MNS: AGC to build on Achilles silver-gold strength at South Cobar

Key Concepts

• Australian Gold and Copper (AGC): An Australian exploration company focused on silver and gold.
• South Cobar Project: AGC’s primary project, encompassing the Achilles and Browns Reef Evergreen deposits.
• Mineral Resource Estimate (MRE): An assessment of the quantity and quality of mineral deposits.
• Silver Equivalent (AgEq): A standardized measure used to express the value of different metals (silver, gold, etc.) in terms of the equivalent amount of silver.
• Discovery Cost: The cost incurred to identify and define a mineral resource.
• Cobar Basin: A geological region in New South Wales, Australia, known for its mineral deposits.
• Exploration Tenure: The rights granted to a company to explore for minerals in a specific area.

Initial Mineral Resource Estimate & Growth Potential

Australian Gold and Copper (AGC) recently released its initial Mineral Resource Estimate (MRE) for the South Cobar project. Glenn Demar, Managing Director, emphasizes the “initial” nature of this estimate, highlighting significant potential for growth. Currently, the MRE stands at 38.5 million ounces of silver equivalent, a figure considered particularly promising given the current favorable silver prices. Importantly, 23 drill holes with high-grade results, including intercepts of 6m at 2,474 g/t of silver equivalent, are not included in this initial estimate. These results represent substantial untapped potential.

South Cobar Project – Achilles Deposit Details

The Achilles deposit, a key component of the South Cobar project, is characterized by its near-surface location, starting right at surface and dipping at 50°. A particularly encouraging drill hole yielded 11m at 400+ g/t of silver equivalent, and, crucially, this result was also excluded from the initial MRE. AGC plans to bring in a drill rig within two to three weeks to drill underneath this high-grade intercept, aiming to rapidly increase the silver equivalent ounce count. The discovery cost for the 38 million ounces already defined was remarkably low, at just 14 cents per ounce.

Financial Position & Near-Term Drilling Focus

AGC is well-funded with over $8 million in the bank, enabling continued drilling. The company’s primary focus for the next few months is to significantly increase, ideally doubling, its resource base. Demar states the company’s “mandate” is to continue adding ounces at the exceptionally low discovery cost of 14 cents per ounce, driving substantial growth.

Long-Term Vision: A Multi-Million Ounce District

AGC’s long-term vision extends beyond the Achilles deposit. The company believes the South Cobar project area, part of the broader Cobar Basin, has the potential to become a multi-million ounce silver equivalent district. This belief is underpinned by AGC’s control over the entire district through its exploration tenure. A recent acquisition, the Browns Reef Evergreen deposit, is estimated to be six to seven times larger than the Achilles deposit, extending over 25km with 6km of historic drilling, but currently lacks a defined resource.

Acquisition of Browns Reef Evergreen & Regional Potential

The Browns Reef Evergreen deposit, six kilometers in length, represents a significant expansion of AGC’s land holdings and potential. While Achilles is 750m long, Browns Reef Evergreen’s extensive strike length offers substantial exploration upside. AGC intends to focus on resource definition at Browns Reef Evergreen this year, alongside continued drilling at Achilles and exploration for new discoveries. This multi-pronged approach is designed to deliver strong growth in the near, medium, and long term.

Discovery Costs & Project Location

The exceptionally low discovery cost of 14 cents per ounce is a key differentiator for AGC. The South Cobar project is conveniently located near AGC’s operations in Orange, New South Wales, facilitating ease of access for exploration activities in the Lake Kajell area.

Notable Quote

“If our job right now in a high silver gold environment is just to keep adding ounces at a 14 cents per ounce discovery cost. So that is really our mandate. That is uh how we get significant growth out of this company.” – Glenn Demar, Managing Director, Australian Gold and Copper.

Synthesis/Conclusion

AGC presents a compelling investment opportunity based on its initial MRE, low discovery costs, strong financial position, and significant growth potential within a highly prospective region of the Cobar Basin. The company’s strategy of aggressively expanding its resource base at Achilles and defining a resource at Browns Reef Evergreen, coupled with ongoing exploration, positions it for substantial long-term growth and the potential to establish a significant silver equivalent district. The low discovery cost of 14 cents per ounce is a particularly attractive feature, suggesting efficient exploration and a high return on investment.