TORONTO, Dec. 2, 2019 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is
pleased to announce further drill results from the on-going,
20,000-metre exploration program at its 100% owned Magino property
in Ontario, Canada. The current
drilling campaign is targeting high-grade gold mineralization below
and adjacent to the current open pit Mineral Resource at depth. To
date, the Company has completed 16 diamond drill holes and
approximately 12,200 metres of the 20,000-metre program. The
results of the 2019 exploration program to date suggest the
following:
- the continuity of high-grade structure below the planned open
pit;
- at least two high-grade structures hosting multiple veins that
remain open at depth and to the west; and,
- several newly identified additional geological targets.
Pete Dougherty, President and CEO
stated: "The drill program to date has focused on testing the same
gold-bearing geological structures that strike westward into the
Magino deposit from those of the adjacent Island Gold Mine,
Lochalsh gold deposit. Through the incorporation of structural and
geochemical data, the program continues to target and intercept
deeper high-grade gold-bearing structures below the currently
designed open pit. During this program to date, drilling has been
focused on the eastern portion of the deposit and targeted depths
of 200 to 500 metres below surface. We now plan to test the
structures below 800 metres and deeper and extend drilling toward
the western edge of the property where a number of targets have
been identified. We are pleased with the success of the programs
targeting and the drill results to date. It appears from early
drilling there is potential for high-grade, underground
mineralization below the pit."
Drilling results continue to define structurally controlled
higher-grade gold zones below and adjacent to the planned pit. Gold
grades and thicknesses show good continuity to the open pit mineral
resource above.
Table 1 below highlights select drill results from the on-going,
20,000-metre program. A table of all drill results, plan view and
cross section maps are available on the Company's website at
https://www.argonautgold.com/English/assets/drill-results/default.aspx.
Table 1: Select Drill Results
Hole
|
Azimuth
|
Dip
|
From
(metres)
|
To
(metres)
|
Length
(metres)
|
Grade
(Au g/t)
|
Estimated
True
Width
(metres)
|
MA19-005
|
165.1
|
-60.2
|
79.0
|
81.8
|
2.8
|
6.39
|
2.1
|
and
|
|
|
284.2
|
286.7
|
2.5
|
6.73
|
1.9
|
|
|
|
|
|
|
|
|
MA19-006
|
160.1
|
-67.4
|
484.0
|
490.0
|
6.0
|
5.40
|
4.2
|
|
|
|
|
|
|
|
|
MA19-007
|
165.0
|
-62.0
|
348.0
|
357.0
|
9.0
|
4.95
|
7.2
|
including
|
|
|
348.0
|
353.0
|
5.0
|
6.79
|
4.0
|
including
|
|
|
350.2
|
353.0
|
2.8
|
10.50
|
2.3
|
and
|
|
|
375.0
|
380.0
|
5.0
|
5.10
|
4.0
|
including
|
|
|
376.0
|
377.0
|
1.0
|
16.50
|
0.8
|
|
|
|
|
|
|
|
|
MA19-008
|
344.3
|
-55.0
|
461.0
|
464.0
|
3.0
|
5.95
|
2.4
|
including
|
|
|
461.0
|
463.0
|
2.0
|
8.81
|
1.6
|
|
|
|
|
|
|
|
|
MA19-009
|
194.0
|
-51.1
|
344.0
|
354.0
|
10.0
|
5.37
|
8.7
|
including
|
|
|
349.0
|
354.0
|
5.0
|
9.47
|
4.3
|
and
|
|
|
433.8
|
437.8
|
4.0
|
9.60
|
3.5
|
including
|
|
|
433.8
|
434.8
|
1.0
|
37.00
|
0.9
|
|
|
|
|
|
|
|
|
MA19-010
|
343.0
|
-62.9
|
387.0
|
389.0
|
2.0
|
7.82
|
1.4
|
including
|
|
|
388.0
|
389.0
|
1.0
|
14.40
|
0.7
|
|
|
|
|
|
|
|
|
MA19-011
|
149.6
|
-79.3
|
464.0
|
467.0
|
3.0
|
8.43
|
2.1
|
including
|
|
|
465.0
|
466.0
|
1.0
|
20.90
|
0.7
|
and
|
|
|
636.0
|
638.0
|
2.0
|
5.66
|
1.4
|
including
|
|
|
636.0
|
637.0
|
1.0
|
9.77
|
0.7
|
|
|
|
|
|
|
|
|
MA19-012
|
155.1
|
-70.0
|
479.0
|
516.0
|
37.0
|
4.92
|
29.6
|
including
|
|
|
479.0
|
499.0
|
20.0
|
7.73
|
16.0
|
including
|
|
|
479.9
|
498.0
|
18.1
|
8.31
|
14.5
|
including
|
|
|
479.9
|
492.0
|
12.1
|
10.83
|
9.7
|
including
|
|
|
511.0
|
514.0
|
3.0
|
5.45
|
2.4
|
|
|
|
|
|
|
|
|
MA19-013
|
186.5
|
-55.0
|
355.0
|
357.0
|
2.0
|
3.21
|
1.6
|
including
|
|
|
355.0
|
356.0
|
1.0
|
5.47
|
0.8
|
|
|
|
Additional assays
pending
|
|
|
|
|
|
|
|
|
MA19-014
|
157.3
|
-62.3
|
439.0
|
441.1
|
2.0
|
5.33
|
1.6
|
including
|
|
|
440.1
|
441.1
|
1.0
|
10.96
|
0.8
|
|
|
|
Additional assays
