Argonaut Gold Announces Record Q2 Gold Production of 33,586 Ounces
15 Juli 2013 - 1:30PM
Marketwired Canada
Argonaut Gold Inc. ("Argonaut Gold" or the "Company") (TSX:AR), announced today
that the Company had gold production of 33,586 ounces during the 2nd quarter
ended June 30, 2013. This included 28,075 ounces at its 100% owned El Castillo
Mine ("El Castillo") located in Durango, Mexico and 5,511 ounces of gold at its
100% owned La Colorada Mine ("La Colorada") located in Hermosillo, Mexico. For
the first six months of 2013, the company has produced 62,493 ounces of gold.
Ramp up of production at La Colorada is continuing, and we expect greater
production in the second half of the year.
SECOND QUARTER 2013 HIGHLIGHTS:
El Castillo
-- Production of 28,075 gold ounces, representing a 44% improvement over Q2
2012.
-- 40,169 gold ounces loaded on the pad, a 14% improvement over Q2 2012.
-- Record tons crushed and loaded to the east pad
-- West Side Pad 8 loading continues with ongoing construction during 2013.
-- Overland conveying construction initiated with completion and operation
expected in the third quarter.
La Colorada
-- Production of 5,511 gold ounces, a 20% improvement over Q2 2012.
-- Production of 45,318 silver ounces, a 76% improvement over Q2 2012.
-- 2,796 gold ounces and 48,339 silver ounces loaded on the pad.
-- Pre-Stripping continues at the La Colorada pit.
-- New crushing system expected to be complete and operational in the third
quarter of 2013.
SECOND QUARTER 2013 El CASTILLO OPERATING STATISTICS
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3 Months Ended June 30 6 Months Ended June 30
2013 2012 % Change 2013 2012 % Change
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Mining (Tonnes 000)
Total tonnes mined 6,713 5,037 +33% 12,900 11,002 +17%
Total ore mined 3,278 2,507 +31% 6,450 5,557 +16%
Heap Leach Pad (Tonnes 000)
Tonnes ore direct to leach
pad 1,710 1,533 +12% 3,440 3,717 -8%
Tonnes crushed 1,526 1,164 +31% 2,958 2,003 +48%
Production
Gold grade (g/t) 0.39 0.41 -5% 0.37 0.38 -3%
Gold loaded to leach pad
(oz) 40,169 35,220 +14% 76,192 70,503 +8%
Gold produced (oz) 28,075 19,533 +44% 51,200 37,332 +37%
Gold ounces sold 26,705 17,949 +49% 46,214 32,447 +42%
1 "g/t" is grams per tonne
2 "oz" means troy ounce
Richard Rhoades, Chief Operating Officer of Argonaut Gold, said, "Q2 production
at El Castillo as a stellar effort by our team as they integrated mining
services from the contractor. We achieved records in material processed through
mining, crushing, and more importantly, in ounces recovered. As we look to the
future, we have submitted permits for the relocation of our new overburden
facilities, and are in the process of receiving and constructing the new west
crushing and overland conveying system. Production was aided by a positive
reconciliation in grade at the mine (1.5%). We do not anticipate this continuing
as we expect the second half of the years grade to fall closer to the forecasted
(or budgeted) 0.31 grams per ton."
SECOND QUARTER 2013 LA COLORADA OPERATING STATISTICS
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3 Months Ended June 30 6 Months Ended June 30
2013 2012 % Change 2013 2012 % Change
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Mining (Tonnes 000)
Total tonnes mined 4,143 840 +393% 8,499 1,521 +459%
Total ore mined 342 806 -58% 898 1,486 -40%
Heap Leach Pad (Tonnes
000)
Crushed ore tonnes to pad 312 744 -58% 715 1,424 -50%
Production
Gold grade (g/t) 0.28 0.43 +35% 0.29 0.42 -31%
Gold loaded to leach pad
(oz) 2,796 10,173 -73% 6,559 19,059 -66%
Gold produced (oz) 5,511 4,590 +20% 11,293 7,675 +47%
Silver produced (oz) 45,318 25,796 +76% 90,197 42,978 +110%
Gold ounces sold 5,051 5,298 -5% 10,983 5,298 +110%
Silver ounces sold 27,801 9,748 +185% 82,070 9,748 +742%
1 "g/t" is grams per tonne
2 "oz" means troy ounce
Commenting on La Colorada production, Mr. Rhoades said, "Operations during the
first half of the year produced 25% more gold than our initial forecast,
primarily, due to continued re-leaching of the old heap leach pad material
processed last year. During the second half of the year, we anticipate the
tonnes processed to increase, along with the overall grade. We are pleased to
report that all parts for the new crusher have been received and have begun
assembly of the system. With the new crusher in place during the third quarter
we anticipate production to increase from 4-5 thousand tonnes per day to roughly
10-12 thousand tonnes per day, during the fourth quarter."
Argonaut Gold Q2 Financial Results Conference Call and Webcast:
The Q2 financial results call is scheduled to take place on August 13, 2013 at
8:30 am ET. Details for the call in participation are:
Q2 Conference Call Information:
Toll Free (North America): 1-866-226-1792
International: 1-416-340-2216
Webcast: www.argonautgold.com
Q2 Conference Call Replay:
Toll Free Replay Call (North America): 1-905-694-9451
International Replay Call: 1-800-408-3053 416-695-5800
Passcode: 7979249
The conference call replay will be available from 10:30 a.m. ET on August 13, -
August 20, 2013.
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 Durango, Mexico and, the La Colorada Mine in Sonora,
Mexico, the advanced exploration stage San Antonio project in Baja California
Sur, Mexico, the advanced exploration stage Magino project in Ontario, Canada
and several exploration stage projects, all of which are located in North
America.
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, Technical Information and Mineral Properties Reports
Preparation of this release was supervised by Thomas Burkhart, Argonaut Gold's
Vice President of Exploration, and a Qualified Person under 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 further information on the Company's properties please see the reports as
listed below on the Company's website or on www.sedar.com:
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El Castillo Mine NI 43-101 Technical Report on Resources and Reserves,
Argonaut Gold Inc., El Castillo Mine, Durango State,
Mexico dated November 6, 2010
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La Colorada Mine NI 43-101 Preliminary Economic Assessment La Colorada
Project, Sonora, Mexico dated December 8, 2011
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FOR FURTHER INFORMATION PLEASE CONTACT:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
nichole.cowles@argonautgold.com
www.argonautgold.com
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