TORONTO, March 20, 2017 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is
pleased to announce its financial and operating results for the
fourth quarter and year ended December
31, 2016. All dollar amounts are expressed in
United States dollars unless
otherwise specified (C$ represents Canadian
dollars).
|
3 months ended
December 31
|
|
12 months
ended
December 31
|
|
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
Financial Data (in
millions except for earnings (loss) per share)
|
Revenue
|
$35.3
|
$32.0
|
10%
|
$144.8
|
$158.6
|
(9%)
|
Gross profit
(loss)
|
$7.0
|
($4.4)
|
259%
|
$30.6
|
($13.8)
|
322%
|
Net income
(loss)
|
$0.5
|
($182.5)
|
100%
|
$4.3
|
($202.7)
|
102%
|
Earnings (loss) per
share – basic
|
$0.00
|
($1.18)
|
100%
|
$0.03
|
($1.31)
|
102%
|
Adjusted net
income1
|
$5.7
|
$2.2
|
159%
|
$14.5
|
$3.9
|
272%
|
Adjusted earnings per
share – basic1
|
$0.04
|
$0.01
|
300%
|
$0.09
|
$0.03
|
200%
|
Cash flow from
operating activities before changes in non-cash operating working
capital
|
$8.5
|
$7.8
|
9%
|
$35.0
|
$42.7
|
(18%)
|
Cash and cash
equivalents
|
|
|
|
$42.1
|
$45.9
|
(8%)
|
Gold Production
and Cost Data
|
GEOs loaded to the
pads2
|
68,201
|
55,769
|
22%
|
240,692
|
214,662
|
12%
|
GEOs projected
recoverable2,3
|
36,143
|
28,823
|
25%
|
125,462
|
119,256
|
5%
|
GEOs
produced2,4
|
34,384
|
30,399
|
13%
|
122,097
|
139,059
|
(12%)
|
GEOs
sold2
|
29,865
|
29,337
|
2%
|
117,176
|
136,874
|
(14%)
|
Average realized
sales price
|
$1,186
|
$1,099
|
8%
|
$1,239
|
$1,168
|
6%
|
Cash cost per gold
ounce sold1
|
$746
|
$733
|
2%
|
$795
|
$755
|
5%
|
All-in sustaining
cost per gold ounce sold1
|
$894
|
$865
|
3%
|
$938
|
$894
|
5%
|
1Please
refer to the section below entitled "Non-IFRS Measures" for a
discussion of these Non-IFRS Measures.
|
2Gold
equivalent ounces ("GEO" or "GEOs") are based on a conversion ratio
of 65:1 for silver to gold for 2016 and 55:1 for 2015. This
is the referenced ratio for each year throughout the
release.
|
3Recoverable ounces – El Castillo expected
recovery rates: ROM oxide 50%, crushed oxide 70%, ROM transition
40%, crushed transition 60%, crushed sulphides argillic 30% and
crushed sulphides silicic 17%; La Colorada expected recovery rates:
gold 60% and silver 30%.
|
4Produced
ounces are calculated as ounces loaded to carbon.
|
Fourth Quarter 2016 Financial Highlights:
- Revenue of $35.3 million from
sales of 28,891 gold ounces at an average price of $1,186 per ounce.
- Net income of $0.5 million or
$0.00 per basic share. Adjusted net
income of $5.7 million or
$0.04 per basic share. See Non-IFRS
Measures section.
- Cash flow from operating activities before changes in non-cash
operating working capital and other items was $8.5 million.
- Production of 34,384 GEOs at a cash cost of $746 per gold ounce sold and all-in sustaining
cost ("AISC") of $894 per gold ounce
sold. See Non-IFRS Measures section.
2016 and Recent Company Highlights:
- Corporate Highlights:
- Acquisition of San Juan
mineral concession (see press release dated February 23, 2017).
- Successful C$40.1 million equity
financing.
- Strengthened board and management team.
- Entered into a $30 million
revolving credit facility, adding further flexibility to a strong
balance sheet.
- El Castillo:
- Fourth quarter production of 16,747 GEOs and annual production
of 62,766 GEOs.
- La Colorada:
- Fourth quarter production of 17,637 GEOs and annual production
of 59,331 GEOs.
- Completed construction of Northeast leach pad ahead of schedule
and on budget.
- Completed confirmation drill program at El Creston deposit that
showed evidence of higher grades and thicknesses.
- San Agustin:
- Completed updated Preliminary Economic Assessment.
