Metal Production and Sales Expected to
Continue
TORONTO, April 1, 2020 /CNW/ - Argonaut Gold
Inc. (TSX: AR) (the "Company", "Argonaut Gold" or
"Argonaut") announces that the Mexican federal government has
mandated that all non-essential businesses, including mining,
temporary suspend operations until April
30 due to the COVID-19 virus. Argonaut will work
towards an orderly suspension of mining, crushing and stacking
activities. Given that Argonaut operates heap leach mines,
the Company expects metal production and metal sales will continue
during the temporary suspension of mining
activities.
Argonaut is following government health protocols, has
implemented additional protocols for the protection of its
workforce and is closely monitoring the situation with local health
authorities. To date, there are no known or suspected cases
of COVID-19 infection at any of the Company's operations, projects
or corporate offices.
Pete Dougherty, President &
CEO stated: "It is important to recognize the seriousness of the
COVID-19 pandemic and while we have not experienced a known or
suspected case in the Company to date, we have been and will
continue to take precautionary measures. The health and
safety of our workforce, their families and the communities in
which we operate is paramount and we continue to be dedicated to
maintaining a safe work environment. We must continue to
process pregnant solution coming from the heap leach pads for the
safety of the environment. Therefore, we expect to continue
metal production and sales."
The Company's expects its previously announced friendly,
at-market merger with Alio Gold Inc. ("Alio") will continue (see
press release dated March 30,
2020). With both companies understanding the unique and
unprecedented circumstances surrounding the COVID-19 outbreak, in
the Plan of Arrangement, each of Argonaut and Alio have the option
to withdraw from the transaction if the other company's mining
operations are suspended for 45 days.
Argonaut is withdrawing its full year guidance across all
operations until further notice due to the uncertainty with respect
to future developments of the COVID-19 outbreak, including the
duration, severity and scope of the outbreak, the actions taken to
contain or treat the outbreak and potential impacts on mining
operations.
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 the COVID-19 pandemic, the impact of the pandemic on
Argonaut and the impact of government action aimed at ameliorating
the pandemic on the workforce, business and operations of Argonaut
and on its transaction with Alio Gold Inc.; 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, the scope, duration and impact of the
COVID-19 pandemic, the scope, duration and impact of regulatory
responses to the pandemic on the employees, business and operations
of Argonaut and the broader market, 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. 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.