Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Austral Gold (ASX: AGD; TSXV: AGLD) has started commissioning of the heap reprocessing project at its Guanaco-Amancaya mine complex in Antofagasta, Chile, following its successful construction. Production is expected later this month, lasting until 2033.
For the remaining of 2023, the company expects the project to contribute 7,000-9,000 gold-equivalent ounces at a cash cost of production below US$700 per ounce. Its capital cost was estimated at US$5 million.
The project’s total proven mineral reserves are estimated at 223,000 gold ounces and 1,043,000 silver ounces.
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 stated 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.