pending
|
|
|
|
|
|
|
|
|
MA19-015
|
159.1
|
-79.2
|
Assays
pending
|
|
|
|
|
|
|
|
|
MA19-016
|
185.4
|
-62.0
|
355.0
|
374.0
|
19.0
|
6.90
|
15.2
|
including
|
|
|
360.0
|
374.0
|
14.0
|
9.02
|
11.2
|
including
|
|
|
360.0
|
372.0
|
12.0
|
10.24
|
9.6
|
including
|
|
|
360.0
|
371.0
|
11.0
|
10.89
|
8.8
|
including
|
|
|
364.0
|
371.0
|
7.0
|
14.78
|
5.6
|
and
|
|
|
439.3
|
441.5
|
2.2
|
5.47
|
1.8
|
including
|
|
|
439.3
|
440.5
|
1.2
|
8.23
|
1.0
|
|
|
|
Additional assays
pending
|
High-grade Structural Zones
Previous exploration had primarily focused on targeting
mineralization from surface to approximately 300 metres in depth
and identified a Measured and Indicated Mineral Resource of 144.0
million tonnes at 0.91 g/t Au containing 4.2 million gold ounces.
During the summer of 2019, Argonaut initiated its first drill
program to specifically target high-grade structures at depth. The
first four drill holes (see press release dated September 10, 2019) successfully intersected a
number of higher-grade structures trending westward from the
adjacent Island Gold Mine into areas below and adjacent to the
planned Magino open pit. The current exploration program has
primarily focused on two high-grade structural zones, the Elbow
Zone and the South Zone.
Elbow Zone
The Elbow Zone crosses the north and east portion of the Magino
deposit. The zone has been intersected in drilling from the eastern
property boundary westward over a strike distance of more than 500
metres and remains open both at depth and to the west. Argonaut's
geology team believes that this zone is the continuation of the
adjacent Island Gold Mine's Lochalsh Zone. The Elbow Zone has been
intersected in 10 separate drill holes and displays at least three
high-grade veins ranging in width from 1.5 metres to over 18
metres. To date, drilling has intersected the Elbow Zone to a
vertical depth of 600 metres below surface.
Key Elbow Zone Highlights
Drill hole MA19-004
intersected 14.43 g/t Au over an estimated true width ("ETW") of
1.5 metres and a second vein of 7.96 g/t Au over an ETW of 1.9
metres. Drill hole MA19-006 was drilled 125 metres down plunge and
intersected 5.40 g/t Au over an ETW of 4.2 metres and was followed
by drill hole MA19-012 that returned 8.31 g/t Au over an ETW of
14.5 metres. Drill hole MA19-012 had a 41 metre separation along
strike from MA19-006. High grade occurs within intense
silica-sericite alteration with grey quartz and tourmaline veining,
which allows Argonaut to establish continuity of the veins.
Approximately 200 metres to the west, Argonaut drilled a second
fence of diamond drill holes into the Elbow Zone. MA19-009
intersected a broad zone of anomalous gold with multiple
occurrences of visible gold in pervasively altered granodiorite
over a core length of 130 metres. The most significant
intersections returned 9.47 g/t Au over an ETW of 4.3 metres and
9.60 g/t Au over an ETW of 3.5 metres. Visible gold-silver electrum
was observed in hole MA19-007 in quartz veined, pyritic
granodiorite assaying 6.79 g/t Au over an ETW of 4.0 metres and a
second intersection of 5.10 g/t Au over an ETW of 4.0 metres.
Oriented core structural measurements have been successful in
defining a visible gold-bearing zone that can be traced over a
minimum strike length of 80 metres from hole MA19-007 (4.0 metres
ETW at 6.79 g/t Au) westward to holes MA19-016 (11.2 metres ETW at
9.02 g/t Au) and MA11-183 (3.0 metres ETW at 5.0 g/t Au). This
well-defined zone of concentrated gold mineralization ranges from
3.0 metres to 11.2 metres ETW and remains open in all
directions.
Argonaut plans to continue to drill test the Elbow Zone to both
the west and at depth, where mineralization remains open and grade
appears to be improving.
South Zone
Argonaut has drilled two fences of diamond drill holes in a
previously untested area now identified as the South Zone. Drilling
targeted a number of shear zones identified through a combination
of surface mapping and geophysics. The South Zone sits 300 metres
south of the Elbow Zone and immediately south of the planned Magino
open pit. The South Zone remains open to the west and at
depth.
