Production of 29,730 Gold Equivalent Ounces
and Earnings per Share of $0.04
TORONTO, Aug. 10, 2017 /CNW/ - Argonaut Gold Inc. (TSX:
AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased
to announce its financial and operating results for the second
quarter ended June 30, 2017. The
Company reports quarterly net income of $6.2
million or earnings per share of $0.04, the sale of 33,747 gold equivalent
ounces1 ("GEO" or "GEOs") and production of 29,730 GEOs.
All dollar amounts are expressed in United States dollars, unless otherwise
specified (C$ refers to Canadian dollars).
Key operating and financial statistics for the second quarter of
2017 are outlined in the following table:
|
|
|
|
|
(in millions except
for earnings (loss) per share)
|
3 months ended
June 30
|
Change
|
6 months ended
June 30
|
Change
|
2017
|
2016
|
2017
|
2016
|
Revenue
|
$42.5
|
$39.1
|
9%
|
$87.0
|
$74.4
|
17%
|
Gross
profit
|
$9.5
|
$7.8
|
22%
|
$19.5
|
$16.7
|
17%
|
Net income
(loss)
|
$6.2
|
($0.7)
|
986%
|
$18.2
|
$3.6
|
406%
|
Earnings (loss) per
share – basic
|
$0.04
|
($0.00)
|
-
|
$0.11
|
$0.02
|
450%
|
Adjusted net
income2
|
$4.1
|
$3.1
|
32%
|
$9.0
|
$4.9
|
84%
|
Adjusted earnings per
share – basic2
|
$0.02
|
$0.02
|
0%
|
$0.05
|
$0.03
|
67%
|
Cash flow from
operating activities before
changes in non-cash operating working capital
|
$13.5
|
$9.2
|
47%
|
$28.4
|
$18.1
|
57%
|
Cash and cash
equivalents
|
$53.8
|
$54.1
|
(1%)
|
$53.8
|
$54.1
|
(1%)
|
GEOs loaded to the
pads1
|
53,402
|
63,724
|
(16%)
|
108,849
|
114,726
|
(5%)
|
GEOs projected
recoverable1,3
|
31,430
|
32,125
|
(2%)
|
64,142
|
59,981
|
7%
|
GEOs
produced1,4
|
29,730
|
29,237
|
2%
|
67,437
|
61,391
|
10%
|
GEOs
sold1
|
33,747
|
31,230
|
8%
|
69,920
|
61,242
|
14%
|
Average realized
sales price per gold ounce sold
|
$1,260
|
$1,258
|
0%
|
$1,244
|
$1,220
|
2%
|
Cash cost per gold
ounce sold2
|
$785
|
$794
|
(1%)
|
$767
|
$776
|
(1%)
|
All-in sustaining
cost per gold ounce sold2
|
$906
|
$947
|
(4%)
|
$887
|
$910
|
(3%)
|
1 Gold
equivalent ounces ("GEO" or "GEOs") are based on a conversion ratio
of 70:1 for silver to gold for 2017 and 65:1 for 2016. This
is the referenced ratio for each year throughout the press
release.
|
2 Please
refer to the section below entitled "Non-IFRS Measures" for a
discussion of these Non-IFRS Measures.
|
3
Recoverable 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%;
San Agustin expected recovery rates: gold 66% and silver 16%; La
Colorada expected recovery rates: gold 60% and silver
30%.
|
4 Produced
ounces are calculated as ounces loaded to carbon.
|
Second Quarter 2017 and Recent Company Highlights:
- El Castillo
-
- Second quarter production of 17,086 GEOs.
- Exceeded projected crusher throughput by 11%.
- Completed 20,310 metre drill program in 157 reverse circulation
("RC") holes on San Juan mineral
concession acquired from Fresnillo
in February 2017 (see May 8, 2017 and June 1,
2017 press releases).
