Argonaut Gold Announces First Quarter 2014 Revenue of $39.1 M and
Net Income of $2.8 M
15,000 Metre Phase I Drill Program Confirms San Agustin Main
Zone Mineralization; Phase II Expansion Drilling Has Commenced
TORONTO, ONTARIO--(Marketwired - May 6, 2014) - Argonaut Gold
Inc. (TSX:AR) (the "Company", "Argonaut Gold" or "Argonaut") is
pleased to announce its financial and operating results for the
first quarter ended March 31, 2014. All dollar amounts are
expressed in United States dollars unless otherwise specified.
|
1st Quarter |
Change |
2014 |
2013 |
Financial Data (in millions except earnings per
share) |
Revenue |
$39.1 |
$43.1 |
-9% |
Gross profit |
$8.0 |
$21.0 |
-62% |
Net income |
$2.8 |
$11.6 |
-76% |
Earnings per share - basic |
$0.02 |
$0.08 |
-75% |
Cash flow from operating activities before changes in non-cash
operating working capital and other items |
$12.9 |
$19.4 |
-34% |
Cash and cash equivalents |
$59.7 |
$168.5 |
-65% |
Gold Production and Cost Data |
GEOs loaded to the pads1 |
52,605 |
42,451 |
+24% |
GEOs projected recoverable ounces1,2 |
29,325 |
25,004 |
+17% |
GEOs produced ounces1 |
30,963 |
29,881 |
+4% |
GEOs ounces sold1 |
30,165 |
26,586 |
+13% |
Average realized sales price per gold ounce |
$1,304 |
$1,622 |
-20% |
Cash cost per gold ounce sold |
$731 |
$594 |
+23% |
1 Gold
equivalent ounces ("GEOs") are based on conversion ratio of 55:1
for silver to gold |
2
Recoverable ounces - see tables titled First Quarter 2014 El
Castillo Operating Statistics and First Quarter 2014 La Colorada
Operating Statistics |
FIRST QUARTER 2014
FINANCIAL HIGHLIGHTS:
- Production increased to 30,963 GEOs, a 4% improvement over the
first quarter of 2013 and 7% over the fourth quarter of 2013.
- Cash cost per gold ounce sold of $731, below 2014 guidance of
$750 to $775 (cash cost per gold ounce sold is a non-IFRS measure,
see note below).
FIRST QUARTER 2014
COMPANY HIGHLIGHTS:
El Castillo
- GEO production of 22,171 ounces consisting of 21,976 gold
ounces and 10,737 silver ounces.
- 39,924 gold ounces loaded on the leach pads equating to 22,278
projected recoverable gold ounces.
- Mining:
- New mining equipment added to increase capacity from 69
thousand tonnes per day ("ktpd") to 87 ktpd, or a 26%
increase.
- Mine plan has moved out of transitional ore into more oxidized
material which is expected to result in improved recoveries in the
future.
- Crushing and conveying:
- West overland conveyor moved a new record 1,345,339
tonnes.
- East crusher - 1,497,323 tonnes crushed and loaded to pad.
- Pad expansion of cell 8 is ahead of schedule.
- Cell portion 2a to be completed in June and cell portion 3b to
be completed in September.
- Negotiated new lease for mining equipment which reduced the
overall finance cost of the equipment by decreasing the interest
rate from 10.4% to 5.7%.
La Colorada
- GEO production of 8,792 ounces, consisting of 7,563 gold ounces
and 67,579 silver ounces.
- An internal assessment of reprocessing old heap leach material
shows positive results incorporating four million tonnes of 0.35
grams per tonne ("g/t") gold and 11.2 g/t silver into the mine
plan, with recoveries estimated at 50% gold and 30% silver.
- 10,812 gold ounces and 102,766 silver ounces loaded on the pad;
7,048 projected recoverable GEOs to leach pad.
- An additional secondary cone crusher was added to the crushing
circuit in March increasing the crushing circuit to five cones from
four cones for a 25% increase in crushing capacity.
- Former El Castillo crusher in place at La Colorada.
Magino
- Two rounds of heap leach metallurgical test work have been
completed at Magino; positive results warranted further test work
to analyze the heap leach potential of the lower grade material at
Magino.
San Antonio
- The Company was notified on April 10, 2014 that the appeal to
overturn the 2012 Medio Impacto Ambiental ("MIA") ruling was
denied. The Company has appealed this ruling.
