TORONTO, May 8, 2017 /CNW/ - Argonaut Gold
Inc. (TSX: AR) (the "Company", "Argonaut Gold" or
"Argonaut") is pleased to announce that it has completed
approximately 11,540 metres in 75 reverse-circulation ("RC") drill
holes on the North Target area that lies adjacent to the
El Castillo open pit mine. The
North Target lies within a 420 hectare mineral concession recently
acquired from a wholly-owned subsidiary of Fresnillo Plc
("Fresnillo") (see press release dated February 23, 2017). The North Target
drilling is part of an ongoing US$2
million infill RC drill program within areas of projected
mineralization outward from the currently operational El Castillo open pit mine.
Previous wide-spaced drilling by Fresnillo established the gold potential in
the area and was valuable in the design of the current drilling
program. The Company's objective was to increase drill-hole
density within mineralized areas to approximately 35 metre spacing,
which is consistent with the current modeling practices at El
Castillo. These new drill hole results of the North Target
area display strongly oxidized gold bearing rocks with the same
chemical and structure characteristics as the El Castillo open pit mine. Potential to
extend the current El Castillo pit
limits and extend mine life is highly promising. Drilling
continues on the South Target area where Fresnillo's prior work supports further
drilling to possibly extend pit limits there as well, and the
results are expected to be released during the second half of
2017. The Company anticipates publishing an updated National
Instrument 43-101 Technical Report for the El Castillo mining complex during the first
quarter of 2018, where the drill results from the North and South
Target areas will be incorporated into an updated mineral reserve
and resource estimates.
Pete Dougherty, President &
CEO commented: "With the acquisition of Fresnillo's San
Juan concession and the drill results so far, we expected to
increase the life of the El
Castillo mine. Drilling results to date are positive
and indicate strong potential to expand the current pit limits
initially into the North Target area. This previously
announced acquisition also allows us to extract a large, known
wedge of economic mineralization that lies on our side of the
original concession boundary, as we move the pit wall back onto the
newly acquired ground."
Thomas Burkhart noted: "Based on
our geologic understanding of the El
Castillo gold system, it was clear that there is a north to
northeast trend of mineralization that continued into the North
Target area. Overall, the continuity of gold mineralization
and thicknesses were better than expected and the depth of
oxidation is deeper than our current pit in the north exceeding 200
metres. We are very pleased with the results of this drill
program to date."
Table 1 below illustrates key highlight holes from the North
Target area. For a full table of drill results, plan view
maps and cross sections, please visit:
http://www.argonautgold.com/gold_operations/drill_results/
Table 1: Selected Drill Results
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-697
|
180
|
65°
|
|
|
|
|
|
Interval
|
|
|
42.7
|
141.7
|
99.1
|
0.64
|
1
|
Including
|
|
|
109.7
|
120.4
|
10.7
|
2.35
|
0
|
Interval
|
|
|
152.4
|
182.9
|
30.5
|
0.27
|
0
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-700
|
180
|
65°
|
|
|
|
|
|
Interval
|
|
|
32.0
|
36.6
|
4.6
|
0.18
|
0
|
Interval
|
|
|
53.3
|
195.1
|
141.7
|
0.49
|
1
|
Including
|
|
|
80.8
|
88.4
|
7.6
|
2.27
|
1
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-702
|
180
|
55°
|
|
|
|
|
|
Interval
|
|
|
50.3
|
204.2
|
153.9
|
0.53
|
1
|
Including
|
|
|
82.3
|
86.9
|
4.6
|
2.49
|
2
|
Including
|
|
|
120.4
|
123.4
|
3.0
|
3.20
|
0
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-706