- Completed phase two drill program and better defined the
geologic limits of mineralization to the north, established
potential mineralization easterly into the La Victoria concession and defined the limits
of the mineralization to the southwest.
- La Colorada
-
- Second quarter production of 12,644 GEOs.
- Continued stripping of El Creston pit.
- Compania Minera Pitalla S.A. de C.V., Argonaut's wholly owned
subsidiary that owns its La
Colorada mine, was awarded distinction at the highest level
for their accomplishments as an Environmentally and Socially
Responsible (ESR) company in the small to medium size category.
This is the Company's third consecutive year to receive distinction
at the highest level and it has received recognition as an ESR
company for five consecutive years.
- San Agustin
-
- At July 31, 2017, construction
was 75% complete with $27 million
spent or committed, remains on schedule and is tracking 10 – 15%
under budget from the initial capital estimate of $43 million.
- Completed relocation and installation of El Castillo's west crusher at San Agustin.
- Completed leach pad and pond construction.
- Commenced producing and placing leach pad overliner.
- Commenced recovery plant installation.
- Commenced mining and loading ore to the leach pad late in
June 2017.
- Magino
-
- Advanced feasibility study.
- Advanced Environmental Assessment ("EA") process.
- Advanced discussions and negotiation of agreements with
Indigenous groups.
CEO Commentary
Pete
Dougherty, President and CEO stated: "Due to our strong
first half, we are now pointing towards production at the upper end
of our guidance range at between 122,000 and 130,000 gold
equivalent ounces. As we continue to build upon a solid
foundation of Corporate Social Responsibility, we are delighted
that, for the fifth consecutive year, we have been awarded
distinction at the highest level for our activities at the
La Colorada mine. Overall
both operationally and financially, we had another strong quarter –
our third consecutive. I am also pleased to see the
San Agustin construction project
nearing completion on schedule and tracking under budget, and I'm
very satisfied with the positive results of our brownfields
exploration program at El Castillo
on the San Juan mineral concession
purchased from Fresnillo earlier
this year."
Financial Results – Second Quarter 2017
Revenue for
the three months ended June 30, 2017
was $42.5 million, an increase from
$39.1 million for the three months
ended June 30, 2016. During the
second quarter of 2017, gold ounces sold totaled 32,961 at an
average realized price per ounce of $1,260 (compared to 30,355 gold ounces sold at an
average realized price per ounce of $1,258 during the same period of 2016).
Production costs for the second quarter of 2017 were
$26.8 million, an increase from
$25.1 million in the second quarter
of 2016 primarily due to the increase in gold ounces sold.
Cash cost per gold ounce sold (see Non-IFRS Measures section)
was $785 in the second quarter of
2017, comparable to $794 in the same
period of 2016. Depreciation, depletion and amortization
("DD&A") expense included in cost of sales for the second
quarter of 2017 totaled $6.2 million,
a slight decrease from $6.3 million
in the second quarter of 2016, due to the decrease in the average
DD&A expense per ounce in work-in-process inventory. As a
result of the non-cash impairment loss on non-current assets
recorded during the year ended December 31,
2015, the average DD&A in work-in-process inventory
decreased throughout 2016.
General and administrative expenses for the second quarter of
2017 were $2.9 million, comparable to
$2.8 million in the same period of
2016.
Gains on foreign exchange derivatives for the second quarter of
2017 were $0.7 million, an increase
from nil in the second quarter of 2016, due to gains on the
Company's zero-cost collar contracts on the Mexican peso.
Other income for the second quarter of 2017 was $1.3 million, an increase from other expense of
$1.8 million in the second quarter of
2016, primarily due to differences in foreign currency translation
effects.
Income tax expense for the second quarter of 2017 was
$1.9 million compared to $3.7 million in the same period of 2016. The
reduction is primarily due to the foreign exchange effects of the
strengthening Mexican peso on the calculation of deferred taxes,
partially offset by higher taxable income during the second quarter
of 2017.
