Austral Gold Maps Path to 14 Years of Production With $192M Guanaco Mine Plan

Austral Gold cements Guanaco’s 14-year future with updated technical report

Austral Gold (ASX: AGD; TSX-V: AGLD; OTCQB: AGLDF) has released a new NI 43-101 Technical Report for its 100%-owned Guanaco Mine in Chile’s Antofagasta Region, setting out a life-of-mine plan that runs from January 2026 to February 2040.

The 2026 Technical Report supports a 14-year mine life and an after-tax NPV (10% discount rate) of US$192.1 million, based on a plan that largely leverages Guanaco’s existing mining and processing infrastructure. The report, effective 31 May 2026, has been filed on the ASX and SEDAR+ and also reports Mineral Resources and Ore Reserves in accordance with the JORC Code (2012).

For investors, this establishes Guanaco as a defined, multi-year, low-capex production platform within the Austral Gold group, rather than a short-life residual asset.

The headline numbers investors need to know

The discounted cash-flow (DCF) model uses life-of-mine planning prices that are explicitly separate from the lower prices used in reserve and resource estimation:

• Gold: US$3,135/oz LOM average (range US$4,500 to US$2,500 between 2026 and 2033, then US$2,500/oz)
• Silver: US$42/oz LOM average (range US$70 to US$30 between 2026 and 2033, then US$30/oz)

These prices are based on the median of independent third-party consensus forecasts and are used solely in the cash-flow model.

Reserves and resources underpin the mine plan

The new life-of-mine plan is underpinned by updated Proven and Probable Mineral Reserves and Measured & Indicated (M&I) resources, reported under both NI 43-101 (CIM) and the JORC Code (2012). Only Measured & Indicated resources were used for the NPV; Inferred resources were excluded from the economic analysis and mine schedule.

Key inventories are:

• Proven & Probable Mineral Reserves:
  18.1 Mt at 0.84 g/t Au and 5.43 g/t Ag, containing approximately 352 koz Au and 1.493 Moz Ag
  – estimated at US$2,200/oz Au, US$25/oz Ag

• Measured & Indicated Mineral Resources (inclusive of Reserves):
  17.0 Mt at 0.94 g/t Au and 6.11 g/t Ag, containing approximately 511 koz Au and 3.269 Moz Ag
  – estimated at US$2,500/oz Au, US$27.5/oz Ag

• Inferred Mineral Resources:
  2.0 Mt at 1.17 g/t Au and 7.14 g/t Ag, for about 77 koz Au and 466 koz Ag

Average life-of-mine metallurgical recoveries are 72% for gold and 47% for silver, with lower recoveries from reprocessed heaps and higher recoveries from fresh, higher-grade feed.

The total reserve tonnage is split between fresh open-pit ore and reprocessed heap material:

• Open pits: 8.2 Mt at 1.13 g/t Au and 8.38 g/t Ag (about 262 koz Au, 1.236 Moz Ag)
• Heaps 1–3: 10.0 Mt at 0.60 g/t Au and 3.01 g/t Ag (about 90 koz Au, 0.257 Moz Ag)

Only Measured resources were converted to Proven reserves and Indicated to Probable, with no reserves derived from Inferred material.

A CEO’s view on what sets Guanaco apart

Stabro Kasaneva, Chief Executive Officer

“We believe the significance of this Technical Report extends well beyond the updated Mineral Reserve. It supports the view that Guanaco can sustain a multi-year mining operation with an approximate mine plan of 14 years, built on existing infrastructure, a disciplined capital program, and a consistent production profile. What differentiates Austral Gold as a junior producer is that it can extend mine life while leveraging existing, permitted processing facilities and established operating infrastructure, although part of the expanded mine plan remains subject to outstanding permits. We anticipate this positions Austral Gold with a strong platform to generate sustainable value in the future from both Guanaco in Chile and Casposo in Argentina.”

Understanding the investment case

The 2026 Technical Report positions Austral Gold as a junior producer with a long-duration, relatively low-capital asset anchored on brownfield infrastructure.

