/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE
SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Sept. 10, 2019 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is
pleased to announce the drill results to date from an on-going
exploration program that is targeting high-grade, deep
mineralization at its 100% owned Magino property in Ontario, Canada that commenced in early
July 2019. The Company has
completed approximately 3,500 metres of drilling since launching
the original 6,000-metre program and, due to the results to date
and success of identifying the same gold-bearing geological
structures that strike westward into the Magino deposit from those
of the adjacent Island Gold Mine, has expanded the drill program to
20,000 metres.
The expanded program will focus on testing the down plunge
extension of potential high-grade gold structures at depth.
Previous exploration conducted by Argonaut at the Magino project
concentrated solely on expanding and upgrading the open-pit mineral
resource and mineral reserve with drilling focused primarily to a
depth of 300 metres. This is the first drill program
conducted on the Magino deposit targeting deeper, high-grade
mineralization below the currently designed open pit.
Pete Dougherty, President and CEO
stated: "We have successfully developed a robust open-pit project
at Magino and our next phase of exploration at the project is to
target deeper, high-grade structures similar to those at the
adjacent Island Gold Mine. We had budgeted a 6,000-metre
program this year with the goal of locating these structures on our
property. Approximately 3,500 metres through our program, we
have already succeeded in locating Island-Gold-Mine-like structures
and have now expanded the program to 20,000 metres through
2020. Our focus at the Magino project is to link into these
structures at depth, specifically targeting high-grade material
outside of the planned pit and eastward towards the adjacent Island
Gold Mine. We are excited about the Magino project and the
prospect of expanding the known mineralization at depth where,
historically in the district, the grade of gold mineralization
improves."
Expanded Drill Campaign Through 2020
The expanded drill campaign at Magino is aimed at testing
higher-grade structures at depth. The program has two phases.
The initial phase has been geared towards locating similar
high-grade structures to those that exist on the adjacent
property. The results from the first approximate 3,500 metres
of the program suggest that the Company has located these
structures and will now begin the second phase of drilling down dip
with a goal of targeting higher-grade chutes. Argonaut's
exploration thus far in the district indicates that the grade of
the mineralization at the Magino project has a strong potential to
increase at depth.
Brian Arkell, Vice President
Exploration stated: "We are encouraged by the drill results and our
success of locating the higher-grade structures with values from
five to over 20 grams per tonne gold. We have now traced the
Island Gold Mine's Lochalsh zone and other structures onto our
property from the adjacent property boundary, and they remain open
to the west and at depth. Based on this initial success, we
are expanding this program to nearly 20,000 metres. We expect
to execute the remainder of the program over the next 12 months
using two drill rigs. This marks the first deep drill program
on the project, as all previous drilling had been focused on near
surface resource."
Below is a plan view map, a long section, cross sections and a
table of initial drill results. These maps, sections and
drill results can also be viewed and downloaded at
https://www.argonautgold.com/English/assets/drill-results/default.aspx.
Hole
#
|
Azimuth
|
Dip
|
From
(Metres)
|
To
(Metres)
|
Length*
(Metres)
|
Grade
(Au
g/t)
|
MA-19-001
|
344.4
|
-81.9
|
41.0
|
66.0
|
25.0
|
2.14
|
including
|
|
|
51.0
|
53.0
|
2.0
|
5.63
|
including
|
|
|
58.0
|
62.0
|
4.0
|
4.41
|
MA-19-002
|
340.0
|
-49.0
|
320.0
|
332.0
|
12.0
|
4.69
|
including
|
|
|
323.0
|
328.0
|
5.0
|
10.97
|
MA-19-003
|
334.0
|
-58.0
|
425.0
|
428.3
|
3.3
|
4.81
|
including
|
|
|
426.0
|
428.3
|
2.3
|
6.77
|
and
|
|
|
546.0
|
548.3
|
2.3
|
4.94
|
including
|
|
|
546.0
|
546.8
|
0.8
|
13.60
|
and
|
|
|
557.0
|
559.0
|
2.0
|
4.30
|
MA-19-004
|
195.1
|
-65.8
|
222.0
|
225.0
|
3.0
|
14.33
|
including
|
|
|
223.0
|
225.0
|
2.0
|
21.35
|
and
|
|
|
319.0
|
331.0
|
12.0
|
7.96
|
including
|
|
|
326.0
|
331.0
|
5.0
|
18.16
|
and
|
|
|
350.0
|
353.0
|
3.0
|
2.89
|
and
|
|
|
356.0
|
358.0
|
2.0
|
3.59
|
and
|
|
|
375.0
|
377.0
|
2.0
|
2.98
|
and
|
|
|
428.0
|
430.0
|
2.0
|
4.68
|
including
|
|
|
429.0
|
430.0
|
1.0
|
7.48
|
and
|
|
|
535.0
|
536.0
|
1.0
|
4.89
|
|
* Down-hole width.