Net income for the second quarter of 2017 was $6.2 million or $0.04 per basic share, an increase from the net
loss of $0.7 million or $0.00 per share for the second quarter of
2016.
Financial Results – First Half 2017
Revenue for the
six months ended June 30, 2017 was
$87.0 million, an increase from
$74.4 million for the six months
ended June 30, 2016. During the
first half of 2017, gold ounces sold totaled 67,923 at an average
realized price per ounce of $1,244
(compared to 59,533 gold ounces sold at an average price per ounce
of $1,220 during the same period of
2016).
Production costs for the six months ended June 30, 2017 were $54.6
million, an increase from $48.0
million in the first half of 2016 primarily due to the
increase in gold ounces sold. Cash cost per gold ounce sold
(see Non-IFRS Measures section) was $767 in the first half of 2017, comparable to
$776 in the same period of 2016.
DD&A expense included in cost of sales for the six months
ended June 30, 2017 totaled
$12.9 million, a decrease from
$13.3 million in the six months ended
June 30, 2016, due to the decrease in
the average DD&A expense per ounce in work-in-process
inventory. As a result of the non-cash impairment loss on
non-current assets recorded during the year ended December 31, 2015, the average DD&A in
work-in-process inventory decreased throughout 2016.
Additionally, included in cost of sales in the six months
ended June 30, 2016 is a non-cash
impairment reversal of $3.6 million
related to the net realizable value of work-in-process inventory at
the El Castillo mine, as a result
of an increase in the price of gold during 2016.
General and administrative expenses for the six months ended
June 30, 2017 were $6.1 million, an increase from $5.1 million in the same period of 2016,
primarily due to employee transition costs.
Gains on foreign exchange derivatives during the first half of
2017 were $2.4 million, an increase
from nil in the first half of 2016, due to gains on the Company's
zero-cost collar contracts on the Mexican peso.
Other income for the six months ended June 30, 2017 was $2.9
million, an increase from other expense of $3.0 million in the same period of 2016,
primarily due to differences in foreign currency translation
effects.
Income tax recovery for the six months ended June 30, 2017 was $0.2
million compared to income tax expense of $4.7 million in the same period of 2016. The
change is primarily due to the foreign exchange effects of the
strengthening Mexican peso on the calculation of deferred taxes,
partially offset by higher taxable income during the first half of
2017.
Net income for the six months ended June
30, 2017 was $18.2 million or
$0.11 per basic share, an increase
from $3.6 million or $0.02 per basic share for the six months ended
June 30, 2016.
Operational Results – Second Quarter 2017
The
operations continued to deliver improved results by stacking more
tonnes and ounces to the leach pads than budgeted during the
quarter. These results were possible due to the focus on rock
fragmentation in the pit and increased crusher availability.
Underpinning crusher availability was an improved maintenance
program focusing on preventative and predictive maintenance.
These positive results were also aided by higher grade material
being processed, which reconciled favourably to the mine
plan.
Bill Zisch, Chief Operating
Officer, commented: "The group's efforts in improving rock
fragmentation and crusher availability has resulted in higher
tonnes processed and more ounces loaded to the leach pads.
These improvements, as well as positive grade reconciliation,
contributed to higher than budgeted production. It is an
exciting time in the Company as, in addition to improvements at our
other operations, we have begun mining and placing material on the
leach pad at San Agustin. We have also seen positive results
from our drill programs at El Castillo. As a result of the
Company's performance to date, we are well positioned to deliver at
the upper end of the production guidance range at between 122,000
and 130,000 GEOs."