- Received major permits and commenced construction.
- Magino:
- Completed updated Pre-Feasibility Study.
- Completed C$4.5 million
flow-through financing.
- Completed successful 350-hole reverse circulation drill program
on two-year starter pit, de-risking the project.
- Completed geotechnical drilling program.
- Filed Environmental Impact Statement and continued to advance
permitting.
CEO Commentary
Pete
Dougherty, President and CEO stated: "We had a very strong
fourth quarter operationally after a challenging and particularly
rainy third quarter. I'm pleased with the efforts of the team
and the continued commitment toward proper stewardship of the
environment. We expect to see similar annual production in
2017, as we saw this past year, followed by significant production
growth over the next several years as we bring San Agustin online and unlock value at the
recently acquired San Juan
concession as part of the El
Castillo/San Agustin
complex. In addition to production growth, we continue to
provide additional optionality through our development-stage
assets. We are de-risking the Magino project and expect a
Feasibility Study to be published during the second half of
2017."
Financial Results – Fourth Quarter 2016
Revenue for
the three months ended December 31,
2016 was $35.3 million, an
increase from $32.0 million for the
three months ended December 31, 2015.
During the fourth quarter of 2016, gold ounces sold totaled
28,891 at an average realized price per ounce of $1,186 (compared to 28,443 gold ounces sold at an
average price per ounce of $1,099
during the same period of 2015).
Production costs for the fourth quarter of 2016 were
$22.6 million, a slight increase from
$21.6 million in the fourth quarter
of 2015 primarily due to the increased gold ounces sold.
Cash cost per gold ounce sold (see Non-IFRS Measures section)
increased to $746 in the fourth
quarter of 2016 from $733 in the same
period of 2015, principally due to an increase in mine operating
costs.
Net income for the fourth quarter of 2016 was $0.5 million or $0.00 per basic share, an increase from the net
loss of $182.5 million or
$1.18 per share for the fourth
quarter of 2015. The net loss in the fourth quarter of 2015
is primarily due to the non-cash impairment of non-current
assets.
Financial Results – Year End 2016
Revenue for the year
ended December 31, 2016 was
$144.8 million, a decrease from
$158.6 million for the year ended
December 31, 2015. Gold ounces
sold totaled 113,853 at an average realized price per ounce of
$1,239 (compared to 132,618 gold
ounces sold at an average price per ounce of $1,168 for 2015). Gold ounces sold
decreased in 2016 primarily due to the following factors at the
El Castillo mine: additional
ounces produced in 2015 associated with the re-leach program of
previously placed tonnes, higher than anticipated rainfall and
changes in mine sequencing.
Production costs for the year ended December 31, 2016 were $94.2 million, a decrease from $103.9 million in 2015, primarily due to
decreased gold ounces sold. Cash cost per gold ounce sold
(see Non-IFRS Measures section) increased to $795 in 2016 from $755 in 2015, primarily due to the lower number
of ounces produced and sold, as total operating costs are spread
across a lower number of ounces.
Other expense for the year ended December
31, 2016 was $4.8 million, an
increase from $2.2 million in 2015,
primarily due to differences in foreign currency translation
effects.
Net income for the year ended December
31, 2016 was $4.3 million or
$0.03 per basic share, an increase
from the net loss of $202.7 million
or $1.31 per share for the year ended
December 31, 2015. The net loss
in 2015 is primarily due to the non-cash impairment of non-current
assets.
