Austin Gold Provides Update on Initial Drilling Program at Stockade Mountain Project
- Gold assay results from the first two drillholes confirm significant gold grades
- 8.19 g/t over 4 feet (1.2 m) is the strongest intercept
- Austin Gold Corp. is fully funded for the planned exploration programs
- None.
Insights
The recent drilling results from Austin Gold Corp.'s Stockade Mountain Project present intriguing geological findings that have significant implications for the mining sector and investors alike. The discovery of high-grade gold intercepts, such as 8.19 g/t over 4 feet, suggests the presence of a robust mineralizing system. This aligns with characteristics typical of low-sulfidation epithermal gold deposits, which are known for their potential to host economically viable gold and silver resources.
The historical context provided, indicating previous exploration by Placer Dome in the 1990s, sets a precedent for the potential of the area. The transition from targeting near-surface mineralization suitable for open-pit mining to exploring deeper high-grade veins suggests a strategic shift towards underground mining methods. This could imply a significant increase in the project's value if these deeper veins are proven to be extensive and economically extractable.
Understanding the geological model is critical for investors. The described stockwork zone and the potential for high-grade feeder veins below could indicate a large, vertically extensive system. Such systems can be highly profitable if the high-grade zones are continuous and the metallurgical characteristics are favorable for gold extraction.
The assay results from Austin Gold Corp.'s exploration program at Stockade Mountain have immediate implications for the company's valuation and the interest of potential investors in the mining industry. The confirmation of significant gold grades and the continuation of drilling operations suggest that the company is in a strong position to further delineate the mineral resource, which is critical for assessing the project's economic viability.
Investors should note that the company is fully funded for the planned exploration programs, indicating prudent financial management and reducing the risk of dilution from immediate capital raises. The historical data combined with the new drilling results may lead to a re-rating of the company's stock as the market reassesses the project's potential. The strategic focus on high-grade underground targets, if successful, could lead to a substantial increase in the resource estimate and enhance the project's attractiveness to larger mining companies for potential joint ventures or acquisitions.
It is important to recognize that exploration is a high-risk activity and while the current results are promising, further drilling and analysis are necessary to confirm continuity, grade and economic extraction potential. The long intervals of lower-grade mineralization reported from historical drilling also suggest the possibility of a bulk-tonnage deposit, which could be of interest if gold prices remain favorable.
The exploration updates from Austin Gold Corp. have the potential to significantly impact the company's financial prospects. High-grade gold findings, such as those reported, can lead to increased market attention and investor optimism, potentially driving up the company's share price. The project's location in Oregon, a jurisdiction with an established legal framework for mining, may also provide a level of confidence for investors concerned with geopolitical risks.
However, the inherent risks associated with mineral exploration and the need for substantial capital investment to advance the project to production must be weighed. The company's current financial position, being fully funded for its exploration plans, suggests that it is well-equipped to continue its exploration efforts without the immediate need for additional financing, which is often viewed positively by the market.
Investors should closely monitor the progress of the drilling program, as subsequent results will provide further clarity on the size and grade of the deposit. Additionally, the company's ability to effectively communicate the technical aspects and economic potential of the project to the investment community will be essential in maintaining and growing shareholder value.
Summary
AUST has received gold assay results from the first two drillholes at its Stockade Mountain Project, Malheur County, Oregon, including an intercept of 8.19 g/t over 4 feet (1.2 m);
The gold intercepts in the first two holes confirm that the mineralizing system at Stockade Mountain is robust and contains significant gold grades;
Drilling continues on the third core hole;
AUST is fully funded for the planned exploration programs discussed herein.
Vancouver, British Columbia--(Newsfile Corp. - January 30, 2024) - Austin Gold Corp. (NYSE American: AUST) ("Austin" or the "Company") announces that the Company has received gold assay results from the first two drillholes at its Stockade Mountain Project located in Malheur County, Oregon. These holes confirm 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 m) and several other gold intercepts of interest.
