Production of 40,853 Gold Equivalent
Ounces, Net Cash1 Increases $7.2 million and Earnings per Share of
$0.07
TORONTO, April 30, 2018 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is
pleased to announce its financial and operating results for the
first quarter ended March 31,
2018. The Company reports a quarterly net cash1
increase of $7.2 million, cash flow
from operating activities before changes in operating working
capital of $21.0 million, net income
of $12.2 million or earnings per
share of $0.07, adjusted net
income1 of $7.9 million or
adjusted earnings per share1 of $0.04 and production of 40,853 gold equivalent
ounces2 ("GEO" or "GEOs"). All dollar amounts are
expressed in United States
dollars, unless otherwise specified (C$ refers to Canadian
dollars).
CEO Commentary
Pete
Dougherty, President and CEO stated: "We made significant
investments during 2017 and 2018 is about harvesting those
investments and adding cash to our balance sheet through strong
free cash flow. During the first quarter, we added
$7.2 million in net cash1
to our balance sheet. We expect to continue to generate
strong free cash flow, particularly during the second half of 2018,
as we see the benefits of the throughput enhancements made at
El Castillo and ramping up
San Agustin production. Our
primary objectives this year are to build cash on the balance
sheet, continue to ramp up production, execute on our 65% growth
program from 2017 to 2019 and de-risk our development assets.
As our first quarter data shows, we are off to a strong start on
all fronts."
Key operating and financial statistics for the first quarter of
2018 are outlined in the following table:
1
|
Please refer to the
section below entitled "Non-IFRS Measures" for a discussion of
these Non-IFRS Measures.
|
2
|
GEOs are based on a
conversion ratio of 70:1 for silver to gold. This is the referenced
ratio for each year throughout the release.
|
|
|
|
3 months
ended March 31
|
|
2018
|
2017
|
Change
|
Financial Data (in
millions except for earning per share)
|
|
|
|
Revenue
|
$52.9
|
$44.5
|
19%
|
Gross
profit
|
$17.4
|
$10.1
|
72%
|
Net income
|
$12.2
|
$12.0
|
2%
|
Earnings per share –
basic
|
$0.07
|
$0.07
|
0%
|
Adjusted net
income1
|
$7.9
|
$4.9
|
61%
|
Adjusted earnings per
share – basic1
|
$0.04
|
$0.03
|
33%
|
Cash flow from
operating activities before changes in
non-cash operating working capital
|
$21.0
|
$14.9
|
41%
|
Cash and cash
equivalents
|
$21.3
|
$55.2
|
(61%)
|
Net
cash1
|
$13.3
|
$54.7
|
(76%)
|
Gold Production
and Cost Data
|
|
|
|
GEOs loaded to the
pads2
|
80,919
|
55,447
|
46%
|
GEOs projected
recoverable2, 3
|
46,111
|
32,712
|
41%
|
GEOs produced2,
4
|
40,853
|
37,707
|
8%
|
GEOs
sold2
|
40,046
|
36,173
|
11%
|
Average realized
sales price
|
$1,330
|
$1,228
|
8%
|
Cash cost per gold
ounce sold1
|
$650
|
$751
|
(13%)
|
All-in sustaining
cost per gold ounce sold1
|
$781
|
$870
|
(10%)
|
1
|
Please refer to the
section below entitled "Non-IFRS Measures" for a discussion of
these Non-IFRS Measures.
|
2
|
GEOs are based on a
conversion ratio of 70:1 for silver to gold. This is the referenced
ratio for each period throughout the release.
|
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.
|
First Quarter 2018 and Recent Company Highlights:
- Corporate Highlights
-
- Increased corporate revolver from $30
million to $50 million with an
accordion feature providing up to $75
million.
- El Castillo Complex
-
- First quarter production of 25,737 GEOs.
-
- El Castillo production of
8,765 GEOs.
- San Agustin production of
16,972 GEOs.
- Increased Mineral Reserves to over 1.2 million contained gold
ounces and over 25 million contained silver ounces.
- Completed construction of the El
Castillo CR2 crusher that will ultimately increase
throughput from 5,000 tonnes per day to 14,000 tonnes per day.
- Completed construction of the La
Victoria leach pad at El
Castillo.
