Argonaut Gold Inc. ("Argonaut Gold" or the "Company") (TSX:AR)
announced today that the Company produced 24,123 gold ounces during
the 2nd quarter ended June 30, 2012 at its 100% owned El Castillo
Mine ("El Castillo") which is located 100 km north of the city of
Durango, Mexico and its 100% owned La Colorada Mine ("La Colorada")
which is located 50 kilometers southeast of Hermosillo, Mexico.
Operational progress at El Castillo and La Colorada continue to
ramp-up production.
SECOND QUARTER 2012 HIGHLIGHTS:
El Castillo
-- Quarterly production of 19,533 gold ounces represents a 10% improvement
over Q1 2012.
-- 35,220 gold ounces loaded on the pad.
-- Leach pad 7A west side pad construction completed.
-- Conveying and stacking system on the east side pad expected to be
commissioned this month.
-- Local community support programs implemented to assist with on-going
drought conditions.
La Colorada
-- Production of 4,590 gold ounces and 25,796 silver ounces.
-- 10,173 gold ounces and 1,120,716 silver ounces loaded on the pad.
-- New crusher purchased for production of overliner for pad construction.
-- Desorption and refinery circuit fully commissioned.
-- New warehouse for reagent storage completed.
-- Final permits for mining expansion expected in third quarter.
-- Approximately half of Phase 1 run of mine material has been reprocessed.
-- New pad construction started on pads 8, 10 and 11.
Exploration
-- El Castillo sulphide samples obtained for continued metallurgical test
work, with results expected in September.
-- More than 35,000 meters of drilling released at La Colorada.
-- More than 20,000 meters of drilling released at San Antonio.
-- Drilling continues at La Colorada and San Antonio.
Financial
-- Cash balance of $21 million as of June 30, 2012.
-- Majority of the 2012 capital program completed in the first half.
-- 23,247 ounces of gold sold.
SECOND QUARTER 2012 El CASTILLO OPERATING RESULTS:
Second quarter operating statistics showed improvement over 2011
second quarter results. Ore production from the first half of the
year is currently at an annualized rate of approximately 11 million
tonnes. On the west side of the property, construction was
completed on cell 7A.
Third quarter production is expected to improve over the second
quarter with the production of approximately 20-21,000 ounces of
gold. Production at El Castillo is expected to move towards a
20-23,000 ounce production rate in the fourth quarter of this year.
Full year guidance is 75,000-80,000 ounces of gold.
El Castillo Operating Statistics
3 Months Ended June 30
2012 2011 % Change
Mining
Total tonnes mined 5,037,401 4,970,835 +1%
Tonnes ore mined 2,506,756 2,786,349 -10%
Heap Leach Pad
Direct ore tonnes to pad 1,533,188 1,920,657 -20%
Crushed ore tonnes to pad 1,164,340 860,289 +35%
Production
Gold grade (g/t) 0.41 0.33 +24%
Gold loaded to pad (oz) 35,220 29,555 +19%
Gold loaded to carbon (oz) 19,533 17,453 +12%
Gold sold (oz) 17,949 14,331 +25%
(1) "g/t" is grams per tonne
(2) "oz" means ounce
Richard Rhoades, Chief Operating Officer of Argonaut Gold said:
"The 10% improvement in gold production at El Castillo was a
significant milestone at the mine. Two additional accomplishments
for the quarter were the completion of leach pad 7A and the
implementation of a stacking-conveying system that is to be
commissioned later this month. Initially, day shifts will be
utilized for training on the new conveying system, with the goal to
implement a 24 hour conveying operation by Q3. The impact of adding
the conveying system to the operation should be evident in the
fourth quarter production numbers as we anticipate an increase in
the material moved."
SECOND QUARTER 2012 LA COLORADA OPERATING RESULTS:
The second quarter operating statistics showed production from
the reprocessing of existing run of mine leach pad material at La
Colorada. To date, approximately half of the Phase I run of mine
material to be reprocessed has been recrushed and stacked for
leaching.
Construction has begun on pads 8, 10 & 11 and one half of
the capacity is expected to be completed in the third quarter. In
addition, during the third quarter the crusher will be down for
approximately one month as it is relocated to a more permanent
location, near the new pads currently under construction.
The next steps at La Colorada will involve reprocessing loose
material in the pit, followed by full scale mining by Q1 of next
year. Due to the crusher relocation, the third quarter production
expectations are approximately 3,000 ounces of gold, while 2012
guidance at La Colorada remains at 13-17,000 ounces.
The desorption and recovery circuit has been commissioned, and
carbon from El Castillo and La Colorada is being processed.
La Colorada Operating
Statistics
3 Months Ended June 30
Q2 2012 Q1 2012 % Change
Mining
Total tonnes moved 840,241 678,310 +24%
Ore tonnes moved 805,611 678,310 +19%
Heap Leach Pad
Crushed ore tonnes to pad 743,533 680,396 +9%
Production
Gold grade (g/t) 0.43 0.41 +5%
Gold loaded to pad (oz) 10,173 8,886 +14%
Gold loaded to carbon (oz) 4,590 3,085 +49%
Silver loaded to carbon (oz) 25,796 17,182 +50%
Gold sold (oz) 5,298 0 NA
(1) "g/t" is grams per tonne
(2) "oz" means ounce
Discussing the Company's recent completion of the ADR plant at
the La Colorada site Mr. Pete Dougherty, President and CEO said
"the Company is now processing carbon from El Castillo and La
Colorada on site. This important accomplishment has reduced the
sales cycle time from approximately 6 weeks to 1 week. The long
term goal is for the ADR circuit to handle the stripping and
refining for the Company's primary Mexican operations. We are
pleased with the improvement in our sales time as a result of
implementing the ADR plant.
I'm proud of the team's accomplishments so far this year. By
continually improving our processes in our daily operations we look
to continue production growth, finishing the year strong."
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 in the State of Durango,
Mexico, the production stage 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, and 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 document.
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 further information on La Colorada
please refer to the "NI 43-101 Preliminary Economic Assessment La
Colorada Project, Sonora, Mexico" dated December 30, 2011, both of
which 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
Argonaut Gold (TSX:AR)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Argonaut Gold (TSX:AR)
Historical Stock Chart
Von Jul 2023 bis Jul 2024