Austin Gold (AUST): Stockade Mountain Could Yield Large Gold Discovery

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Investors have been piling back into precious metals over the past six months, causing the price of gold to surge past $2,500 per ounce – an all-time high. Gold has performed so successfully this year that a standard 400 oz gold bar now costs $1 million for the first time ever.

Investors considering buying physical gold or investing in a gold ETF may want to consider a third approach: investing in gold exploration companies. These are companies whose primary business is exploring, developing, or actively mining natural resource deposits. Buying stock in an exploratory mining company can lead to potentially higher returns than buying physical gold – especially if you invest before that company finds a major deposit.

Right now, Austin Gold (AUST) is the only pre-discovery exploration company listed on the NYSE American. This company has an experienced team and is well-funded. But, even better, it could be on the verge of a large discovery at one of its three exploration projects. 

Stockade Mountain Drilling Performance

Austin Gold is currently pursuing three major exploration projects:

• Kelly Creek in Humboldt County, Nevada
• Lone Mountain in Elko County, Nevada
• Stockade Mountain in Malheur County, Oregon

In an exciting development, a recent exploratory drilling round at Stockade Mountain came back positive and the findings have sparked investor interest in Austin Gold. 

Drilling for gold at Stockade Mountain is not a new idea. This site was highly popular in the 1980s and 1990s. But, the project hasn’t been drilled since 1993 and has never been drilled by diamond drilling techniques for high-grade veins that are hypothesized to occur below the known lower grade stockworks mineralization near the surface. Thanks to an updated geologic model, the project demonstrates the discovery potential for significant high-grade gold/silver mineralization occurring at shallow depth that may be amenable to underground mining.

President & Director Dennis Higgs recently spoke at the Metals Investor Forum and informed investors that Austin Gold is drilling deeper than any other company has gone before at Stockade Mountain. In doing so, Austin Gold hopes to uncover a potential feeder system.

Austin Gold recently drilled three holes at Stockade Mountain with encouraging results:

1. These three drill holes confirm that the mineralizing system is robust and contains significant gold grades, with the strongest intercepts including 8.19 g/t over 4 feet (1.2 m) and 9.32 g/t over 2.7 feet (0.82 m)  and several other gold intercepts of interest.
2. Mineralization in the hole is exceptionally strong and the rock is completely oxidized, which implies that we may be close to the feeder vein systems that we are looking for.
3. The mineralizing system at Stockade Mountain continues to demonstrate the strength of the hydrothermal system and the potential for significant gold mineralization within the project area.

Based on these results, Austin Gold is planning a reverse circulation drilling program to continue exploring the area for the high-grade vein systems.

What Does This Mean?

Austin Gold set out to drill at Stockade Mountain with a fairly simple hypothesis: gold deposits in the form of “feeder veins” might be lying underneath the known gold veinlets that are closer to the surface. The most recent drilling at Stockade Mountain has helped confirm that mineralization at the project is robust and indeed contains significant gold grades. From here, continued exploration could lead to a discovery. For investors, the biggest financial returns typically occur after a discovery has been made.

Why Austin Gold?

Skeptical investors may assume that Austin Gold may have just gotten lucky with its recent drilling performance. But, the company’s successful track record says otherwise. 

Austin Gold's experienced team has a reputation for building successful mining operations, as demonstrated by their involvement in Pretium Resources (which was acquired by Newcrest Mining), Silver Standard Resources (now SSR Mining (SSRM)), and Uranerz Energy (which was acquired by Energy Fuels (UUUU)). 

There’s a good chance that this exploration at Stockade Mountain is just the most recent win for a team with a long history of success. 

Austin Gold is also well-funded to thoroughly explore all of its projects, a rarity for companies at this stage. The company currently has $7.4 million in current assets and just $87,000 in current liabilities, according to its unaudited Q2 2024 financial statement. The Austin Gold team has ample funding to strategically and thoroughly explore Stockade Mountain in search of gold. 

Some investors may be experiencing the fear of missing out (FOMO) after watching the price of gold hit an all-time high in recent months. But, just like gold, investment opportunities are always out there. You just need to know where to look.

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