TORONTO, May 17, 2018 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut")
reports that the Judiciary court hearing with respect to the
Company's explosives permit for its La
Colorada mine (see press releases dated April 12, 2018, April 17,
2018 and April 27, 2018) has
been rescheduled to June 4, 2018.
In order to keep all legal options available and to protect the
Company in the event the Judiciary court process is not completed
in a timely manner, the Company also reports that it appealed the
Judiciary court's original decision to temporarily suspend the
explosives permit to the Collegiate Tribunal (an arm of the State
Supreme court that is tasked with overseeing the Judiciary
court). This appeal requests the Collegiate Tribunal
re-instates the explosives permit so that the Company can blast
material while the Judiciary legal process continues.
The Company is pursuing both the Judiciary legal process and the
Collegiate Tribunal appeal process and anticipates it has material
sufficient to allow these processes to run their course.
With free-dig material in the pit and ore stockpiles, 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. The Company has thoroughly reviewed its
2018 consolidated production forecast and, under the assumption the
explosive permit is re-instated by August 1,
2018, it re-iterates its consolidated production guidance of
between 165,000 and 180,000 gold equivalent ounces1.
The Company continues to believe the legal action brought
against the Secretary of National Defense and the Municipality of
La Colorada, with the Company as a
party of interest, is without merit. The Company is reassured
by the support it has received, including that from members of the
local La Colorada and extended
Sonora community. The Company
is taking every possible legal measure to prove its case and to
re-activate blasting activities at its La
Colorada mine as soon as possible.
1Gold
equivalent ounces are based on a conversion ratio of 70:1 for
silver to gold.
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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 permitting and legal processes in relation to mining
permitting and approvals; 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 estimation of mineral reserves and
resources; the realization of mineral reserve estimates; 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
legal and regulatory processes, changes in market conditions,
variations in ore grade or recovery rates, 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.
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.