- The Company continues to work with the municipality to amend
the zoning to accommodate the project.
- The Company believes that the project continues to have strong
community support.
San Agustín
- 13,000 metres of drilling completed to date including 12,000
metres of reverse circulation ("RC") in 119 drill holes and 1,000
metres of core in 13 drill holes.
- Metallurgical test work:
- Core drilling is complete and all PQ core has been shipped to
Kappes, Cassiday & Associates in Reno, Nevada to conduct
metallurgical column tests.
- Run of mine ("ROM") coarse ore samples have been collected and
transported to El Castillo for bulk ROM column testing.
- 2 RC drill rigs operating at site.
- Preliminary mineral resource estimate expected by the end of
the third quarter or early fourth quarter, followed by a
preliminary economic assessment ("PEA") by year-end.
- While this asset is not yet categorized as a material property
to Argonaut, work is progressing to upgrade historic resource work
on this property.
CEO Commentary
Pete Dougherty, President and CEO of Argonaut Gold, stated, "In
terms of production at El Castillo, the mining rate increased
during the quarter with the addition of new equipment. We also saw
an increase in utilization of the west side conveying unit. The
strip ratio increased during the quarter as a result of commencing
the final push back on the northern portion of the pit. Though we
had a higher strip ratio, the grade reconciled positively at 0.34
g/t compared to expectations of 0.32 g/t. With March achieving an
18% increase over production from January, we anticipate continual
improvement at El Castillo in terms of production. Our production
guidance is 90,000 to 100,000 gold ounces at a cash cost per gold
ounce sold of $775 to $800 at El Castillo in 2014 (cash cost per
gold ounce sold is a non-IFRS measure, see note below).
At La Colorado, we have added to the crushing capacity by
installing another cone crusher. We aim to increase our crushing
rates, and thus production at the La Colorada mine. In regards to
the mine plan, the processing of old heap leach pad material is
expected to have positive results on the La Colorada production.
Over the next two years, the mine plan will incorporate
approximately four million tonnes of this material at 0.35 g/t gold
and 11.2 g/t silver, with recoveries estimated at 50% gold and 30%
silver. Current mining rates of 51,000 tonnes per day are
sufficient to meet production guidance with the inclusion of the
old heap leach material. At La Colorada, the guidance is for 45,000
to 50,000 ounces of gold equivalent production at a cash cost of
$640 to $665 per gold ounce sold (cash cost per gold ounce sold is
a non-IFRS measure, see note below).
Overall, the Company confirms its 2014 guidance of 135,000 to
150,000 gold equivalent ounces of production at a cash cost per
gold ounce sold of $750 to $775 (cash cost per gold ounce sold is a
non-IFRS measure, see note below).
Magino heap leach testing results are encouraging and more work
will be done in regards to how these results may impact the
project. We will continue to work on the permitting and expect to
submit permit applications by the end of the year.
At San Antonio, we received notification that our appeal to
reverse the decision on the 2012 MIA was rejected. While we would
have liked to see a different result in the ruling, we will
continue to pursue permits on both a community and social front, as
well as via an appeal of the recent legal ruling. Meanwhile, we
will continue to pursue an amendment to the municipal zoning plan
in an effort to zone the project for 100% industrial use. The
Company continues to believe in the merits and benefits of the
project to all stakeholders, and continues to enjoy broad community
support.
Finally at San Agustín, the exploration team has completed
13,000 metres of drilling. This work was focused on fill-in and
step-out drilling of the known historic resource area. Drill
results confirmed the continuity and grade of mineralization. In
addition, the deposit remains open in all directions. A Phase II
drill program is in progress and the Company expects to complete an
additional 10,000 metres of RC drilling in approximately 100 holes.
We are very pleased to have this exciting project in our portfolio.
We expect to release an initial resource on the project in the late
third quarter or early fourth quarter, followed by a PEA to be
completed by the end of the year."
Financial Results - First Quarter 2014
During the first quarter of 2014, revenue was $39.1 million from
gold sales of 28,639 ounces, compared to $43.1 million from gold
sales of 25,441 ounces in the first quarter of 2013. Cash cost per
gold ounce sold in the quarter was $731, compared to $594 in the
same period of the prior year reflecting a decrease in capitalized
stripping (cash cost per gold ounce sold is a non-IFRS measure, see
note below).
