TORONTO, March 3, 2020 /CNW/ - Argonaut Gold Inc. (TSX:
AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased
to announce further drill results from the on-going, 20,000-metre
exploration program at its 100% owned Magino property in
Ontario, Canada. The drilling
campaign continues to intersect high-grade gold mineralization
below and adjacent to the current open pit mineral reserves, which
are the basis for the Company's recently completed Feasibility
Study. To date, the Company has completed 22 diamond drill holes
and approximately 17,790 metres of drilling.
Recent highlights include:
- MA19-016 with 11.0m @ 11.68 g/t
Au;
- MA19-020 with 6.0m @ 10.79 g/t
Au; and
- MA19-018 with 2.0m @ 17.26 g/t
Au.
Since July 2019, drilling has
intersected a number of high-grade, gold-bearing structures
trending westward from the adjacent Island Gold Mine below and
adjacent to the planned Magino open pit mine. Recent drilling
has continued to confirm and focus on two high-grade structural
zones, the Elbow Zone and the South Zone, which both remain open
along strike and at depth. The drill program is now expanded
to test new deeper targets between the Elbow and South Zones,
within the Webb Lake Stock ("WLS") and along the southern
geological contact between the WLS and volcanic rocks.
Pete Dougherty, President and CEO
stated: "We are very pleased with the ongoing success of our
exploration program at Magino, where we continue to intersect
higher grade gold mineralization in structures at depth and as we
step out to the west of Magino. We are especially pleased
with the results of our deeper drilling where hole 20 intersected
some of our best results yet, more than 700 metres vertically below
surface, with 6 metres at 10.79 g/t Au, including a 2.95 metre
interval of 21.07 g/t Au."
Table 1 below highlights select drill results from the on-going
drill program to drill hole MA19-020. All drill results as
well as maps and sections are available on the Company's website at
www.argonautgold.com. Recent drill holes MA20-22 and MA20-23 have
intersected zones containing visible gold with assays pending.
Table 1: Select Drill Results
Hole
|
Azimuth
|
Dip
|
From
(metres)
|
To
(metres)
|
Length
(metres)
|
Grade
(Au
g/t)
|
Estimated
True
Width
(meters)
|
MA19-013
|
186.5
|
-55
|
302.70
|
310.00
|
7.30
|
3.25
|
5.48
|
and
|
|
|
317.00
|
330.00
|
13.00
|
3.84
|
9.75
|
including
|
|
|
320.00
|
329.00
|
9.00
|
4.81
|
6.75
|
including
|
|
|
320.00
|
323.00
|
3.00
|
7.83
|
2.25
|
and
|
|
|
425.10
|
433.50
|
8.40
|
4.09
|
6.30
|
including
|
|
|
425.10
|
429.40
|
4.30
|
6.23
|
3.23
|
|
|
|
|
|
|
|
|
MA19-014
|
157.3
|
-62.3
|
439.00
|
441.10
|
2.00
|
5.41
|
1.50
|
including
|
|
|
440.10
|
441.10
|
1.00
|
10.96
|
0.75
|
|
|
|
|
|
|
|
|
MA19-015
|
159.1
|
-79.2
|
575.00
|
577.00
|
2.00
|
8.52
|
1.50
|
|
|
|
|
|
|
|
|
MA19-016
|
185.4
|
-62.0
|
292.00
|
301.00
|
9.00
|
3.71
|
6.75
|
including
|
|
|
292.00
|
293.00
|
1.00
|
18.50
|
0.75
|
and
|
|
|
355.00
|
374.00
|
19.00
|
7.39
|
14.25
|
including
|
|
|
360.00
|
371.00
|
11.00
|
11.68
|
8.25
|
including
|
|
|
364.00
|
371.00
|
7.00
|
15.54
|
5.25
|
|
|
|
|
|
|
|
|
MA19-017
|
170.1
|
-61.2
|
1141.00
|
1145.50
|
4.50
|
6.62
|
3.38
|
|
|
|
|
|
|
|
|
MA19-018
|
349.6
|
-75.2
|
781.00
|
784.85
|
3.85
|
4.14
|
2.50
|
and
|
|
|
984.00
|
1012.20
|
28.20
|
3.27
|
21.15
|
including
|
|
|
984.00
|
986.00
|
2.00
|
17.26
|
1.50
|
including
|
|
|
985.00
|
986.00
|
1.00
|
30.80
|
0.75
|
and
|
|
|
1011.20
|
1012.20
|
1.00
|
46.70
|
0.75
|
|
|
|
|
|
|
|
|
MA19-019
|
351.8
|
-71.5
|
695.00
|
696.00
|
1.00
|
2.34
|
0.70
|
and
|
|
|
879.00
|
880.00
|
1.00
|
8.95
|
0.70
|
Remaining Assays
Still Pending
|
|
|
|
|
|
|
|
|
|
MA19-020
|
172.8
|
-70.1
|
831.00
|
844.00
|
13.00
|
5.37
|
9.75
|
including
|
|
|
833.00
|
839.00
|
6.00
|
10.79
|
4.50
|
including
|
|
|
834.05
|
837.00
|
2.95
|
21.07
|
2.21
|
|
|
|
|
|
|
|
|
![Figure 1: 2019/2020 Drill Program Update - A geological map of the Magino Project located approximately 14 kilometres southeast of Dubreuilville, Ontario, adjacent to the Island Gold Mine. The map shows key drillhole locations from our recent drilling program. (CNW Group/Argonaut Gold Inc.) Figure 1: 2019/2020 Drill Program Update - A geological map of the Magino Project located approximately 14 kilometres southeast of Dubreuilville, Ontario, adjacent to the Island Gold Mine. The map shows key drillhole locations from our recent drilling program. (CNW Group/Argonaut Gold Inc.)](https://mma.prnewswire.com/media/1098375/FIG1_DRILLMAP_MARCH32020___1.jpg)
Elbow Zone
The Elbow Zone structure, which occurs along the northern
geological contact of the WLS and volcanic rocks in the
northeastern portion of the Magino deposit, continues to be a
highly prospective zone for additional gold mineralization. This
zone has been intersected in drilling over an approximate strike
length in excess of 500 metres, has been drill tested to a vertical
depth of approximately 675 metres and remains open at depth.
