TORONTO, June 1, 2017 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is
pleased to provide drill results for the South Target area that
lies within the 420 hectare mineral concession recently acquired
from a wholly-owned subsidiary of Fresnillo Plc ("Fresnillo") (see
press release dated February 23,
2017). The South Target drill program, consisting of 71
reverse circulation ("RC") drill holes totaling 6,990 metres,
tested projected mineralization immediately south of the current
El Castillo open pit. The
recently announced North Target (see press release dated
May 8, 2017) and the South Target
drilling programs, totaling 18,530 metres in 146 RC drill holes,
were designed to evaluate the economic potential of the recently
acquired Fresnillo concession
where mineralization is known to extend along a recognized mineral
trend that projects beyond the Company's previous concession
limits.
The South Target drilling was supported by wide-spaced drilling
previously completed by Fresnillo
and by mineralized exposures projected south from the El Castillo pit limits. The Company's
objective was to increase drill-hole density within mineralized
areas to approximately 35 metre spacing, which is consistent with
the current modeling practices at El Castillo. The drill
results from the South Target area display strongly oxidized gold
bearing rocks with the same chemical and structure characteristics
as the El Castillo open pit mine.
The combined results of the North and South Target areas show
potential to extend the current El
Castillo pit limits and extend mine life.
Based on the success of the drilling campaign on the
Fresnillo concession to date, the
Company expects to commence an approximate 6,000 metre, Phase Two
drilling program in areas where mineralization remains open for
potential expansion. The Company anticipates publishing an
updated National Instrument 43-101 Technical Report for the
El Castillo mining complex during
the first quarter of 2018, where all drill results from the North
and South Target areas will be incorporated into an updated mineral
reserve and resource estimate.
Pete Dougherty, President &
CEO commented: "Drilling results in both the North and South Target
areas, along with the known wedges of economic mineralization that
were unavailable to us prior to the Fresnillo concession purchase by reason of
mineral concession boundary alone, indicate strong potential to
expand the current pit limits and extend mine life. The
positive drill results lend solid support for our acquisition of
the Fresnillo concession and our
vision of creating a meaningful, flagship asset at the El Castillo mining complex which will include
the El Castillo and San Agustin deposits."
Thomas Burkhart, Qualified Person
noted: "Based on our geologic understanding of the El Castillo gold system, we expected that our
drilling to the south would encounter strong mineralization and
this was confirmed. As with the North Target, mineralization
south of the El Castillo pit
showed overall better than expected continuity, locally higher than
average gold grades and strong oxidation. Mineralization
remains open in several areas and we look forward to commencing a
Phase Two drill program shortly to better delineate our gold zones
in preparation for an updated mineral reserve and resource
estimate. The Phase One drilling program has been very
successful and we are pleased with the results."
Table 1 below illustrates key highlight holes from the South
Target area. For a full table of drill results, plan view
maps and cross sections, please visit:
http://www.argonautgold.com/gold_operations/drill_results/
Table 1: Selected Drill Results
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-750
|
180
|
60°
|
|
|
|
|
|
Interval
|
|
|
0.0
|
7.6
|
7.6
|
0.21
|
2
|
Interval
|
|
|
30.5
|
96.0
|
65.5
|
0.68
|
10
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-762
|
180
|
60°
|
|
|
|
|
|
Interval
|
|
|
0.0
|
93.0
|
93.0
|
0.73
|
2
|
Including
|
|
|
30.5
|
35.1
|
4.6
|
1.14
|
4
|
Including
|
|
|
53.3
|
62.5
|
9.1
|
2.70
|
2
|
Including
|
|
|
65.5
|
74.7
|
9.1
|
1.51
|
5
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-765
|
180
|
60°
|
|
|
|
|
|
Interval
|
|
|
10.7
|
38.1
|
27.4
|
1.42
|
2
|
