Amancaya District

Location and Geology

The Amancaya District is located 280 Km SSE of Antofagasta City and 70 Km to the East of Taltal City, within the Central Depression of the II Region in Northern Chile.

Most of the district is covered by volcanic rocks belonging to Chile-Alemania Formation, which represents the Palaeocene magmatic arc developed in an extensional tectonic regime.

Amancaya District - Location and Geology - Austral Gold

Exploration Projects

Exploration Projects - Amancaya District - Austral Gold

Amancaya Mine Project

The Amancaya Mine Project (100% Austral Gold) is a low sulphidation (LS) epithermal gold-silver deposit consisting of eight mining exploration concessions covering +1,700 hectares.

The March 31st, 2022 Technical Report on the Guanaco-Amancaya Operation prepared by SLR Consultants (Canada) Ltd. included drilling results to December 31st, 2022, that confirmed the SE and NW extensions and identified a new structure named Oeste Vein, which runs parallel to the south portion of the Central vein. The Oeste Vein strikes in NW direction and was intersected by two drill holes approximately 200 meters apart.

Exploration activities focus on extending the continuity of mineralization along strike and depth.

Morros Blancos Project

Austral Gold has an earn-in agreement with Pampa Metals Corporation (CSE: PM) to acquire up to 80% of the Morros Blancos Project. This project has several HS oxide targets and covers +7,000 hectares of mining property. It is located in the Palaeocene Belt in northern Chile, adjacent to the Amancaya Mine.

Exploration activities identified three prospective targets at first-order NE and NW intersection, striking thick-skinned faults and a 15x3 km NE favourable alteration corridor.

The first drilling campaign was completed in three main phreatomagmatic complexes at the Rosario del Alto target. Most drill holes intercepted large columns of phreatomagmatic rocks, confirming a high degree of preservation and continuity of the systems at depth. All recognized geological features, such as breccia rock type, hydrothermal alteration, and oxidation level, allow for vectoring toward the mineralized center of the system.

At the Morro Colorado target, delineation identified a 2x1 km2 area with phreatomagmatic breccias affected by high-level high sulfidation alteration. Subparallel NNE to NE high-angle faults configure a main preserved structural block in which the phreatomagmatic rocks are hosted in sequences of the Chile-Alemania Formation. These host rocks, with a favorable chemical signature, appear silicified in the vicinity of the faults, consistent with significant demagnetized zones in our 3D model, increasing the potential for target-type alteration at depth.

In the southernmost Morros Blancos target, as early-stage reconnaissance confirmed hydrothermal alteration in more andesitic rocks of the host sequence, delineation activities are expected to be focused on validating phreatomagmatic centers.

Exploration Projects - Morros Blancos Projects  - Austral Gold
Exploration Projects - Sierra Juncal Project - Austral Gold

Sierra Juncal Project

The North-South-oriented Sierra Juncal structural block contains several alteration/mineralization systems of porphyry and epithermal type. These are primarily associated with Middle Eocene magmatic activity, coinciding with the Guanaco gold endowment. The NS fault that controls the Sierra Juncal also holds the Sierra Jardin, with which the entire segment, about 40 km long, is prospective for mineralized systems of this age.

The Juncal Project (100% Austral Gold) is located 35 km in a straight line (52 km by road) to the southeast of Amancaya. The property comprises 2,100 hectares with the development of LS epithermal veins dated at 42.42 +- 0.28 Ma (Ar/Ar in adularia), corresponding to the Guanaco alteration/mineralization event.

The area's geology consists of andesitic volcanic sequences of the Middle Eocene Pampa Lorca Volcanic Complex, overlying the Lower Eocene Pampa Rubia Volcanic Sequence, both units intruded by diorites to monzodiorites of the Middle Eocene Sierra Juncal Plutonic Complex (45 Ma).

Several veins that cut the volcanic and intrusive units mentioned above have been identified, with observable lengths of up to 2 km and thicknesses of up to 1.5 m. Surface geochemical anomalies and the detailed study of mineralogy indicate a high level of system preservation. Although some of the veins have been partially mined historically, no signs of exploratory drilling have been observed.