Austin Gold Provides Update on Drilling Program at Stockade Mountain Project
- High gold value of 9.32 g/t returned from a 2.7 foot interval in the third diamond drill hole.
- Austin Gold Corp. plans to conduct a reverse circulation drilling program following the positive results.
- Stockade Mountain Project displays robust mineralization and potential for significant gold grades.
- Significant gold values reported in the third drill hole, with long intervals of >0.100 g/t gold encountered.
- Project area shows strong hydrothermal system and potential for high-grade vein deposits.
- Stockade Mountain Project consists of 261 unpatented lode mining claims covering an area of 6,790 acres in Malheur County, Oregon.
- Austin Gold Corp. is fully funded for all planned exploration programs at Stockade Mountain Project.
- None.
The reported assay results from Austin Gold Corp's Stockade Mountain Project indicate a substantial presence of gold, particularly the 9.32 g/t over a 2.7 foot interval. This high-grade occurrence within a hydrothermal system suggests potential for economically viable extraction, especially considering the historical context of exploration at Stockade Mountain. The reference to chalcedonic vein and breccia points to a low-sulfidation epithermal deposit, which is consistent with the geological setting of the region. The oxidized nature of the rock to the bottom of the hole implies near-surface oxidization, which can be beneficial for gold recovery processes.
Furthermore, the shift from historical open-pit targets to now probing for high-grade veins suitable for underground mining represents a strategic pivot in exploration. This could signify a move towards targeting deeper and potentially more lucrative mineralization. The use of diamond drilling, as opposed to reverse circulation (RC) drilling, provides high-quality core samples for better geological interpretation, which is important for understanding the mineralization structure and guiding future exploration.
From a market perspective, the initial assay results from Austin Gold Corp's drilling program are likely to be perceived positively by investors, as they suggest the company is advancing in its exploration efforts and may be on track to delineating a resource. The announcement of being fully funded for planned exploration programs indicates financial stability and reduces the immediate risk of dilution through equity financing, which can be reassuring for shareholders. However, it's important to note that the exploration stage is inherently speculative and further drilling will be necessary to confirm continuity, grade and economic viability of the deposit.
The location of the Stockade Mountain Project, in proximity to infrastructure and the established mining jurisdictions of Oregon and Idaho, could also be advantageous for future development logistics and permitting processes. The historical exploration work and previous drilling by Placer Dome in the 1990s provide a foundation of geological data that can be leveraged to accelerate the current exploration program.
Assessing the reported data from a mining analysis standpoint, the encountered gold values, particularly the 9.32 g/t over a 2.7 foot interval, are promising. However, the true economic potential hinges on the size, continuity and overall grade of the deposit. The company's plan to follow up with a reverse circulation drilling program is a strategic move to quickly and cost-effectively assess the mineralization at a broader scale. This will be essential for defining the next stages of resource estimation and potential mine development.
The historical context of exploration at Stockade Mountain and the shift from near-surface exploration to targeting deeper high-grade veins could potentially open up new avenues for resource expansion. It is also indicative of the company's adaptive exploration strategy, which is responsive to both past results and current geological interpretations. The successful identification of high-grade feeder veins could significantly enhance the project's value and future mine life.
Summary
Three diamond drill holes totalling 2,435.9 feet (742.5 meters) were drilled this winter at Stockade Mountain;
The third and last diamond drill hole was drilled to a depth of 736.7 feet (224.5 meters) and initial assay results for gold have been received;
A high gold value of 9.32 grams per tonne ("g/t") was returned from a 2.7 foot (0.82 meter) interval of chalcedonic vein and breccia;
AUST plans to follow up these encouraging results with a reverse circulation ("RC") drilling program;
AUST is fully funded for the planned exploration programs discussed herein.
Vancouver, British Columbia--(Newsfile Corp. - March 25, 2024) - Austin Gold Corp. (NYSE American: AUST) ("Austin" or the "Company") announces that the Company has received gold assays for the third diamond drill hole at its Stockade Mountain Project located in Malheur County, Oregon.
The third hole returned a high gold value of 9.32 g/t from a 2.7 foot (0.82 meter) interval of chalcedonic vein and breccia. Hydrothermal alteration and mineralization in the hole are exceptionally strong and the rock is completely oxidized to the bottom of the hole. This third hole (SM-24-04)1 was drilled due north from the site of SM-23-02 at an inclination of -72.5 degrees. Although the gold intervals are not interpreted to be one of the targeted high grade "feeder" veins to the high level stockwork gold mineralization, geological indications are that they are at greater depth and in this general area. AUST is planning a RC drill program to continue the exploration for the hypothesized high-grade vein systems.
