TORONTO, Jan. 11, 2017 /CNW/ - Argonaut Gold Inc. (TSX:
AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased
to release the final assay results for the remaining 123
reverse-circulation ("RC") holes of a 350-hole program completed at
its 100%-owned Magino Gold project in Ontario. The RC drilling program was
designed to reclassify mineral reserves from Probable to Proven
within the proposed starter pit at Magino. These drill
results, including those that were released December 5, 2016 (see press release dated
December 5, 2016), will be
incorporated into a feasibility study, which is expected to be
completed during the second half of 2017.
Pete Dougherty, President and CEO
commented: "One aspect of Magino that has over-shadowed its
economic potential is the perception that the continuity of gold
mineralization, especially the higher grade areas, required further
definition. Therefore, we designed a definition-drilling
program focused on the initial two years of production with the aim
of accomplishing three goals: upgrade this portion of the resource
to a Proven Reserve category, test our existing model and de-risk
the first two years of production, which is the estimated payback
period for the project. The team was able to execute the
program on time and on budget, and these results will play a
fundamental role in the upcoming feasibility study."
Tom Burkhart, Vice President of
Exploration stated: "Drill results support the current block model
and the interpreted geometry of mineralization. Within the
system, there are lenses and stockworks of high-grade gold that are
important to the economics of the deposit. It is impossible
to know exactly where all these high-grade lenses lie, but what the
recent 10 to 12 metre spaced drilling tells us is that the tighter
we drill the Magino deposit, the more we validate that these
high-grade lenses do occur and that their frequency is predictable.
In addition, the successful result of the 2016 drilling
campaign increases our confidence in the strength of the overall
resource."
Plan View Map of Key Highlight Hole
Locations
Table 1 below illustrates key highlight holes from the drill
program:
Table 1: Key Highlight Holes
Hole
|
Azimuth
|
Dip
|
From
|
To
|
Length
|
Grade
|
|
|
|
|
|
|
|
MA16-RC-066
|
164.13
|
-51.26
|
|
|
|
|
Interval
|
|
|
52
|
67
|
15
|
1.13
|
Interval
|
|
|
93
|
114
|
21
|
2.61
|
|
|
|
|
|
|
|
MA16-RC-088
|
165
|
-50
|
|
|
|
|
Interval
|
|
|
96
|
133
|
37
|
1.90
|
|
|
|
|
|
|
|
MA16-RC-093
|
165
|
-50
|
|
|
|
|
Interval
|
|
|
79
|
96
|
17
|
4.74
|
Interval
|
|
|
100
|
131
|
31
|
0.96
|
|
|
|
|
|
|
|
MA16-RC-171
|
164.49
|
-60.68
|
|
|
|
|
Interval
|
|
|
6
|
22
|
16
|
4.37
|
Interval
|
|
|
26
|
37
|
11
|
0.38
|
Interval
|
|
|
41
|
48
|
7
|
0.85
|
Interval
|
|
|
54
|
66
|
12
|
0.84
|
|
|
|
|
|
|
|
MA16-RC-198
|
166.49
|
-48.11
|
|
|
|
|
Interval
|
|
|
50
|
74
|
24
|
2.04
|
Interval
|
|
|
113
|
118
|
5
|
0.49
|
Interval
|
|
|
126
|
135
|
9
|
1.11
|
|
|
|
|
|
|
|
MA16-RC-214
|
165.04
|
-60.22
|
|
|
|
|
Interval
|
|
|
19
|
71
|
52
|
1.22
|
|
|
|
|
|
|
|
MA16-RC-240
|
163.24
|
-48.97
|
|
|
|
|
Interval
|
|
|
26
|
37
|
11
|
0.36
|
Interval
|
|
|
45
|
63
|
18
|
12.83
|
|
|
|
|
|
|
|
MA16-RC-245
|
162.93
|
-48.75
|
|
|
|
|
Interval
|
|
|
28
|
64
|
36
|
1.04
|
|
|
|
|
|
|
|
MA16-RC-262
|
165.75
|
-48.67
|
|
|
|
|
Interval
|
|
|
24
|
33
|
9
|
0.47
|
Interval
|
|
|
62
|
74
|
12
|
5.68
|
Interval
|
|
|
140
|
147
|
7
|
1.55
|
|
|
|
|
|
|
|
MA16-RC-288
|
165.8
|
-48.37
|
|
|
|
|
Interval
|
|
|
15
|
22
|
7
|
0.35
|
Interval
|
|
|
27
|
33
|
6
|
0.41
|
Interval
|
|
|
44
|
58
|
14
|
2.46
|
Interval
|
|
|
92
|
100
|
8
|
0.48
