Record Quarterly Production of 54,169 Gold
Equivalent Ounces, Net Cash1 Increases $11.7 million and Earnings per Share of
$0.02
TORONTO, May 1, 2019 /CNW/ - Argonaut Gold Inc. (TSX:
AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased
to announce its operating and financial results for the first
quarter ended March 31, 2019.
The Company reports record quarterly production of 54,169 gold
equivalent ounces2 ("GEO" or "GEOs"), a quarterly net
cash1 increase of $11.7
million, cash flow from operating activities before changes
in operating working capital of $18.0
million, net income of $4.1
million or earnings per share of $0.02, adjusted net income1 of
$2.4 million or adjusted earnings per
share1 of $0.01. All
dollar amounts are expressed in United
States dollars, unless otherwise specified (C$ refers to
Canadian dollars).
![Argonaut Gold's Q1 2019 Operational and Financial Results Webcast & Conference Call May 2nd 2019 @ 9AM ET (CNW Group/Argonaut Gold Inc.) Argonaut Gold's Q1 2019 Operational and Financial Results Webcast & Conference Call May 2nd 2019 @ 9AM ET (CNW Group/Argonaut Gold Inc.)](https://mma.prnewswire.com/media/880722/Argonaut_Gold_Inc__Argonaut_Gold_Announces_First_Quarter_2019_Op.jpg)
CEO Commentary
Pete
Dougherty, President and CEO stated: "We challenged
ourselves to grow our production approximately 65% from 2017 to
2019. With a second consecutive quarter of record production above
50,000 GEOs, we are well on our way to achieving this goal with an
annualized production profile of over 200,000 GEOs per
annum. Along with our production growth, we added
$11.7 million in net cash1
during the quarter. After record quarterly production, we
remain on track to achieve our 2019 production and cost
guidance. We also continue to de-risk our development projects
with the completion of a public information meeting at San Antonio and the receipt of approvals for
the Environmental Assessment from both the Federal and Provincial
authorities and the signing of a Community Agreement with the
Batchewana First Nation at Magino."
____________________
|
1 Please
refer to the section below entitled "Non-IFRS Measures" for a
discussion of these Non-IFRS Measures.
|
|
2 GEOs are
based on a conversion ratio of 70:1 for silver to gold for 2018 and
75:1 for 2019. The silver to gold conversion ratio is based on the
three-year trailing average silver to gold ratio. These are
the referenced ratios for each year throughout the
release.
|
Key operating and financial statistics for the first quarter of
2019 are outlined in the following table:
|
3 months
ended March 31
|
Change
|
2019
|
2018
|
Financial Data (in
millions except for earnings per share)
|
|
|
|
Revenue
|
$73.9
|
$52.9
|
40%
|
Gross
profit
|
$11.5
|
$17.4
|
(34%)
|
Net income
|
$4.1
|
$12.2
|
(66%)
|
Earnings per share –
basic
|
$0.02
|
$0.07
|
(71%)
|
Adjusted net
income1
|
$2.4
|
$7.9
|
(70%)
|
Adjusted earnings per
share – basic1
|
$0.01
|
$0.04
|
(75%)
|
Cash flow from
operating activities before changes in
non-cash operating working capital
|
$18.0
|
$21.0
|
(14%)
|
Cash and cash
equivalents
|
$28.1
|
$21.3
|
32%
|
Net
cash1
|
$14.1
|
$13.3
|
6%
|
Gold Production
and Cost Data
|
|
|
|
GEOs loaded to the
pads2
|
76,840
|
80,919
|
(5%)
|
GEOs projected
recoverable2, 3
|
48,181
|
44,392
|
9%
|
GEOs produced2,
3, 4
|
54,169
|
40,853
|
33%
|
GEOs
sold2
|
56,674
|
40,046
|
42%
|
Average realized
sales price
|
$1,309
|
$1,330
|
(2%)
|
Cash cost per gold
ounce sold1
|
$892
|
$650
|
37%
|
All-in sustaining
cost per gold ounce sold1,5
|
$1,123
|
$861
|
30%
|
1Please
refer to the section below entitled "Non-IFRS Measures" for a
discussion of these Non-IFRS Measures.
