Austral Gold Limited has completed the first stage of drilling at the Jaguelito Project in Argentina's prolific El Indio Gold Belt. At the Sagitario target at Jaguelito Sur, drill hole DJS-001A intersected 14.0 m @ 0.7 gpt Au & 17 gpt Ag, starting at 133m, including 4.4m @ 1.44 gpt Au & 30 gpt Ag, from 143m. The hole reached a significant depth of over 400m, marking the phreatomagmatic column encountered in the project to date.

The results indicate that one of the five surface-identified centers at Jaguelito Sur is similar to the dimensions and intensity of high-sulphidation deposits in this metallogenic belt. Gold and silver mineralisation, in line with exploratory model, is high-sulfidation and hosted predominantly in phreatomagmatic rocks. Gold is associated with grey silica flooding in vuggy silica and quartz-alunite-jarosite hydrothermal alteration.

Austral drilled a total of 4,331m across two sectors at the Jaguelito project: Jaguelito Norte and Jaguelito Sur. In accordance with the Company's agreement with Mexplort Perforaciones Mineras SA (?Mexplort?), Austral intends to exercise its option to acquire 50% of the project by drilling additional 700m to satisfy the 5,000m drilling commitment under Stage of the agreement. The 700m are expected to be drilled in a new program to be jointly developed with Mexplort later this year.