- Initiated a 15,000 metre drill program on the San Agustin northwest extension target.
- Initiated construction of the San
Agustin leach pad expansion.
- La Colorada
-
- First quarter production of 15,116 GEOs.
- Initiated construction of the Phase Two leach pad.
- Cerro del Gallo
-
- Re-logged drill core and developed geologic model.
- San Antonio
-
- Held technical sessions with the Mexican Environmental
Authority DGIRA in preparation of new future Environmental Impact
Assessment (Manifiesto de Impacto Ambiental or MIA) application
submittal.
- Magino
-
- Advanced Environmental Assessment process (federal and
provincial).
- Signed the Community Engagement Agreement with the Métis Nation
of Ontario in April.
Financial Results – First Quarter 2018
Revenue for the
three months ended March 31, 2018 was
$52.9 million, an increase from
$44.5 million for the three months
ended March 31, 2017. During
the first quarter of 2018, gold ounces sold totaled 38,072 at an
average realized price per ounce of $1,330, compared to 34,962 gold ounces sold at an
average realized price per ounce of $1,228 during the same period of 2017.
Production costs for the first quarter of 2018 were $27.1 million, a decrease from $27.8 million in the first quarter of 2017,
primarily due to a decrease in cash cost per gold ounce sold,
offset by an increase in gold ounces sold. Cash cost per gold
ounce sold (see Non-IFRS Measures section) was $650 in the first quarter of 2018, a decrease
from $751 in the same period of 2017,
primarily due to the commencement of commercial production at the
San Agustin mine effective
October 1, 2017, which has a lower
cash cost per gold ounce sold. Depreciation, depletion and
amortization ("DD&A") expense included in cost of sales for the
first quarter of 2018 totaled $8.5
million, an increase from $6.6
million in the first quarter of 2017, due to the increase in
gold ounces sold, as many of the mining assets are amortized on a
unit-of-production basis, and the commencement of commercial
production at the San Agustin
mine, which has a higher DD&A expense per ounce.
General and administrative expenses for the first quarter of
2018 were $3.4 million, comparable to
$3.2 million in the same period of
2017.
Gains on foreign exchange derivatives for the first quarter of
2018 were $0.8 million, a decrease
from $1.7 million in the first
quarter of 2017, due to a decrease in unrealized gains on the
Company's zero-cost collar contracts on the Mexican peso.
Other income for the first quarter of 2018 was $0.5 million, a decrease from $1.7 million in the first quarter of 2017,
primarily due to differences in foreign currency translation
effects.
Income tax expense for the first quarter of 2018 was
$2.6 million compared to income tax
recovery of $2.1 million in the same
period of 2017. The increase in income tax expense is
primarily due to the recognition of previously unrecognized Mexican
deferred tax assets in the first quarter of 2017 and higher taxable
income during the first quarter of 2018.
Net income for the first quarter of 2018 was $12.2 million or $0.07 per basic share, an increase from
$12.0 million or $0.07 per share for the first quarter of
2017.
Adjusted net income for the first quarter of 2018 was
$7.9 million or $0.04 per basic share, an increase from
$4.9 million or $0.03 per basic share for the first quarter of
2017, primarily due to the recognition of previously unrecognized
Mexican deferred tax assets in the first quarter of 2017, which
reduced deferred tax expense (see Non-IFRS Measures
section).
Operational Results – First Quarter 2018
During the
first quarter 2018, the Company achieved production of 40,853 GEOs
at a cash cost of $650 per gold ounce
sold and all-in sustaining cost of $781 per gold ounce sold compared to 37,707 GEOs
at a cash cost of $751 per gold ounce
sold and an all-in sustaining cost of $870 per gold ounce sold during the first quarter
2017 (see Non-IFRS Measures section). Higher production and
lower costs are driven by the introduction of the low-cost
San Agustin mine.
The El Castillo Complex produced 25,737 GEOs at a cash cost of
$600 per gold ounce sold during the
first quarter of 2018 versus 22,226 GEOs at a cash cost of
$885 per gold ounce sold during the
first quarter of 2017 due to the introduction of the low-cost
San Agustin mine to the Complex
(see Non-IFRS Measures section).