|
2GEOs are
based on a conversion ratio of 70:1 for silver to gold for 2018 and
75:1 for 2019. The silver to gold conversion ratio is based on the
three-year trailing average silver to gold ratio.
|
3Expected
recoverable GEOs are based on the assumptions and parameters as set
forth in the El Castillo Complex Technical Report dated March 27,
2018 and the La Colorada Gold/Silver Mine Technical Report dated
March 27, 2018. In periods where the Company mines material
not specifically defined in a technical report (for example: low
grade stockpile material), management uses its best estimate of
recovery based on the information available.
|
4Produced
ounces are calculated as ounces loaded to carbon.
|
5First
quarter ended March 31, 2018 all-in sustaining cost per gold ounce
sold was restated to follow the amended guidance issued by the
World Gold Council during the fourth quarter of 2018.
|
First Quarter 2019 and Recent Company Highlights:
- Corporate
-
- Record quarterly production of 54,169 GEOs.
- Increased net cash by $11.7
million (see Non-IFRS Measure section).
- Zero lost time incidents at all operations.
- Social Responsibility
-
- Received nationally awarded Environmental Socially Responsible
Company recognition for the seventh consecutive year.
- Celebrated International Women's Day with the support of
Claudia Pavlovich, the Sonora State
Governor, at the La Colorada
mine.
- Continued the sixth year of free medical and medicine program
in the communities surrounding the San
Antonio project in the state of Baja California Sur.
Working with a local doctor over the six-year program, more than
6,000 medications have been delivered and more than 4,900 medical
consultations have been provided.
- In collaboration with international musician and
Durango-native, Jorge Viladoms and the Crescendo Con La Musica
project, delivered more than 100 musical instruments and provided
music lessons to children in the communities surrounding the El
Castillo Complex.
- El Castillo Complex
-
- First quarter production of 38,067 GEOs.
-
- El Castillo production of
23,263 GEOs.
- San Agustin production of
14,804 GEOs.
- Initiated construction of El Castillo La Victoria 2 leach pad,
which is approximately 65% complete at May
1, 2019.
- Initiated construction of San Agustin Phase 3 leach pad, which
is approximately 85% complete at May 1,
2019.
- Initiated construction of San
Agustin crusher throughput expansion from 20,000 tonnes per
day to 30,000 tonnes per day, which is approximately 75% complete
at May 1, 2019.
- La Colorada
-
- First quarter production of 16,102 GEOs.
- Achieved a 13% reduction in cash cost per gold ounce sold from
the fourth quarter of 2018 (see Non-IFRS Measures section).
- Cerro del Gallo
-
- Completed phase one metallurgical test work and commenced phase
two metallurgical test work.
- San Antonio
-
- Submitted the Environmental Impact Assessment (Manifiesto de
Impacto Ambiental or "MIA") application in February 2019.
- Participated in a public information meeting in April 2019 with respect to the MIA process.
- Magino
-
- Completed Federal Environmental Assessment process with receipt
of a positive Decision Statement.
- Completed Provincial Environmental Assessment process with
receipt of a positive Statement of Completion.
- Signed a Community Agreement with the Batchewana First
Nation.
Financial Results – First Quarter 2019
Revenue for the
three months ended March 31, 2019 was
$73.9 million, an
increase from $52.9 million for
the three months ended March 31,
2018. During the first quarter of 2019, gold ounces
sold totaled 54,779 at an average realized price per ounce of
$1,309, compared to 38,072 gold
ounces sold at an average realized price per ounce of $1,330 during the same period of 2018. Gold
ounces sold for the three months ended March
31, 2019 increased compared to the same period in 2018
primarily due to an increase in gold ounces sold at the
El Castillo mine following the
expansion of crusher throughput capacity from 20,000 tonnes per day
to 29,000 tonnes per day during 2018.
Production costs for the first quarter of 2019 were $51.1 million, an increase from
$27.1 million in the first quarter of
2018, primarily due to an increase in gold ounces sold and an
increase in cash cost per gold ounce sold. Cash cost per gold
ounce sold (see "Non-IFRS Measures" section) was $892 in the
first quarter of 2019, an increase from $650 in the same period of 2018, primarily due to
an increase in key consumables, differences in the source of the
production year-over-year and lower deferred stripping in 2018.
