Austral Gold Unveils 14-Year Guanaco Mine Plan with US$192.1M NPV and Updated Technical Report

Austral Gold’s Operational Footprint and Market Presence

Austral Gold Limited operates two fully owned mine complexes across South America, including the Guanaco Mine in northern Chile’s Antofagasta Region, an area rich in mining infrastructure and supply chains. The company also runs the Casposo mine complex in Argentina, providing geographic diversification. As a junior gold producer, Austral Gold’s strategy focuses on extending mine life and creating value by utilising existing, permitted processing facilities rather than pursuing major greenfield projects.

Listed on the Australian Securities Exchange (ASX:AGD), TSX Venture Exchange (AGLD), and OTCQB (AGLDF), Austral Gold offers investors multiple trading platforms across Australian and North American markets. The updated Guanaco Technical Report reinforces the company’s commitment to sustainable operations across its Chilean and Argentine assets.

Revised Mineral Reserves and Resources at Guanaco

The 2026 Technical Report presents updated mineral reserve and resource estimates following extensive geological reinterpretation and new deposit modelling. Proven and Probable Mineral Reserves stand at 18.1 million tonnes grading 0.84 g/t gold and 5.43 g/t silver, containing approximately 352,000 ounces of gold and 1.493 million ounces of silver. These reserves are estimated using conservative metal prices of US$2,200 per ounce for gold and US$25 per ounce for silver.

Measured and Indicated Mineral Resources total 17.0 million tonnes grading 0.94 g/t gold and 6.11 g/t silver, containing about 511,000 ounces of gold and 3.269 million ounces of silver, valued at US$2,500 per ounce gold and US$27.50 per ounce silver. Inferred Resources are estimated at 2.0 million tonnes grading 1.17 g/t gold and 7.14 g/t silver, containing roughly 77,000 ounces of gold and 466,000 ounces of silver. The resource estimate is supported by dense 25x25 metre drill spacing within the Indicated category, meeting industry best practices and demonstrating reasonable prospects for economic extraction.

Guanaco’s Deposit Composition and Mining Strategy

The Guanaco Mine comprises six distinct deposits: Dumbo, Defensa, Perseverancia, Quillota, and Inesperada, along with three legacy heap-leach pads on site. This multi-deposit structure allows operational flexibility and optimised mining sequencing based on grade, metallurgy, and infrastructure proximity. The legacy heap pads offer opportunities to reprocess lower-recovery material, reflected in the life-of-mine metallurgical recovery rates and economic model.

Austral Gold’s geological team conducted a comprehensive data review and new modelling to characterise each deposit’s geology and grade distribution, forming a robust basis for defining remaining in-situ resources and informing sequencing and economic assumptions. The 14-year mine life plan built around existing infrastructure and multiple deposits reduces execution risk and capital requirements compared to single-deposit or greenfield projects.

Economic Outlook and Cash Flow Projections

The 2026 Technical Report’s economic analysis reveals strong financial metrics for Guanaco. The after-tax NPV at a 10% discount rate is US$192.1 million, supported by undiscounted pre-tax free cash flow of US$379.4 million and post-tax free cash flow of US$281.6 million over 14 years. These figures account for operating costs, capital expenditure, taxes, and time value of money.

Metal price assumptions are based on median third-party consensus forecasts: gold prices range from US$4,500 to US$2,500 per ounce (average US$3,135), and silver prices range from US$70 to US$30 per ounce (average US$42). These prices apply to the discounted cash flow model, while mineral reserves use more conservative prices of US$2,200 per ounce gold and US$25 per ounce silver.

Operating Costs and Capital Requirements

Guanaco’s operational efficiency is reflected in an All-in Sustaining Cost of US$2,114 per ounce gold equivalent and an average C1 operating cost of US$1,978 per ounce gold equivalent. Operating costs average US$41 per tonne of ore processed, competitive for a junior producer leveraging existing infrastructure.

