Argonaut Gold Announces 2012 Project Initiatives
27 Februar 2012 - 2:00PM
Marketwired
Argonaut Gold Inc. (TSX:AR) ("Argonaut" or the "Company") is
pleased to announce its plans for 2012 project initiatives for both
of the Company's operating mines in Mexico. The El Castillo mine is
located 100 km north of the capital city of Durango in Durango,
Mexico, and the La Colorada mine is located 50 km southeast of the
capital city of Hermosillo in Sonora, Mexico.
El Castillo 2012 Initiatives:
-- Mining Fleet
-- In Q1, the haulage fleet will increase to a total of 18, one hundred
ton capacity trucks.
-- Expanding heap leach capacity
-- In Q2, west leach pad #7A will be commissioned, providing an
additional 2.6 million tonnes capacity.
-- Reducing truck haulage requirements
-- In Q3, a new crushing, conveying and stacking system will be in
place reducing truck haulage requirements.
-- Future Pad expansions
-- In Q4, construction to begin on pad #8 on the west side land which
was acquired at the end of 2011.
Pete Dougherty, Argonaut President and CEO, stated: "These
initiatives will be implemented in a stepped phase throughout the
year, and are designed to create a more efficient mining
environment at El Castillo. At the end of last year as we extended
operations to the east pads and plant, El Castillo experienced
higher cash operating costs. We feel these initiatives will
mitigate these costs. We believe El Castillo will be in a position
to take the next steps in advancing production by year end with the
addition of the new west pad #8."
La Colorada 2012 Initiatives:
-- Production in Q1
-- The Company began stacking and leaching material early in the first
quarter.
-- Completion of desorption plant and refinery
-- Expected to be completed in Q2, this new plant will provide refining
capacity for all Mexican operations allowing for faster metal
recovery and sales.
-- Expanding Mine Footprint
-- In Q2, the phase two permit for expansion is expected to be received
and mining is to begin at the La Colorada pit.
Mr. Dougherty commented: "The Company is happy to announce that
gold production has begun at the La Colorada mine. We are currently
reprocessing material from the existing leach pads. Construction is
well underway on the new desorption and recovery plant, as well as
the refinery. When completed in the second quarter, it will have
the capacity to handle material from all of the Company's Mexican
operations. The enhancement of the desorption and refining circuit
will allow the Company to process all loaded carbon at a single
site, therein reducing costs, and expediting our sales process. It
is satisfying to see the La Colorada mine begin ahead of schedule
and continue to expand."
Total Capital Expansion Program for 2012
El Castillo $8-10 million
La Colorada $15-20 million
San Antonio (1) $3-4 million
Exploration (2) $7-8 million
Note: (1) Subject to permitting process timeline
(2) Subject to exploration success
Mr. Dougherty commented: "The Company is pleased to add a second
producing mine to the Company's portfolio. The initiatives underway
at both mines will allow for greater efficiencies and enhancements
to production. Gold production at El Castillo is expected to be
between 17,000 and 18,000 ounces for Q1 and is budgeted to increase
each quarter. Q4 production is expected to reach 21,000 - 22,000
ounces, finishing the year for a total of 75,000 and 80,000 ounces
at an average cash cost for the year of $625 to $650 per ounce.
Gold production at La Colorada is expected to be between 2,000 and
2,500 ounces of gold for Q1 with gradual increases anticipated each
quarter;. Q4 production is expected to be between 4,500 - 5,500
ounces at an average cash cost for the year of $625 to $650 per
ounce. Full year La Colorada production is expected to be 13,500 to
17,000 ounces."
About Argonaut Gold
Argonaut is a Canadian gold company engaged in exploration, mine
development and production activities. Its primary assets are the
production-stage El Castillo Mine in the State of Durango, Mexico,
the La Colorada Mine in the State of Sonora, Mexico, the advanced
exploration stage San Antonio project in the State of Baja
California Sur, Mexico, and several exploration stage projects, all
of which are located in Mexico.
Creating Value Beyond Gold
Cautionary Language Regarding Forward-Looking Information
This news release contains and refers to forward-looking
information based on current expectations. All other statements
other than statements of historical fact included in this release
are forward-looking statements (or forward-looking information).
The Company's plans involve various estimates and assumptions and
its business and operations are subject to various risks and
uncertainties. For more details on these estimates, assumptions,
risks and uncertainties, see the Company's most recent Annual
Information Form and most recent Management Discussion and Analysis
on file with the Canadian securities regulatory authorities on
SEDAR at www.sedar.com. These forward-looking statements are made
as of the date hereof and there can be no assurance that such
statements will prove to be accurate, such statements are subject
to significant risks and uncertainties, and actual results and
future events could differ materially from those anticipated in
such statements. The Company assumes no obligation to update the
forward-looking information contained in this news release.
Accordingly, readers should not place undue reliance on
forward-looking statements that are included herein. The release
should also reference La Colorada as being brought into production
without a feasibility study demonstrating economic and technical
viability and that there may be increased uncertainty and certain
risks (identify if possible) of failure associated with the
production decision.
Qualified Persons
Preparation of this press release was supervised by Mr. Thomas
Burkhart, Argonaut's Vice President of Exploration and a "Qualified
Persons" as defined by NI 43-101. Mr. Alberto Orozco, Argonaut's
Mexico Exploration Manager, also supervised the drill programs and
on-site sample preparation procedures at La Colorada.
For more information, please refer to the appropriate project's
technical report available on the Company's website as well as
www.sedar.com:
La Colorada NI 43-101 Preliminary Economic Assessment La Colorada Project
Sonora, Mexico (October 15, 2011)
El Castillo NI 43-101 Technical Report on Resources and Reserves Argonaut
Gold Inc. El Castillo Mine Durango State, Mexico (November 6,
2010)
Contacts: Argonaut Gold Inc. Nichole Cowles Investor Relations
Manager (775) 284-4422 x 101nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com
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