Depreciation, depletion and amortization expense included in
cost of sales for the first quarter of 2019 totaled $11.9 million, an increase from
$8.5 million in the first quarter of
2018, due to an increase in gold ounces sold as many of the mining
assets are amortized on a unit-of-production
basis. Additionally, included in cost of sales in the
first quarter of 2019 is a non-cash impairment reversal of
$0.5 million at the El Castillo mine related to the net realizable
value of the work-in-process inventory, primarily due to the
transfer of a portion of the non-current work-in-process inventory
from non-current to current.
General and administrative expenses for the first quarter of
2019 were $3.8 million, comparable to
$3.4 million in the same period of
2018.
Gains on foreign exchange derivatives for the first quarter of
2019 were $0.2 million, a
decrease from $0.8 million in the
first quarter of 2018, primarily due a decrease in unrealized gains
on the Company's outstanding zero-cost collar contracts on the
Mexican peso.
Other income for the first quarter of 2019 was
$0.6 million, comparable to
$0.5 million in the first quarter of
2018.
Income tax expense for the first quarter of 2019 was
$3.9 million, compared to
$2.6 million in the same period of
2018. The change is primarily due to a greater foreign exchange
effect of the strengthening Mexican peso on the calculation of
deferred taxes in the first quarter of 2018 and lower taxable
income in the first quarter of 2019.
Net income for the first quarter of 2019 was $4.1 million or $0.02 per basic share, a decrease from
$12.2 million or $0.07 per basic share for the first quarter of
2018.
Operational Results – First Quarter 2019
During the
first quarter 2019, the Company achieved record quarterly
production of 54,169 GEOs at a cash cost of $892 per gold ounce sold and all-in sustaining
cost of $1,123 per gold ounce sold
compared to 40,853 GEOs at a cash cost of $650 per gold ounce sold and an all-in sustaining
cost of $861 per gold ounce sold
during the first quarter 2018 (see Non-IFRS Measures section).
Higher production was primarily driven by the crusher
throughput expansion from 20,000 tonnes per day to 29,000 tonnes
per day at the El Castillo mine,
which was completed during 2018. Higher costs are primarily
related to a higher proportion of gold ounces sold from the
El Castillo mine, which has a
higher cash cost per gold ounce sold, and an increase in cash cost
per gold ounce sold at the San
Agustin and La Colorada
mines as detailed below.
The El Castillo Complex produced 38,067 GEOs at a cash cost of
$867 per gold ounce sold during the
first quarter of 2019 versus 25,737 GEOs at a cash cost of
$600 per gold ounce sold during the
first quarter of 2018 (see Non-IFRS Measures section). Higher
costs are primarily related to a higher proportion of gold ounces
sold from the El Castillo mine,
which has a higher cash cost per gold ounce sold, and an increase
in cash cost per gold ounce sold at the San Agustin primarily related to an increase
in the costs of key consumables year-over-year and higher waste to
ore ratios.
La Colorada produced 16,102
GEOs at a cash cost of $952 per gold
ounce sold during the first quarter of 2019 compared to 15,116 GEOs
at a cash cost of $726 per gold ounce
sold during the first quarter of 2018 (see Non-IFRS Measures
section). Higher costs are primarily due to lower deferred
stripping in 2018.
Bill Zisch, Chief Operating
Officer, commented: "We achieved our second consecutive quarter of
record production and our second consecutive quarter of over 50,000
GEOs produced. Throughout 2018 we experienced fairly
significant cost inflation related to our key consumables.
While this inflation pressure has not continued to escalate so far
in 2019 and our cash cost per gold ounce sold were 6% lower than
the fourth quarter of 2018, the cost inflation experienced
throughout 2018 contributed to higher year-over-year costs [see
Non-IFRS Measures section]. We expect our all-in sustaining
cost per gold ounce sold to trend lower in the second half of the
year, as we anticipate we will complete the majority of our leach
pad expansion spend during the first half of the year [see Non-IFRS
Measures section]. I commend the team on another strong
quarter of production while continuing to operate in a safe and
environmentally and socially responsible
manner."