Drill hole MA19-020, the deepest hole in this zone to date,
intersected 5.37 g/t Au over a sample length of 13.0 m (831.0 to 844.0
m) including 10.79 g/t Au over 6.0
m (833.0 to 839.0 m) hosted in
a strongly altered (silica-sericite-carbonate) granodiorite.
Drill hole MA19-017 returned 6.62 g/t Au over a sample length of
4.50 m (1141.0 to 1145.5 m) including a quartz vein with visible
gold, which assayed 57.20 g/t Au over a sample length of
0.50m (1142.0 to 1142.5 m). The host rock is an altered
granodiorite.
Final assays were received for drill hole MA19-016, partially
reported in December 2019. This hole
extended the Elbow to the west intersecting 7.39 g/t Au over
19.0 m down hole including a higher
grade segment of 11.68 g/t Au over 11.0
m. This intercept is part of a continuous visible
gold-bearing zone over 80 metres along strike, as defined by
oriented core structural measurements, that lines up with hole
MA19-007 (6.99 g/t Au over 4.0
m).
Hole MA19-013 intersected 4.53 g/t Au over a sample length of
10.0 m (320.0 to 330.0 m) including 3.0
m at 7.83 g/t Au (320.0 to 323.0
m) and 3.0 m at 6.73 g/t Au
(327.0 to 330.0 m) within an altered
and deformed granodiorite. A second zone was intersected in the
granodiorite adjacent to a gabbro dyke returning 4.09 g/t Au over a
sample length of 8.4 m (425.1 to
433.5 m) associated with a large
quartz-tourmaline stockwork. This zone included 6.23 g/t Au
over a sample length of 4.3 m (425.1
to 429.4 m).
South Zone
The South Zone to date is comprised of two gold-bearing
structures hosted within the strongly silicified (quartz flooded)
mafic volcanoclastic rocks located south of the Webb Lake Stock
previously defined by drill holes MA19-002, MA19-003, MA19-008 and
MA19-010.
Drill hole MA19-018 was drilled to test the gold potential of
these structures at depth. This hole returned 4.90 g/t Au
over 3.0 m (781.0 to 784.0 m) in strongly silicified volcanoclastic
rocks with 2-3% pyrite, pyrrhotite and chalcopyrite in association
with a quartz-carbonate vein (at a low angle to the core axis).
This hole was extended north into the WLS intersecting 3.27 g/t
Au over a sample length of 28.2 m
including 17.26 g/t Au over 2.0 m
(984.0 to 986.0 m) and 8.45 g/t Au
over 1.0 m (995.0 to 996.0 m).
Structural Studies and Ground Geophysical Surveying
In order to collect additional structural data from previous
drill holes across the deposit and enhance the understanding of the
structures controlling gold mineralization at Magino, Argonaut
recently completed a downhole Optical Televiewer Survey ("OTV")
program on thirty-one (31) historical drill holes. All
structural data collected through surface mapping, underground
structural mapping, oriented core and the new OTV survey data are
currently being compiled and interpreted. These results will
be used to further target important structures within the deposit
and on the remainder of the property as well as to upgrade the
resource / reserve model.
The Company recently completed 30 line-kms of Induced
Polarization ("IP") and ground magnetic survey across prospective
areas to the west and north of the Magino deposit. Interpretation
of this work is currently underway. Argonaut plans to use this
geophysical survey to guide both this summer's surface field
exploration work and to define high priority drill targets.
Brian Arkell, Vice President
Exploration stated: "Our exploration will continue to test the
high-grade structures as we drill to the west and the higher grade
shoots at depth. Drilling is still very wide-spaced, but we can see
continuity in a number of high-grade structural zones, laterally
and at depth. Our structural work is helping immensely to define
potential ore zones where mineralization is wider and higher grade,
such as in hole 16 where we cut 19 metres of over 7 g/t Au
including 7 metres running 15.54 g/t Au or one-half ounce per
tonne."
"We are especially looking forward to our upcoming district
exploration program. Our property to the west and north of Magino
has seen very little exploration until last year when our
prospecting teams mapped and identified a number of targets. These
targets have the right alteration and strong geochemistry where
exposed, but for the most part are in flat, covered
ground. The recently completed geophysics will help delineate
drill targets. Our plans for this second phase starting in
April are for an additional 20,000 metres of drilling on the
high-grade targets at Magino plus 5,000 metres of first pass scout
drilling on newly defined district targets."
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, and 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 bagged, sealed with numbered security tags and shipped
to the Activation Laboratories facility, Thunder Bay, Ontario, for sample preparation
and assaying. The laboratory has its own QA/QC protocols, running
standards, blanks and 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.
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
statements with respect to permitting and legal processes in
relation to mining permitting and approvals; estimated
production and 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 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.
For further information on the Magino project, please see the
report as listed below on the Company's website 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)
|
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 Cerro del Gallo project
in Guanajuato, Mexico and the
Magino project in Ontario,
Canada. The Company continues to hold the San Antonio advanced exploration project in
Baja California Sur, Mexico and
several exploration stage projects, all of which are located in
North America.
SOURCE Argonaut Gold Inc.