South Zone Strike Length Identified as 1.5
Kilometres and Remains Open to the West and at Depth
TORONTO, Jan. 20, 2021 /CNW/ - Argonaut Gold
Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut")
is pleased to announce that it has intersected 10.0m at 19.0 g/t Au, including 6.3m at 30.2 g/t Au and 3.1m at 47.1 g/t Au, including 1.3m at 112.0 g/t Au in the South Zone at its
100% owned Magino property in Ontario, Canada. The South Zone has now
been intersected in numerous drill holes extending from the border
between the Island Gold mine and the Magino project westward over a
strike length of 1.5 kilometres and remains open at depth and to
the west.
Figure 1 – Plan Map of Magino showing the locations of
drill holes in this news release and South Zone 1.5km strike
length
The South Zone follows the contact of the Webb Lake Stock
(granodiorite rocks) and volcanic rocks. Drill hole MA20-057
was designed to test the South Zone at depth and below the western
end of the planned Magino open pit in an area not previously drill
tested. The hole intersected two zones of very high-grade
gold mineralization of 3.1m at 47.1
g/t Au and 10.0m at 19.0 g/t
Au. The best intercept, 6.3m at
30.2 g/t Au (included within 10.0m at
19.0 g/t Au), follows a series of aplite dykes (structures) along
the contact of the granodiorite/volcanic rocks and shows the
potential to connect to a previously drilled high-grade intercept
in hole MA12-424, which intersected 7.6m at 29.4 g/t Au approximately 275m above hole MA20-057.
![Figure 2 – Long section looking north showing 1.5km South Zone strike length in relation to the planned open pit and the Elbow and Central Zones, which are below the east end of the pit. Drill hole MA20-057 high-grade gold intercepts are shown in relation to the aplite dyke and historical drill hole MA12-424 (CNW Group/Argonaut Gold Inc.) Figure 2 – Long section looking north showing 1.5km South Zone strike length in relation to the planned open pit and the Elbow and Central Zones, which are below the east end of the pit. Drill hole MA20-057 high-grade gold intercepts are shown in relation to the aplite dyke and historical drill hole MA12-424 (CNW Group/Argonaut Gold Inc.)](https://mma.prnewswire.com/media/1423248/Argonaut_Gold_Inc__Argonaut_Gold_Intersects_10_0_Metres_at_19_0_2.jpg)
Figure 2 – Long section looking north showing 1.5km South
Zone strike length in relation to the planned open pit and the
Elbow and Central Zones, which are below the east end of the
pit. Drill hole MA20-057 high-grade gold intercepts are shown
in relation to the aplite dyke and historical drill hole
MA12-424
Figure 3 - View looking east showing Elbow, Central and
South Zones in relation to the planned open pit
Pete Dougherty, President and CEO
stated: "Our geology team at Magino has done remarkable work over
the last two years in identifying the structural controls on the
high-grade mineralization at Magino and has demonstrated this
through an extremely high success rate of encountering high-grade
gold at depth nearly everywhere we have targeted. With
intercepts now known over a strike length of 1.5 kilometres and the
fact that this remains wide open to the west and at depth, the
South Zone is another exciting zone that warrants much more follow
up drilling."
Table 1 below highlights select drill results from the on-going
drill program. A three-dimensional model of the Magino
deposit and these drill results in relation to the planned open pit
and property boundary is available on the Company's website at
https://www.argonautgold.com/English/assets/drill-results/default.aspx
Table 1: Select Drill Results
Hole
|
Zone
|
Azimuth
|
Dip
|
From
(metres)
|
To
(metres)
|
Length
(metres)
|
Grade* (Au g/t)
|
Estimated
True
Width
(meters)
|
MA20-054
|
#42
|
165.3
|
-81.9
|
732.0
|
735.0
|
3.0
|
8.3
|
2.1
|
including
|
#42
|
|
|
733.0
|
735.0
|
2.0
|
12.3
|
1.4
|
|
|
|
|
|
|
|
|
|
MA20-055
|
Elbow
|
175.1
|
-81.6
|
705.0
|
707.0
|
2.0
|
4.4
|
1.3
|
including
|
Elbow
|
|
|
705.0
|
706.0
|
1.0
|
8.2
|
0.7
|
|
|
|
|
|
|
|
|
|
MA20-056
|
Sandy
|
166.3
|
-72.5
|
782.0
|
787.0
|
5.0
|
4.1
|
3.5
|
including
|
Sandy
|
|
|
785.9
|
787.0
|
1.1
|
16.6
|
0.8
|
|
|
|
|
|
|
|
|
|
MA20-057
|
Sandy
|
166.6
|
-72.0
|
178.8
|
186.0
|
7.2
|
3.2
|
5.4
|
including
|
Sandy
|
|
|
178.8
|
182.0
|
3.2
|
6.5
|
2.4
|
and
|
South
|
|
|
633.9
|
637.0
|
3.1
|
47.1
|
2.0
|
including
|
South
|
|
|
633.9
|
635.0
|
1.3
|
112.0
|
0.8
|
and
|
South
|
|
|
713.0
|
723.0
|
10.0
|
19.0
|
6.5
|
including
|
South
|
|
|
715.0
|
721.3
|
6.3
|
30.2
|
4.1
|
and
|
South
|
|
|
730.0
|
733.3
|
3.3
|
5.0
|
2.1
|
and
|
South
|
|
|
860.0
|
866.0
|
6.0
|
4.5
|
2.9
|
including
|
South
|
|
|
860.0
|
861.0
|
1.0
|
17.8
|
11.6
|
|
|
|
|
|
|
|
|
|
MA20-058
|
New target
area
|
162.8
|
-66.6
|
403.0
|
405.0
|
2.0
|
8.2
|
1.6
|
including
|
New target
area
|
|
|
404.0
|
405.0
|
1.0
|
14.8
|
0.8
|
All table of all drill results as well as maps are available on
the Company's website at
https://www.argonautgold.com/English/assets/drill-results/default.aspx
Brian Arkell, Vice President of
Exploration commented: "We continue to encounter high-grade gold
mineralization in several structural zones identified to
date. We are now recognizing the potential for the
mineralized system to not only extend at depth, but also to the
west of the main Magino ore body. Evidence of this is drill
hole MA20-058 that was a completely blind westward step-out some
200 metres from the main Magino deposit. Also, in our
high-grade intercepts at depth, as we encountered in drill hole
MA20-057, we continue to see a lot of visible gold, which is
frequent in this style of mineralized system."
Visible gold in drill core from MA20-057 at Magino's South
Zone
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, the La Colorada
mine in Sonora, Mexico and the
Florida Canyon mine in Nevada,
USA. Advanced exploration projects include the Magino project
in Ontario, Canada and the Cerro
del Gallo project in Guanajuato,
Mexico. The Company continues to hold several other
exploration stage projects, all of which are located in
North America.
Argonaut Gold Inc.
Dan Symons
Vice President, Corporate Development & Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
SOURCE Argonaut Gold Inc.