AUSTRALGOLD | Casposo Operations
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Casposo Operations

Highlights

 

Ownership: 70% Austral Gold / 30% Troy Resources

Producing: Silver-Gold doré

Mining Rate: 750 tpd

Processing: 1500 tpd crushing circuit to agitation leach and Merril-Crowe processing plant.

Forecasted Annual Production (LOM): ~50,000 oz p.a.

Forecast Average All-in Sustaining Cost (LOM): $957/oz Au Eq

Mineralisation

 

The Casposo gold–silver mineralisation occurs in both the rhyolite and underlying andesite, where it is associated with banded quartz–chalcedony veins, typical of low sulphidation epithermal environments.

Mineralisation at Casposo occurs along a 10 km long W–NW to E-SE-trending regional structural corridor, with the main Kamila Vein system forming a sigmoidal set 500m-long near the centre.  The Mercado Vein system is the northwest continuation of Kamila, and is separated by an east–west fault from the Kamila Deposit.  The Casposo Norte deposit is located on a parallel structure approximately two kilometres north of Kamila.

Figure: Gold Equivalent Long Section of Casposo Block Model. Arrows indicate where mineralisation is open. (click to enlarge)

Underground mine

 

The Casposo Mine consists of a number of narrow steeply dipping orebodies known as Aztec, B-Vein, B-Vein1, Inca0, Inca1, Inca2A, Inca2B, Mercado, and Julieta.  The main production from the underground mine to date has been from Inca1, Aztec, and Inca2A.

The mining method used at the Casposo Mine is Longitudinal Longhole Retreat.  Mine production is made up of a combination of ore development through sill drifts (34%) and stope production (66%).

Processing Plant

 

  • The Casposo mine recovers gold and silver doré bullion.
  • The processing and recovery method is well known and widespread throughout the gold and silver mining industry namely Merrill Crowe.

Gold recovery from the plant is ~91% and 83% for silver.

Figure: Agitation leach and Merrill-Crowe Processing Plant (click to enlarge)

Map

20090512-219-01 TRY Gold Belt Loc Map

Location and Geology

 

The Casposo mine consists of an underground mining operation and processing plant. The mine and plant are located 10km NW of the township of Calingasta, in the Calingasta department, San Juan Province. The mine is 150km from San Juan, the capital of San Juan province.

The deposits and other prospects within the Casposo property are examples of low-sulphidation epithermal deposition of gold and silver.

 

The Cordillera Principal runs along the Chile-Argentine border for some 1,500 km.  It is a volcanically and seismically active zone formed by subduction of the Nazca plate beneath the South American continent.  The main basement is formed by Permian–Triassic intrusive and volcanic rocks, of calc-alkaline affinity and andesitic to rhyolite composition, regionally known as the Choiyoi Group.  These and younger sediments of Jurassic and Cretaceous age have been thickened by compression and thrusting principally since the Late Cretaceous in a thin-skinned fold thrust belt.

 

The Mine is located on the eastern border of the Cordillera Frontal.  Basal andesitic volcanic flows, tuffs and breccias are the main sub-surface unit in the Casposo Property and are overlain by rhyolite, rhyolite-dacite flows and dacitic ignimbrite flows.


Notes:
The RPA Qualified Persons (‘QP’) for the Casposo Reserve and Resource Estimate include: Jason J. Cox, P.Eng. (Mineral Reserves) and Chester M. Moore, P.Eng., (Mineral Resources). ). The Mineral Resources and Reserves are classified and reported in accordance with Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Ore Reserves dated May 10, 2014 (‘CIM’) definitions as incorporated in NI 43-101, as well as JORC2012, within the Technical Report on the Casposo Gold-Silver Mine, Department of Calingasta, San Juan Province, Argentina dated 7 September 2016.

 

Mineral resources have been updated to account for depletion from mining activities by Nicolas Pizarro, P.Eng, an Austral Gold employee and a QP as per NI-43-101 and a Competent Person (‘CP’) as per JORC2012. Ore reserves have been updated to account for depletion from mining activities by Dr Robert Trzebski, who is an Independent Director of Austral Gold, and a QP as per NI-43-101 and a CP as per JORC2012.

 

The information is extracted from the news release published on the ASX website (www.asx.com.au) on 27 September 2016. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the CP’s findings are presented have not been materially modified from the original market announcement.

 

Competent Persons Statements

The information in the report to which this statement is attached that relates to Mineral Resources is based upon information compiled by Nicolas Pizarro, a Competent Person who is a registered member of The Association of Professional Engineers and Geoscientists of BC. Nicolas Pizarro is a fulltime employee of the company and has sufficient experience that is relevant to the style of mineralisation and the type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves’. Nicolas Pizarro consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

 

The information in the report to which this statement is attached that relates to Ore Reserves is based upon information compiled by Dr Robert Trzebski, a Competent Person who is a fellow of the Australian Institute of Mining and Metallurgy (AUSIMM). Dr Robert Trzebski is a non-executive director of the Company and has sufficient experience that is relevant to the style of mineralisation and the type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves’. Dr Robert Trzebski consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

For shareholder inquiries, lost certificates or address changes, please contact Computershare, our Share Registry, at:

Computershare Investor Services – Australia

GPO Box 2975
Melbourne VIC 3001

 

Tel: 1300 850 505 (within Australia)
Tel: +61 3 9415 5000 (outside Australia)

 

Computershare Investor Centre – Canada
510 Burrard Street, 2nd Floor
Vancouver, BC V6C 3B9

 

Tel:  +1 604 661 9400
Fax: +1 604 661 9549

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Highlights

Highlights

 

Ownership: 70% Austral Gold / 30% Troy Resources

Producing: Silver-Gold doré

Mining Rate: 750 tpd

Processing: 1500 tpd crushing circuit to agitation leach and Merril-Crowe processing plant.