FOURTH QUARTER
& FULL YEAR 2016 EL CASTILLO OPERATING
STATISTICS
|
|
3 Months Ended
December 31
|
12 Months Ended
December 31
|
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
Mining
|
|
|
|
|
|
|
Tonnes ore
(000s)
|
2,993
|
2,399
|
25%
|
11,139
|
10,787
|
3%
|
Tonnes waste
(000s)
|
4,276
|
3,899
|
10%
|
16,450
|
16,507
|
0%
|
Tonnes mined
(000s)
|
7,269
|
6,298
|
15%
|
27,589
|
27,294
|
1%
|
Tonnes per day
(000s)
|
79
|
68
|
16%
|
75
|
75
|
0%
|
Waste/ore
ratio
|
1.43
|
1.63
|
(12%)
|
1.48
|
1.53
|
(3%)
|
Heap Leach
Pads
|
|
|
|
|
|
|
Tonnes ore direct to
leach pads (000s)
|
164
|
0
|
|
164
|
0
|
|
Tonnes crushed
(000s)
|
1,568
|
1,062
|
48%
|
5,705
|
5,091
|
12%
|
Tonnes overland
conveyor (000s)
|
1,262
|
1,318
|
(4%)
|
5,157
|
5,644
|
(9%)
|
Production
|
|
|
|
|
|
|
Gold grade
(g/t)1
|
0.37
|
0.29
|
28%
|
0.34
|
0.30
|
13%
|
Gold loaded to leach
pads (oz)2
|
35,236
|
21,938
|
61%
|
121,333
|
104,399
|
16%
|
Projected recoverable
gold (oz)3
|
18,372
|
11,594
|
58%
|
62,758
|
62,109
|
1%
|
Gold produced
(oz)4
|
16,632
|
16,586
|
0%
|
62,235
|
79,751
|
(22%)
|
Gold sold
(oz)
|
13,156
|
16,219
|
(19%)
|
57,741
|
77,639
|
(26%)
|
|
1 "g/t" is
grams per tonne
|
2 "oz"
means troy ounce
|
3 Recovery
rates: ROM oxide 50%, crushed oxide 70%, ROM transition 40%,
crushed transition 60%, crushed sulfides argilic 30%, crushed
sulfides silicic 17%
|
4 Produced
ounces are calculated as ounces loaded to carbon
|
Summary of Production Results at El Castillo
During the fourth quarter
of 2016, El Castillo mined
7,268,551 tonnes including 2,993,106 tonnes of ore. At El
Castillo, the East and CR2 facilities crushed and loaded 1,568,120
tonnes and the West facility conveyed and loaded 1,261,955 tonnes
during the quarter, which, along with the 164,069 tonnes of ore
direct to the leach pads, resulted in an estimated 35,236 gold
ounces to the leach pads. El Castillo produced 16,632 gold
ounces during the fourth quarter of 2016. El Castillo sold
13,156 gold ounces during the fourth quarter of 2016 at a cash cost
per gold ounce sold of $877 (see
Non-IFRS Measures section), compared to 16,219 gold ounces sold at
a cash cost of $853 per gold ounce
sold for the fourth quarter of 2015.
During the year ended December 31,
2016, El Castillo mined
27,588,847 tonnes including 11,138,942 tonnes of ore. At El
Castillo, the East and CR2 facilities crushed and loaded 5,705,124
tonnes and the West facility conveyed and loaded 5,157,419 tonnes,
which, along with the 164,069 tonnes of ore direct to the leach
pads, resulted in an estimated 121,333 gold ounces to the leach
pads. El Castillo produced 62,235 gold ounces during the year
ended December 31, 2016. El
Castillo sold 57,741 gold ounces during the year ended December 31, 2016 at a cash cost per gold ounce
sold of $884 (see Non-IFRS Measures
section), compared to 77,639 gold ounces sold at a cash cost of
$892 per gold ounce sold for the year
ended December 31, 2015. Gold
ounces sold decreased in 2016 primarily due to the following
factors at the El Castillo mine:
additional ounces produced in 2015 associated with the re-leach
program of previously placed tonnes, higher than anticipated
rainfall and changes in mine sequencing. Due to the revision
of mine sequencing, El Castillo
mined lower grade oxide ore and higher grade sulphide ore, which
yielded significantly lower recoveries during 2016. However,
due to mine sequencing, the Company deferred mining of oxide ores
to 2017.
Capital expenditures at El
Castillo during the fourth quarter and year ended
December 31, 2016 were $1.7 million and $6.5
million, respectively, primarily for capitalized stripping.
In addition to the above capital expenditures, during the
fourth quarter and year ended December 31,
2016, there were $1.5 million
and $3.5 million, respectively, in
capital expenditures by another subsidiary of the Company that is
primarily related to mining equipment currently being used at the
El Castillo mine site.
