Austin Gold Provides Update on Initial Drilling Program at Stockade Mountain Project
- None.
- None.
The recent completion of the initial diamond drilling campaign at Stockade Mountain by Austin Gold Corp. represents a significant development phase for the company. The use of diamond drilling, a method renowned for its precision in extracting a continuous mineral core, allows for a detailed analysis of the geological strata. This is particularly important in the context of Stockade Mountain, given the historical data suggesting the presence of low-sulfidation gold and silver deposits, which are typically associated with high levels of preservation of the mineralizing system.
From a mining analyst's perspective, the reported high-grade intercept of 8.19 g/t gold over 4 feet is noteworthy. This grade is substantially higher than the average grade of gold mines globally, which tends to hover around 1-5 g/t. The presence of such high-grade intercepts can significantly affect the economic viability of the project. However, it is crucial to await the assay results of the latest core samples to confirm these findings and provide a more comprehensive understanding of the deposit's potential.
Furthermore, the fully funded status of Austin's exploration programs is a strong indicator of the company's financial health and its ability to sustain its exploration efforts without the immediate need for external financing. This can be reassuring for investors, as it reduces the risk of dilution from potential share issuances in the near term.
The Stockade Mountain Project's geology is of particular interest due to its classification as a classic low-sulfidation/hot springs gold and silver exploration-stage project. Low-sulfidation systems are known for their potential to host economically significant precious metal deposits, often characterized by high-grade veins. These veins are formed in hydrothermal systems where hot, mineral-rich fluids ascend through fractures in the Earth's crust, depositing gold and silver as they cool.
The historical exploration work in the late 1980s and early 1990s focused on near-surface gold deposits, which were considered amenable to open-pit mining. However, Austin's strategic shift to probe beneath these stockworks for high-grade veins suggests the potential for a dual mining approach, combining both open-pit and underground methods, should the economic conditions warrant. This could lead to a more complex but potentially more rewarding extraction operation.
It is also significant that the last drilling conducted on the property was in 1993 and the current drilling campaign is the first to utilize diamond drilling for deeper exploration. This marks a substantial advancement in exploration technology and methodology since the last assessments, which could uncover previously unrecognized high-grade mineralization.
The announcement by Austin Gold Corp. regarding their drilling results at Stockade Mountain has implications for the market's perception of the company's stock. Positive assay results could lead to an upward revaluation of Austin's assets, particularly if the grades and quantities of gold and silver are substantial enough to suggest a profitable mining operation. Conversely, below-expectation results could dampen investor enthusiasm.
Given the project's proximity to established infrastructure, with Burns, Oregon and Boise, Idaho being relatively close, the logistical aspect of the project development is favorable. This could facilitate the transportation of materials and personnel, potentially reducing operational costs and thus improving the project's overall economics.
The stock market's response to such exploratory developments is typically mixed, as the inherent risks of mining investment are balanced against the potential for high returns. Investors will likely monitor the assay results closely, as they will provide a clearer picture of the deposit's quality and the project's future prospects.
Summary
AUST has completed the initial diamond drilling campaign at Stockade Mountain;
Three exploration holes totalling 2,435.9 feet (742.5 meters) were drilled this winter;
The third and last hole was drilled to a depth of 736.7 feet (224.5 meters);
Core has been sent to the assay lab for assaying;
AUST is looking at a reverse circulation ("RC") drilling program in the summer;
AUST is fully funded for the planned exploration programs discussed herein.
Vancouver, British Columbia--(Newsfile Corp. - March 4, 2024) - Austin Gold Corp. (NYSE American: AUST) ("Austin" or the "Company") announces that the Company has completed the third diamond drill hole at its Stockade Mountain Project located in Malheur County, Oregon. All core samples are at the assay laboratory and are in the process of being prepped and assayed, with results expected in four to six weeks.
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 (see news release dated January 30, 2024 for details). The third and last hole was drilled to a depth of 736.7 feet (224.5 meters) with the three exploration holes totalling 2,435.9 feet (742.5 meters).
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.
Austin is fully funded for all planned exploration programs. The Company continues to review other projects that may have exceptional discovery potential for economic gold/silver deposits.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/200239
FAQ
How deep was the third diamond drilling hole at Stockade Mountain?
What type of drilling program is Austin Gold Corp. planning for the summer?
Where is Stockade Mountain Project located?
How many core holes were drilled in the initial campaign at Stockade Mountain?
What is the historical background of Stockade Mountain Project?
