AUSTRALGOLD | Guanaco Operations
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Guanaco Operations

Mining Rate: 1500 tpd

  • Guanaco Underground: 1000-1100 tpd
  • Amancaya 400-500 tpd

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

Annual Production (2013-16): 45-51,000 oz p.a.

Average Cash Cost (2013-16): $683/ oz Au Eq.

Average All-in Sustaining Cost (2013-16): $753/oz Au Eq

 

Mineralisation

Guanaco:

Gold mineralisation at Guanaco is controlled by pervasively silicified, E/NE trending sub-vertical zones with related hydrothermal breccias. Silicification grades outward into advanced argillic alteration and further into zones with propylitic alteration. The deposit is classified as a high sulphidation epithermal system. The weathering profile is very deep, with all ore production being oxidised material.

Mineralisation is structurally controlled with some lithological controls over higher grade mineralisation seen at the Cachanalito vein system.

Amancaya:

The Amancaya project represents a low sulphidation gold-silver epithermal deposit hosted in the Depresión Central; a Paleocene-Eocene volcanic belt that host numerous epithermal deposits in northern Chile. Mining operations are currently focussed on the Central vein, a N-S striking vein. The Central Vein exhibits banded textures, with bands of grey chalcedony, clear crystalline quartz, amethyst, and dark bands containing sphalerite, silver, and lead sulphosalts. Other textures include colloform, sinuous alternating bands of chalcedony and amethyst, and crustiform quartz. Interstices are filled with clays, limonites, manganese oxides, and carbonates (ankerite mainly). Supergene enrichment of silver in the oxide zone is exhibited.

 

Mining

Guanaco:

Dozens of mineralised veins have been exploited in the district, the most important veins being the Defensa, Perseverancia, Abundancia, and San Lorenzo.

Current operations are all underground with typical mining width of 2-6 metres. Production stopes within ore shoots utilise open sub-level stoping methodology.

Amancaya:

The project has had no historical mining, despite outcropping at surface. The open-pit mine at Amancaya is carried out as a conventional operation using 30t trucks and a combination of excavators and front-end loaders.  Waste and ore is blasted and mined separately using a “trenching” method to reduce the amount of dilution.

 

Processing

Ore from Guanaco and Amancaya is treated at the Company’s new plant at Guanaco (Figure 1). Ore trucked from Amancaya is batched through the plant due to its higher silver content.

Ore is passed through a three stage crushing process, prior to entering the 1500 tpd agitation leach plant. Pregnant solution is passed into a Merrill-Crowe circuit where gold and silver are extracted and a gold and silver doré is produced.

Figure 1: Photo of covered crushed stockpile, agitation leach plant and Merrill-Crowe circuit, Guanaco

Map

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Click to view this map greatly enlarged in a new window

Location and Geology

 

Guanaco is located approximately 220km SE of Antofagasta in Northern Chile at an elevation of 2,700m and 45km east of the Pan American Highway. 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 metres, averaging 2,600 metres above sea level.

 

Guanaco is located in the Paleocene/Eocene belt, a structural trend which runs north/south through the centre of Chile, and hosts several large gold and copper mining operations.

 

The alteration pattern and the mineralogical composition of the Guanaco mineralisation have led to the classification as a high-sulfidation epithermal deposit.

 

The Guanaco mine was recommissioned by Austral Gold in 2010 and commenced operations in 2011.

The Amancaya project was acquired by the Company in 2014 from Yamana, who retain a 2.5% royalty over precious metal production. It is 60km south-west of Guanaco mine by public road. The Company started open-pit mining operations in March 2017, and ore is transported to the agitation leach plant at Guanaco for processing.

 

The Amancaya mine represents a low sulphidation gold-silver epithermal deposit hosted in the Depresión Central; a Paleocene-Eocene volcanic belt that host numerous epithermal deposits in northern Chile. The critical features that define the mineralisation at Amancaya include lithological and structural controls.

 

The Paleocene intermediate volcanics belong to the Chile-Alemania Formation, and are divided into two sections. The Lower Section comprises andesitic lavas and thick pyroclastic deposits that host most of epithermal veins. The Upper Section was developed over a district-scale unconformity and is dominated by andesitic to dacitic lava flows and subvolcanic stocks that were interpreted as post-mineral units.


Notes:
The RPA Qualified Persons (QPs) for the Amancaya and Guanaco Reserve and Resource Estimate include: Kathleen Ann Altman, P.E., Ph.D. (Metallurgy); Jason J. Cox, P.Eng. (Mineral Reserves); Ian Weir, P.Eng. (Mineral Reserves); Chester M. Moore, P.Eng., (Mineral Resources). The Mineral Resources and Reserves are classified and reported in accordance with CIM definitions as incorporated in NI 43-101, as well as JORC 2012, within the Guanaco and Amancaya Gold Project, Region II, Chile, dated 16 June, 2017, with an effective date of 31 December 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 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 13 June 2017. 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)

 

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510 Burrard Street, 2nd Floor
Vancouver, BC V6C 3B9

 

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

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Highlights

Mining Rate: 1500 tpd

  • Guanaco Underground: 1000-1100 tpd
  • Amancaya 400-500 tpd

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

Annual Production (2013-16): 45-51,000 oz p.a.

