Austral Gold (ASX:AGD) has completed the construction of its Heap Reprocessing Project at the Guanaco-Amancaya Mine Complex in Antofagasta, Chile. Operations at the site are set to kick off during the last week of July 2023.

The project is predicted to yield 7,000-9,000 gold equivalent ounces (GEOs) at a cash production cost of less than $700 per GEO for the remainder of 2023.

It is estimated that the total proven mineral reserves contain 223,000 ounces of gold, and 1,043,000 ounces of silver.

Austral Gold forecasts its total annual production for fiscal 2023 to be between 34,000-38,000 GEOs.

The company foresees the reprocessing initiative as a supplementary source of production for the next decade.