Austral Gold Ltd. (TSXV:AGLD, ASX:AGD) announced it has acquired an additional 19% stake in the Casposo gold-silver mine in Argentina for US$1.0 million.
By way of the transaction, the company has brought its total interest in the mine to 70%. Austral acquired a 51% interest in Casposo in 2016 and has
options to acquire the outstanding 30% for US$7.0 million by 2020. Austral has commenced various operational improvement initiatives at the mine and
spent US$5.8 million to date on development and re-commissioning. The mine was re-commissioned in Q3 2016 and Austral’s attributable share in Q4, the
mine’s full operational quarter, amounted to ~5,500 oz AuEq. We view Austral’s ownership increase in Casposo positively. Based on Austral’s 2017 guidance
of 50,000 oz AuEq, the company’s annualized attributable share would amount to ~35,000 oz AuEq. We expect that the ongoing ramp-up of the Casposo project,
a resource update, pre-feasibility study (Q1 2017) and initial production from Amancaya, in addition to the completion of the mill expansion at Guanaco
are likely to be key catalysts in the near-term.
Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
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Company Specific Disclosure Details Austral Gold Ltd. - TSXV:AGLD, ASX:AGD - 1,2,7
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