During the first quarter of 2014, gross profit was $8.0 million,
compared to $21.0 million in the first quarter of 2013. During the
quarter, profit from operations was $4.6 million, compared to $17.2
million in the same period of the prior year. Net income for the
period was $2.8 million, or $0.02 per basic share, versus $11.6
million, or $0.08 per basic share, in the first quarter of
2013.
Cash and cash equivalents was $59.7 million at March 31, 2014.
Cash spent towards capital expenditures in the first quarter were
$13.6 million, primarily spent on capitalized stripping, mining
equipment purchases and equipment overhauls.
FIRST QUARTER 2014 EL
CASTILLO OPERATING STATISTICS
|
3 Months Ended March 31 |
|
2014 |
2013 |
% Change |
Mining |
|
|
|
Tonnes ore (000's) |
3,666 |
3,173 |
+16% |
Tonnes waste (000's) |
4,164 |
3,014 |
+38% |
Tonnes mined (000's) |
7,829 |
6,186 |
+27% |
Tonnes per day (000's) |
87 |
69 |
+26% |
Waste/ore ratio |
1.14 |
0.95 |
+20% |
Heap Leach Pad |
|
|
|
Tonnes ore direct to leach pad (000's) |
823 |
1,729 |
-52% |
Tonnes crushed (000's) |
1,497 |
1,432 |
+5% |
Tonnes overland conveyor (000's) |
1,345 |
- |
NA |
Production |
|
|
|
Gold grade (g/t)1 |
0.34 |
0.35 |
-3% |
Gold loaded to leach pad (oz)2 |
39,924 |
36,023 |
+11% |
Projected recoverable gold ounces (oz)3 |
22,278 |
21,534 |
+3% |
Gold produced (oz) |
21,976 |
23,125 |
-5% |
Gold sold (oz) |
20,906 |
19,509 |
+7% |
Silver sold (oz) |
10,737 |
8,687 |
+24% |
Cash cost per gold ounce sold |
$752 |
$702 |
+7% |
1 "g/t" is grams per tonne |
2 "oz" refers to troy ounce |
3 Recovery rates: ROM oxide 50%, crushed oxide 70%, ROM
transition 40%, crushed transition 60%, crushed sulphides argilic
30%, crushed sulphides silicic 17% |
Summary of Production Results at El Castillo
Total tonnes mined increased by 27% for the first quarter 2014
over first quarter 2013. The ounces loaded to the pads in the first
quarter 2014 increased by 11% over first quarter 2013.
Gold production of 21,976 ounces in the first quarter of 2014
was 5% lower compared to the first quarter of 2013; production
rates are improving and expected to increase in the second half of
the year. 2014 guidance at El Castillo is for 90,000 to 100,000
gold ounces.
The strip ratio of waste to ore increased in the first quarter
of 2014 to 1.14 compared to 0.95 in the first quarter of 2013,
reflecting a push back on the north side of the pit.
FIRST QUARTER 2014 LA
COLORADA OPERATING STATISTICS
|
3 Months Ended March 31 |
|
2014 |
2013 |
% Change |
Mining |
|
|
|
Tonnes ore (000's) |
560 |
557 |
+1% |
Tonnes waste (000's) |
4,043 |
3,799 |
+6% |
Total tonnes (000's) |
4,603 |
4,355 |
+6% |
Waste/ore ratio |
7.22 |
6.82 |
+6% |
Tonnes rehandled (000's) |
70 |
- |
N/a |
Heap Leach Pad |
|
|
|
Tonnes ore to leach pad (000's) |
635 |
573 |
+11% |
Production |
|
|
|
Gold grade mined (g/t)1 |
0.57 |
0.27 |
+111% |
Gold loaded to leach pad (oz)2 |
10,812 |
5,142 |
+110% |
Projected recoverable GEOs loaded3 |
7,048 |
3,471 |
+103% |
Gold produced (oz) |
7,563 |
5,782 |
+31% |
Silver produced (oz) |
67,579 |
44,879 |
+51% |
GEOs produced4 |
8,792 |
6,598 |
+33% |
Gold sold (oz) |
7,733 |
5,932 |
+30% |
Silver sold (oz) |
73,211 |
54,269 |
+35% |
GEOs sold4 |
9,064 |
6,919 |
+31% |
Cash cost per gold ounce sold |
$674 |
$240 |
+181% |
1 "g/t" is grams per tonne |
2 "oz" means troy ounce |
3 Recovery rates: Gold 60%, Silver 30% |
4 GEOs based on conversion ratio of 55:1 for silver to
gold |
Summary of Production Results at La Colorada
Total tonnes mined increased by 6% for the first quarter 2014
over first quarter 2013. There were 10,812 ounces placed on the pad
in the first quarter of 2014, compared to 5,142 ounces placed on
the pad in the first quarter of 2013 (an increase of 110%).