FIRST QUARTER 2019 EL CASTILLO COMPLEX OPERATING
STATISTICS
|
3 Months Ended
March 31
|
|
2019
|
2018
|
%
Change
|
Mining (in 000s
except waste/ore ratio)
|
|
|
|
Tonnes ore El
Castillo
|
2,288
|
1,619
|
41%
|
Tonnes ore San
Agustin
|
1,661
|
1,726
|
(4%)
|
Tonnes
ore
|
3,949
|
3,345
|
18%
|
Tonnes waste El
Castillo
|
3,805
|
3,106
|
23%
|
Tonnes waste San
Agustin
|
1,317
|
356
|
270%
|
Tonnes
waste
|
5,122
|
3,462
|
48%
|
Tonnes mined El
Castillo
|
6,093
|
4,725
|
29%
|
Tonnes mined San
Agustin
|
2,978
|
2,082
|
43%
|
Tonnes
mined
|
9,071
|
6,807
|
33%
|
Tonnes per day El
Castillo
|
68
|
52
|
31%
|
Tonnes per day San
Agustin
|
33
|
23
|
43%
|
Tonnes per
day
|
101
|
75
|
35%
|
Waste/ore ratio El
Castillo
|
1.66
|
1.92
|
(14%)
|
Waste/ore ratio San
Agustin
|
0.79
|
0.21
|
276%
|
Waste/ore
ratio
|
1.30
|
1.03
|
26%
|
Leach Pads (in
000s)
|
|
|
|
Tonnes crushed East
to leach pads El Castillo
|
1,073
|
995
|
8%
|
Tonnes crushed CR2 to
leach pads El Castillo
|
1,257
|
628
|
100%
|
Tonnes crushed to
leach pads San Agustin
|
1,691
|
1,718
|
(2%)
|
Tonnes crushed to
leach pads
|
4,021
|
3,341
|
20%
|
Production
|
|
|
|
Gold grade loaded to
leach pads El Castillo (g/t)1
|
0.39
|
0.44
|
(11%)
|
Gold grade loaded to
leach pads San Agustin (g/t)1
|
0.47
|
0.50
|
(6%)
|
Gold grade loaded
to leach pads (g/t)1
|
0.43
|
0.47
|
(9%)
|
Gold loaded to leach
pads El Castillo (oz)2
|
29,344
|
22,740
|
29%
|
Gold loaded to leach
pads San Agustin (oz)2
|
25,705
|
27,878
|
(8%)
|
Gold loaded to
leach pads (oz)2
|
55,049
|
50,618
|
9%
|
Projected recoverable
GEOs loaded El Castillo4
|
20,337
|
12,880
|
58%
|
Projected recoverable
GEOs loaded San Agustin4
|
16,965
|
18,399
|
(8%)
|
Projected
recoverable GEOs loaded4
|
37,302
|
31,279
|
19%
|
Gold produced El
Castillo (oz)2,3
|
22,887
|
8,657
|
164%
|
Gold produced San
Agustin (oz)2,3
|
14,084
|
15,824
|
(11%)
|
Gold produced
(oz)2,3
|
36,971
|
24,481
|
51%
|
Silver produced El
Castillo (oz)2,3
|
28,210
|
7,528
|
275%
|
Silver produced San
Agustin (oz)2,3
|
54,030
|
80,331
|
(33%)
|
Silver produced
(oz)2,3
|
82,240
|
87,859
|
(6%)
|
GEOs produced El
Castillo3
|
23,263
|
8,765
|
165%
|
GEOs produced San
Agustin3
|
14,804
|
16,972
|
(13%)
|
GEOs
produced3
|
38,067
|
25,737
|
48%
|
Gold sold El Castillo
(oz)2
|
22,790
|
8,259
|
176%
|
Gold sold San Agustin
(oz)2
|
15,906
|
14,733
|
8%
|
Gold sold
(oz)2
|
38,696
|
22,992
|
68%
|
Silver sold El
Castillo (oz)2
|
28,210
|
7,528
|
275%
|
Silver sold San
Agustin (oz)2
|
56,634
|
71,483
|
(21%)
|
Silver sold
(oz)2
|
84,844
|
79,011
|
7%
|
GEOs sold El
Castillo
|
23,166
|
8,367
|
177%
|
GEOs sold San
Agustin
|
16,661
|
15,754
|
6%
|
GEOs
sold
|
39,827
|
24,121
|
65%
|
Cash cost per gold
ounce sold El Castillo5
|
$918
|
1,020
|
(10%)
|
Cash cost per gold
ounce sold San Agustin5
|
$794
|
$365
|
118%
|
Cash cost per gold
ounce sold5
|
$867
|
$600
|
45%
|
1 "g/t" refers to grams per
tonne.
