Argonaut Gold Inc. ("Argonaut Gold" or the "Company") (TSX:AR)
announced today that the Company produced 21,084 gold ounces during
the 1st quarter of 2012 (ended March 31, 2012) at its 100% owned El
Castillo Mine ("El Castillo" which is located 100 km north of the
city of Durango, Mexico) and 100% owned La Colorada Mine ("La
Colorada" which is located 50 kilometers southeast of Hermosillo,
Mexico).
FIRST QUARTER 2012 HIGHLIGHTS:
El Castillo Operations
-- Contractor mining fleet increased to 18 trucks (100 tonne capacity)
-- Achieved approximately 2.0 million total tonnes mined per month.
-- Leach pad 7A west side pad construction initiated.
-- 35,283 gold ounces loaded on the pad.
-- Gold production of 17,799 ounces.
La Colorada Operations
-- Production initiated at La Colorada.
-- 8,886 gold ounces loaded on the pad; 857,795 silver ounces loaded on the
pad.
-- Gold production loaded on carbon of 3,085 gold ounces and 17,182 silver
ounces.
FIRST QUARTER 2012 El CASTILLO OPERATING RESULTS:
The first quarter operating statistics showed improvement over
the Q1 2011. Ore production has increased to an annualized rate of
more than 12 million tonnes. The contractor has increased the size
of the mining fleet, now operating 18 trucks with 100 tonne
capacity. With completion of contruction on cell 5, the east side
pad capacity is now approximately 30 million tonnes. In Q1,
construction began at cell 7A on the west side pads. Guidance for
2012 production is 75-80,000 ounces with a $625-$650 cash cost.
During Q1 of 2012, 14,498 ounces of gold were sold. At March 31,
2012, inventory at the third party desorption plant was
approximately 5,500 ounces of gold.
El Castillo Operating Statistics
3 Months Ended March 31
2012 2011 % Change
-------------------------------------
Mining
Total tonnes mined 5,964,924 4,759,458 +25%
Tonnes ore mined 3,050,527 2,538,264 +20%
Heap Leach Pad
Direct ore tonnes to pad 2,183,893 1,813,011 +21%
Crushed ore tonnes to pad 838,378 729,104 +15%
Production
Gold grade (g/t) 0.36 0.35 +4%
Gold loaded to pad (oz) 35,283 28,225 +25%
Gold loaded to carbon (oz) 17,799 18,064 -1%
Gold sold 14,498 18,461 -22%
(1) "g/t" is grams per tonne
(2) "oz" means ounce
3 Months Ended
La Colorada Operating Statistics March 31, 2012
Mining
Total tonnes moved from ROM pads 678,310
Heap Leach Pad
Crushed ore tonnes to pad 680,396
Production
Gold grade (g/t) 0.41
Gold loaded to pad (oz) 8,886
Gold loaded to carbon (oz) 3,085
Silver loaded to carbon (oz) 17,182
Gold sold 0
(1) "g/t" is grams per tonne
(2) "oz" means ounce
Pete Dougherty, President and CEO of Argonaut Gold noted: "Gold
production for the first quarter was in line with our 2012
guidance; cash cost guidance is anticipated to be $625-$650 per
ounce at both operations. Non-commercial production of 3,085 gold
ounces and 17,182 silver ounces at La Colorada began this quarter.
While reprocessing material at La Colorada is anticipated to
provide limited production during 2012, this cash flow will be used
for continued infrastructure construction at the project. The
Company is now producing from two gold mining operations,
diversifying the Company's production portfolio and providing cash
for capital expenditures and funding exploration. The capital
expansions planned at El Castillo and La Colorada set the stage for
production growth in 2012 and beyond."
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 Note Regarding Forward-looking Statements
This press release contains certain "forward-looking statements"
and "forward-looking information" under applicable Canadian
securities laws concerning the proposed transaction and the
business, operations and financial performance and condition of
Argonaut Gold Inc. ("Argonaut"). Forward-looking statements and
forward-looking information include, but are not limited to,
statements with respect to estimated production and mine life of
the various mineral projects of Argonaut; synergies and financial
impact of completed acquisitions; the benefits of the development
potential of the properties of Argonaut; the future price of gold,
copper, silver; the estimation of mineral reserves and resources;
the realization of mineral reserve estimates; the timing and amount
of estimated future production; costs of production; 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" 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
changes in market conditions, variations in ore grade or recovery
rates, 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. 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 presentation.
Qualified Person
Preparation of this release was supervised by Thomas Burkhart,
Argonaut Gold's Vice President of Exploration, and a Qualified
Person under NI 43-101. For additional information on El Castillo
please refer to the "NI 43-101 Technical Report on Resources and
Reserves, Argonaut Gold Inc., El Castillo Mine, Durango State,
Mexico" dated Nov. 6, 2010 and available at Argonaut Gold's website
and profile on www.sedar.com.
Contacts: Argonaut Gold Inc. Nichole Cowles Investor Relations
Manager (775) 284-4422 x 101nichole.cowles@argonautgoldinc.com
www.argonautgoldinc.com
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