Austral Gold Updates Mineral Reserve as Production Restarts at Casposo Project in Argentina

Austral Gold (ASX: AGD) has announced an updated mineral reserve and resource estimate for its Casposo gold and silver mine in Argentina, coinciding with the restart of commercial production at the operation.

The new estimate supports a mine plan Austral has designed to sustain operations over the coming years following completion of extensive refurbishment works and recommissioning of the Casposo processing plant.

Chief executive officer Stabro Kasaneva said the reserve update provides a strong foundation for the mine’s restart and confirms the potential for ongoing resource growth within the district.

Casposo Production Resumed

Austral has resumed commercial production at Casposo following its completion of plant refurbishment, which included major upgrades to the mill, leach circuit, and infrastructure.

The recommissioning phase produced approximately 230 gold equivalent ounces from residual material and historical samples, validating the plant’s performance ahead of steady-state operations.

Austral now expects the mine to deliver between 4,000oz and 6,000oz gold equivalent in the December quarter, increasing to a projected 1,800oz per month in 2026 as mining transitions to open-pit operations.

Mr Kasaneva said the restart marks a key milestone for Austral Gold as it expands its production base across Argentina and Chile and works toward improved cash flow generation.

Updated Reserve and Resource

Austral Gold said the new estimate for Casposo incorporates the latest drilling and grade-control results and reflects improved geological interpretation of the deposit.

Austral now estimates Casposo’s Proven and Probable reserves at 2.149 million tonnes grading 1.31 grams per tonne gold and 58.52g/t silver, with Measured and Indicated resources of 2.258Mt grading 1.48g/t gold and 59.91g/t silver.

After-tax net present value at an 11.8% discount rate is US$72.7m (using a US$2,855/oz gold price), with undiscounted pre-tax free cash flows of US$137.9m (post tax US$92.7m).

The mine life is 74 months, with estimated annual average production of 11,495oz recovered for gold at an all-in sustaining cost of US$1,695/oz, along with 468,434oz silver, with a capital total of US$10.8m and an average operating cost over the life of mine of US$85 per tonne milled or US$1,517 per gold equivalent ounce.

The updated resource model forms the basis of a revised mine plan to support long-term production and exploration within the broader Casposo–Manantiales corridor.

Cornerstone South American Asset

Austral said the updated reserve and resource base, together with the successful restart of operations, positions Casposo as a cornerstone asset in its South American portfolio.

The company plans to leverage existing infrastructure and regional expertise to deliver steady growth from both Casposo and its Guanaco–Amancaya operations in Chile.

“Restarting Casposo marks a major achievement for our team and shareholders,” Mr Kasaneva said.

“We now have two producing assets generating revenue and a pipeline of exploration targets capable of sustaining long-term growth.”

Austral’s focus for 2026 will be on expanding the open-pit mining areas and upgrading resources through targeted drilling and systematic exploration.