FOURTH QUARTER
& FULL YEAR 2016 LA COLORADA OPERATING
STATISTICS
|
|
3 Months Ended
December 31
|
12 Months Ended
December 31
|
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
Mining
|
|
|
|
|
|
|
Mineralized material
tonnes (000s)
|
1,062
|
691
|
54%
|
4,477
|
2,380
|
88%
|
Tonnes waste
(000s)
|
4,440
|
2,568
|
73%
|
15,935
|
9,880
|
61%
|
Total tonnes
(000s)
|
5,502
|
3,259
|
69%
|
20,412
|
12,260
|
66%
|
Waste/mineralized
material ratio
|
4.18
|
3.71
|
13%
|
3.56
|
4.15
|
(14%)
|
Tonnes re-handled
(000s)
|
0
|
776
|
(100%)
|
50
|
2,898
|
(98%)
|
Heap Leach
Pads
|
|
|
|
|
|
|
Mineralized material
tonnes direct to pads (000s)
|
289
|
0
|
|
469
|
0
|
|
Crushed mineralized
material tonnes to pads (000s)
|
1,071
|
1,477
|
(27%)
|
4,598
|
5,293
|
(13%)
|
Production
|
|
|
|
|
|
|
Gold grade
(g/t)1
|
0.60
|
0.50
|
20%
|
0.55
|
0.47
|
17%
|
Gold loaded to leach
pad (oz)2
|
26,273
|
23,599
|
11%
|
89,654
|
80,228
|
12%
|
Projected recoverable
GEOs loaded (oz)3
|
17,771
|
17,229
|
3%
|
62,704
|
57,147
|
10%
|
Gold produced
(oz)4
|
16,706
|
12,866
|
30%
|
56,492
|
55,056
|
3%
|
Silver produced
(oz)4
|
60,451
|
44,092
|
37%
|
184,503
|
192,837
|
(4%)
|
GEOs
produced4
|
17,637
|
13,668
|
29%
|
59,331
|
58,562
|
1%
|
Gold sold
(oz)
|
15,735
|
12,224
|
29%
|
56,112
|
54,979
|
2%
|
Silver sold
(oz)
|
55,802
|
41,190
|
35%
|
181,473
|
193,029
|
(6%)
|
GEOs sold
|
16,594
|
12,973
|
28%
|
58,904
|
58,489
|
1%
|
1 "g/t" is
grams per tonne
|
2 "oz"
means troy ounce
|
3 Recovery
rates: gold 60% and silver 30%
|
4 Produced
ounces are calculated as ounces loaded to carbon
|
Summary of Production Results at La Colorada
During the fourth quarter
of 2016, La Colorada mined
5,501,699 tonnes containing 1,061,355 tonnes of mineralized
material. The increase in tonnes mined from the comparable
period of 2015 is primarily due to shifting processing of tonnes
from old leach pads to a focus on mining from areas within the pit.
La Colorada loaded 1,360,180 tonnes during the quarter,
including 289,582 tonnes of run-of-mine mineralized material direct
to leach pads, which resulted in an estimated 26,273 gold ounces to
the leach pads. La Colorada produced 16,706 gold ounces and
60,451 silver ounces during the fourth quarter of 2016 or 17,637
GEOs (based on a conversion ratio of 65:1 for silver to gold).
La Colorada sold 15,735 gold ounces in the fourth quarter of
2016 at a cash cost per gold ounce sold of $636 (see Non-IFRS Measures section), compared to
12,224 gold ounces sold at a cash cost of $574 per gold ounce sold for the fourth quarter
of 2015. The increase in cash cost per gold ounce sold over
the comparable period of 2015 is primarily due to higher mine
operating costs as a result of no longer processing tonnes from the
old leach pads at the mine.
During the year ended December 31,
2016, La Colorada mined
20,412,258 tonnes containing 4,476,834 tonnes of mineralized
material. The increase in tonnes mined from the comparable
period of 2015 is primarily due to shifting processing of tonnes
from old leach pads to a focus on mining from areas within the pit.
La Colorada loaded 5,066,935 tonnes during the year ended
December 31, 2016, including 469,319
tonnes of run-of-mine mineralized material direct to leach pads and
49,643 tonnes of rehandled mineralized material from old leach pads
at the mine, for a total of an estimated 89,654 gold ounces to the
leach pads. La Colorada produced 56,492 gold ounces and
184,503 silver ounces during the year ended December 31, 2016 or 59,331 GEOs (based on a
conversion ratio of 65:1 for silver to gold). La Colorada
sold 56,112 gold ounces for the year ended December 31, 2016 at a cash cost per gold ounce
sold of $704 (see Non-IFRS Measures
section), compared to 54,979 gold ounces sold at a cash cost of
$563 per gold ounce sold for the year
ended December 31, 2015. The
increase in cash cost per gold ounce sold over the comparable
period of 2015 is primarily due to higher mine operating costs as a
result of no longer processing tonnes from the old leach pads at
the mine.
