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Austral Gold Limited (AGD)
is a publicly listed company on the Australian Securities Exchange (ASX).
About Austral Gold Limited
Austral Gold Limited is listed on the Australian Securities Exchange (ASX: AGD) and is a growing precious metals mining and exploration company building a portfolio of assets in South America.
The Company's flagship Guanaco Project in Chile is a low-cost producing mine with further exploration upside.
With an experienced and highly regarded major shareholder, Austral Gold is strengthening its asset base by investing in new precious metals projects in Chile and Argentina that have near-term development potential.
Austral Gold's strategy is to maximise shareholder value by the development of mineral deposits in which Austral Gold has an interest, providing that such development demonstrates superior rates of return.
Austral Gold plans to continue to explore and invest in its Guanaco property in northern Chile to expand its mineral resources, increase the mine's annual production and improve its financial viability.
Austral Gold continues to explore its prospective Guanaco property to increase the size of the mineral resource, and increase the property's production life as a result. The Company also expects to acquire further properties in South America, and will pursue joint ventures with other successful mining exploration companies.
On 26 March 2013 Austral Gold announced that terms had been agreed to acquire shares through a private placement in Argentex (TSX-V:ATX).
The C$5 million investment in the TSX-V listed company provides Austral Gold with a 19.9% interest in Argentex, a seat on its Board of Directors and a member of its Technical Committee.
Argentex has assembled an impressive land portfolio in Argentina's Santa Cruz and Rio Negro provinces. In total, the company holds 100% mineral rights to more than 35 properties with over 307,981 acres (124,636 hectares) of land. Argentex's properties are located within two prominent geographical features, the Deseado and Somuncura Massifs, both of which have proven to host significant epithermal precious metal deposits. The large epithermal vein swarm at Pinguino contains Argentex's discovery of indium-enriched vein-hosted base metal mineralization, which represented a new deposit type for the region, as well as low sulphidation precious metal vein mineralization. The combination of these two types of mineralization within the same property is unique for the province of Santa Cruz and a significant milestone for the company.
Location and Geology
The Guanaco gold deposit is located 220 kilometers south east of Antofagasta (II Region), Northern Chile. The UTM coordinates are 7,224,000N and 446,000E. The mine is located 45 km east of the Pan American Highway and 70 km south of El Peñón (Yamana´s successful operation). The trip from Antofagasta takes about three hours. The climate is typical Atacama Desert, with little or no rainfall, and a resulting absence of practically any form of vegetation. The altitude ranges between 2,400 and 2,900 meters, averaging 2,600 meters above sea level.
The Chile-Alemania Formation, represented by dacitic and andesitic tuffs and andesitic lavas of Paleocene age, has been intruded in the area by synchronous dacitic and rhyolitic domes. The deposit is located within a 5 kilometer long (E-W) and more than 1 kilometer wide hydrothermally altered zone hosted by the abovementioned formation.
Gold mineralization at Guanaco is controlled by pervasively silicified, ENE trending sub-vertical zones and related hydrothermal breccias. Silicification grades outward into advanced argillic alteration, and further into zones with propylitic alteration.
Dozens of mineralised veins have been exploited in the district, the most important veins being the Defensa, Perseverancia, Abundancia, and San Lorenzo.
In the Cachinalito vein system, most of the gold mineralization is concentrated between the 2,500 and 2,650 m levels. High grade ore shoots (up to 180 grams per tonne gold), 0.5 to 3.0 meters wide, have been mined out, but the lower grade halos, below 2 grams per tonne, can reach up to 20 meters in width.
The oxidation zone extends down some 70 to 80 meters and is relatively free of copper. Gold grades in this zone are generally high, sometimes exceeding 50 grams per tonne.
Native gold, forming dendrites, coarse and fine grains, is the most important ore mineral, although it is rarely seen. Disseminated pyrite is actually the most common mineral in the non-weathered ores, while enargite, luzonite and minor chalcopyrite are present in the deeper horizons. Chalcocite and covellite, together with copper carbonates, silicates and a number of rare copper arsenates (chenevixite, ceruleite, etc.), have been found in secondary enrichment zones. Important gangue minerals are quartz, tabular barite, as well as pink alunite and kaolinite (in substitution of feldspars in zones affected by advanced argillic alteration), hematite, chlorite, epidote, etc.
The alteration pattern and the mineralogical makeup of the Guanaco ores have lead to its classification as a high sulfidation epithermal deposit.
Estancia 8 de Julio Project
In southern Patagonia, Austral Gold has nine tenement applications totalling almost 85,000 hectares in the Macizo el Deseado area in the Province of Santa Cruz.
2013 - 2014
All of the 8 de Julio activities have been suspended in 2014 as the company focuses on exploration resources at the Guanaco Mine and brownfield exploration targets.
2012 - 2013
During the year important results were received from the trench program developed in the Campo Barroso Grande of the Estancia 8 de Julio. A comprehensive strategy is being designed in order to more aggressively advance with the exploration of this prospect.
A geophysics consulting company will perform a resistivity study and the geochemical sampling program in the area will be expanded. The following figure reflects the level of progress with the latest results and the next activities considered for the projects.
- Expansion of the 100x100m geochemical mesh for silica and quartz vein float, to the entire Barroso Grande field.
- Development of a new geophysical program corresponding to a resistivity gradient in the Barroso Grande field where important gold values were obtained.
- Start with the systematic sampling of the other sectors/targets identified in the geological mapping.
- Planned drilling of holes that will test the vertical extension of the mineralized column.
Austral Gold Limited
Suite 206, Level 2
80 William Street
East Sydney, NSW
+61 2 9380 7233
Fax: +61 2 8354 0992
The General Overview, Services, Products and Projects information for this profile was last edited on 09 Jun 2015.