Austral Gold has decided to outsource its underground mine operation at its 100% owned Amancaya mine and certain maintenance activities at its Guanaco processing plant, effective January 2021. Austral is in final negotiations with contractors that will bring new technologies and skills that the Company expects will increase the efficiency and stability of its operations. The outsourcing decision was based on the Company’s focus to increase its mineral reserve inventory in Argentina and Chile, and the challenges of operating at deeper underground levels. Amancaya is a high-grade satellite mine located about 60km from the Guanaco mining complex. As a result of the restructuring, Austral plans to take an after-tax charge of US$3 million. It is expected that the transition to the mining contractor at Amancaya will impact production in January 2021.
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