Including
|
|
|
19.8
|
29.0
|
9.1
|
3.37
|
3
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-767
|
180
|
70°
|
|
|
|
|
|
Interval
|
|
|
1.5
|
88.4
|
86.9
|
0.85
|
16
|
Including
|
|
|
32.0
|
53.3
|
21.3
|
1.53
|
25
|
Including
|
|
|
65.5
|
68.6
|
3.0
|
1.30
|
35
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-770
|
180
|
70°
|
|
|
|
|
|
Interval
|
|
|
0.0
|
7.6
|
7.6
|
0.22
|
1
|
Interval
|
|
|
18.3
|
118.9
|
100.6
|
0.68
|
5
|
Including
|
|
|
44.2
|
62.5
|
18.3
|
1.12
|
7
|
Including
|
|
|
73.2
|
77.7
|
4.6
|
1.96
|
2
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-771
|
180
|
65°
|
|
|
|
|
|
Interval
|
|
|
18.3
|
85.3
|
67.1
|
0.48
|
1
|
Including
|
|
|
50.3
|
53.3
|
3.0
|
1.23
|
2
|
Including
|
|
|
64.0
|
67.1
|
3.0
|
1.15
|
1
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-773
|
180
|
60°
|
|
|
|
|
|
Interval
|
|
|
0.0
|
93.0
|
93.0
|
0.66
|
3
|
including
|
|
|
74.7
|
89.9
|
15.2
|
1.66
|
3
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-778
|
180
|
60°
|
|
|
|
|
|
Interval
|
|
|
0.0
|
6.1
|
6.1
|
0.25
|
2
|
Interval
|
|
|
13.7
|
25.9
|
12.2
|
0.22
|
3
|
Interval
|
|
|
38.1
|
47.2
|
9.1
|
0.33
|
22
|
Interval
|
|
|
70.1
|
167.6
|
97.5
|
0.45
|
11
|
including
|
|
|
143.3
|
150.9
|
7.6
|
1.98
|
51
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-784
|
180
|
68°
|
|
|
|
|
|
Interval
|
|
|
38.1
|
51.8
|
13.7
|
0.20
|
5
|
Interval
|
|
|
67.1
|
77.7
|
10.7
|
0.17
|
2
|
Interval
|
|
|
86.9
|
112.8
|
25.9
|
0.30
|
5
|
Interval
|
|
|
125.0
|
217.9
|
93.0
|
0.40
|
4
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-802
|
180
|
70°
|
|
|
|
|
|
Interval
|
|
|
13.7
|
132.6
|
118.9
|
0.52
|
4
|
including
|
|
|
126.5
|
132.6
|
6.1
|
2.18
|
5
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-803
|
180
|
60°
|
|
|
|
|
|
Interval
|
|
|
0.0
|
94.5
|
94.5
|
0.57
|
8
|
including
|
|
|
47.2
|
53.3
|
6.1
|
1.19
|
9
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-804
|
180
|
70°
|
|
|
|
|
|
Interval
|
|
|
0.0
|
64.0
|
64.0
|
0.38
|
4
|
including
|
|
|
50.3
|
54.9
|
4.6
|
1.16
|
13
|
Interval
|
|
|
86.9
|
152.4
|
65.5
|
0.55
|
9
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-825
|
180
|
60°
|
|
|
|
|
|
Interval
|
|
|
12.2
|
57.9
|
45.7
|
0.89
|
2
|
Including
|
|
|
15.2
|
24.4
|
9.1
|
2.41
|
3
|
Qualified Person Comments / Quality Control
Procedures
Drill samples are transported to the preparation laboratory of
ALS-Chemex Labs Inc. in Chihuahua,
Mexico where samples are prepared and pulps sent for assay
in the laboratory of ALS-Chemex in Vancouver, British Columbia. Samples are
analyzed for gold by fire assay and atomic absorption finish.
For silver, samples use a multi-element inductively coupled plasma
(ICP) assay. Argonaut utilizes standard Quality
Assurance/Quality Control sample procedures that include the
insertion of sample standards, blanks and duplicates as well as
systematic check assaying by a second accredited laboratory.
The technical information relating to exploration activities
disclosed in this news release was prepared under the supervision
of, and reviewed and verified by, Thomas
Burkhart, Argonaut Gold's Qualified Person under National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
For further information on the El
Castillo mine, please see the technical report on the
El Castillo mine titled "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), prepared by SRK Consulting (U.S.), Inc. for
Argonaut Gold (the "El Castillo Report"). The El Castillo
Report is available electronically on Argonaut's website at
www.argonautgold.com or on SEDAR under Argonaut's issuer
profile at www.sedar.com.
The Company is not aware of any legal, political, environmental or
other risks that could materially affect the El Castillo mine other than those set out in
the annual information form of Argonaut for the financial year
ended December 31, 2016 (dated
March 20, 2017) filed on SEDAR under
Argonaut's issuer profile at www.sedar.com. Please see below
under the heading "Cautionary Note Regarding Forward-looking
Statements" for further details regarding risks facing the
Company.
Production for today; development for tomorrow
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's
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.