Funding Constraints Loom as Austin Metals Targets Expansion of High-Grade Gold Zones

Austin Metals Advances Austin Gold Project with High-Grade Drilling Success

Austin Metals Limited (ASX: AYT) has delivered a promising update from its recent drilling campaign at the Austin Gold Project in Western Australia. The company completed approximately 1,200 metres of reverse circulation (RC) drilling targeting the Mt Sandy and Brunswick Hill prospects, aiming to test for high-grade gold mineralisation at depths between 50 and 200 metres.

The assay results, announced shortly after the quarter ended, confirmed multiple high-grade gold intercepts. Highlights include an 8-metre interval grading 2.7 grams per tonne (g/t) gold from 56 metres depth, which contains a 2-metre section at 10.3 g/t Au, and a 6-metre interval at 3.5 g/t Au with a standout 1-metre section at 17.1 g/t Au. These results validate the presence of shallow, high-grade mineralisation and suggest the potential for thicker and richer zones beneath historical intercepts.

Strategic Exploration and Follow-Up Plans

The company’s exploration strategy now focuses on extending mineralisation along strike and at depth, particularly at Brunswick Hill and Mt Sandy. Austin Metals plans to employ soil sampling using arsenic and bismuth pathfinder elements alongside ground geophysics to refine drill targets. Follow-up drilling campaigns are slated for the first quarter of 2025, subject to regulatory approvals, aiming to delineate the resource potential further.

Meanwhile, the Ashburton Copper-Gold Project, covering approximately 510 square kilometres in the Pilbara region, continues to show encouraging signs. Rock chip and trench sampling completed in 2023 returned spectacular grades, including up to 14.7% copper and 12.5 g/t gold over 12 metres. Preparations are underway for initial RC drilling at Ashburton, also planned for early 2025.

Financial Position and Corporate Outlook

During the quarter, Austin Metals expended $304,000 on exploration activities, with no mining development or production costs reported. The company ended the period with $632,000 in cash, representing approximately 1.5 quarters of funding at current expenditure levels. Payments to related parties, including directors and associated entities, amounted to $172,000.

With a solid pipeline of exploration targets and recent high-grade results, Austin Metals is positioning itself to unlock value in two prolific Western Australian gold and copper provinces. However, the company remains mindful of its funding runway and the need to secure additional capital to sustain its aggressive exploration agenda.

Looking Ahead

Investors will be watching closely as Austin Metals embarks on its next phase of drilling at both Austin and Ashburton projects. The outcomes of these programs will be critical in defining the scale and quality of mineralisation and shaping the company’s development trajectory in 2025 and beyond.