SECOND QUARTER
2017 EL CASTILLO OPERATING STATISTICS
|
|
|
|
|
3 Months Ended
June 30
|
6 Months
Ended June 30
|
|
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
Mining
|
|
|
|
|
|
|
Tonnes ore
(000s)
|
2,011
|
2,774
|
(28%)
|
4,478
|
5,521
|
(19%)
|
Tonnes waste
(000s)
|
2,646
|
4,207
|
(37%)
|
6,035
|
8,370
|
(28%)
|
Tonnes mined
(000s)
|
4,657
|
6,981
|
(33%)
|
10,513
|
13,891
|
(24%)
|
Tonnes per day
(000s)
|
51
|
77
|
(34%)
|
58
|
76
|
(24%)
|
Waste/ore
ratio
|
1.32
|
1.52
|
(13%)
|
1.35
|
1.52
|
(11%)
|
Heap Leach
Pads
|
|
|
|
|
|
|
Tonnes crushed East
(000s)
|
1,355
|
1,365
|
(1%)
|
2,656
|
2,627
|
1%
|
Tonnes crushed CR2
(000s)
|
660
|
0
|
-
|
1,111
|
0
|
-
|
Tonnes overland
conveyor (000s)
|
0
|
1,316
|
-
|
769
|
2,807
|
(73%)
|
Production
|
|
|
|
|
|
|
Gold grade
(g/t)1
|
0.39
|
0.41
|
(5%)
|
0.39
|
0.33
|
18%
|
Gold loaded to leach
pads (oz)2
|
25,004
|
35,222
|
(29%)
|
56,960
|
58,481
|
(3%)
|
Projected recoverable
gold (oz)3
|
15,459
|
17,458
|
(11%)
|
34,818
|
30,536
|
14%
|
Gold produced
(oz)4
|
16,927
|
15,195
|
11%
|
39,012
|
32,554
|
20%
|
Gold sold
(oz)
|
21,156
|
16,287
|
30%
|
41,219
|
31,693
|
30%
|
Cash cost per gold
ounce sold5
|
893
|
882
|
1%
|
889
|
866
|
3%
|
|
1 "g/t"
refers to grams per tonne
|
2 "oz"
refers to troy ounce
|
3 Recovery
rates: ROM oxide 50%, crushed oxide 70%, ROM transition 40%,
crushed transition 60%, crushed sulphides argilic 30%, crushed
sulphides silicic 17%
|
4 Produced
ounces are calculated as ounces loaded to carbon
|
5
Please refer to the section below entitled "Non-IFRS Measures" for
a discussion of this Non-IFRS Measure.
|
Summary of Production Results at El Castillo
El Castillo saw a gold production increase of
11% during the second quarter 2017 versus the same period
2016. Second quarter production surpassed expectations due to
increased throughputs and higher recoveries than budget.
Despite an approximate 5% reduction in grade year-over-year
during the second quarter, higher recoveries were achieved as a
result of mining more oxide and less sulphide material during the
period versus the same period 2016. Throughput was 11% higher than
budgeted primarily due to an increased focus on crusher
availability through improved maintenance procedures.
SECOND QUARTER
2017 LA COLORADA OPERATING STATISTICS
|
|
|
|
|
3 Months Ended
June 30
|
6 Months Ended
June 30
|
|
2017
|
2016
|
Change
|
2017
|
2016
|
Change
|
Mining
|
|
|
|
|
|
|
Mineralized material
tonnes (000s)
|
1,225
|
1,189
|
3%
|
2,290
|
2,352
|
(3%)
|
Tonnes waste
(000s)
|
4,767
|
3,935
|
21%
|
9,964
|
7,335
|
36%
|
Total tonnes
(000s)
|
5,992
|
5,124
|
17%
|
12,254
|
9,687
|
26%
|
Tonnes per day
(000s)
|
66
|
56
|
18%
|
68
|
53
|
28%
|
Waste/mineralized
material ratio
|
3.89
|
3.31
|
18%
|
4.35
|
3.12
|
39%
|
Tonnes rehandled
(000s)
|
29
|
0
|
-
|
29
|
50
|
(42%)
|
Heap Leach
Pads
|
|
|
|
|
|
|
Crushed mineralized
material tonnes to pad (000s)
|
1,110
|
1,216
|
(9%)
|
2,218
|
2,429
|
(9%)
|
Mineralized material
tonnes direct to pad (000s)
|
46
|
0
|
-
|
126
|
0
|
-
|
Production
|
|
|
|
|
|
|
Gold grade
(g/t)1
|
0.64
|
0.52
|
23%
|
0.59
|
0.54
|
9%
|
Gold loaded to leach
pad (oz)2
|
23,648
|
20,388
|
16%
|
44,666
|
41,907
|
7%
|
Projected recoverable
GEOs loaded (oz)3
|
15,176
|
14,667
|
3%
|
28,529
|
29,445
|
(3%)
|
Gold produced
(oz)4
|
12,098
|
13,282
|
(9%)
|
26,499
|
27,176
|
(3%)
|
Silver produced
(oz)
|
38,201
|
38,819
|
(2%)
|
113,800
|
88,189
|
29%
|
GEOs produced
