Austin Gold Corporate Update

Rhea-AI Summary

Austin Gold Corp. (NYSE American: AUST) provides a corporate update on the completion of a drilling program on the Miller Project in Nevada, the return of the project to property vendors, and the engagement of Savvy Social Management Corp. for digital media marketing. The company is fully funded for exploration programs and is reviewing other projects for potential economic gold/silver deposits.

Positive

• None.

Negative

• The completion of the drilling program did not meet the company's objectives, leading to the return of the project to property vendors.

Insights

Geologist

Exploration updates, particularly drilling results, are critical in assessing the value and future prospects of mining companies. In the case of Austin Gold Corp., the termination of the Miller Project due to the absence of suitable Carlin-type host rocks at a reasonable depth is significant. Carlin-type deposits are among the most prolific sources of gold and finding such deposits can dramatically increase a company's valuation. However, abandoning a project indicates either technical challenges or insufficient findings to justify further investment. This decision impacts the company's asset portfolio and redirects resources towards other prospects with higher potential for discovery.

From a geological perspective, the discontinuation of a project after initial exploration is not uncommon. It reflects a strategic decision to allocate capital effectively, which is essential for exploration companies that typically operate with limited resources. The ability to pivot and focus on other projects is crucial for long-term sustainability in the mining sector.

Financial Analyst

The announcement of Austin Gold Corp.'s engagement with Savvy Social Management Corp. for a comprehensive digital media marketing campaign is a strategic move to increase market visibility. While the cost of US$75,000 per month for these services is a considerable expense, it must be weighed against the potential benefits of heightened investor awareness and market exposure. The month-to-month nature of the agreement provides flexibility, allowing Austin Gold to assess the effectiveness of the campaign and adjust its marketing strategy accordingly.

Investors should monitor the impact of this marketing initiative on trading volumes and the company's stock price, as increased awareness can sometimes translate into higher liquidity and valuation. However, it is also crucial to remain cautious, as marketing efforts do not directly correlate with the underlying value of the company's assets or its operational success. The long-term performance of the stock will ultimately depend on the company's ability to discover and develop economically viable mineral deposits.

Industry Analyst

The decision to return the Miller Project to the property vendors may reflect broader industry trends, where companies are increasingly selective about project investments, focusing on those with the highest potential for economic returns. This is particularly relevant in the context of fluctuating gold prices and the capital-intensive nature of mining operations. Austin Gold Corp.'s statement that it is fully funded for all planned exploration programs suggests financial stability and the capacity to pursue other opportunities.

Investors and industry stakeholders should consider the company's strategic review process and its criteria for project selection. The pursuit of projects with 'exceptional discovery potential' indicates a high-risk, high-reward strategy that could lead to significant discoveries or, conversely, to substantial investment in projects that fail to yield expected results. The ability of Austin Gold to effectively evaluate and execute on new opportunities will be a key factor in its future success.

Vancouver, British Columbia--(Newsfile Corp. - December 22, 2023) - Austin Gold Corp. (NYSE American: AUST) ("Austin" or the "Company") provides the following corporate update.

As reported previously, the Company completed a drilling program on the Miller Project, Elko County, Nevada. Four holes totalling 6,565 feet (2,001 meters) were drilled to target Carlin-type gold mineralization hypothesized to occur beneath Quaternary gravels and Tertiary volcanic rocks. The primary purpose of this drilling program was to determine if suitable Carlin-type host rocks occurred at reasonable depth in areas with gold and multi-element biogeochemical anomalies. A thorough evaluation of data from the drilling program has been completed.

The project no longer meets the objectives of the Company and it has been returned to the property vendors.

Austin Gold Corp. is fully funded for all planned exploration programs. Austin continues to review other projects that may have exceptional discovery potential for economic gold/silver deposits.

Robert M. Hatch, the Qualified Person for Austin Gold as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, has approved the scientific and technical information in this news release.

Austin Gold Corp. has engaged the services of Savvy Social Management Corp. ("Savvy") to help raise on-line marketing awareness and to provide a comprehensive digital media marketing campaign for the company. The company has entered into a media services agreement with Savvy dated December 13, 2023, whereby the services to be provided by Savvy will include digital media, marketing strategies, advertising, and awareness campaigns for a fee of US$75,000 per month. The agreement is month to month and may be terminated by either party upon fifteen days notice. Savvy and Austin are not related parties and operate at arm's length. Neither Savvy nor its principals have any interest in the company's securities, directly or indirectly, or any right or intent to acquire such an interest.

About Austin Gold Corp.

Austin Gold is a gold exploration company focused on gold targets and making district-scale gold discoveries in the southwestern United States.

Austin Gold 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 53.3 km² of unpatented and patented mining claims and mineral tenure. 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 Kelly Creek Project, the Miller Project, the Stockade Mountain Project, and the Lone 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/191681

FAQ

What is the latest corporate update from Austin Gold Corp. (AUST)?

Austin Gold Corp. (NYSE American: AUST) completed a drilling program on the Miller Project in Nevada, which did not meet the company's objectives and has been returned to the property vendors. The company has also engaged Savvy Social Management Corp. for digital media marketing.

What was the primary purpose of the drilling program on the Miller Project?

The primary purpose of the drilling program was to determine if suitable Carlin-type host rocks occurred at reasonable depth in areas with gold and multi-element biogeochemical anomalies.

Is Austin Gold Corp. (AUST) fully funded for exploration programs?

Yes, Austin Gold Corp. is fully funded for all planned exploration programs.

What services will Savvy Social Management Corp. provide to Austin Gold Corp.?

Savvy will provide digital media, marketing strategies, advertising, and awareness campaigns for a fee of US$75,000 per month.

Can the agreement between Austin Gold Corp. and Savvy be terminated?

Yes, the agreement is month to month and may be terminated by either party upon fifteen days notice.