|
Interval
|
|
|
126
|
136
|
10
|
14.31
|
Interval
|
|
|
150
|
163
|
13
|
7.26
|
|
|
|
|
|
|
|
MA16-RC-303
|
164.16
|
-49.93
|
|
|
|
|
Interval
|
|
|
19
|
23
|
4
|
1.15
|
Interval
|
|
|
28
|
49
|
21
|
0.99
|
Interval
|
|
|
55
|
78
|
23
|
3.42
|
Interval
|
|
|
106
|
113
|
7
|
0.79
|
|
|
|
|
|
|
|
MA16-RC-312
|
168.09
|
-49.12
|
|
|
|
|
Interval
|
|
|
2
|
36
|
34
|
3.77
|
Interval
|
|
|
41
|
48
|
7
|
0.48
|
Interval
|
|
|
52
|
59
|
7
|
1.15
|
Interval
|
|
|
74
|
84
|
10
|
0.45
|
|
|
|
|
|
|
|
MA16-RC-323
|
162.35
|
-51.54
|
|
|
|
|
Interval
|
|
|
12
|
30
|
18
|
0.87
|
Interval
|
|
|
34
|
44
|
10
|
1.09
|
Interval
|
|
|
58
|
84
|
26
|
3.98
|
Interval
|
|
|
150
|
159
|
9
|
0.41
|
|
|
|
|
|
|
|
MA16-RC-327
|
170.01
|
-59.28
|
|
|
|
|
Interval
|
|
|
1
|
32.2
|
31.2
|
1.33
|
|
|
|
|
|
|
|
MA16-RC-330
|
165.22
|
-49.64
|
|
|
|
|
Interval
|
|
|
10
|
30.8
|
20.8
|
2.98
|
|
|
|
|
|
|
|
To view a table of all drill results, plan view maps and cross
sections, please visit:
http://www.argonautgold.com/gold_operations/drill_results/
Qualified Person Comments / Quality Control
Procedures
The preparation of this press release was supervised and
approved by Thomas Burkhart,
Argonaut Gold's Vice President of Exploration and a Qualified
Person under NI 43-101. Mr. Burkhart also reviewed the
reverse circulation and on-site sample preparation procedures at
Magino.
For sample analysis the Company utilizes a system of Quality
Assurance/Quality Control that includes insertion and verification
of standards, blanks and duplicates consistent with industry
standards.
Samples from the Magino RC drilling program are collected by
Argonaut's geologic personnel every one metre and transported by
truck to either Activation Laboratories or Bureau Veritas with
analytical facilities in Timmins,
Ontario for sample preparation and assaying. All
samples are analyzed for gold using a 50g fire assay charge with an
atomic absorption finish. Samples that exceed 5 g/t Au are
further processed using a standard metallic screen analysis
designed to identify and analyze for coarse gold.
Please see below under the heading "cautionary note regarding
forward-looking statements" for further details regarding risks
facing Argonaut.
For further information on the Magino project please see the
report listed below on the Company's website www.argonautgold.com
or on www.sedar.com:
Magino Gold
project
|
Preliminary
Feasibility Study Technical Report on the Magino Project, Wawa,
Ontario, Canada dated February 22, 2016 (effective date January 18,
2016)
|
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, statements with
respect to estimation of mineral resources at mineral projects of
Argonaut; success of exploration activities; the realization of
mineral reserve estimates; the timing and amount of estimated
future production; economics of production; estimated production
and mine life of the various mineral projects of Argonaut; the
future price of gold and silver; synergies and financial impact of
completed acquisitions; the benefits of the development potential
of the properties of Argonaut 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 metal grades, variations in 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.
These factors are discussed in greater detail in Argonaut's most
recent Annual Information Form and in the most recent Management
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. 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.
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. 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.
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.