(oz)4
|
12,644
|
13,879
|
(9%)
|
28,125
|
28,533
|
(1%)
|
Gold sold
(oz)
|
11,805
|
14,068
|
(16%)
|
26,704
|
27,840
|
(4%)
|
Silver sold
(oz)
|
43,865
|
46,282
|
(5%)
|
118,762
|
91,313
|
30%
|
GEOs
sold4
|
12,432
|
14,780
|
(16%)
|
28,401
|
29,245
|
(3%)
|
Cash cost per gold
ounce sold
|
590
|
693
|
(15%)
|
579
|
674
|
(14%)
|
|
1 "g/t"
refers to grams per tonne
|
2 "oz"
refers to troy ounce
|
3 Recovery
rates: gold 60% and silver 30%
|
4 Produced
ounces are calculated as ounces loaded to carbon
|
5
Please refer to the section below entitled "Non-IFRS Measures" for
a discussion of this Non-IFRS Measure.
|
Summary of Production Results at La Colorada
Production fell 9% in the
second quarter 2017 versus the same period 2016 due to the timing
of ounces realized from the leach pads. Cash cost per gold
ounce sold decreased 15% to $590 in
the second quarter of 2017 compared to the second quarter of 2016,
primarily due to a decrease in mine operating cost. As a
result of waste rock removal during the first half of 2017,
mineralized material is now being mined in the El Creston pit and
16% of La Colorada's production
during the quarter came from this deposit. The Company now
has the ability to mine mineralized material from both the Gran
Central/La Colorada pit and the El
Creston pit, which increases flexibility in the coming
quarters.
San Agustin
The
San Agustin project represents the
next leg of the Company's growth. The Company envisions the
San Agustin deposit to be a
significant contributor within the El
Castillo mining complex. The project is located
approximately 10 kilometres from the nearby El Castillo mine and will share
infrastructure.
During the second quarter, the Company commenced mining at
San Agustin with the first blast
taking place in May, in accordance with the planned construction
and start-up period. Additionally, the Company completed
leach pad and pond construction and the relocation and installation
of the El Castillo west crusher to
the San Agustin property.
The primary and secondary crushers went through a standard
commissioning sequence and are now operational. The
San Agustin crusher, as well as
two contracted portable crushers, produced and placed leach pad
overliner in preparation for the loading of mineralized
material. As of late June, the San
Agustin crusher and overland conveying system commenced
crushing and stacking mineralized material on the leach pad.
Also during the quarter, the Company commenced the installation of
the recovery plant.
The San Agustin project remains
on schedule and is tracking 10 – 15% under budget from the initial
capital estimate of $43
million. At July 31,
2017, approximately $27
million had been spent or committed and construction was
approximately 75% complete. The first gold pour is expected
during the third quarter of 2017. To view recent photos of
construction progress, please visit:
http://www.argonautgold.com/gold_operations/san_agustin/construction_progress/
Magino
In July, the Canadian Environmental Assessment
Agency ("CEAA") completed its conformity review of the previously
submitted Environmental Impact Statement as part of the EA
process. During July 2017, the
CEAA commenced Indigenous and public sessions as the next step in
the EA process. Also, during the second quarter, the Company
executed a Community Benefits Agreement with the Missanabie Cree
First Nation and held a signing ceremony in Sault Ste. Marie, Ontario, Canada.