At San Agustin, the crusher
exceeded nameplate capacity by approximately 15% during the first
quarter 2018. The previous scaling issue that had led to a
lack of solution flow to the leach pad during the initial ramp up
of the operation during the fourth quarter of 2017 has been
corrected, with a change to the anti-scaling chemicals used in the
solution and a switch from drip hoses to sprinklers for solution
application.
La Colorada produced 15,116
GEOs at a cash cost of $726 per gold
ounce sold during the first quarter of 2018 compared to 15,481 GEOs
at a cash cost of $570 per gold ounce
sold during the first quarter of 2017 (see Non-IFRS Measures
section). The increase in costs are primarily driven by lower
capitalized stripping in 2018.
Bill Zisch, Chief Operating
Officer, commented: "San Agustin
continued to ramp up and exceeded expectations at the crusher
during the first quarter. We continue to gain experience with
leach dynamics and solution management of the San Agustin leach pad to optimize plant
throughput. We have identified and corrected the scaling
issue that was slowing solution flow during the fourth quarter of
2017. At La Colorada, the operation performed as expected
and, despite the inability to blast currently, has maintained
mining, crushing, stacking and leaching operations due to the
availability of previously blasted ore and stockpiled ore. We
experienced a delay in the timing of recovering ounces at
El Castillo, primarily because we
have been stacking and leaching at the top lift of both leach
pads. To a lesser degree, we also realized lower recovery of
hematitic oxide material located in Phase 9 and 10 of the pit, as
this lithology is indicating a 54% recovery versus historical
recovery of approximately 70% for general oxide material. As
we ramp up the modified CR2 crusher to 14,000 tonnes per day, begin
stacking ore on the new La
Victoria leach pad and flush previously stacked ounces
through the East and West leach pads, we anticipate production
picking up quarter over quarter throughout the
year."
FIRST QUARTER 2018 EL CASTILLO COMPLEX OPERATING
STATISTICS
|
3 Months Ended
March 31
|
|
2018
|
2017
|
%
Change
|
Mining (in 000s
except waste/ore ratio)
|
|
|
|
Tonnes ore El
Castillo
|
1,619
|
2,467
|
(34%)
|
Tonnes ore San
Agustin
|
1,726
|
0
|
-
|
Tonnes
ore
|
3,345
|
2,467
|
36%
|
Tonnes waste El
Castillo
|
3,106
|
3,389
|
(8%)
|
Tonnes waste San
Agustin
|
356
|
0
|
-
|
Tonnes
waste
|
3,462
|
3,389
|
2%
|
Tonnes mined El
Castillo
|
4,725
|
5,856
|
(19%)
|
Tonnes mined San
Agustin
|
2,082
|
0
|
-
|
Tonnes
mined
|
6,807
|
5,856
|
16%
|
Tonnes per day El
Castillo
|
52
|
65
|
(20%)
|
Tonnes per day San
Agustin
|
23
|
0
|
-
|
Tonnes per
day
|
75
|
65
|
15%
|
Waste/ore ratio El
Castillo
|
1.92
|
1.37
|
40%
|
Waste/ore ratio San
Agustin
|
0.21
|
-
|
-
|
Waste/ore
ratio
|
1.03
|
1.37
|
(25%)
|
Leach Pads (in
000s)
|
|
|
|
Tonnes crushed East
to leach pads El Castillo
|
995
|
1,301
|
(24%)
|
Tonnes crushed CR2 to
leach pads El Castillo
|
628
|
451
|
39%
|
Tonnes overland
conveyor to leach pads El Castillo
|
0
|
769
|
(100%)
|
Tonnes crushed to
leach pads San Agustin
|
1,718
|
0
|
-
|
Tonnes crushed to
leach pads
|
3,341
|
2,521
|
33%
|
Production
|
|
|
|
Gold grade loaded to
leach pads El Castillo (g/t)1
|
0.44
|
0.39
|
13%
|
Gold grade loaded to
leach pads San Agustin (g/t)1
|
0.50
|
-
|
-
|
Gold grade loaded
to leach pads (g/t)1
|
0.47
|
0.39
|
21%
|
Gold loaded to leach
pads El Castillo (oz)2
|
22,740
|
31,956
|
