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Austral Gold Announces Filing of Q4 2019 Quarterly Activity Report

Sydney, Australia--(Newsfile Corp. - January 30, 2020) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (the "Company") is pleased to report results from its activities during its Q4 2019 Quarterly Activity Report. The Report is available under the Company's profile at www.asx.com.au and www.sedar.com and on the Company's website at www.australgold.com.

Stabro Kasaneva, CEO of Austral Gold, said, "We are pleased with the results of our fourth quarter. We generated record cash flow through the realisation of higher gold and silver prices, solid production and lower operating cash costs. These factors contributed to the strengthening of our financial position. This was the first time that we made such an extensive commitment to exploration. Some encouraging results were obtained in Chile at Sierra Inesperada and Amancaya and we expect to continue or increase this level of exploration in 2020 including further exploration activities at Casposo and Pinguino.

We also met certain strategic objectives by entering the North American market with an investment in the Rawhide gold and silver mine and completion of the full acquisition of the Casposo mine in Argentina."

KEY QUARTERLY HIGHLIGHTS

Quarterly Production figures

Operations
Guanaco/
Amancaya Mines
Casposo Mine
(100% basis)
Net to Austral Gold*
Dec Quarter 2019Sept Quarter 2019Dec Quarter 2018Dec Quarter 2019Sept Quarter 2019Dec Quarter 2018Dec Quarter 2019Sept Quarter 2019Dec Quarter 2018
Processed (t)66,29564,01865,194 - -39,15266,29564,018 92,600
Gold produced (Oz)16,57816,27315,560 - -3,08816,57816,27317,722
Silver produced (Oz)116,380136,867167,372 - -254,136116,380136,867345,267
Gold-Equivalent (Oz) **17,95317,87917,547 - -6,10117,95317,87921,818

 

*As of 23 December 2019, Austral Gold owned 100% of Casposo. From March 2017 to 22 December 2019, Austral Gold owned 70% of Casposo; C1 and AISC calculated based on 100% Processed (t).

**AuEq ratio is calculated at 85:1 Ag:Au for the December 2019 Quarter; 85:1 Ag:Au for the September 2019 Quarter; 84:1 Ag:Au for the December 2018 Quarter

Forecasted Calendar 2020 Production and Costs:

EXPLORATION

Our exploration program continues to focus on (i) Chile: brownfield areas in the Amancaya District and Sierra Inesperada (Guanaco District), and (ii) Argentina: Casposo (San Juan) and Pinguino (Santa Cruz) in Argentina. Exploration highlights are as follows:

FINANCIALS

Cash Flow Summary (US$'M) *Dec 2019 qtr
(3-months)
Dec 2019 yr
(12-months)
Operating Cash Flow13.929.5
Net cash used in investing activities (6.7)(14.6)
Net cash used in financing activities(2.5)(7.4)
Cash Generation4.77.5
Cash beginning of period4.51.7
Cash end of period9.29.2
Net Borrowings Position (US$'M) December 2019 *December 2018
Cash & Cash Equivalents **9.21.7
Borrowings ***15.518.5
Net Borrowings 6.316.8

 

*Combined unaudited figures

** Includes short-term investments in US treasury bills less than 90 days

*** Includes Financial leases and excludes the Promissory note of US$1.96 million issued in December 2019 and paid in January 2020.

Qualified Persons

The scientific and technical content of this news release has been prepared by, or under the supervision of Robert Trzebski, MAIG, an Independent Director of the Company and has been reviewed and approved by him. Mr Trzebski is a Geologist and Member of Australian Institute of GeoScientists and a consultant of Austral Gold Limited. Mr. Trzebski is a "qualified person" for the purposes of National Instrument 43-101, Standards of Disclosure for Mineral Projects.

About Austral Gold

Austral Gold Limited is a growing precious metals mining, development and exploration company building a portfolio of quality assets in Chile and Argentina. The Company's flagship Guanaco/Amancaya project in Chile is a gold and silver producing mine with further exploration upside. The company also holds the Casposo Mine (San Juan, Argentina), a ~23.62% interest in the Rawhide Mine (Nevada, USA) and an attractive portfolio of exploration projects including the Pingüino project in Santa Cruz, Argentina (100% interest) and the San Guillermo and Reprado projects near Amancaya (100% interest). With an experienced local technical team and highly regarded major shareholder, Austral's goal is to continue to strengthen its asset base through acquisition and discovery. Austral Gold Limited is listed on the TSX Venture Exchange (TSXV: AGLD), and the Australian Securities Exchange. (ASX: AGD). For more information, please consult the company's website www.australgold.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

On behalf of Austral Gold Limited:

"Stabro Kasaneva" CEO

For additional information please contact:

Jose Bordogna
Chief Financial Officer
Austral Gold Limited
jose.bordogna@australgold.com

+54 (11) 4323 7558

David Hwang
Company Secretary
Austral Gold Limited
info@australgold.com
+61 (2) 9698 5414

Austral Gold Limited ABN 30 075 860 472 ASX: AGD TSXV: AGLD

Level 5 126-130 Phillip St, Sydney NSW 2000 | T +61 2 9380 7233 | F +61 2 9251 7455 | info@australgold.com | www.australgold.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/51987