Argentinian gold and silver mining company Austral Gold (ASX:AGD) has reported positive results from a diamond drilling campaign at its Jaguelito project including 26m @ 0.6g/t gold and 7g/t silver. 

Jaguelito is located in Argentina's El Indio Gold Belt, close to Barrick's Veladero gold mine and Altura's project, which makes the find promising for future exploration.

The initial results confirm the company's geological understanding of the structural mineralisation controls of the project, with the drill program and remaining assay results expected to be completed in Q2 2023.

Shares of Austral Gold are up 10% the past month.