Established gold producer Austral Gold Limited (Austral or the Company) (ASX: AGD; TSX-V: AGLD; OTCQB: AGLDF) has completed the first stage of drilling at the Jaguelito Project in Argentina’s prolific El Indio Gold Belt.

At the Sagitario target at Jaguelito Sur (see Figure 2 below), drill hole DJS-001A intersected 14.0 m @ 0.7 gpt Au & 17 gpt Ag, starting at 133m, including 4.4m @ 1.44 gpt Au & 30 gpt Ag, from 143m. The hole reached a significant depth of over 400m, marking the largest phreatomagmatic column encountered in the project to date. The results indicate that one of the five surface-identified centers at Jaguelito Sur is similar to the dimensions and intensity of high-sulphidation deposits in this metallogenic belt.

Gold and silver mineralisation, in line with our exploratory model, is high-sulfidation and hosted predominantly in phreatomagmatic rocks. Gold is associated with grey silica flooding in vuggy silica and quartz-alunite-jarosite hydrothermal alteration.

Austral drilled a total of 4,331m across two sectors at the Jaguelito project: Jaguelito Norte1 and Jaguelito Sur.

In accordance with the Company’s agreement with Mexplort Perforaciones Mineras SA (“Mexplort”) 1, Austral intends to exercise its option to acquire 50% of the project by drilling additional 700m to satisfy the 5,000m drilling commitment under Stage 1 of the agreement. The 700m are expected to be drilled in a new program to be jointly developed with Mexplort later this year. As of 31 August 2023, drilling campaign costs totalled approximately US$4.7M.

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