Austral Gold commences decline construction and plant refurbishment at Guanaco Project, Chile January 21, 2010

Following the announcement on 21 October 2009 of the commencement of the 2009/10 exploration program at the Company’s 100% owned Guanaco Project, Austral Gold Limited (ASX:AGD) announces the commencement of decline construction and plant refurbishment at Guanaco.

Primary, secondary and tertiary crushing plant exists on site as a result of former operations. Critical components of this plant are now being disassembled and sent to workshops in Antofagasta for repair and upgrading.

A 1500 metre underground decline has been designed to facilitate exploration of the Cachinalito and nearby vein systems and for ore haulage during mining. A contract for decline development has recently been let and construction will be completed during calendar 2010.

Shareholders and the ASX will be kept informed as Austral Gold continues activities to bring Guanaco into production.

Click here to view the announcement.

For further information, please contact:

Catherine Lloyd
Company Secretary
+61 2 9380 7233

Media
Bill Kemmery
Fortbridge
+61 2 9331 0655
+61 400 122 449
bill.kemmery@fortbridge.com