The Company anticipates publishing a feasibility study for its
Magino project during the second half of 2017. The Company is
concurrently evaluating two options for the feasibility study: a
30,000 tonne per day case and a 10,000 tonne per day case.
The Company envisions that, due to its current size and market
conditions, it may require a partner to advance the 30,000 tonne
per day project whereas the 10,000 tonne per day project would
provide the Company with the optionality of advancing Magino on a
stand-alone basis. The Company has been mindful when
developing mine plans and designing the process facility to not
sterilize the ore body and ensure proper space is available should
economics warrant an investment to expand the project in the
future. The Company is evaluating both throughput cases at a
feasibility level and will keep both options available to maximize
the ability to unlock shareholder value at Magino.
2017 Guidance
Operations have outperformed
expectations through the first half of 2017. Moreover,
San Agustin remains on schedule
for first gold production during the third quarter 2017, is
tracking under budget and poised to contribute to overall 2017
production during the fourth quarter. As a result, the
Company is guiding to the upper end of its full year guidance range
to between 122,000 and 130,000 GEOs (previous full year guidance
range was between 115,000 and 130,000 GEOs).
Due to the temporarily reduced crushing capacity at El Castillo, as the west crusher was shut
down, dissembled, relocated and installed at San Agustin during the second quarter, the
Company expects the third quarter to provide its lowest quarterly
production for the year. The fourth quarter is expected to
provide the highest quarterly production during 2017, as full
crushing capacity is brought back online at San Agustin by the end of the third quarter.
The Company currently budgets 20,000 tonnes per day at
El Castillo and anticipates
crushing capacity will reach 37,000 tonnes per day between
El Castillo and San Agustin by the end of the third quarter
once the San Agustin crusher is
running at full capacity. The Company considers San Agustin to be an opportunity to expand the
overall El Castillo mining
complex.
Capital Expenditures for 2017
Including the mineral
concession adjacent to the El
Castillo mine acquired from Fresnillo and the subsequent drill program
(see press releases dated May 8, 2017
and June 1, 2017) and the reduction
of the San Agustin initial capital
estimate, the Company's capital budget for 2017 is approximately
$104 million with the vast majority
of the capital program – approximately $81
million - being invested in large, one-time growth
initiatives such as the construction of San Agustin, the Fresnillo mineral concession purchase and
associated exploration programs and the stripping of the El Creston
pit at the La Colorada mine.
During the first half of 2017, the Company spent approximately
$51 million on capital expenditures
and exploration initiatives of which approximately $20 million was spent during the second
quarter.
Argonaut Gold Second Quarter Operating and Financial Results
Conference Call and Webcast:
The Company will host the
second quarter operating and financial results call on August 11, 2017 at 8:30 am
EDT.
Q2 Conference Call
Information
|
|
Toll Free (North
America):
|
1-888-231-8191
|
|
International:
|
1-647-427-7450
|
|
Conference
ID:
|
53122528
|
|
Webcast:
|
www.argonautgold.com
|
|
|
|
Q2 Conference Call
Replay:
|
|
Toll Free Replay Call
(North America):
|
1-855-859-2056
|
|
International Replay
Call:
|
1-416-849-0833
|
The conference call replay will be available from 11:30 am EDT on August 11,
2017 until 11:59 pm EDT on
August 18, 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 losses,
reversal of non-cash impairment write down related to the net
realizable value of the work-in-process inventory and unrecognized
(recognition of previously unrecognized) Mexican deferred tax
assets. 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 unaudited consolidated financial statements for the three
and six months ended June 30, 2017
and associated MD&A, for the same period, 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 MD&A
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, 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.