|
2 "oz"
refers to troy ounce.
|
3 Produced
ounces are calculated as ounces loaded to carbon.
|
4 Expected recoverable GEOs are based
on the assumptions and parameters as set forth in the El Castillo
Complex Technical Report dated March 27, 2018.
|
5 Please refer to the section
below entitled "Non-IFRS Measures" for a discussion of this
Non-IFRS Measure.
|
Summary of Production Results at the El Castillo
Complex
During the first quarter 2019, the El Castillo
Complex produced 48% more GEOs at a cash cost per gold ounce sold
(see Non-IFRS Measures section) 45% higher compared to the first
quarter 2018, yet 2% lower than the fourth quarter of 2018.
Higher production was driven by increased production from the
El Castillo mine due to the 2018
investment to increase crushing throughput at the West crusher from
5,000 tonnes per day to 14,000 tonnes per day. Higher costs
were primarily related to a higher proportion of gold ounces sold
from the El Castillo mine, which
has a higher cash cost per gold ounce sold, an increase in the
costs of key consumables year-over-year and a higher waste to ore
ratio at the San Agustin mine.
FIRST QUARTER 2019 LA COLORADA OPERATING STATISTICS
|
3 Months Ended
March 31
|
|
2019
|
2018
|
%
Change
|
Mining (in 000s
except for waste/ore ratio)
|
|
|
|
Tonnes ore
|
872
|
1,096
|
(20%)
|
Tonnes
waste
|
5,966
|
6,131
|
(3%)
|
Total
tonnes
|
6,838
|
7,227
|
(5%)
|
Tonnes per
day
|
76
|
80
|
(5%)
|
Waste/mineralized
material ratio
|
6.84
|
5.59
|
22%
|
Leach Pads (in
000s)
|
|
|
|
Tonnes crushed to
leach pads
|
793
|
1,125
|
(30%)
|
Tonnes direct to
leach pads
|
89
|
0
|
-
|
Production
|
|
|
|
Gold grade loaded to
leach pads (g/t)1
|
0.44
|
0.43
|
2%
|
Gold loaded to leach
pads (oz)2
|
12,433
|
15,462
|
(20%)
|
Projected recoverable
GEOs loaded4
|
9,818
|
11,473
|
(14%)
|
Gold produced
(oz)2,3
|
15,372
|
14,291
|
8%
|
Silver produced
(oz)2,3
|
54,773
|
57,767
|
(5%)
|
GEOs
produced3
|
16,102
|
15,116
|
7%
|
Gold sold
(oz)2
|
16,083
|
15,080
|
7%
|
Silver sold
(oz)2
|
57,302
|
59,116
|
(3%)
|
GEOs sold
|
16,847
|
15,925
|
6%
|
Cash cost per gold
ounce sold5
|
$952
|
$726
|
31%
|
1 "g/t" refers to grams per
tonne.
|
2 "oz"
refers to troy ounce.
|
3 Produced
ounces are calculated as ounces loaded to carbon.
|
4 Expected recoverable GEOs are based
on the assumptions and parameters as set forth in the La Colorada
Gold/Silver Mine Technical Report dated March 27, 2018.
|
5 Please refer to the section
below entitled "Non-IFRS Measures" for a discussion of this
Non-IFRS Measure.
|
Summary of Production Results at La Colorada
During the first quarter
2019, La Colorada produced 7% more
GEOs at a cash cost per gold ounce sold of 31% higher (see Non-IFRS
Measures section) than the first quarter 2018, yet 13% lower than
the fourth quarter of 2018. Higher costs are primarily due to
an increase in the weighted average cost per ounce during 2018, due
to lower deferred stripping.