Unable to determine true width at this time.
|
Qualified Person Comments / Quality Control
Procedures
The preparation of this press release was supervised and
approved by Brian Arkell, Argonaut
Gold's Vice President Exploration and a Qualified Person under NI
43-101. Mr. Arkell also reviewed the diamond drilling,
sampling and on-site sample preparation procedures at Magino.
For sample analysis the Company utilizes a system of Quality
Assurance/Quality Control (QA/QC) that includes insertion and
verification of standards, blanks and duplicates consistent with
industry standards.
The Company has implemented a QA/QC program to ensure sampling
and analysis of all exploration work is conducted in accordance
with the CIM Exploration Best Practices Guidelines. The
entire drill hole is sampled and tagged by geologic
personnel. Cores are then photographed and sawn in half by
experienced geotechnicians, placed in numbered plastic bags,
gathered in rice bags which are sealed with tamper-proof security
tags under the supervision of the project geologists. The
other half of the core is retained for future assay verification
and/or metallurgical testing. Other QA/QC procedures include
the insertion of coarse blanks and Canadian Reference Standards for
every tenth sample in the sample stream. Samples are then
dispatched and transported by Actlabs personal to the Actlabs
facility in Thunder Bay, Ontario,
for sample preparation and assaying. The laboratory has its
own QA/QC protocols, running standards and blanks with duplicate
samples in each batch stream. Gold analysis is conducted by
lead collection, fire assay with a gravimetric finish on a 50-gram
sample. Metallic screen fire assaying is now completed using
a 1.0 kg sample and two 50 gm fire assays of the pass (-100 mesh)
pulverized material on all samples containing visible gold.
Check assays are conducted at a secondary ISO certified
laboratory.
Please see below under the heading "Cautionary note regarding
forward-looking statements" for further details regarding risks
facing Argonaut.
For further information on the Magino project please see the
report listed below on the Company's website www.argonautgold.com
or on www.sedar.com:
Magino Gold
project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada
dated December 21, 2017 (effective date November 8,
2017)
|
Private Placement Financing of Flow-Through Common
Shares
In connection with the planned activities at Magino, the Company
is pleased to announce that it has issued 1,176,500 flow-through
common shares ("Flow-Through Shares") on a private placement basis
at a price of C$3.40 per
Flow-Through Share, representing a 42% premium from the date of
pricing on August 19, 2019, for
aggregate gross proceeds to the Company of approximately
C$4.0 million (the
"Offering").
The proceeds from the Offering will be used to incur "Canadian
exploration expenses" (within the meaning of the Income Tax
Act (Canada)) primarily
related to Company's Magino project in Ontario, Canada. The Company will renounce
these expenses to the purchasers with an effective date of no later
than December 31, 2019.
The closing of the private placement occurred on September 10, 2019. The Flow-Through Shares
were sold through a syndicate of Agents led by Cormark
Securities.
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
exploration success to expand upon known mineral resources; free
cash flow estimates; 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
access to water to meet planned solution flow rates, estimates of
future capital and operating costs, 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
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.
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.
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.