HIGHLIGHTS
- Casposo is improving Austral Gold’s production profile, with two active mines now operating in Argentina and Chile.
- Commercial production at the Casposo mine has resumed following the completion of the plant’s renovation.
- Casposo production in the fourth quarter of 2025 is expected to be approximately 4,000 to 6,000 gold equivalent ounces (GEOs).1), including 230 GEOs1 produced during the commissioning phase.
Austral Gold Limited (ASX: AGD,OTC:AGLDF) (TSXV: AGLD) (OTCQB: AGLDF) (“Austral” or the “Company”), an established gold producer, is pleased to announce that commercial production has resumed at the 100% owned Casposo Mine in Argentina.
The renovation of the Casposo factory has been successfully completed, including the commissioning phase, which formally started at the end of December 2024, after the company received a US$7 million bank loan.
Initial production at Casposo is currently being sourced from the company’s existing inventories. Austral plans to move into open-pit mining through a partnership agreement. The company is negotiating with a local contractor and expects to conclude an agreement soon. Under this structure, the contractor will provide mining services under the supervision of the Company.
As part of the factory renovation, the company completed the commissioning phase, producing approximately 230 gold equivalent ounces (GEOs).1) from Doré. During commissioning, the doré was melted from vegetable waste and historical samples returned to Casposo by Argentine customs.
Austral Gold CEO Stabro Kasaneva said: “We are pleased to announce the restart of operations at Casposo, which marks an important milestone for the company as we expand our manufacturing base along the existing mining operations in Guanaco. This development enables us to generate better cash flow and strengthen our financial position. I thank our team for their dedication in completing the factory renovation and our creditors and shareholders for their continued support.”
Casposo’s production guidance for the remainder of 2025 is forecast at approximately 4,000 – 6,0001 gold equivalent ounces (GEOs1), which equates to a monthly average of 1,800 GEOs1. This estimate includes the 230 GEOs produced during the commissioning phase.
- Notes:
- Gold equivalent ounces (GEOs) were calculated using a silver-to-gold (Ag:Au) ratio of 91:1, in accordance with the following formula: AuEq (g/t) = (g/t Au) + (g/t Ag) / 90.91, where the factor 90.91 reflects metal prices of US$2,500/oz for gold and US$27.5/oz for silver.
- Gold and silver are expected to make up 70% and 30% at Casposo.
- Casposo: Metallurgical recovery rates are forecast at 90.3% for gold and 85.8% for silver under the stir leaching process. The average major grade is forecast to be 1.88 g/t gold and 80.73 g/t silver.
About Australasian gold
Austral Gold is a gold and silver mining producer building a portfolio of quality assets in the Americas based on three strategic pillars: production, exploration and equity investments. Austral continues to lay the foundation for its growth strategy by advancing its attractive portfolio of production and exploration assets.
For more information, please visit the company’s website: www 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.
Release approved by Austral Gold Chief Executive Officer Stabro Kasaneva.
Forward-Looking Statements
Statements in this press release that are not historical facts are forward-looking statements. Forward-looking statements are statements that are not historical and consist primarily of projections and statements regarding future plans, expectations and developments. Words such as “expects,” “intends,” “plans,” “may,” “could,” “potential,” “should,” “anticipates,” “likely,” “believes” and words with similar expressions are intended to identify forward-looking statements. The forward-looking statements in this press release include, but are not limited to, statements regarding expectations regarding the resumption of commercial production at the Casposo mine, estimated production volumes, the transition to open-pit mining, expected cash flow improvements, the expected completion of a contractor agreement to support open-pit mining operations, and the company’s growth strategy, including plans to expand its portfolio of expand production and exploration assets.
All of these forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that may cause actual events or results to differ from those expressed or implied, including, but not limited to, uncertainty of exploration programs, development plans and cost estimates, fluctuations in commodity prices; political or economic instability and regulatory changes; currency fluctuations, the condition of capital markets, uncertainty in the measurement of mineral resources and reserves; and other risks and hazards associated with the exploitation and development of mineral properties, as well as the availability of capital. You are cautioned that the foregoing list is not exhaustive of all factors and assumptions that may have been used. Austral cannot assure you that actual events, performance or results will be consistent with these forward-looking statements and management’s assumptions may prove to be incorrect. Austral’s forward-looking statements reflect current expectations regarding future events and operating performance and speak only as of the date hereof, and Austral assumes no obligation to update any forward-looking statements if circumstances or management’s beliefs, expectations or opinions should change other than as required by applicable law. For the reasons set forth above, you should not place undue reliance on forward-looking statements.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/270308
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