Forecasted Annual Production (LOM): ~50,000 oz p.a.

Forecast Average All-in Sustaining Cost (LOM): $957/oz Au Eq

Mineralisation

 

The Casposo gold–silver mineralisation occurs in both the rhyolite and underlying andesite, where it is associated with banded quartz–chalcedony veins, typical of low sulphidation epithermal environments.

Mineralisation at Casposo occurs along a 10 km long W–NW to E-SE-trending regional structural corridor, with the main Kamila Vein system forming a sigmoidal set 500m-long near the centre.  The Mercado Vein system is the northwest continuation of Kamila, and is separated by an east–west fault from the Kamila Deposit.  The Casposo Norte deposit is located on a parallel structure approximately two kilometres north of Kamila.

Figure: Gold Equivalent Long Section of Casposo Block Model. Arrows indicate where mineralisation is open. (click to enlarge)

Underground mine

 

The Casposo Mine consists of a number of narrow steeply dipping orebodies known as Aztec, B-Vein, B-Vein1, Inca0, Inca1, Inca2A, Inca2B, Mercado, and Julieta.  The main production from the underground mine to date has been from Inca1, Aztec, and Inca2A.

The mining method used at the Casposo Mine is Longitudinal Longhole Retreat.  Mine production is made up of a combination of ore development through sill drifts (34%) and stope production (66%).

Processing Plant

 

  • The Casposo mine recovers gold and silver doré bullion.
  • The processing and recovery method is well known and widespread throughout the gold and silver mining industry namely Merrill Crowe.

Gold recovery from the plant is ~91% and 83% for silver.

Figure: Agitation leach and Merrill-Crowe Processing Plant (click to enlarge)
Map

Map

20090512-219-01 TRY Gold Belt Loc Map
Location and Geology

Location and Geology

 

The Casposo mine consists of an underground mining operation and processing plant. The mine and plant are located 10km NW of the township of Calingasta, in the Calingasta department, San Juan Province. The mine is 150km from San Juan, the capital of San Juan province.

The deposits and other prospects within the Casposo property are examples of low-sulphidation epithermal deposition of gold and silver.

 

The Cordillera Principal runs along the Chile-Argentine border for some 1,500 km.  It is a volcanically and seismically active zone formed by subduction of the Nazca plate beneath the South American continent.  The main basement is formed by Permian–Triassic intrusive and volcanic rocks, of calc-alkaline affinity and andesitic to rhyolite composition, regionally known as the Choiyoi Group.  These and younger sediments of Jurassic and Cretaceous age have been thickened by compression and thrusting principally since the Late Cretaceous in a thin-skinned fold thrust belt.

 

The Mine is located on the eastern border of the Cordillera Frontal.  Basal andesitic volcanic flows, tuffs and breccias are the main sub-surface unit in the Casposo Property and are overlain by rhyolite, rhyolite-dacite flows and dacitic ignimbrite flows.

Reserves and Resources

Mineral Reserves estimate as at 30 June 2017 is as follows:

Mineral Resources estimate as at 30 June 2017 is as follows:


Notes:
The RPA Qualified Persons (‘QP’) for the Casposo Reserve and Resource Estimate include: Jason J. Cox, P.Eng. (Mineral Reserves) and Chester M. Moore, P.Eng., (Mineral Resources). ). The Mineral Resources and Reserves are classified and reported in accordance with Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Ore Reserves dated May 10, 2014 (‘CIM’) definitions as incorporated in NI 43-101, as well as JORC2012, within the Technical Report on the Casposo Gold-Silver Mine, Department of Calingasta, San Juan Province, Argentina dated 7 September 2016.

 

Mineral resources have been updated to account for depletion from mining activities by Nicolas Pizarro, P.Eng, an Austral Gold employee and a QP as per NI-43-101 and a Competent Person (‘CP’) as per JORC2012. Ore reserves have been updated to account for depletion from mining activities by Dr Robert Trzebski, who is an Independent Director of Austral Gold, and a QP as per NI-43-101 and a CP as per JORC2012.

 

The information is extracted from the news release published on the ASX website (www.asx.com.au) on 27 September 2016. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the CP’s findings are presented have not been materially modified from the original market announcement.

 

Competent Persons Statements

The information in the report to which this statement is attached that relates to Mineral Resources is based upon information compiled by Nicolas Pizarro, a Competent Person who is a registered member of The Association of Professional Engineers and Geoscientists of BC. Nicolas Pizarro is a fulltime employee of the company and has sufficient experience that is relevant to the style of mineralisation and the type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves’. Nicolas Pizarro consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

 

The information in the report to which this statement is attached that relates to Ore Reserves is based upon information compiled by Dr Robert Trzebski, a Competent Person who is a fellow of the Australian Institute of Mining and Metallurgy (AUSIMM). Dr Robert Trzebski is a non-executive director of the Company and has sufficient experience that is relevant to the style of mineralisation and the type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore reserves’. Dr Robert Trzebski consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

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