Casposo Restart Boosts Output but Hinges on Mining Contractor Deal
Austral Gold has resumed commercial production at its Casposo Mine in Argentina after completing a significant plant refurbishment, aiming to boost its output alongside operations in Chile.
- Casposo Mine production restart after plant refurbishment
- Q4 2025 production forecast between 4,000 and 6,000 gold equivalent ounces
- Initial output sourced from existing stockpiles
- Transition to open-pit mining planned via contractor agreement
- US$7 million bank loan funded refurbishment
Restarting a Key Asset
Austral Gold Limited has officially restarted commercial production at its 100%-owned Casposo Mine in Argentina, marking a pivotal moment for the company’s growth strategy. This follows the completion of a comprehensive refurbishment of the Casposo processing plant, a project supported by a US$7 million bank loan secured earlier this year. The refurbishment and commissioning phase, which began in late December 2024, has now culminated in the mine’s return to active production.
Production Outlook and Operational Plans
For the remainder of 2025, Austral Gold forecasts Casposo to produce between 4,000 and 6,000 gold equivalent ounces (GEOs), including 230 GEOs generated during the commissioning phase. Initial production is being drawn from existing stockpiles, providing a steady ramp-up as the company prepares to transition to open-pit mining. This next phase will be executed through a collaborative operating arrangement with a local contractor, currently under negotiation, who will provide mining services under Austral’s supervision.
Strategic Implications
The restart of Casposo complements Austral Gold’s existing operations at the Guanaco Mine in Chile, effectively enhancing the company’s production profile across South America. CEO Stabro Kasaneva highlighted the significance of this milestone, emphasizing its potential to improve cash flow and strengthen the company’s financial position. The move also reflects Austral’s broader strategy of building a diversified portfolio of producing and exploration assets in the Americas.
Technical and Market Considerations
Casposo’s production mix is expected to be approximately 70% gold and 30% silver, with metallurgical recovery rates forecast at 90.3% for gold and 85.8% for silver. The plant refurbishment has positioned the mine to efficiently process ore with average head grades of 1.88 grams per tonne for gold and 80.73 grams per tonne for silver. These technical parameters underpin the company’s production guidance and provide a foundation for future operational stability.
Looking Ahead
While the restart is a positive development, the transition to open-pit mining hinges on finalizing the contractor agreement, which remains under negotiation. The outcome of these discussions will be critical in determining the pace and cost structure of Casposo’s next operational phase. Investors will be watching closely for updates on this front as Austral Gold seeks to translate its production restart into sustained cash flow growth.
Bottom Line?
Casposo’s restart signals growth, but the next phase depends on securing mining partnerships.
Questions in the middle?
- When will Austral Gold finalize the contractor agreement for open-pit mining?
- How will the transition to open-pit mining impact production costs and timelines?
- What are the company’s plans for scaling production beyond 2025 at Casposo?