Key South Zone Highlights
Drill hole MA19-002 returned
a zone averaging 5.00 g/t Au over an ETW of 10.4 metres, which
included a higher grade interval of 11.80 g/t Au over an ETW of 4.3
metres. This intercept, drilled south of the planned Magino pit in
an area with limited previous drilling, occurs in a shear zone
within mafic metavolcanics rocks. As a follow-up to this hole,
holes MA19-003 (2.6 metres ETW at 4.8 g/t Au and 1.8 metres ETW at
5.9 g/t Au), MA19-008 (1.6 metres ETW at 8.81 g/t Au) and MA19-010
(1.4 metres ETW at 7.82 g/t Au) were completed to test a western
extension. These holes intersected two parallel gold-bearing zones,
which can contain visible gold, that are interpreted to dip south
and plunge steeply to the east.
Brian Arkell, Vice President
Exploration stated: "We continue to be encouraged by our drilling
results and the size and extent of the Magino deposit. We have
completed approximately 60% of the planned 20,000-metre program and
are beginning to see good continuity of mineralization zones. We've
encountered gold mineralization in all 16 holes drilled thus far
and are excited to continue to drill test these high-grade
structures to the west and at depth. Our team has employed new
exploration tools and successfully delineated a number of
high-grade, gold-bearing structures outside of the previously
defined 4.2 million ounce Measured and Indicated Mineral Resource.
Exploration efforts will now focus on extending the known zones at
depth, as well as testing a number of new targets that we have
identified to the west."
Future Drill Targets
As part of the 2019 exploration program, the Company has
identified several future drill targets on the Magino property. Key
areas for future exploration include the Lovell Lake Zone, the P-51
Mustang Zone, the No. 3 Zone and the 21 Zone. The Lovell Lake
target, which lies along the projection of the Elbow Zone some 750
metres to the west, contains surface samples up to 10.5 g/t Au in
favorable, structural deformed host rocks. The P-51 and No. 3
targets lie along a mineralized structural break, the Kremzar Gold
Trend; surface samples returned anomalous gold values including
30.6 g/t Au and 89.8 g/t Au. The map below (Figure: 2019
Exploration Targets) illustrates the drill targets that will be
tested in the future.
Brian Arkell continued: "The
district around the Magino deposit is very much underexplored and
our initial reconnaissance has successfully identified a number of
strong targets. We have initiated a program of geophysics and plan
scout drilling on these prospects in the coming year. We see
excellent potential here to add to our pipeline of projects."
Qualified Person Comments / Quality Control
Procedures
The preparation of this press release was supervised and
approved by Brian Arkell, Argonaut
Gold's Vice President Exploration and a Qualified Person under NI
43-101. Mr. Arkell also reviewed the diamond drilling, sampling and
on-site sample preparation procedures at Magino.
For sample analysis, the Company utilizes a system of Quality
Assurance/Quality Control (QA/QC) that includes insertion and
verification of standards, blanks and duplicates consistent with
industry standards.
The Company has implemented a QA/QC program to ensure sampling
and analysis of all exploration work is conducted in accordance
with the CIM Exploration Best Practices Guidelines. The entire
drill hole is sampled and tagged by geologic personnel. Cores are
then photographed and sawn in half by experienced geotechnicians,
placed in numbered plastic bags, and gathered in rice bags which
are sealed with tamper-proof security tags under the supervision of
the project geologists. The other half of the core is retained for
future assay verification and/or metallurgical testing. Other QA/QC
procedures include the insertion of coarse blanks and Canadian
Reference Standards for every tenth sample in the sample stream.
Samples are bagged, sealed with numbered security tags and shipped
to the Act Labs facility, Thunder Bay,
Ontario, for sample preparation and assaying. The laboratory
has its own QA/QC protocols, running standards, blanks and
duplicate samples in each batch stream. Gold analysis is conducted
by lead collection, fire assay with a gravimetric finish on a
50-gram sample. Metallic screen fire assaying is now completed
using a 1.0 kg sample and two 50 gm fire assays of the pass (-100
mesh) pulverized material on all samples containing visible gold.
Check assays are conducted at a secondary ISO certified
laboratory.
Please see below under the heading "Cautionary note regarding
forward-looking statements" for further details regarding risk.
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
free cash flow estimates; 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
access to water to meet planned solution flow rates, estimates of
future capital and operating costs, 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
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.
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.
For further information on the Magino project, please see the
report as listed below on the Company's website or on
www.sedar.com:
Magino Gold
Project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada dated
December 21, 2017 (effective date November 8, 2017)
|
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration,
mine development and production. Its primary assets are the
El Castillo mine and San Agustin mine, which together form the El
Castillo Complex in Durango,
Mexico and the La Colorada
mine in Sonora, Mexico. Advanced
exploration 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.