Outlook
The Company is on track to achieve its 2019
production, cost and capital guidance. The Company
anticipates it will produce between 200,000 and 215,000 GEOs during
2019 at a cash cost of between $775
to $875 per gold ounce sold and
all-in sustaining costs of between $975 and $1,075 per
gold ounce sold (see Non-IFRS Measures section). The Company
expects costs to trend lower in the second half of the year due to
improved grades and a lower waste to ore ratio at the La Colorada mine, a lower waste to ore ratio
at the San Agustin mine and a
higher proportion of production from the lower cost San Agustin mine and lower proportion of
production from the higher cost El
Castillo mine in the second half of 2019. The Company
plans to invest between $50 million
and $60 million in capital programs
during 2019, of which approximately 30% was spent during the first
quarter of 2019.
Argonaut Gold First Quarter 2019 Operational and Financial
Results Conference Call and Webcast:
The Company will host
the first quarter 2019 conference call and webcast on May 2, 2019 at 9:00 am
EDT.
Q1 Conference Call
Information
|
|
Toll Free (North
America):
|
1-888-231-8191
|
International:
|
1-647-427-7450
|
Conference
ID:
|
8393915
|
Webcast:
|
www.argonautgold.com
|
|
|
Q1 Conference Call
Replay:
|
|
Toll Free Replay Call
(North
America):
|
1-855-859-2056
|
International Replay
Call:
|
1-416-849-0833
|
The conference call replay will be available from 12:00 pm EDT on May 2,
2019 until 11:59 pm EDT on
May 9, 2019.
Non-IFRS Measures
The Company has included certain
non-IFRS measures including "Cash cost per gold ounce sold",
"All-in sustaining cost per gold ounce sold", "Adjusted net
income", "Adjusted earnings per share – basic" and "Net cash"
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.
All-in sustaining cost per gold ounce sold is equal to production
costs less silver sales plus general and administrative,
exploration, accretion and other expenses and sustaining capital
expenditures divided by gold ounces sold. Adjusted net income is
equal to net income less foreign exchange impacts on deferred
income taxes, foreign exchange (gains) losses and non-cash
impairment write down (reversal) of work-in-process inventory.
Adjusted earnings per share – basic is equal to adjusted net income
divided by the basic weighted average number of common shares
outstanding. Net cash is calculated as the sum of the cash and cash
equivalents balance net of debt as at the statement of financial
position date. The Company believes that these measures provide
investors with an alternative view 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.
The Company adopted IFRS 16, Leases ("IFRS 16") in the annual
period commencing January 1, 2019.
The Company elected to apply IFRS 16 using a modified retrospective
approach; therefore, comparative amounts were not restated. The
impact as a result of adopting IFRS 16 on cash costs per gold ounce
sold and all-in sustaining costs per gold ounce sold for 2019
compared to 2018 was not material.
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 unaudited interim condensed consolidated financial
statements for the three months ended March
31, 2019 and associated MD&A, for the same period, 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.
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 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
mine life of the various mineral projects of Argonaut; the ability
to obtain permits for operations; synergies; the realization of
mineral reserve estimates; the timing and amount of estimated
future production; costs of production; 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;
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", "should" 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
variations in ore grade or recovery rates, changes in market
conditions, risks relating to the availability and timeliness of
permitting and governmental approvals; 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's
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.
Qualified Person, Technical Information and Mineral
Properties Reports
Technical information included in this
release was supervised and approved by Brian Arkell, Argonaut's Vice President,
Exploration and a Qualified Person under National Instrument 43-101
("NI 43-101"). For further information on the Company's
material properties, please see the reports as listed below on the
Company's website or on www.sedar.com:
El Castillo
Complex
|
NI 43-101 Technical
Report on Resources and Reserves, El Castillo Complex,
Durango State, Mexico dated March 27, 2018 (effective date of March
7, 2018)
|
La Colorada
Mine
|
NI 43-101 Technical
Report on Resources and Reserve, La Colorada
Gold/Silver Mine, Hermosillo, Mexico dated March 27, 2018
(effective date of December 8, 2017)
|
Magino Gold
Project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada
dated December 21, 2017 (effective date November 8,
2017)
|
San Antonio Gold
Project
|
NI 43-101 Technical
Report on Resources, San Antonio Project, Baja
California Sur, Mexico dated October 10, 2012 (effective date of
September 1, 2012)
|
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration,
mine development and production. Its primary assets are the
El Castillo mine and San Agustin mine, which together form the El
Castillo Complex in Durango,
Mexico and the La Colorada
mine in Sonora, Mexico.
Advanced exploration 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 Inc.