Significant gold values in SM-24-04 are reported in the table below. Additionally, long intervals of >0.100 g/t gold were encountered.
| Hole ID | From | To | Interval | From | To | Interval | Gold |
| (ft) | (ft) | (ft) | (m) | (m) | (m) | g/t | |
| SM-24-04 | |||||||
| 242 | 245 | 3 | 73.8 | 74.7 | 0.91 | 0.515 | |
| 607 | 609.7 | 2.7 | 185 | 185.8 | .82 | 9.32 | |
| 609.7 | 612 | 2.3 | 185.8 | 186.5 | .70 | 1.04 | |
| 654 | 656 | 2 | 199.3 | 200 | 0.61 | 0.363 | |
| 674.8 | 678 | 3.2 | 205.7 | 206.7 | 0.98 | 0.378 | |
| 712.4 | 713.9 | 1.5 | 217.1 | 217.6 | 0.46 | 1.22 |
As previously reported, the initial two holes confirmed that the mineralizing system at Stockade Mountain is robust and contains significant gold grades, with the strongest intercept of 8.19 g/t over 4 feet (1.2 meters) and several other gold intercepts of interest (refer to the news release dated January 30, 2024 for details). This third hole continues to demonstrate the strength of the hydrothermal system and the potential for significant gold mineralization within the project area.
Stockade Mountain is a classic low-sulfidation/hot springs gold and silver exploration-stage project with a history of significant exploration work in the late 1980s and early 1990s. At that time, targeted mineralization was near-surface gold deposits minable by open pit methods. The last hole drilled at Stockade was in 1993 by Placer Dome, and until Austin's current drill program, no drilling had targeted high-grade veins minable by underground methods that are hypothesized to occur below the known lower grade stockworks mineralization.
The Company's drilling program was designed to test beneath the known high-level gold/silver-bearing stockworks mineralization for high-grade vein deposits formed deeper in the hydrothermal system. This is the first known use of diamond drilling on the property, which allows the Company to have a better understanding of the host rocks and mineralization. Due to extremely difficult ground conditions caused by mud and snow, this initial program has been limited to the completed three core holes.
The Stockade Mountain Project consists of 261 unpatented lode mining claims that cover an area of 6,790 acres, located in Malheur County, Oregon, approximately 85 kilometers southeast of Burns, Oregon, and 150 kilometers southwest of Boise, Idaho.
The Company is fully funded for all planned exploration programs.
Robert M. Hatch, the Qualified Person for Austin as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has approved the scientific and technical information in this news release.
About Austin Gold Corp.
Austin is a gold exploration company focused on gold targets and making district-scale gold discoveries in the southwestern United States.
Austin has two projects in Nevada. The Kelly Creek Project is located on the Battle Mountain-Eureka (Cortez) gold trend in Humboldt County and the Lone Mountain Project is on the Independence-Jerritt Canyon gold trend in Elko County. Collectively, these Nevada properties comprise approximately 78.9 km2 of unpatented lode mining claims and private property. In Oregon, the Stockade Mountain Project consists of approximately 21.5 km2 of unpatented mining claims situated in a geological environment that appears the same as the nearby Grassy Mountain Deposit that is being permitted for underground mining.
For further information, please contact:
Darcy A. Higgs, Vice President, Business Development
604-644-6580
darcy.higgs@austin.gold
Website: www.austin.gold
Safe Harbor / Forward-Looking Statements
This press release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbors created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, the Company's expectations, strategies and plans for the Stockade Mountain Project, including the Company's planned expenditures and exploration activities.
Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance, or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance, or achievements expressed or implied by such forward-looking information.
The Company cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.
Except as required by law, the Company does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.
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1 A hole numbered "SM-23-03" was collared in from the same site but drilled to less than 100 feet and abandoned. Due to its very close proximity to SM-23-02, SM-23-03 was not sampled.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/202964
FAQ
What was the high gold value returned from the 2.7 foot interval in the third diamond drill hole at Stockade Mountain Project?
What type of drilling program does Austin Gold Corp. plan to follow up the encouraging results with?
What is the type of gold and silver exploration-stage project at Stockade Mountain?
How many unpatented lode mining claims cover the Stockade Mountain Project area?
Where is the Stockade Mountain Project located geographically?
