TORONTO, April 12, 2018 /CNW/ - Argonaut Gold
Inc. (TSX: AR) (the "Company", "Argonaut Gold" or
"Argonaut") reports that its wholly-owned subsidiary that owns the
La Colorada mine has had its
permit for the use of explosives at the site temporarily suspended
as a result of a pending legal action brought by four individuals
against the Secretary of National Defense ("SEDENA") and the
Municipality of La Colorada. Activities at site continue
unaffected due to the availability of blasted and stockpiled
material adequate to allow for operations to continue
normally. Stockpiles are sufficient that operations will
continue normally through at least April 16,
2018, at which time there is a hearing scheduled where
Argonaut hopes to resolve the issue.
![Logo: Argonaut Gold Inc. (CNW Group/Argonaut Gold Ltd.) Logo: Argonaut Gold Inc. (CNW Group/Argonaut Gold Ltd.)](https://mma.prnewswire.com/media/676129/Argonaut_Gold_Ltd__Argonaut_Gold_Provides_Update_at_its_La_Color.jpg)
The claim is based on assertions that the explosive permit
should not have been granted. SEDENA, the local community and
government officials have filed documents that refute this claim
and contend that it is without merit. The Company also believes the
legal action is totally without merit and that the proper process
for the issue of the permit was carefully followed with active
community consultation. The Company is reassured by the
overwhelming support of the community and the government.
The Company is taking every possible legal measure to prove its
case and to re-activate blasting activities at its La Colorada mine as soon as possible. The
Company has also taken operational measures in order to ensure the
continuity of its operations without blasting until at least the
hearing to be held on April 16, 2018
and does not anticipate any significant near term impact to
processing operations. The Company will provide additional
information as the legal process continues and is hopeful that it
can resolve the issue on or before the April
16, 2018 hearing date.
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
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.
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 and San
Agustin mine, which together form the El Castillo Complex in
Durango, Mexico and the production
stage La Colorada mine in
Sonora, Mexico. Advanced
exploration stage projects include the San Antonio project in Baja California Sur, Mexico, the Cerro del
Gallo project in Guanajuato,
Mexico and the Magino project in Ontario, Canada. The Company also has
several exploration stage projects, all of which are located in
North America.
SOURCE Argonaut Gold Ltd.