First quarter production in 2014 of 8,792 GEO's was an increase
of 33% over first quarter 2013 production of 6,598 GEO's. We
anticipate gold equivalent ounce production rising to 45,000 to
50,000 ounces for 2014 as we ramp up crushing capacity and mine
higher grade ore.
San Antonio
The Company continues to pursue approvals for its San Antonio
project. As previously disclosed, on August 2, 2012 the Secretary
for Environment and Natural Resources denied the MIA authorization
for the Company's San Antonio project due to municipal zoning
incompatibility over a portion of the site.
In response, the Company appealed the determination in
connection with its MIA before the Mexican Federal Court. The
Company's appeal regarding the MIA authorization was denied by the
Mexican Federal Court on April 10, 2014. The Company has appealed
the decision of the Mexican Federal Court and is also working with
the local municipality to seek an amendment to the municipal zoning
plan for the change of use of land permit required.
San Agustín Drilling Resource Update
Argonaut Gold has now completed a total of 13,000 metres of the
15,000 metre Phase I drill program at San Agustín. The RC drilling
includes 12,000 metres of drilling and approximately 119 holes.
This program has provided positive results and the mineral system
remains open. A Phase II RC drill program of approximately 10,000
metres has commenced.
The objective of the Phase I drill program was to enhance our
understanding of the deposit and confirm the known historic
resource area. Drilling is now completed on an approximate 50 metre
drill pattern. This drilling confirmed the continuity and grade of
resource area. Phase II drilling is designed to step-out beyond the
current drill areas and test areas of recognized geologic
potential. The following table is divided into in-fill and
extension drilling. Extension drilling to date has expanded the
resource area upwards of 250 metres to the northwest with this area
remaining a priority target area for Phase II drilling.
Total drilling for Phase I and Phase II will total approximately
25,000 metres in approximately 250 holes. Visit
http://www.argonautgold.com for complete results of San Agustín
drill holes from 2014.
Tom Burkhart, Vice President of Exploration for Argonaut Gold,
said, "The Company's drill program at San Agustín is confirming the
strength and continuity of mineralization within the known historic
resource area. Importantly our work supports the potential to
confirm and significantly expand the size of the resource through
additional drilling."
In-fill drill hole results |
Drill_Hole Number |
From (metres) |
To (metres) |
Thickness (metres) |
Gold Grade (g/t) |
Silver Grade (g/t) |
Mineral Type |
14-SAGRC-001 |
7.62 |
9.14 |
1.52 |
7.720 |
5.5 |
OXD |
|
30.48 |
51.82 |
21.34 |
0.349 |
15.9 |
OXD |
|
59.44 |
68.58 |
9.14 |
0.213 |
3.0 |
OXD |
|
79.25 |
88.39 |
9.14 |
0.540 |
3.4 |
OXD |
|
94.49 |
106.68 |
12.19 |
0.219 |
15.3 |
OXD |
|
112.78 |
114.30 |
1.52 |
0.160 |
55.5 |
OXD |
|
123.44 |
128.02 |
4.57 |
0.164 |
18.2 |
SULPHIDE |
14-SAGRC-003 |
1.52 |
38.10 |
36.58 |
0.653 |
41.5 |
OXD |
|
38.10 |
121.92 |
83.82 |
0.371 |
47.5 |
SULPHIDE |
14-SAGRC-077 |
28.96 |
51.82 |
22.86 |
0.961 |
