TORONTO, Sept. 21, 2017 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is
pleased to provide updated pit-constrained Mineral Resource
estimates for its operating mines. The updated Mineral
Resource estimates are net of mining depletion at July 1, 2017 and incorporate recent resource
expansion drilling at both El
Castillo and La Colorada
(see press releases dated March 20,
2017, May 8, 2017 and
June 1, 2017). All dollar
amounts are expressed in United
States dollars unless otherwise specified.
El Castillo
Mineral Resource Estimates(1)
|
Category
|
Tonnes
(000s)
|
Au
Grade
(g/t)
|
Contained
Au
Ounces
(000s)
|
Ag
Grade
(g/t)
|
Contained
Ag
Ounces
(000s)
|
|
|
|
|
|
|
Measured
|
4,482
|
0.54
|
77
|
-
|
-
|
Indicated
|
59,484
|
0.35
|
673
|
-
|
-
|
Measured &
Indicated ("M&I")
|
63,966
|
0.36
|
751
|
-
|
-
|
Inferred
|
1,571
|
0.36
|
18
|
-
|
-
|
|
|
(1)
|
The pit-constrained
M&I Mineral Resource and Inferred Mineral Resource for El
Castillo in the above table were updated internally, are valid as
of July 1, 2017 and were reviewed by Michael Lechner, who is a
"qualified person" for purposes of NI 43-101. The Mineral Resources
update used a gold price of $1,400. Cut-off grades, depending on
rock and ore type, varied from 0.093 g/t for oxide to 0.467 g/t for
silicified sulphide. Mineral Resources do not have
demonstrated economic viability. There is no certainty that
all or any part of the Mineral Resources will be converted into
Mineral Reserves. Numbers may not sum exactly due to
rounding.
|
At December 31, 2016,
pit-constrained M&I Mineral Resources at El Castillo totalled approximately 486,000
contained gold ounces. Through the acquisition of the
adjacent San Juan concession in
February 2017 and the subsequent
resource expansion drilling programs, the Company added
approximately 328,000 gold ounces bringing the M&I Mineral
Resources to approximately 814,000 gold ounces. Between
December 31, 2016 and July 1, 2017, the Company depleted approximately
63,000 gold ounces through mining activities leaving M&I
Mineral Resources of approximately 751,000 contained gold ounces at
El Castillo at July 1, 2017.
La Colorada
Mineral Resource Estimates(2)
|
Category
|
Tonnes
(000s)
|
Au
Grade
(g/t)
|
Contained
Au
Ounces
(000s)
|
Ag
Grade
(g/t)
|
Contained
Ag
Ounces
(000s)
|
|
|
|
|
|
|
Indicated
|
29,869
|
0.61
|
586
|
10.3
|
9,913
|
Inferred
|
1,238
|
0.80
|
32
|
12.3
|
488
|
|
|
(2)
|
The pit-constrained
Indicated Mineral Resource and Inferred Mineral Resource used for
La Colorada in the above table were updated internally, are valid
as of July 1, 2017 and were reviewed by Michael Lechner, who is a
"qualified person" for purposes of NI 43-101. The Mineral Resources
update used a gold price of $1,400 and a silver price of $20. The
gold equivalent cutoff grade varied depending on deposit and ranged
from 0.085 g/t to 0.118 g/t. Mineral Resources do not have
demonstrated economic viability. There is no certainty that
all or any part of the Mineral Resources will be converted into
Mineral Reserves.
|
At December 31, 2016,
pit-constrained Indicated Mineral Resources at La Colorada totalled approximately 560,000
contained gold ounces and 9.9 million contained silver
ounces. Through the 2017 resource expansion drilling program
primarily focused at the El Creston pit, the Company added
approximately 57,000 gold ounces and 391,000 silver ounces bringing
the Indicated Mineral Resource to approximately 617,000 gold ounces
and 10.3 million silver ounces. Between December 31, 2016 and July
1, 2017, the Company depleted approximately 31,000 gold
ounces and 408,000 silver ounces through mining activities leaving
M&I Mineral Resources of approximately 586,000 contained gold
ounces and 9.9 million contained silver ounces at La Colorada at July
1, 2017.
Pete Dougherty, President and CEO
stated: "We had a successful year of resource drilling which will
extend the mine lives at both El
Castillo and La Colorada. At El Castillo, the
additional ounces were made accessible with the acquisition of the
San Juan mineral concession.
At La Colorada, the resource increase came through an aggressive
program of in-fill and step-out drilling adjacent to the El Creston
pit. We are now preparing to publish updated life-of-mine
plans at both El Castillo and
La Colorada during the first
quarter of 2018."
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 proposed
transaction and 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 the estimation of mineral reserves and resources; the
realization of mineral reserve estimates; estimated production and
mine life of the various mineral projects of Argonaut; synergies
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 timing and amount of
estimated future production; costs of production; 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" 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 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. 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 Michael Lechner, a Qualified Person under 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.