Sydney, Australia-based Austral Gold (TSXV: AGLD; ASX: AGD) is reporting mixed results in quarterly production from its two precious metals mining complexes: the small Casposo gold-silver mine in Argentina; and the Guanaco-Amancaya gold-silver mining complex in Chile.
For the second quarter ended June 30, Austral reported on a 100%-basis combined gold and silver production of 16,148 oz. gold and 485,238 oz. silver (22,304 oz. gold equivalent oz.), up 31% from the year-ago quarter.
Austral Gold CEO Stabro Kasaneva said in a release that this has been a “better quarter in line with our continuous improvement strategy as production at Guanaco-Amancaya increased due to the stabilization of the new agitation leaching plant that was commissioned in 2017. Production at Casposo was below expectations; however, we are working towards solving the setbacks at the underground mine, and we forecast higher production for the second half of the year. We also continue to evaluate and pursue strategic opportunities.”
During the quarter, Austral says production at a new agitation leaching plant at Guanaco-Amancaya was fully stabilized with average monthly production of 5,158 oz. gold equivalent, while production at Casposo was behind schedule with average monthly production of 2,277 oz. gold equivalent due to setbacks at the underground mine.
Combined quarterly operating C1 cash cost and all-in-sustaining costs across all operations were US$1,024 per oz. gold equivalent (Guanaco/Amancaya: US$836; Casposo: US$1,450) and US$1,221 (Guanaco/Amancaya: US$991; Casposo: US$1,742) per oz. gold equivalent with average selling prices at US$1,305 per oz. gold and US$16.50 per oz. silver.
Austral has revised guidance for 2018 to an estimated 100,000 to 105,000 oz. gold equivalent on a 100% basis, or 88,000 to 92,000 oz. gold equivalent ounces on a net basis.
The junior ended the quarter with cash and equivalents of US$3.2 million and total debt of US$23 million.
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