Average Cash Cost (2013-16): $683/ oz Au Eq.

Average All-in Sustaining Cost (2013-16): $753/oz Au Eq

 

Mineralisation

Guanaco:

Gold mineralisation at Guanaco is controlled by pervasively silicified, E/NE trending sub-vertical zones with related hydrothermal breccias. Silicification grades outward into advanced argillic alteration and further into zones with propylitic alteration. The deposit is classified as a high sulphidation epithermal system. The weathering profile is very deep, with all ore production being oxidised material.

Mineralisation is structurally controlled with some lithological controls over higher grade mineralisation seen at the Cachanalito vein system.

Amancaya:

The Amancaya project represents a low sulphidation gold-silver epithermal deposit hosted in the Depresión Central; a Paleocene-Eocene volcanic belt that host numerous epithermal deposits in northern Chile. Mining operations are currently focussed on the Central vein, a N-S striking vein. The Central Vein exhibits banded textures, with bands of grey chalcedony, clear crystalline quartz, amethyst, and dark bands containing sphalerite, silver, and lead sulphosalts. Other textures include colloform, sinuous alternating bands of chalcedony and amethyst, and crustiform quartz. Interstices are filled with clays, limonites, manganese oxides, and carbonates (ankerite mainly). Supergene enrichment of silver in the oxide zone is exhibited.

 

Mining

Guanaco:

Dozens of mineralised veins have been exploited in the district, the most important veins being the Defensa, Perseverancia, Abundancia, and San Lorenzo.

Current operations are all underground with typical mining width of 2-6 metres. Production stopes within ore shoots utilise open sub-level stoping methodology.

Amancaya:

The project has had no historical mining, despite outcropping at surface. The open-pit mine at Amancaya is carried out as a conventional operation using 30t trucks and a combination of excavators and front-end loaders.  Waste and ore is blasted and mined separately using a “trenching” method to reduce the amount of dilution.

 

Processing

Ore from Guanaco and Amancaya is treated at the Company’s new plant at Guanaco (Figure 1). Ore trucked from Amancaya is batched through the plant due to its higher silver content.

Ore is passed through a three stage crushing process, prior to entering the 1500 tpd agitation leach plant. Pregnant solution is passed into a Merrill-Crowe circuit where gold and silver are extracted and a gold and silver doré is produced.

Figure 1: Photo of covered crushed stockpile, agitation leach plant and Merrill-Crowe circuit, Guanaco
Map

Map

Click to view this map greatly enlarged in a new window
Click to view this map greatly enlarged in a new window
Location and Geology

Location and Geology

 

Guanaco is located approximately 220km SE of Antofagasta in Northern Chile at an elevation of 2,700m and 45km east of the Pan American Highway. 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 metres, averaging 2,600 metres above sea level.

 

Guanaco is located in the Paleocene/Eocene belt, a structural trend which runs north/south through the centre of Chile, and hosts several large gold and copper mining operations.

 

The alteration pattern and the mineralogical composition of the Guanaco mineralisation have led to the classification as a high-sulfidation epithermal deposit.

 

The Guanaco mine was recommissioned by Austral Gold in 2010 and commenced operations in 2011.

The Amancaya project was acquired by the Company in 2014 from Yamana, who retain a 2.5% royalty over precious metal production. It is 60km south-west of Guanaco mine by public road. The Company started open-pit mining operations in March 2017, and ore is transported to the agitation leach plant at Guanaco for processing.

 

The Amancaya mine represents a low sulphidation gold-silver epithermal deposit hosted in the Depresión Central; a Paleocene-Eocene volcanic belt that host numerous epithermal deposits in northern Chile. The critical features that define the mineralisation at Amancaya include lithological and structural controls.

 

The Paleocene intermediate volcanics belong to the Chile-Alemania Formation, and are divided into two sections. The Lower Section comprises andesitic lavas and thick pyroclastic deposits that host most of epithermal veins. The Upper Section was developed over a district-scale unconformity and is dominated by andesitic to dacitic lava flows and subvolcanic stocks that were interpreted as post-mineral units.

Reserves and Resources

Mineral Resources 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 (QPs) for the Amancaya and Guanaco Reserve and Resource Estimate include: Kathleen Ann Altman, P.E., Ph.D. (Metallurgy); Jason J. Cox, P.Eng. (Mineral Reserves); Ian Weir, P.Eng. (Mineral Reserves); Chester M. Moore, P.Eng., (Mineral Resources). The Mineral Resources and Reserves are classified and reported in accordance with CIM definitions as incorporated in NI 43-101, as well as JORC 2012, within the Guanaco and Amancaya Gold Project, Region II, Chile, dated 16 June, 2017, with an effective date of 31 December 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 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 13 June 2017. 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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