(29%)
|
Gold loaded to leach
pads San Agustin (oz)2
|
27,878
|
0
|
-
|
Gold loaded to
leach pads (oz)2
|
50,618
|
31,956
|
58%
|
Projected recoverable
GEOs loaded El Castillo4
|
15,419
|
19,359
|
(20%)
|
Projected recoverable
GEOs loaded San Agustin4
|
20,039
|
0
|
-
|
Projected
recoverable GEOs loaded4
|
35,458
|
19,359
|
83%
|
Gold produced El
Castillo (oz)2,3
|
8,657
|
22,085
|
(61%)
|
Gold produced San
Agustin (oz)2,3
|
15,824
|
0
|
-
|
Gold produced
(oz)2,3
|
24,481
|
22,085
|
11%
|
Silver produced El
Castillo (oz)2,3
|
7,528
|
9,840
|
(23%)
|
Silver produced San
Agustin (oz)2,3
|
80,331
|
0
|
-
|
Silver produced
(oz)2,3
|
87,859
|
9,840
|
793%
|
GEOs produced El
Castillo3
|
8,765
|
22,226
|
(61%)
|
GEOs produced San
Agustin3
|
16,972
|
0
|
-
|
GEOs
produced3
|
25,737
|
22,226
|
16%
|
Gold sold El Castillo
(oz)2
|
8,259
|
20,063
|
(59%)
|
Gold sold San Agustin
(oz)2
|
14,733
|
0
|
-
|
Gold sold
(oz)2
|
22,992
|
20,063
|
15%
|
Silver sold El
Castillo (oz)2
|
7,528
|
9,840
|
(23%)
|
Silver sold San
Agustin (oz)2
|
71,483
|
0
|
-
|
Silver sold
(oz)2
|
79,011
|
9,840
|
703%
|
GEOs sold El
Castillo
|
8,367
|
20,204
|
(59%)
|
GEOs sold San
Agustin
|
15,754
|
0
|
-
|
GEOs
sold
|
24,121
|
20,204
|
19%
|
Cash cost per gold
ounce sold El Castillo5
|
$1,020
|
$885
|
15%
|
Cash cost per gold
ounce sold San Agustin5
|
$365
|
$0
|
-
|
Cash cost per gold
ounce sold5
|
$600
|
$885
|
(32%)
|
|
|
1
|
"g/t" refers to grams
per tonne.
|
2
|
"oz" refers to troy
ounce.
|
3
|
Produced ounces are
calculated as ounces loaded to carbon.
|
4
|
Expected recovery
rates – El Castillo ROM oxide 50%, crushed oxide 70%, ROM
transition 40%, crushed transition 60%, crushed sulphides argillic
30% and crushed sulphides silicic 17%; San Agustin gold 66% and
silver 16%.
|
5
|
Please refer to the
section below entitled "Non-IFRS Measures" for a discussion of this
Non-IFRS Measure.
|
Summary of Production Results at the El Castillo
Complex
At El Castillo,
the Company invested in an enhancement to the CR2 crusher with the
goal of increasing throughput at this crusher from 5,000 tonnes per
day to 14,000 tonnes per day. Construction of this project
was completed during the first quarter of 2018 and the CR2 crusher
continues to ramp up to this new production rate. Due to mine
sequencing, the waste to ore strip ratio at El Castillo was 1.92:1 during the first
quarter of 2018 compared to anticipated 1.0:1 for the remainder of
its mine life. Also, both East and West leach pads are at
their top lifts, which slows the timing of gold ounces flowing from
the bottom of the leach pad. The height of the leach pads,
coupled with lower tonnage and solution availability and the lower
recoveries while mining hematitic oxide material, led to a 15%
increase in cash costs per gold ounce sold at El Castillo during the first quarter of 2018
versus the first quarter of 2017 (see Non-IFRS Measures
section). The Company has completed construction of the
La Victoria leach pad and, with
process enhancements to the CR2 crushing circuit, are expected to
result in an increase in production.
At San Agustin, the crusher
exceeded nameplate capacity by approximately 15% during the first
quarter of 2018. The previous scaling issue that led to a
lack of solution flow to the leach pad during the initial ramp up
of the operation in the fourth quarter of 2017 has been resolved
with a change to the anti-scaling chemicals used in the solution
and a switch from drip hoses to sprinklers for solution
application.
