Results Include 133 metres at 1.29 g/t
Gold
TORONTO, March 20, 2017 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is
pleased to announce that it has completed a 22 hole
reverse-circulation ("RC") drill program totaling 5,139 metres at
the La Colorada mine in
Sonora, Mexico (the "2017 drill
program"). The drilling was designed to test for the down dip
extension of potential open pit mineralization at the El Creston
deposit. The Company believes the results of the 2017 drill
program, coupled with the results of 70 RC holes drilled during
2016 (see press release dated October 3,
2016) (the "2016 drill program"), have the potential to
expand the El Creston open pit beyond its current design.
The recently completed El Creston drill program was mainly
designed to convert Inferred Resource projected down-dip to a
Measured and Indicated Resource. All 22 holes were spaced
along the northern fringes of the historical El Creston pit and
drilled to intersect mineralized zones that dip northerly below the
currently designed pit limits. In addition to upgrading
Inferred Resources and confirming Indicated Resource, the 2017
drill program was intended to further de-risk the project prior to
the commencement of mining. Table 1 below illustrates the El
Creston deposit Mineral Resource estimate year-over-year that was
most recently updated at December 31,
2016 and shows the high conversion rate of Inferred Resource
to Indicated Resource through the 2016 drill program as well as the
ability to discover new Inferred Resource. The results from
the 2017 drill program are not included in the Mineral Resource
estimate.
Table 1: El Creston Mineral Resource Estimate
– 2015 vs. 20161
El
Creston
Deposit
|
|
Class
|
|
Tonnes
(000s)
|
|
Au
Grade
(g/t)
|
|
Au
Ozs
(000s)
|
|
Ag
Grade
(g/t)
|
|
Ag
Ozs
(000s)
|
December
|
|
Indicated
|
|
12,869
|
|
0.61
|
|
251
|
|
12.5
|
|
5,154
|
31, 2015
|
|
Inferred
|
|
487
|
|
0.92
|
|
14
|
|
17.9
|
|
280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
|
|
Indicated
|
|
13,097
|
|
0.63
|
|
264
|
|
16.5
|
|
6,937
|
31, 2016
|
|
Inferred
|
|
2,381
|
|
0.82
|
|
63
|
|
12.1
|
|
923
|
1 The El Creston Deposit December 31, 2015 Mineral Resource Estimate was
updated internally and reviewed by Qualified Persons Mike Lechner
and Richard Rhoades. The
Mineral Resource update used a gold price of $1,300 and a silver price of $18. A gold equivalent cut-off grade of
0.106 g/t was used.
The El Creston Deposit December 31,
2016 Mineral Resource Estimate was updated internally and
reviewed by Qualified Persons Mike Lechner and Richard Rhoades. The resource update used
a gold price of $1,400 and a silver
price of $20. A cut-off grade
of 0.11 g/t Au was used and is supported by the current operating
costs. The Mineral Resources are confined within a conceptual pit
using MineSight software and slope templates developed by Golder
Associates.
Pete Dougherty, President and CEO
commented: "The results of the drill campaigns over the past 11
months have further delineated and de-risked the El Creston deposit
and give us further confidence in the potential to expand the El
Creston open pit beyond its current design. These results
substantiate the Company's decision to accelerate stripping at El
Creston and is an example of how brownfields exploration continues
to yield positive results at La
Colorada."
Gold samples were capped at 10 g/t Au. Table 2 below
illustrates key highlight holes from the 2017 drill program.
