Austral Gold (ASX:AGD) has entered into two material mining services agreements with local contractors for planning mine development activities at the Julieta and Mercado open pits at the Casposo Mine in Argentina.
Local contractor ADL will conduct drilling and blasting activities, while DP Minería y Servicios will conduct loading and haulage services. These development activities have already begun.
Production from Julieta, Mercado, and existing stockpiles are expected to represent the primary source of ore underpinning Casposo’s 2026 production guidance of 11,000 to 13,000 GEOs for a six-month period.
Both agreements are to have an estimated aggregate value of US$42 million ($62.57 million).
During this time, the Casposo plant is expected to process Casposo-sourced material only, with the balance of the year expected to involve processing material from Challenger Gold’s (ASX:CEL) Hualilan Project.
Gold recovery rates are expected to be above 90%, with cash costs per ounce anticipated to remain below US$1,900 ($2,830) per ounce.
Austral Gold is an established gold producer focused on increasing production and exploring for new gold deposits in the Americas.
Write to Aaliyah Rogan at Mining.com.au
Images: Austral Gold