3.2 |
OXD |
|
65.53 |
70.10 |
4.57 |
0.218 |
11.6 |
OXD |
|
91.44 |
94.49 |
3.05 |
0.278 |
15.5 |
OXD |
14-SAGRC-079 |
4.57 |
6.10 |
1.52 |
1.690 |
3.6 |
OXD |
|
6.10 |
7.62 |
1.52 |
18.300 |
8.4 |
OXD |
|
13.72 |
47.24 |
33.53 |
0.466 |
14.1 |
OXD |
|
82.30 |
96.01 |
13.72 |
0.331 |
19.3 |
SULPHIDE |
14-SAGRC-089 |
0.00 |
22.86 |
22.86 |
0.302 |
4.6 |
OXD |
|
25.91 |
79.25 |
53.34 |
0.410 |
5.3 |
SULPHIDE |
14-SAGRC-092 |
0.00 |
38.10 |
38.10 |
0.275 |
1.8 |
OXD |
|
38.10 |
80.77 |
42.67 |
0.559 |
5.8 |
SULPHIDE |
14-SAGRC-096 |
0.00 |
39.62 |
39.62 |
0.460 |
5.5 |
OXD |
|
39.62 |
80.77 |
41.15 |
0.419 |
1.4 |
SULPHIDE |
14-SAGRC-098 |
0.00 |
53.34 |
53.34 |
0.677 |
10.0 |
OXD |
|
53.34 |
76.20 |
22.86 |
0.372 |
5.3 |
SULPHIDE |
|
Extension drill hole results |
Drill_Hole Number |
From (metres) |
To (metres) |
Thickness (metres) |
Gold Grade (g/t) |
Silver Grade (g/t) |
Mineral Type |
14-SAGRC-013 |
0.00 |
32.00 |
32.00 |
0.257 |
0.7 |
OXD |
|
41.15 |
88.39 |
47.24 |
0.258 |
0.9 |
OXD |
|
88.39 |
91.44 |
3.05 |
0.283 |
0.6 |
SULPHIDE |
14-SAGRC-022 |
0.00 |
47.24 |
47.24 |
0.355 |
9.0 |
OXD |
|
47.24 |
94.49 |
47.24 |
0.254 |
5.7 |
SULPHIDE |
14-SAGRC-031 |
0.00 |
44.20 |
44.20 |
0.338 |
0.6 |
OXD |
|
54.86 |
60.96 |
6.10 |
0.199 |
1.3 |
SULPHIDE |
14-SAGRC-037 |
0.00 |
56.39 |
56.39 |
0.421 |
1.9 |
OXD |
|
62.48 |
73.15 |
10.67 |
0.221 |
1.1 |
OXD |
|
73.15 |
91.44 |
18.29 |
0.378 |
2.8 |
SULPHIDE |
14-SAGRC-039 |
0.00 |
53.34 |
53.34 |
0.427 |
2.2 |
OXD |
|
53.34 |
62.48 |
9.14 |
0.617 |
3.5 |
SULPHIDE |
14-SAGRC-042 |
0.00 |
60.96 |
60.96 |
0.528 |
5.8 |
OXD |
|
60.96 |
70.10 |
9.14 |
0.638 |
24.1 |
SULPHIDE |
14-SAGRC-101 |
3.05 |
4.57 |
1.52 |
0.298 |
0.2 |
OXD |
|
12.19 |
32.00 |
19.81 |
0.370 |
0.4 |
OXD |
|
32.00 |
65.53 |
33.53 |
0.848 |
0.5 |
SULPHIDE |
|
71.63 |
80.77 |
9.14 |
0.243 |
0.1 |
SULPHIDE |
To view "2014, Phase I drill hole map" and "2014, Phase 1 drill
hole map #2" accompanying this press release, please visit the
following link: http://media3.marketwire.com/docs/943814.pdf
Capital Expenditures for 2014
The Company plans on investing a total of between $43 million
and $63 million on capital expenditures and exploration initiatives
in 2014. Major capital expenditures in 2014 are expected to include
approximately $15 million at El Castillo (including mining service
company expenditures and capitalized stripping of $4 million), $13
million at La Colorada (predominately capitalized stripping of $9
million), $3 million at San Agustín, $4 million at Magino, and $3
to $23 million at San Antonio, depending on permitting. Exploration
expenditures in 2014 are expected to amount to approximately $5
million.
Argonaut Gold Q1 Financial Results Conference Call and
Webcast:
The Q1 financial results call is scheduled to take place on May
6, 2014 at 7:00 am EDT. Details for the call in participation
are:
Q1 Conference Call
Information
Toll Free (North America): 1-866-225-0198
International: 1-416-340-2218
Webcast: www.argonautgold.com
Q1 Conference Call
Replay:
Toll Free Replay Call (North America): 1-905-694-9451
International Replay Call: 1-800-408-3053
Passcode: 1865265
The conference call replay will be available from 10:30 am EDT
on May 6, 2014 until May 20, 2014.