Capital expenditures at La
Colorada during the fourth quarter and year ended
December 31, 2016 were $4.8 million and $16.2
million, respectively, primarily for capitalized stripping,
leach pad construction and crushing and conveying circuit
improvements.
San Agustin
The
San Agustin project represents the
next leg of growth for the Company. The Company envisions an
open-pit, heap leach mine that will eventually ramp up to over
90,000 GEO production per year at a cash cost of approximately
$650 per ounce. The project is
located approximately 10 kilometres from the nearby El Castillo mine and will share
infrastructure. San Agustin
boasts a short construction period of seven to nine months and
modest initial capital of $43 million
of which approximately $16 million
has been spent or committed to date. The first gold pour is
expected during the third quarter of 2017. During the fourth
quarter of 2016, the Company received the permits necessary to
start construction activities and began earthworks. To date,
construction is approximately 35% complete. To view recent
photos of construction progress, please visit:
http://www.argonautgold.com/gold_operations/san_agustin/construction_progress/.
Magino
The Company completed a 350-hole RC drill
program totaling over 39,000 metres to better define the mineral
reserve within a two-year starter pit. The drill spacing
within the two-year starter pit is now approximately 12 metres and
the results of the extensive program show better continuity and
definition. The first two years of operations are critical to
the economic returns of the project as evidenced by the 2.6 year
payback period illustrated in the Pre-Feasibility Study Technical
Report dated February 22, 2016.
Additionally, during the fourth quarter the Company completed
geotechnical testing for pit wall and plant foundations, which will
be included in a Feasibility Study expected to be published during
the second half of 2017. On January
23, 2017, the Company submitted the Environmental Impact
Statement for the project and continues to engage all stakeholders
during the environmental assessment process.
2017 Guidance
In 2017, the Company plans to produce
between 115,000 and 130,000 GEOs (based on the three-year
historical average silver to gold ratio of 70:1). Cash cost
per ounce of gold sold (see Non-IFRS measures section) in 2017 is
expected to be between $725 and $775
per gold ounce. AISC is expected to be between $910 and $960 per gold ounce sold (see Non-IFRS
measures section).
The Company plans to invest a total of $78 million on capital expenditures and
exploration initiatives in 2017. Major capital expenditures
in 2017 are expected to include approximately $35 million at San
Agustin, $24 million at
La Colorada, $10 million at El
Castillo and $6 million at
Magino, San Antonio and other.
Exploration expenditures in 2017 are expected to amount to
approximately $3 million.
Additionally, subsequent to December 31,
2016, the Company entered into an agreement with a
wholly-owned subsidiary of Fresnillo plc to acquire a mineral
concession adjacent to the El
Castillo mine. The total amount of cash consideration
owed under the agreement is $26
million (see press release dated February 23, 2017), of which $13 million was paid on February 23, 2017 and $13
million is due on or before December
15, 2017.
Three-Year Production Outlook
Based on life-of-mine
planning at December 31, 2016, the
Company anticipates it will achieve GEO production growth as
its San Agustin project ramps up
and lowers the overall cost profile. The Company's goal is to
achieve annual all-in sustaining costs per gold ounce
sold1 at or below $950. The Company believes that the recent
acquisition of the San Juan
concession has the potential to positively impact its production
profile and notes the three-year production outlook in Table 1
below does not include any allowance for the impact of this
acquisition.
Table 1 –
Three-Year GEO Production Outlook
|
|
|
|
|
Year
|
El
Castillo/San
Agustin(1) Complex
GEO Production
(000s)
|
La Colorada
GEO
Production
(000s)
|
Consolidated
GEO
Production
(000s)
|
2017
|
70 – 80
|
45 – 50
|
115 –
130
|
2018
|
90 – 100
|
65 – 70
|
155 –
170
|
2019
|
115 – 125
|
55 – 60
|
170 –
185
|
(1) San Agustin 2017 guidance
includes all expected production during the year. 2017
revenues and costs prior to declaration of commercial production
will be capitalized.
|
_____________________________
1 Please refer to the section "Non-IFRS Measures"
below for a discussion of this non-IFRS measure.
Argonaut Gold Fourth Quarter and Year End Financial Results
Conference Call and Webcast
The Company will host a
conference call and webcast on March 21,
2017 at 8:30 am EDT to discuss
the results.
