Austin Metals reports promising gold and copper-gold drilling results at its Western Australian projects while divesting its Broken Hill assets to sharpen focus on core holdings.
- High-grade gold mineralisation confirmed at Mt Sandy prospect
- New mineralised fault zone discovered at Brunswick Hill
- Maiden drilling reveals extensive copper-gold system at Ashburton
- Sale of Broken Hill tenements for $400,000 cash and shares
- Strong cash position with 1.79 quarters of funding available
Exploration Breakthroughs at Austin and Ashburton
Austin Metals Limited (ASX, AYT) has delivered a robust quarterly update, highlighting significant progress across its flagship Austin Gold Project and the newly acquired Ashburton Copper-Gold Project in Western Australia. The company’s recent drilling campaigns have confirmed high-grade gold mineralisation at the Mt Sandy prospect, with assays revealing multiple intercepts including 4.0 meters at 4.2 grams per tonne gold, and standout intervals reaching 12.6 grams per tonne within a west-dipping shear zone extending over 500 meters and remaining open for expansion.
At the Brunswick Hill prospect, Austin Metals identified a previously unrecognised northeast-southwest fault zone, marking the first mineralisation outside the main west-dipping lens. This discovery significantly enhances the geological complexity and potential scale of the mineralised system, suggesting multiple structurally controlled gold-bearing zones within the broader project area.
Ashburton Project Maiden Drilling Uncovers Copper-Gold Potential
The maiden reverse circulation drilling program at Ashburton has delineated a laterally extensive copper-gold system spanning over 900 meters along strike, with mineralised zones exhibiting intense alteration and a transition from magnetite-pyrrhotite assemblages at depth to hematite-silica-chlorite near surface. Notable intercepts include 10 meters at 0.6 grams per tonne gold and 0.3% copper, alongside higher-grade intervals such as 2 meters at 2.1 grams per tonne gold with 1.2% copper. Geological features like felsic porphyritic dykes and hydrothermal breccias point to a magmatic-hydrothermal fluid source, underpinning the system’s exploration appeal.
Strategic Portfolio Streamlining via Broken Hill Divestment
In a strategic move to concentrate resources on its Western Australian assets, Austin Metals entered a binding agreement to sell its Broken Hill tenement package in New South Wales to Kingfisher Mining Ltd for $400,000, split evenly between cash and fully paid shares. This divestment not only streamlines the company’s portfolio but also maintains exposure to potential upside through its equity stake in Kingfisher, reflecting a balanced approach to capital allocation and risk management.
Financial Position and Next Steps
During the quarter, Austin Metals invested $430,000 in exploration and evaluation activities, supported by a $50,000 director placement completed post-general meeting. The company ended the period with a healthy cash balance of $1.058 million, providing approximately 1.79 quarters of funding at current expenditure levels. Looking ahead, Austin Metals plans to expand high-grade gold zones at Mt Sandy, test the newly identified fault structures at Brunswick Hill, and continue target generation and hydrothermal breccia assessment at Ashburton. Ground geophysics and targeted sampling programs are also slated to refine exploration focus.
Overall, Austin Metals’ quarterly report underscores its advancing exploration pipeline and disciplined capital management, positioning the company well to unlock value from its Western Australian projects while prudently managing its portfolio and funding.
Bottom Line?
Austin Metals’ latest results and strategic divestment set the stage for focused growth in Western Australia’s gold and copper sectors.
Questions in the middle?
- How will further drilling at Mt Sandy and Brunswick Hill impact resource estimates?
- What exploration milestones are anticipated next at the Ashburton copper-gold system?
- Could the Broken Hill divestment proceeds accelerate development or new acquisitions?