EXPLORATION PROJECTS

Guanaco – Amancaya

Austral Gold controls an extensive portfolio of properties in the Paleocene gold belt, in northern Chile region, around Guanaco and Amancaya Au-Ag mine, II Region, Chile. Exploration in this region is focused on brownfield exploration at the mine areas. Austral Gold controls a large portfolio of properties in the Paleocene gold belt, in northern Chile region, around Guanaco and Amancaya Au-Ag mine, II Region, Chile. Exploration in this region is focused in brownfield exploration at the mine areas.

Exploration at this historic Au-Ag (and Cu) mine is concentrated in extending known epithermal high sulphidation structures and find potential new mineralization at the Guanaco mine area and the large tenement that includes Las Pailas and Inesperada ranges (high sulphidation) and the Cerro Campana (low sulphidation).

Guanaco mine area was a Paleocene maar-diatreme volcanic complex (Chile Alemania Formation), composed by hydro magmatic pyroclastic rocks affected by intermediate subvolcanic intrusions. Structural and lithological controls were responsible for precious metal deposition along the high sulphidation ledges.

The Company historically produced from three main areas: Cachinalito, Dumbo-Defensa-Perseverancia, and Quillota.

Amancaya, a small-scale Au and Cu mine in the 50’, was acquired by Austral Gold in 2014. Production started at the Central vein in 2017, a 1,300 m long structure that is part of a mostly buried 42 linear Km of a Paleocene low sulphidation epithermal quartz veins defined by Austral Gold exploration programs in 2016 and 2017. Mapping, float sampling, trench program and geophysics outlined a large potential to find more veins in the area, hosted in a coarse volcaniclastic unit (Amancaya breccia) and intermediate lava flows from the Chile Alemania Formation, which are covered by gravels and caliche, but also additionally by post-mineral andesitic lava flows and domes.

The exploration at the Amancaya District is based on two main pillars: i) consolidation of the geological resources in extensions of known structures, and ii) confirm the geological potential of the district through the review of structural features and geophysics anomalies towards the search for new vein systems.