Argonaut Gold Ltd. Reports Completion of its Phase I-2010 Resource Expansion Program at the El Castillo Mine in Durango, Mexico
13 Mai 2010 - 3:27PM
Marketwired
Argonaut Gold Ltd. (TSX: AR) is pleased to announce that its 2010
Phase I Resource Expansion Program at El Castillo was completed on
April 22nd. This program was designed to extend and identify the
approximate limits of the El Castillo mineral system to the south
and east of the reported gold resource. This program consisted of
completing a minimum 100 meter drill grid as a means to better
identify the approximate size of the El Castillo mineral system.
Results of the 121 hole drill program, spanning 16,250 meters, have
significantly increased the dimensions of the gold zone by upwards
of 500 meters to the south and 300 to 400 meters to the east.
Several areas remain open and will require additional step-out
drilling. (Please refer to contour map of mineral distribution
& supporting cross section location map and cross sections on
Company website, www.argonautgoldinc.com).
Pete Dougherty, President and CEO for Argonaut noted, "All
indications continue to support the probability that the El
Castillo resources are expected to double from what was reported at
the end of 2009." He also stated that "El Castillo was acquired, in
part, for its exploration upside and it is gratifying to see the
exploration success at the project. It is also important to note
that the drilling was completed ahead of schedule and on
budget."
Subsequent to the Company's last press release on March 31, 2010
an additional 30 holes were completed with the best results
tabulated as follows:
Table 1
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Summary Assay Results - El Castillo Phase 1 Reverse Circulation Drill
Program Holes
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From To Thickness
Hole Number Hole Depth (meters) (meters) (meters) Au Values g/t
---------------------------------------------------------------------------
CA-333 144.4 0 36 36 0.326
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CA-335 159.6 4.6 47.1 42.6 0.391
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CA-338 155 36.5 53.22 16.7 0.569
---------------------------------------------------------------------------
CA-341 180.9 1.52 30.4 28.9 0.436
---------------------------------------------------------------------------
CA-343 199 0 13.7 13.7 0.466
---------------------------------------------------------------------------
CA-344 202.2 3 71.4 68.4 0.354
---------------------------------------------------------------------------
CA-346 220.4 0 51.7 51.7 0.339
---------------------------------------------------------------------------
CA-349 199.2 21.3 59.3 38 0.214
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CA-354 158 1.52 74.5 73 0.558
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CA-356 235.6 24.3 94.2 70 0.566
---------------------------------------------------------------------------
CA-360 56.2 0 42.6 42.6 0.282
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(i)Note: Reported mineral widths have not been verified as true
widths as more drilling will be required to identify the
orientation of the mineralization. All distances shown are in
meters.
(For a full table of drill results please refer to the Company
website, www.argonautgoldinc.com).
Phase 2 in-fill drill Program
Immediately upon the conclusion of the Phase I, 100 meter
drill-spacing program, the Company embarked on an aggressive
in-fill drill program that is expected to bring much of the known
mineralization into a measured and indicated category. The
objective of the in-fill program is to drill-out the resource on 50
meters or less spacing. This program commenced on April 23 and will
consist of an estimated 140 drill holes totaling approximately
16,000 meters. This program is scheduled for completion by the end
of September. The results of the 2010 drill programs will be
incorporated into a new 43-101 report that is scheduled for
completion by the end of 2010.
Other work currently in the planning stages on the project for
2010 includes the completion of at least six core holes within the
ore body to obtain metallurgical samples. These samples will be
utilized to better determine potential heap leach recoveries of
partially oxidized gold bearing material (Transition Ore) and
sulfide mineralization. Both the transition and sulfide zones occur
below the oxide mineralization and represent considerable tonnages
of gold mineralized material that could add significantly to the
long term economics of the El Castillo Mine. (See Castle Gold
Corporation press release May 7, 2009).
La Fortuna, Llano Colorado and La Compa
With the acquisition of Castle Gold and the El Castillo Mine,
the Company also acquired the advanced exploration stage La Fortuna
gold-silver project in western Durango State and the La Compa and
Llano Colorado gold-silver exploration properties in Sonora State,
Mexico.
Sufficient drilling at the La Fortuna project has been completed
to produce a compliant NI-43-101 report, with a measured and
indicated resource of 4.8 million tons grading 2.96 g/t for 308,000
ounces of gold at a 0.5 gpt cutoff (Toren Olson Consulting,
National Instrument 43-101 (October 21, 2008). Prior to Argonaut
acquiring the property the most recent emphasis on the project was
metallurgical studies where both heap leach and conventional
milling possibilities were being studied. Argonaut is reviewing the
results and recommendations of this work. In addition, the Company
is considering additional step-out and in-fill drilling of the
resource area. The La Fortuna property also hosts at least 20 other
known mineral occurrences. Six of these were recommended for
drilling by independent geologists contracted by the previous owner
of the property. Argonaut is in the process of prioritizing these
various targets and will conduct further field evaluations leading
to specific exploration planning.
On the La Compa and Llano Colorado properties field visits are
scheduled to gauge the potential of both land holdings with
additional project work contingent on these initial exploration
results.
As stated by Vice President of Exploration Tom Burkhart, "The
ongoing in-fill and step out drilling at El Castillo continues to
increase our knowledge and understanding of the mineral system.
This work is providing increased confidence in the predictability
and continuity of mineralization that bodes well for significantly
expanding economic mineralization and prioritizing exploration
activity. Additionally, I look forward to further evaluating the
economic potential of other properties within the company's
portfolio that, based on preliminary reviews, show attractive
potential."
To view the El Castillo Project, please visit the following
link: http://media3.marketwire.com/docs/AR0513S.jpg
About Argonaut
Argonaut is a Canadian gold company engaged in exploration, mine
development and production activities. Its primary assets being the
production-stage El Castillo Project and the exploration-stage La
Fortuna Project, both located in the State of Durango, Mexico.
Argonaut is a new venture created by former executive management
team members of Meridian Gold Inc. Creating the Next Quality
Mid-Tier Gold Producer in the Americas.
Qualified Person Comments/Quality Control Procedures
This Press Release was reviewed and approved by Thomas Burkhart,
B.Sc. in Geology, Argonaut Gold's Vice President of Exploration.
Mr. Burkhart is a Qualified Person as defined in National
Instrument 43-101.
Mr. Burkhart reviewed the reverse circulation drill program and
on-site sample preparation procedures at El Castillo.
All drill hole samples were composited at site into 1.5 meter
intervals and split with half the sample transported to
ALS-Chemex's sample preparation lab in Hermosillo, Mexico. Pulps
are prepared in Hermosillo and then sent to ALS-Chemex's
Laboratories in Vancouver, Canada where gold assays are completed
using a fire assay procedure with an Atomic Absorption Spectroscopy
finish. The Company utilizes a system of check assays and sample
blanks consistent with industry standards.
To be reported here there must be a minimum of 5 meters of
material where each sample interval is equal to or exceeds a .15
gram per tonne cutoff (which is representative of the current AC
Howe pit design).
Cautionary Note Regarding Forward-looking Statements
This news release contains forward-looking statements that
involve risks and uncertainties that could cause results to differ
materially from management's current expectations. Actual results
may differ materially due to a number of factors. Except as
required by law, Argonaut Gold Ltd. assumes no obligation to update
the forward-looking information contained in this news release.
Contacts: Argonaut Gold Ltd. Nichole Cowles Investor Relations
Manager (775) 284-4422 x 101 nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com
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