For a full table of all drill results, plan view maps and cross
sections, please visit:
http://www.argonautgold.com/gold_operations/drill_results/
Table 2: Key Highlight Holes
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-479
|
180
|
65°
|
|
|
|
|
|
Interval
|
|
|
161.5
|
166.1
|
4.6
|
0.32
|
1
|
Interval
|
|
|
175.3
|
190.5
|
15.2
|
0.62
|
5
|
Including
|
|
|
179.8
|
182.9
|
3.0
|
1.69
|
8
|
Interval
|
|
|
195.1
|
214.9
|
19.8
|
0.72
|
10
|
Including
|
|
|
201.2
|
204.2
|
3.0
|
2.32
|
17
|
Including
|
|
|
211.8
|
213.4
|
1.5
|
1.93
|
7
|
Interval
|
|
|
245.4
|
257.6
|
12.2
|
0.44
|
5
|
Interval
|
|
|
265.2
|
271.3
|
6.1
|
0.33
|
5
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-481
|
180
|
53°
|
|
|
|
|
|
Interval
|
|
|
189.0
|
192.0
|
3.0
|
0.15
|
4
|
Interval
|
|
|
199.6
|
240.8
|
41.1
|
1.15
|
6
|
Including
|
|
|
199.6
|
201.2
|
1.5
|
3.81
|
2
|
Including
|
|
|
225.6
|
230.1
|
4.6
|
6.57
|
24
|
Including
|
|
|
231.6
|
233.2
|
1.5
|
2.62
|
7
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-482
|
180
|
50°
|
|
|
|
|
|
Interval
|
|
|
100.6
|
106.7
|
6.1
|
0.16
|
10
|
Interval
|
|
|
147.8
|
166.1
|
18.3
|
0.26
|
33
|
Interval
|
|
|
201.2
|
208.8
|
7.6
|
0.49
|
2
|
Interval
|
|
|
213.4
|
240.8
|
27.4
|
0.96
|
5
|
Interval
|
|
|
248.4
|
251.5
|
3.0
|
0.65
|
9
|
Interval
|
|
|
262.1
|
278.9
|
16.8
|
2.69
|
3
|
Including
|
|
|
262.1
|
268.2
|
6.1
|
6.86
|
5
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-483
|
180
|
50°
|
|
|
|
|
|
Interval
|
|
|
123.4
|
128.0
|
4.6
|
0.21
|
1
|
Interval
|
|
|
150.9
|
153.9
|
3.0
|
0.28
|
11
|
Interval
|
|
|
184.4
|
243.8
|
59.4
|
1.24
|
6
|
Including
|
|
|
184.4
|
185.9
|
1.5
|
7.39
|
7
|
Including
|
|
|
189.0
|
195.1
|
6.1
|
3.32
|
8
|
Including
|
|
|
219.5
|
224.0
|
4.6
|
2.85
|
6
|
Including
|
|
|
227.1
|
228.6
|
1.5
|
10.00
|
10
|
Interval
|
|
|
248.4
|
249.9
|
1.5
|
6.89
|
5
|
Interval
|
|
|
262.1
|
268.2
|
6.1
|
0.19
|
10
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-484
|
180
|
57°
|
|
|
|
|
|
Interval
|
|
|
135.6
|
137.2
|
1.5
|
1.08
|
2
|
Interval
|
|
|
155.4
|
157.0
|
1.5
|
1.30
|
3
|
Interval
|
|
|
179.8
|
182.9
|
3.0
|
0.89
|
6
|
Interval
|
|
|
190.5
|
242.3
|
51.8
|
0.52
|
4
|
Interval
|
|
|
251.5
|
253.0
|
1.5
|
0.22
|
14
|
Interval
|
|
|
259.1
|
262.1
|
3.0
|
0.67
|
1
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-485
|
180
|
59°
|
|
|
|
|
|
Interval
|
|
|
106.7
|
115.8
|
9.1
|
0.38
|
28
|
Interval
|
|
|
184.4
|
233.2
|
48.8
|
0.97
|
12
|
Including
|
|
|
208.8
|
211.8
|
3.0
|
1.56
|
5
|
Including
|
|
|
217.9
|
224.0
|
6.1
|
1.74
|
3
|
Including
|
|
|
231.6
|
233.2
|
1.5
|
10.00
|
24
|
Interval
|
|
|
245.4
|
268.2
|
22.9
|
0.32
|
4
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-486
|
180
|
57°
|
|
|
|
|
|
Interval
|
|
|
167.6
|
222.5
|
54.9
|
0.89
|
5
|
Including
|
|
|
170.7
|
172.2
|
1.5
|
10.00
|
9
|
Including
|
|
|
196.6
|
198.1
|
1.5
|
3.08
|
13
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-489
|
180
|
55°
|
|
|
|
|
|
Interval
|
|
|
201.2
|
207.3
|
6.1
|
0.24
|
81
|
Interval
|
|
|
214.9
|
251.5
|
36.6
|
1.22
|
12
|
including
|
|
|
217.9
|
221.0
|
3.0
|
6.36
|
21
|
including
|
|
|
234.7
|
237.7
|
3.0
|
4.83
|
22
|
Interval
|
|
|
288.0
|
345.9
|
57.9
|
1.00
|
4
|
including
|
|
|
298.7
|
309.4
|
10.7
|
4.22
|
3
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-490
|
180
|
57°
|
|
|
|
|
|
Interval
|
|
|
152.4
|
285.0
|
132.6
|
1.29
|
24
|
including
|
|
|
155.4
|
157.0
|
1.5
|
4.17
|
27
|
including
|
|
|
166.1
|
170.7
|
4.6
|
8.19
|
44
|
including
|
|
|
184.4
|
187.5
|
3.0
|
7.05
|
274
|
including
|
|
|
268.2
|
272.8
|
4.6
|
3.64
|
103
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au (g/t)
|
Ag
(g/t)
|
17-LCRC-492
|
180
|
69°
|
|
|
|
|
|
Interval
|
|
|
166.1
|
181.4
|
15.2
|
1.32
|
4
|
including
|
|
|
167.6
|
169.2
|
1.5
|
10.00
|
19
|
Interval
|
|
|
185.9
|
213.4
|
27.4
|
1.01
|
16
|
including
|
|
|
195.1
|
199.6
|
4.6
|
4.86
|
25
|
Interval
|
|
|
217.9
|
222.5
|
4.6
|
3.00
|
70
|
including
|
|
|
219.5
|
221.0
|
1.5
|
6.53
|
85
|
Interval
|
|
|
228.6
|
236.2
|
7.6
|
0.35
|
22
|
Tom Burkhart, Vice President of
Exploration commented: "The El Creston open pit exploits a large
structural controlled vein system that comes to surface and dips to
the north. This system was an important historical producer
in the district and an obvious drill target beneath the designed
pit. We are very pleased that the 2017 drill program confirms
what we suspected and are optimistic that these encouraging results
will positively impact the continuing development of the El Creston
deposit."