Total capital expenditure over the mine life is US$13.9 million, including US$2.2 million sustaining capital and US$11.7 million for closure and reclamation. The modest sustaining capital underscores the advantage of utilising established mining and processing facilities, enabling capital allocation toward value-generating mining activities rather than major infrastructure development. This low capital intensity distinguishes Austral Gold from juniors pursuing greenfield expansions.

Metallurgical Recovery and Processing Insights

Life-of-mine average metallurgical recoveries are 72% for gold and 47% for silver, influenced by the inclusion of heap-reprocessed material, which typically yields lower recoveries. Higher-grade fresh ore achieves superior recoveries. This blend supports extended mine life while managing processing throughput within existing facility constraints.

The mine plan integrates varying recovery rates by ore type, reflecting a disciplined engineering approach that accounts for physical and chemical ore characteristics. The ability to process both lower-grade reprocessed material and higher-grade fresh ore is enabled by optimised existing infrastructure developed during Austral Gold’s operational history at Guanaco.

Production Forecast and Annual Metal Output

The updated mine plan projects steady production over 14 years (January 2026 to February 2040), with average annual recovered gold at 24,838 ounces and silver at 105,262 ounces. Total ore processed is 18.1 million tonnes, encompassing fresh ore and heap-reprocessed material. This schedule balances multiple deposits and processing capacity constraints.

The consistent production profile provides revenue visibility and operational stability, mitigating risks associated with shorter-life mines. The 14-year horizon allows amortisation of capital investments and supports sustainable cash flow for dividends, debt repayment, exploration, and development of the Casposo asset in Argentina. The plan’s reliance on multiple deposits ensures steady output rather than dependence on a single source.

Permitting Status and Regulatory Considerations

The report notes that parts of the expanded mine plan require outstanding permits, which could impact production timing or scope. While the life-of-mine plan utilises existing infrastructure and permits, some expanded mining areas await regulatory approval, representing a key risk for investors.

Austral Gold confirms no other known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other factors materially affect the resource or reserve estimates beyond the outstanding permits. This provides assurance regarding title and regulatory stability in the Antofagasta Region, though permitting outcomes in Chile remain subject to evolving standards. Progress on outstanding permits will be critical for timely mine plan execution.

Strategic Outlook and Value Creation

CEO Stabro Kasaneva emphasised the updated Technical Report’s role in supporting a 14-year sustainable mining operation at Guanaco built on existing infrastructure, disciplined capital management, and consistent production. Austral Gold’s competitive edge lies in extending mine life by leveraging permitted processing facilities and established infrastructure, creating a strong platform for sustainable value from Guanaco and Casposo.

The strategy focuses on infill drilling, deposit reinterpretation, and infrastructure utilisation to reduce execution risk and capital intensity versus greenfield projects. By prioritising value-generating mining activities over major infrastructure, Austral Gold aims to maximise returns on invested capital and maintain financial flexibility—key advantages in today’s gold market environment where capital efficiency and reduced project risk are highly valued. The Guanaco mine plan aligns with the company’s broader portfolio strategy, reflecting confidence in medium-term production from Chilean and Argentine assets.

Compliance with Reporting Standards and Technical Oversight

The 2026 Technical Report complies with Canadian NI 43-101 and CIM Definition Standards, internationally recognised frameworks for mineral resource and reserve disclosure. Prepared by Qualified Persons, the report was filed simultaneously on the Australian Securities Exchange and SEDAR+, ensuring regulatory compliance across all listing jurisdictions. The mineral estimates also adhere to the JORC Code (2012 Edition) and ASX Listing Rules, demonstrating dual compliance with Canadian and Australian standards.

This report supersedes the prior 2022 Technical Report announced on 29 March 2022, incorporating four years of additional operational data, refined geological interpretation, and updated economic assumptions. The effective date for resource and reserve estimates is 31 May 2026, with a report signature date of 21 July 2026. These recent dates confirm the technical foundation reflects the company’s latest geological and economic insights. The involvement of Qualified Persons and adherence to multiple regulatory frameworks ensure the technical robustness and disclosure integrity of the mineral resource and reserve estimates.