TORONTO, June 5, 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, April 27,
2018 and May 17, 2018) has
been postponed and is awaiting imminent court scheduling.
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 re-iterates that it previously
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 that the Collegiate
Tribunal re-instates the explosives permit so that the Company can
blast material while the Judiciary legal process
continues.
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 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.
1
|
Gold equivalent
ounces are based on a conversion ratio of 70:1 for silver to
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 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.