Vancouver, British Columbia--(Newsfile Corp. - November 14, 2017) - Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (the "Company" or "Austral") is pleased to announce that it has completed its purchase of a 100% interest in the San Guillermo and Reprado gold-silver projects from Revelo Resources Corp. ("Revelo") — (TSX-V: RVL). Both projects are located in the emerging Amancaya precious metals district of northern Chile, as previously announced (see Company's news release dated July 17, 2017).
The purchase price for these two projects consisted of an aggregate of 10,000,000 Austral common shares, and Revelo has retained Net Smelter Return (NSR) Royalties on future metals production of 1% and 0.5% at Reprado and San Guillermo, respectively. Based on AGD share price at market close on Friday 10th that is equivalent to approximately $1.55 million Australian dollars in shares.
The existing Option, Sale and Royalty Agreement between Revelo and Austral relating to the San Guillermo project (see the Company's news release dated February 8, 2016) has now been cancelled. Austral has assumed responsibility for paying underlying NSR production royalties at San Guillermo and Reprado.
"With the recent discovery of gold mineralisation on the 2.8km long Nueva vein within our Amancaya project, the consolidation of the surrounding San Guillermo and Reprado properties represents another strategic asset acquisition in close proximity to our operating mine" stated Stabro Kasaneva, CEO of Austral Gold. "These projects are within 70km trucking distance of the agitation leach plant at Guanaco, which increases the possibility that any discovery would add value to our portfolio of properties."
The properties extend the Company's land package along strike of the north south trending mineralized vein system discovered to date at Amancaya (the producing Central vein and the Nueva vein discovery). Historical drilling has identified vein hosted gold mineralisation on both properties and the company expects to advance exploration activities in the near future.
Qualified Persons
The scientific and technical content of this news release has been prepared by, or under the supervision of Michael Brown, MAIG, and has been reviewed and approved by him. Mr Brown is a Geologist and Member of Australian Institute of GeoScientists and an employee of Austral Gold Limited. Mr. Brown 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 mine in Chile is operated with the Amancaya mine with processing of ore from both mines at a new agitation leach plant at Guanaco. There is significant exploration upside at and around both operations, with a new vein discovery at Amancaya. The Company also owns 70% and is operator of the underground silver-gold Casposo mine in San Juan, Argentina. 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
