Austral Gold (TSXV: AGLD; ASX: AGD) has started commissioning its heap reprocessing project at the Guanaco-Amancaya mine complex in Antofagasta, Chile, with production is expected later this month.
For the remaining of 2023, the company expects the project to contribute 7,000-9,000 gold-equivalent oz. at a cash cost of production below US$700 per ounce. Its capital cost was estimated at US$5 million.
Mining is expected to last for 10 years with proven mineral reserves estimated at 223,000 oz. gold and 1 million oz. silver in 10.2 million tonnes grading 0.68 grams gold per tonne and 3.17 grams silver.
For the fiscal year, the Australian miner is forecasting total annual production between 34,000-38,000 gold-equivalent ounces.
“We are very proud to have achieved this key milestone, which we expect to add low-cost production to our operations,” Austral’s CEO Stabro Kasaneva said in a press release Thursday.
Austral’s 100% owned Guanaco-Amancaya mine complex is located 220 km southeast of Antofagasta City. It is situated along northern Chile’s Palaeocene belt, which hosts several large gold and copper mining operations.
In production since 2012, the mine complex consists of the Amancaya mine, the Guanaco mine, the nearby Inesperada deposit, and the now completed Guanaco heap reprocessing project.
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