Austral Gold Limited, an established gold producer, has announced the completion of construction at its Heap Reprocessing Project in Antofagasta, Chile. The project is located at the Guanaco-Amancaya Mine Complex and is expected to begin production in the last week of July 2023.
According to the company, the Heap Reprocessing Project is forecasted to contribute 7,000-9,000 gold equivalent ounces (GEOs) during the balance of 2023. The project’s proven mineral reserves are estimated at 223,000 gold ounces and 1,043,000 silver ounces. The Company expects the Heap Reprocessing Project to have a cash cost of production below $700 per GEO.
Overall, Austral Gold expects to produce between 34,000-38,000 GEOs in fiscal year 2023.
The Chief Executive Officer of Austral Gold, Stabro Kasaneva expressed his pride in achieving this key milestone, adding that the project will provide low-cost production to their operations. He also thanked the employees, contractors, suppliers, bankers, and supportive shareholders for their contributions to the project’s completion.
The Heap Reprocessing Project involves the reprocessing of material from the former Heaps I, II, and III. This material will be loaded onto trucks and transported to the new crusher facility where it will be crushed before being redeposited at a different heap leach pad called Heap IV. The material will then undergo re-leaching to recover a portion of the remaining gold and silver.
The Guanaco-Amancaya Mine Complex is located in the Palaeocene Belt in northern Chile, a region known for its large gold and copper mining operations. The complex consists of the Amancaya Mine, Guanaco Mine, Inesperada deposit, and the Guanaco Heap Reprocessing Project.
Austral Gold estimates a total capital expenditure (Capex) of $5 million for the project.
Dr. Robert Trzebski, a director of the company, reviewed the technical information related to the heap reprocessing project and qualifies as a Competent Person as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
It is important to note that forward-looking statements have been made in this announcement, and actual events, performance, or results may differ from those expressed or implied. There are various risks and uncertainties that could affect the realization of these forward-looking statements, including commodity price fluctuations, political or economic instability, and regulatory changes. The company cannot guarantee that its expectations will be met, and readers should not place undue reliance on these statements.
In summary, Austral Gold’s Heap Reprocessing Project is nearing completion, with production expected to commence later this month. The project is anticipated to contribute a significant number of GEOs to the company’s annual production and provide a low-cost production option.