Annual General Meeting:
Argonaut Gold Inc. will hold its annual general meeting of
shareholders on Tuesday, May 6, 2014 at 11:00 am EDT at the offices
of Bennett Jones LLP, on the 34th Floor at One First Canadian
Place, Toronto, Ontario, Canada.
Non-IFRS Measures
The Company has included a non-IFRS measure for "Cash cost per
gold ounce sold" in this press release to supplement its financial
statements which are presented in accordance with International
Financial Reporting Standards ("IFRS"). Cash cost per gold ounce
sold is equal to production costs less silver sales divided by gold
ounces sold. The Company believes that this measure provides
investors with an improved ability to evaluate the performance of
the Company. Non-IFRS measures do not have any standardized meaning
prescribed under IFRS. Therefore they may not be comparable to
similar measures employed by other companies. The data is intended
to provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. Please see the management's discussion and
analysis ("MD&A") for full disclosure on non-IFRS measures.
This press release should be read in conjunction with the
Company's audited annual consolidated financial statements for the
quarter ended March 31, 2014 and associated MD&A which are
available from the Company's website, www.argonautgold.com, in the
"Investors" section under "Financial Filings", and under the
Company's profile on SEDAR at www.sedar.com.
Technical Information and Mineral Properties Reports
The technical information contained in this document has been
prepared under supervision of, and reviewed and approved by Mr.
Thomas H. Burkhart, Argonaut's Vice President of Exploration, and a
qualified person as defined by National Instrument 43-101. 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:
El Castillo Mine |
NI 43-101 Technical Report on Resources and Reserves, Argonaut Gold
Inc., El Castillo Mine, Durango State, Mexico dated February 24,
2011 |
La Colorada Mine |
NI 43-101 Preliminary Economic Assessment La Colorada Project,
Sonora, Mexico dated December 30, 2011 |
Magino Gold Project |
NI 43-101 Technical Report and Mineral Resource Estimate on the
Magino Gold Project, Ontario, Toronto, Canada dated January 30,
2014 |
San Antonio Gold Project |
NI 43-101 Technical Report and Mineral Resource Estimate on the San
Antonio Gold Project, Baja California Sur, Mexico dated October 10,
2012 |
The San Agustín project is not a material property of Argonaut.
For further information on the San Agustín project, please see the
historic estimates disclosed in the technical report title "San
Agustín Resource Estimate" dated March 2009 and available under
Silver Standard at www.sedar.com. Per Silver Standard, the historic
mineral reserves estimate was completed by Gilles Arseneau, Ph.D.,
P.Geo., a Qualified Person, pursuant to NI 43-101, in a technical
report completed by Wardrop, a TetraTech company, entitled "San
Agustín Resources Estimate" dated March, 2009. The report was
reviewed by Thomas Burkhart on behalf of Argonaut Gold, who has
concluded that it continues to be relevant and reliable as a basis
for understanding the potential resources at the property. To the
best of Argonaut Gold's knowledge, information and belief, there is
no new material, scientific or technical information that would
make the disclosure of the mineral resources inaccurate or
misleading. Argonaut Gold has not done sufficient work to classify
the historic estimate as current mineral resources or mineral
reserves and is not treating the historical estimate as current
mineral resources or mineral reserves. The Company has begun a
25,000 metre drill program to update the resource model and verify
or upgrade the historic work to support the development of a
current estimate.
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. Advanced exploration stage
projects include the San Antonio project in Baja California Sur,
Mexico, and the Magino project in Ontario, Canada. The recently
acquired San Agustín project is the primary exploration target for
Argonaut in 2014. The Company also has several exploration stage
projects, all of which are located in North America.
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" or "Argonaut Gold"). 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
parametres, 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.
These factors are discussed in greater detail in Argonaut's most
recent Annual Information Form and in the most recent Management
Discussion and Analysis filed on SEDAR, which also provide
additional general assumptions in connection with these statements.
Argonaut cautions that the foregoing list of important factors is
not exhaustive. Investors and others who base themselves on
forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail. Argonaut believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements included in this press release
should not be unduly relied upon. These statements speak only as of
the date of this press release.
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.
Argonaut Gold Inc.Nichole CowlesInvestor Relations Manager(775)
284-4422 x
101nichole.cowles@argonautgold.comwww.argonautgold.com
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