Fourth Quarter and Year End Conference Call Information for
March 21, 2017:
Toll Free (North
America):
|
1-888-231-8191
|
International:
|
1-647-427-7450
|
Webcast:
|
www.argonautgold.com
|
Fourth Quarter and Year End Conference Call Replay:
Toll Free Replay Call
(North America):
|
1-855-859-2056
|
International Replay
Call:
|
1-416-849-0833
|
Passcode:
|
54191629
|
The conference call replay will be available from 11:30 am EDT on March 21,
2017 to April 4, 2017.
Non-IFRS Measures
The Company has included certain
non-IFRS measures including "Cash cost per gold ounce sold",
"All-in sustaining cost per gold ounce sold", "Adjusted net income"
and "Adjusted earnings per share – basic" in this press release to
supplement its financial statements which are presented in
accordance with International Financial Reporting Standards
("IFRS"). Cash cost per gold ounce sold is equal to production
costs less silver sales divided by gold ounces sold. All-in
sustaining cost per gold ounce sold is equal to production costs
less silver sales plus general and administrative expenses,
exploration expenses, accretion of reclamation provision and
sustaining capital expenditures divided by gold ounces sold.
Adjusted net income is equal to net income (loss) less foreign
exchange impacts on deferred income taxes, foreign exchange (gains)
losses, non-cash impairment write down (reversal) related to the
net realizable value and changes in the expected recovery of gold
ounces from mineralized material in the work-in-process inventory,
non-cash impairment loss on certain non-current assets,
unrecognized Mexican operating loss carryforwards, unrecognized
(recognition of previously unrecognized) Mexican deferred tax
assets during the period and other adjustments. Adjusted earnings
per share – basic is equal to adjusted net income divided by the
basic weighted average number of common shares outstanding. The
Company believes that these measures provide investors with an
improved ability to evaluate the performance of the Company.
Non-IFRS measures do not have any standardized meaning prescribed
under IFRS. Therefore they may not be comparable to similar
measures employed by other companies. The data is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Please see the management's
discussion and analysis ("MD&A") for full disclosure on
non-IFRS measures.
This press release should be read in conjunction with the
Company's audited consolidated financial statements for the year
ended December 31, 2016 and
associated MD&A, which are available from the Company's
website, www.argonautgold.com, in the "Investors" section under
"Financial Filings", and under the Company's profile on SEDAR at
www.sedar.com.
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 estimated production and mine life of
the various mineral projects of Argonaut; the ability to obtain
permits for operations; synergies; the realization of mineral
reserve estimates; the timing and amount of estimated future
production; costs of production; and financial impact of
completed acquisitions; the benefits of the development potential
of the properties of Argonaut; the future price of gold, copper,
and silver; the estimation of mineral reserves and resources;
success of exploration activities; 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", "should" 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 ore grade or recovery rates, changes in market
conditions, risks relating to the availability and timeliness of
permitting and governmental approvals; risks relating to
international operations, fluctuating metal prices and currency
exchange rates, changes in project parametres, 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.
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. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. 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. The reader is
cautioned not to place undue reliance on forward-looking
statements. 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. Comparative market information is as of a date prior to
the date of this document.
Qualified Person, Technical Information and Mineral
Properties Reports
Technical information included in this
release was supervised and approved by Thomas Burkhart, Argonaut Gold's Vice President
of Exploration, and a Qualified Person under National Instrument
43-101 ("NI 43-101"). For further information on the
Company's material properties, please see the reports as listed
below on the Company's website or on www.sedar.com:
El Castillo
Mine
|
NI 43-101 Technical
Report on Resources and Reserves, Argonaut Gold Inc., El Castillo
Mine, Durango State, Mexico dated February 24, 2011 (effective date
of November 6, 2010)
|
La Colorada
Mine
|
NI 43-101 Preliminary
Economic Assessment La Colorada Project, Sonora, Mexico dated
December 30, 2011 (effective date of October 15, 2011)
|
San Agustin
Project
|
NI 43-101 Technical
Report and Preliminary Economic Assessment San Agustin Heap Leach
Project, Durango, Mexico dated June 10, 2016 (effective date of
Resources April 29, 2016)
|
Magino Gold
Project
|
Preliminary
Feasibility Study Technical Report on the Magino Project, Wawa,
Ontario, Canada dated February 22, 2016 (effective date January 18,
2016)
|
San Antonio Gold
Project
|
NI 43-101 Technical
Report on Resources, San Antonio Project, Baja California Sur,
Mexico dated October 10, 2012 (effective date of September 1,
2012)
|
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.