Austin Metals Reports Multiple High-Grade Gold Intercepts and $1.25M Capital Raise
Austin Metals Limited has secured $1.25 million through a share placement to fund drilling programs at its Austin Gold and Ashburton Gold-Copper projects, reporting promising high-grade gold intercepts that validate significant mineral potential.
- Completed $1.25 million capital raise via placement of 250 million shares at $0.005 each
- High-grade gold intercepts confirmed at Austin Gold Project’s Brunswick Hill and Mt Sandy prospects
- Maiden 21-hole RC drilling program underway at Ashburton Gold-Copper Project’s Donnelly’s Prospect
- Quarterly exploration expenditure of $108,000 with $438,000 cash at quarter end
- Strategic review underway for potential divestment of Broken Hill Project tenements
Capital Raise Fuels Exploration Momentum
Austin Metals Limited (ASX: AYT) has successfully raised $1.25 million through a placement of 250 million fully paid ordinary shares priced at $0.005 each. The capital injection, supported by both new and existing sophisticated investors, provides the company with approximately $1.62 million in cash at the start of the June quarter, enabling it to advance drilling programs across its key gold and copper projects.
Director Paul L’Herpiniere emphasised the strategic importance of this funding, noting it allows Austin Metals to proactively pursue exploration activities and deliver forthcoming drilling results that could unlock significant value.
Austin Gold Project: Validating a Large-Scale Gold System
Drilling results from the December 2024 campaign at the Brunswick Hill and Mt Sandy prospects within the Austin Gold Project have delivered several high-grade gold intercepts. Highlights include 8 meters at 2.7 g/t Au (including 2 meters at 10.3 g/t Au) and 6 meters at 3.5 g/t Au with a standout 1 meter at 17.1 g/t Au. These results confirm the presence of shallow, high-grade mineralisation that remains open along strike and at depth, suggesting the potential for a substantial gold system.
The company commenced a follow-up 12-hole reverse circulation (RC) drilling program in late March 2025, designed to extend these mineralised zones. Assay results from this program are anticipated in the second quarter of 2025, which will be critical in defining the scale and continuity of the mineralisation.
Ashburton Gold-Copper Project: Maiden Drilling Targets High-Grade Mineralisation
At the Ashburton Gold-Copper Project, located approximately 75 km southwest of Paraburdoo in Western Australia’s Pilbara region, Austin Metals has initiated its maiden RC drilling program. The 21-hole, ~1,400-meter campaign targets the Donnelly’s Prospect, an area with significant outcropping hydrothermal alteration and quartz veining that has returned spectacular rock chip and trench sampling results, including grades up to 14.7% copper and 12.5 g/t gold.
This drilling aims to test approximately 1 km of strike length and depths up to 150 meters to establish lateral and down-dip continuity of mineralisation. The project’s mineralisation style, associated with shear zones and sulphide minerals such as chalcopyrite and pyrrhotite, underscores its compelling exploration potential.
Broken Hill Project Under Strategic Review
No exploration work was conducted on the Broken Hill Project during the quarter as Austin Metals undertakes a strategic review of its tenement portfolio. The company is considering a potential divestment transaction in the near term, reflecting a focus on prioritising its more prospective gold and copper assets.
Financial and Operational Overview
During the quarter, Austin Metals spent $108,000 on exploration and evaluation activities, with no mining development or production costs incurred. Payments to related parties, including director remuneration, amounted to $31,000. The company ended the quarter with $438,000 in cash, following the capital raise and ongoing expenditure.
Looking ahead, Austin Metals plans to assess the upcoming assay results from both the Austin and Ashburton projects before determining the scope of further drilling programs. This measured approach reflects a disciplined strategy to advance exploration while managing capital efficiently.
Bottom Line?
Austin Metals’ recent capital raise and promising drilling results position it well to unlock value from its gold and copper projects, with key assay updates due in Q2 2025.
Questions in the middle?
- Will the upcoming assay results confirm the continuity and scale of high-grade mineralisation at Austin and Ashburton?
- What are the potential terms and timing for the divestment of the Broken Hill Project tenements?
- How will Austin Metals balance exploration expenditure with its current cash position to sustain momentum?