|
180
|
67°
|
|
|
|
|
|
Interval
|
|
|
105.2
|
190.5
|
85.3
|
0.52
|
1
|
Including
|
|
|
121.9
|
132.6
|
10.7
|
1.85
|
1
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-707
|
180
|
68°
|
|
|
|
|
|
Interval
|
|
|
15.2
|
131.1
|
115.8
|
0.44
|
1
|
Including
|
|
|
48.8
|
53.3
|
4.6
|
1.09
|
1
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-710
|
180
|
64°
|
|
|
|
|
|
Interval
|
|
|
32.0
|
170.7
|
138.7
|
0.58
|
1
|
Including
|
|
|
54.9
|
65.5
|
10.7
|
1.30
|
1
|
Including
|
|
|
79.2
|
86.9
|
7.6
|
3.49
|
3
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-718
|
180
|
80°
|
|
|
|
|
|
Interval
|
|
|
0.0
|
114.3
|
114.3
|
0.41
|
1
|
Including
|
|
|
45.7
|
50.3
|
4.6
|
1.20
|
2
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-721
|
180
|
66°
|
|
|
|
|
|
Interval
|
|
|
25.9
|
36.6
|
10.7
|
0.37
|
1
|
Interval
|
|
|
47.2
|
158.5
|
111.3
|
0.54
|
1
|
Including
|
|
|
64.0
|
68.6
|
4.6
|
1.41
|
1
|
Including
|
|
|
93.0
|
100.6
|
7.6
|
2.91
|
1
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-722
|
180
|
57°
|
|
|
|
|
|
Interval
|
|
|
19.8
|
96.0
|
76.2
|
0.51
|
1
|
Including
|
|
|
19.8
|
24.4
|
4.6
|
1.75
|
1
|
Including
|
|
|
30.5
|
35.1
|
4.6
|
1.60
|
2
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-726
|
180
|
68°
|
|
|
|
|
|
Interval
|
|
|
13.7
|
155.4
|
141.7
|
0.68
|
1
|
Including
|
|
|
32.0
|
44.2
|
12.2
|
4.30
|
3
|
Hole
|
Azimuth
|
Dip
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
g/t
|
Ag
g/t
|
17-CA-728
|
180
|
65°
|
|
|
|
|
|
Interval
|
|
|
3.0
|
97.5
|
94.5
|
0.52
|
1
|
Including
|
|
|
7.6
|
16.8
|
9.1
|
1.20
|
5
|
Including
|
|
|
30.5
|
33.5
|
3.0
|
4.04
|
0
|
Qualified Person Comments / Quality Control
Procedures
Drill samples are transported to the preparation laboratory of
ALS-Chemex Labs Inc. in Chihuahua,
Mexico where samples are prepared and pulps sent for assay
in the laboratory of ALS-Chemex in Vancouver, British Columbia. Samples are
analyzed for gold by fire assay and atomic absorption finish.
For silver, samples use a multi-element inductively coupled plasma
(ICP) assay. Argonaut utilizes standard Quality
Assurance/Quality Control sample procedures that include the
insertion of sample standards, blanks and duplicates as well as
systematic check assaying by a second accredited laboratory.
The technical information relating to exploration activities
disclosed in this news release was prepared under the supervision
of, and reviewed and verified by, Thomas
Burkhart, Argonaut Gold's Qualified Person under National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
For further information on the El
Castillo mine, please see the technical report on the
El Castillo mine titled "NI 43-101
Technical Report on Resources and Reserves, Argonaut Gold Inc., El
Castillo Mine, Durango State, Mexico", dated February
24, 2011 (effective date of November
6, 2010), prepared by SRK Consulting (U.S.), Inc. for
Argonaut Gold (the "El Castillo Report"). The El Castillo
Report is available electronically on Argonaut's website at
www.argonautgold.com or on SEDAR under Argonaut's issuer profile at
www.sedar.com.
The Company is not aware of any legal, political, environmental or
other risks that could materially affect the El Castillo mine other than those set out in
the annual information form of Argonaut for the financial year
ended December 31, 2016 (dated
March 20, 2017) filed on SEDAR under
Argonaut's issuer profile at www.sedar.com. Please see below
under the heading "Cautionary Note Regarding Forward-looking
Statements" for further details regarding risks facing the
Company.
Production for today; development for tomorrow
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'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. 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.