Qualified Person Comments / Quality Control
Procedures
The preparation of this Press Release was supervised and
approved by Thomas Burkhart,
Argonaut Gold's Vice President of Exploration and a Qualified
Person under NI 43-101. Mr. Burkhart also reviewed the
reverse circulation and on-site sample preparation procedures at
La Colorada.
For sample analysis, the Company utilizes a system of Quality
Assurance/Quality Control that includes insertion and verification
of standards, blanks and duplicates consistent with industry
standards.
Samples from the El Creston deposit are collected at site by
Argonaut's personnel and transported to ALS-Chemex preparation
laboratory in Hermosillo, where
samples are prepared and pulps sent for assay in ALS-Chemex's
Vancouver, BC laboratory. Samples
are analyzed for gold by fire assay and atomic absorption finish
(Au-AA23 assay code; 0.005 to 10 ppm detection limit) plus silver
by aqua regia and atomic absorption finish (0.1 to 100 ppm
detection limit). Samples over 10 g/t Au are assayed with
gravimetric finish (Assay code Au-GRA21).
Argonaut is not aware of any legal, political, environmental or
other risks that could materially affect the potential development
of the El Creston deposit other than those set out in its annual
information form filed on www.sedar.com. Please see below under the
heading "cautionary note regarding forward-looking financial
information" for further details regarding risks facing
Argonaut.
For further information regarding the La Colorada Mine, please see
the Technical Report titled National Instrument 43-101
Preliminary Economic Assessment La Colorada Project Sonora,
Mexico effective October 15,
2011.
Creating Value Beyond Gold
Cautionary Note Regarding Forward-looking Statements
This press release contains certain "forward-looking statements"
and "forward-looking information" under applicable Canadian
securities laws concerning the business, operations and financial
performance and condition of Argonaut Gold Inc. ("Argonaut" or
"Argonaut Gold"). Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to estimation of mineral resources at mineral projects of
Argonaut; success of exploration activities; the realization of
mineral reserve estimates; the timing and amount of estimated
future production; economics of production; estimated production
and mine life of the various mineral projects of Argonaut; the
future price of gold and silver; synergies and financial impact of
completed acquisitions; the benefits of the development potential
of the properties of Argonaut and currency exchange rate
fluctuations. Except for statements of historical fact relating to
Argonaut, certain information contained herein constitutes
forward-looking statements. Forward-looking statements are
frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of Argonaut and there is no assurance they will prove to be
correct.
Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include
variations in metal grades, variations in recovery rates, changes
in market conditions, risks relating to international operations,
fluctuating metal prices and currency exchange rates, changes in
project parameters, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated.
These factors are discussed in greater detail in Argonaut's most
recent Annual Information Form and in the most recent Management
Discussion and Analysis filed on SEDAR, which also provide
additional general assumptions in connection with these statements.
Argonaut cautions that the foregoing list of important factors is
not exhaustive. Investors and others who base themselves on
forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail. Argonaut believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements included in this press release
should not be unduly relied upon. These statements speak only as of
the date of this press release. Argonaut undertakes no obligation
to update forward-looking statements if circumstances or
management's estimates or opinions should change except as required
by applicable securities laws.
Although Argonaut has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. Statements concerning
mineral reserve and resource estimates may also be deemed to
constitute forward-looking statements to the extent they involve
estimates of the mineralization that will be encountered if the
property is developed.
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration,
mine development and production activities. Its primary
assets are the production stage El
Castillo mine and the construction stage San Agustin project in Durango, Mexico and the production stage
La Colorada mine in Sonora, Mexico. Advanced exploration
stage projects include the San
Antonio project in Baja California
Sur, Mexico, and the Magino project in Ontario, Canada. The Company also has
several exploration stage projects, all of which are located in
North America.
SOURCE Argonaut Gold Ltd.