Building on existing infrastructure

Guanaco already has:

• Operating heap leach and agitation leach plants
• Camp and accommodation
• Grid power connection with diesel backup
• Permitted water rights and established water supply
• Road access from Antofagasta and Taltal

The Ore Reserve assumes treatment through this existing plant configuration, rather than a greenfield build. This reduces upfront capital requirements and shortens the lead time from plan to cash flow, while using circuits with substantial operating history.

Why the low capex matters

Over a planned 14-year mine life, total capital expenditure is just US$13.9 million, made up of:

• US$2.2 million sustaining capital (heap expansion, filter press, ADR/CIC upgrades)
• US$11.7 million for closure and reclamation

This is small relative to the cumulative free cash flow and reflects a strategy of extracting value from an established site, rather than funding major new processing or infrastructure builds.

For investors, this means that a greater share of operating cash flow is available after modest sustaining spend, subject to commodity prices and operating performance.

The mining approach

The 2026 mine plan is entirely open-pit plus heap reprocessing:

• Open-pit extraction at Dumbo, Defensa, Perseverancia, Quillota and Inesperada

• Bench height 15 m, truck–excavator operation

• No underground mining in the reserve or economic analysis

• Reprocessing of three legacy heap leach pads (Heaps 1, 2 and 3)

• Reprocessing from 2026 to mid-2032

• Open-pit mining from mid-2028 to 2040

Heap reprocessing contributes around 55% of reserve tonnage, while mine-sourced ore contributes approximately 75% of recovered ounces, reflecting higher grades and recoveries from fresh ore.

The permitting catch investors must weigh

A material portion of the planned production is contingent on new permits.

The Environmental Impact Declaration (DIA) and associated sectoral permits for the Inesperada and Dumbo areas remain outstanding. Approval is currently targeted for Q4 2026 / Q1 2027.

The 2026 Technical Report quantifies the dependency:

• About 5.9 Mt, or ~32% of Reserve tonnes
• Around 185,000 recoverable oz of gold (approximately 53% of Reserve gold)
• Approximately 823,000 recoverable oz of silver (around 55% of Reserve silver)

According to the Competent/Qualified Person, there is a reasonable basis to expect that the required approvals will be obtained. However, there is no certainty that they will be granted within the anticipated timeframe, or at all. The report notes that any delay or refusal could materially affect the production schedule and project economics.

For investors, the permit timing around Inesperada and Dumbo is therefore a key risk parameter alongside metal prices and operating performance.

How the 2026 study compares to 2022

The 2026 Technical Report updates and supersedes the company’s 2022 Technical Report (SLR, effective 31 December 2021).

Headline comparatives:

• 2026:

• After-tax NPV US$192.1M at 10% discount rate

• ~14-year life (Jan 2026 – Feb 2040)

• Guanaco-focused, open-pit plus heap-reprocessing operation

• 2022:

• After-tax NPV US$77M at 6.89% discount rate

• ~12-year life (2022–2033)

• Covered the broader Guanaco–Amancaya Operation, including the now-depleted Amancaya underground mine

The company emphasises that the two studies:

• Differ in scope, effective date, metal-price assumptions, discount rate and mining method, and
• Are “not directly comparable on a like-for-like basis”

Accordingly, the apparent uplift in NPV should not be interpreted as a simple economic improvement on identical inputs. Instead, the 2026 work represents a re-modelling and re-scoping of Guanaco as a stand-alone, long-life open-pit-plus-heap-reprocessing gold–silver operation, with further exploration potential in the district.

What comes next

Key forward-looking points from the Technical Report include:

• Permitting

• DIA and sectoral approvals for Inesperada and portions of Dumbo targeted for Q4 2026 / Q1 2027

• Production sequence

• Reprocessing of Heaps 1–3: 2026 to mid-2032

• Open-pit mining at Dumbo, Defensa, Perseverancia, Quillota and Inesperada: mid-2028 to 2040

• Strategic positioning
• Guanaco, together with Casposo in Argentina, is intended to form one of the two core production pillars in Austral Gold’s portfolio, alongside exploration and equity investments.
• The Technical Report notes significant exploration upside remains across the Guanaco district, including targets such as Cerro Guanaquito and Los Nanos–Salvadora.

With US$192.1 million after-tax NPV at a 10% discount rate and modest sustaining capital, Guanaco is presented as a long-life, cash-flowing asset contingent on permit delivery and continued operational execution.

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