Significant intervals are tabulated in the following chart:
| Hole ID | From | To | Interval | From | To | Interval | Gold |
| (ft) | (ft) | (ft) | (m) | (m) | (m) | g/t | |
| SM-23-01 | |||||||
| 155 | 293 | 137.9 | 47.2 | 89.3 | 42.1 | 0.636 | |
| Incl. | 161.4 | 166.4 | 5 | 49.2 | 50.7 | 1.5 | 1.713 |
| Incl. | 279 | 283 | 4 | 85.0 | 86.3 | 1.2 | 8.19 |
| 308.8 | 337.2 | 28.4 | 94.1 | 102.8 | 8.7 | 0.326 | |
| Incl. | 308.8 | 312.1 | 3.3 | 94.1 | 95.1 | 1.0 | 2.809 |
| 382.5 | 386.2 | 3.7 | 116.6 | 117.7 | 1.1 | 2.472 | |
| SM-23-02 | |||||||
| 47 | 63 | 16 | 14.3 | 19.2 | 4.9 | 0.368 | |
| Incl. | 60.3 | 63 | 2.7 | 18.4 | 19.2 | 0.8 | 0.762 |
| 254 | 273.7 | 19.7 | 79.3 | 83.4 | 4.1 | 0.417 | |
| Incl. | 254 | 260.3 | 6.3 | 77.4 | 79.3 | 1.9 | 0.752 |
| 296.8 | 304.5 | 7.7 | 90.5 | 92.8 | 2.3 | 0.513 | |
| 698.5 | 706.6 | 8.1 | 212.9 | 215.4 | 2.5 | 0.752 | |
| Incl. | 698.5 | 701.4 | 2.9 | 212.9 | 213.8 | 0.9 | 1.276 |
| 769 | 771.5 | 2.5 | 234.4 | 235.2 | 0.8 | 1.718 |
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 stockwork mineralization. Historical near-surface drill intercepts in the stockworks zone included long intercepts of >0.2 g/t Au, with some highlights being:
- 79.2 m (260 ft) averaging 0.937 g/t gold, which includes 24 m averaging 1.560 g/t gold;
- 3 m (10 ft) averaging 1.1 g/t gold;
- 1.5 m (5 ft) @1.14 g/t gold;
- 4.6 m (15 ft) averaging 1.1 g/t gold; and
- 4.6 m (15 ft) that averaged 1.385 g/t gold.
Austin's drilling program is designed to begin systematically testing beneath the gold/silver-bearing stockwork mineralization for high-grade vein deposits using a conceptual model that is widely used in epithermal vein exploration. The conceptual cross-section shown below illustrates the relationship between the ground surface at the time the hot springs were active, the higher-level (nearer to the surface) stockwork mineralization, and the deeper high-grade veins that are found in many districts.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9021/196160_841a80df84d9b825_002full.jpg
Hydrothermal alteration and mineralization at Stockade Mountain extend for over 5 miles (8 km) in a northwest-southeast direction, allowing for district-scale discovery. The current surface over much of Stockade Mountain is interpreted to be within tens of feet (or meters) of the ground surface at the time the hot springs system was active. In this model, very little gold/silver mineralization may be found at the surface, but values can increase significantly within a stockwork zone extending ±600 feet (±200 m) downward. At some depth below the surface, the stockwork zones may coalesce into high-grade veins that represent the "feeders" for the hydrothermal fluids.
Austin is currently drilling into what has been historically known as the "Number 9 Vein" area in the central part of Austin's land package. Gold values from surface outcrops of the vein are weak, with a high value of 0.013 g/t. However, the historical drilling indicates that significant thicknesses of stockwork mineralization begin just below the surface and extend at least 1,250 feet (380 m) eastward from the exposed vein zone and 2,300 ft (700 m) along strike. The hypothesized high-grade gold/silver veins at Stockade Mountain would have formed within a vertical zone of vigorous boiling of the hydrothermal fluids near the base of and below the stockworks. The current drilling program, which is Austin's first at Stockade Mountain, is designed to locate those higher-grade vein deposits.
The following map, which shows a portion of the Number 9 Vein area, illustrates the wide zone of stockwork gold mineralization from historical rotary drill holes and Austin's first two core holes.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9021/196160_841a80df84d9b825_003full.jpg
The following cross-section shows Austin Gold's first two drill holes along with historical drill holes on that section.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9021/196160_841a80df84d9b825_004full.jpg
Drill hole SM-23-01 was designed to confirm the assays and understand the geology in historical rotary reverse-circulation drill hole STKD-9. That hole intersected 260 ft (79.2 m) of stockwork veining averaging 0.937 g/t gold from 150 to 410 ft (45.7 - 125 m). In that same zone, Austin's hole SM-23-01 penetrated 137.9 ft (42.1 m) with a weighted average of 0.636 g/t gold, essentially confirming the historical drill hole results. The highest-grade interval is 4 ft (1.2 m) averaging 8.19 g/t. The higher grade and longer overall interval in STKD-9 can be attributed to upgrading of the assays by washing away the clays in the samples by the rotary reverse-circulation drilling method, and therefore biasing the samples with the veining and silicified breccias that would carry the gold values.
Drill hole SM-23-02 was designed to target higher grade mineralization about 330 ft (100 m) below the stockwork mineralization in SM-23-01 and STKD-9. Although significant stockwork mineralization was penetrated, it is apparent that either the Number 9 Vein as exposed in outcrop is not the main "feeder" for the widespread stockwork mineralization, or it has a dip and/or strike different from what was expected.
The drilling program was planned to consist of 4,000 to 5,000 feet in 4 or 5 diamond drill (core) holes, each hole to be 800 to 1,500 feet deep. This is the first known use of diamond drilling on the property, which will allow Austin to have a better understanding of the host rocks and mineralization.
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 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.
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 78.9 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 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/196160
FAQ
What are the gold assay results for Austin Gold Corp.'s Stockade Mountain Project?
Where is Austin Gold Corp.'s Stockade Mountain Project located?
Is Austin Gold Corp. fully funded for its planned exploration programs?