FIRST QUARTER 2018 LA COLORADA OPERATING STATISTICS
|
3 Months Ended
March 31
|
|
2018
|
2017
|
%
Change
|
Mining (in 000s
except for waste/ore ratio)
|
|
|
|
Tonnes mineralized
material
|
1,096
|
1,065
|
3%
|
Tonnes
waste
|
6,131
|
5,197
|
18%
|
Total
tonnes
|
7,227
|
6,262
|
15%
|
Tonnes per
day
|
80
|
70
|
14%
|
Waste/mineralized
material ratio
|
5.59
|
4.88
|
15%
|
Leach Pads (in
000s)
|
|
|
|
Tonnes crushed to
leach pads
|
1,108
|
1,108
|
0%
|
Tonnes direct to
leach pads
|
17
|
80
|
(79%)
|
Production
|
|
|
|
Gold grade loaded to
leach pads (g/t)1
|
0.43
|
0.55
|
(22%)
|
Gold loaded to leach
pads (oz)2
|
15,462
|
21,018
|
(26%)
|
Projected recoverable
GEOs loaded4
|
10,653
|
13,353
|
(20%)
|
Gold produced
(oz)2,3
|
14,291
|
14,401
|
(1%)
|
Silver produced
(oz)2,3
|
57,767
|
75,599
|
(24%)
|
GEOs
produced3
|
15,116
|
15,481
|
(2%)
|
Gold sold
(oz)2
|
15,080
|
14,899
|
1%
|
Silver sold
(oz)2
|
59,116
|
74,897
|
(21%)
|
GEOs sold
|
15,925
|
15,969
|
0%
|
Cash cost per gold
ounce sold5
|
$726
|
$570
|
27%
|
|
|
1
|
"g/t" refers to grams
per tonne.
|
2
|
"oz" refers to troy
ounce.
|
3
|
Produced ounces are
calculated as ounces loaded to carbon.
|
4
|
Recovery rates: gold
60% and silver 30%.
|
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
First quarter production
and costs were in line with expectations. The Company
anticipates ore grade to improve quarter over quarter throughout
2018, as mining transitions completely from the La Colorada/Gran Central pit to the El Creston
pit. As reported on April 12,
2018, the explosives permit has been temporarily suspended
at La Colorada due to a legal
action brought by four individuals against the Secretary of
National Defense and the Municipality of La Colorada. The court hearing is
scheduled for May 16, 2018.
After a thorough review of previously blasted ore in the
pits, ore stockpiles and the ability to mine certain areas without
requiring blasting, the Company estimates it has sufficient ore to
continue operations until the end of July at its budgeted crushing
throughput level of 12,000 tonnes per day.
Argonaut Gold First Quarter 2018 Operating and Financial
Results Conference Call and Webcast:
The Company will host the first quarter 2018 conference call and
webcast on May 1, 2018 at
8:30 am EDT.
Q1 Conference Call Information
Toll Free (North
America):
|
1-888-231-8191
|
International:
|
1-647-427-7450
|
Conference
ID:
|
6651219
|
Webcast:
|
www.argonautgold.com
|
Q1 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 May 1,
2018 until 11:59 pm EDT on
May 8, 2018.
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", "Adjusted earnings per share – basic" and "Net cash"
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 less foreign exchange
impacts on deferred income taxes, foreign exchange losses and
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. Net cash is calculated as the sum of the cash and cash
equivalents balance net of debt as at the statement of financial
position date. The Company believes that these measures provide
investors with an alternative view 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 interim condensed consolidated financial
statements for the three months ended March
31, 2018 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
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'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.
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 Brian Arkell, Argonaut's Vice President,
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
Complex
|
NI 43-101 Technical
Report on Resources and Reserves, El Castillo Complex, Durango
State, Mexico dated March 27, 2018 (effective date of March 7,
2018)
|
La Colorada
Mine
|
NI 43-101 Technical
Report on Resources and Reserve, La Colorada Gold/Silver Mine,
Hermosillo, Mexico dated March 27, 2018 (effective date of December
8, 2017)
|
Magino Gold
Project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada dated
December 21, 2017 (effective date November 8, 2017)
|
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 San
Agustin mine, which together form the El Castillo Complex 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, the Cerro del
Gallo project in Guanajuato,
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 Inc.