 206 g/t silver, including 0.40 metres at 83.45 g/t gold and 353 g/t silver.

At Awada, Channel AW07 returned 2.6 metres at 19.62 g/t gold and 54 g/t silver, including 2.30 metres at 21.95 g/t gold and 60 g/t silver, sub-including: 1.05 metres at 40.85 g/t gold and 118 g/t silver. Channel AW09 returned 1.60 metres at 20.36 g/t gold and 62 g/t silver, including 0.50 metres at 27.51 g/t gold and 61 g/t silver.

At Fabio, Channel FA03 returned 1.50 metres at 19.70 g/t gold and 12 g/t silver, including 0.65 metres at 34.61 g/t gold and 21 g/t silver.

At La Puerta, the first phase of drilling was completed including 3 holes without significant results. The drill testing program was completed in Fabiola and the results are pending. The three holes intercepted a structure with widths that do not exceed one meter.

At Awada, one follow-up hole was drilled to the high grade AW07 channel, intercepting the sheeted quartz veinlets with apparent presence of ginguro, continuing 50 meters below surface. We expect to receive the results from this drill hole shortly.

Upcoming work program priorities are focused on drilling the second phase in Fabiola and Awada, with the goal of finding the vertical continuity of high-grade mineralisation. In addition, the second drilling phase at La Puerta is being designed.