TORONTO, Jan. 21, 2021 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased
to announce that the province of Ontario has filed the Closure Plan for the
Magino project. Site preparation, such as tree removal and
clearing, is expecting to commence imminently, with construction
scheduled to begin as soon as site preparation is complete.
Argonaut envisions a two-year construction period with first gold
production at Magino during the first half of
2023.
Pete Dougherty, President and CEO
stated: "The filing of the Closure Plan is a significant milestone
and allows us to begin site preparation activities for construction
of the Magino mine and processing facility. Magino is truly a
valuable and strategic asset given existing infrastructure, the
already-known mineral endowment of the ore body and the existing
exploration potential, its location within the mining-friendly
jurisdiction of Ontario, Canada
and its proximity to other strong cash flowing operations such as
the Island Gold mine. By moving Magino forward, we are
executing on our vision to transform Argonaut from a junior,
relatively high-cost producer with short mine lives to an
intermediate, lower-cost producer with long mine lives."
Kyle Stanfield, Director of
Environment and Community Relations commented: "We are humbled by
the tremendous community support that has enabled this important
project milestone to pass. We will continue to coordinate
closely with our Indigenous and Municipal partners as we develop
this investment into a world class mining operation."
The Magino project has received incredible stakeholder support
locally, provincially and federally, as well as strong shareholder
support to see the project move forward. The Magino project
initial capital estimate of between C$480
million and C$510 million, of
which approximately 40% is covered by a fixed-bid contract with
Ausenco Engineering Canada Inc., is considered fully financed
through Argonaut's current cash balance and anticipated cash flow
from operations assuming a gold price environment at or above
US$1,600 per ounce. At
December 31, 2020, Argonaut had
US$214 million in cash and also has
access up to US$125 million through
its existing revolving credit facility, which is fully undrawn.
The Magino Feasibility Study demonstrated that the Magino
project is a strategic, scalable, long-life asset in the attractive
mining jurisdiction of Ontario,
Canada. Highlights from the Magino Feasibility Study
include:
- A 10,000 tonne per day processing facility;
- Average annual gold production of 150,000 ounces over the first
five years;
- A 17-year mine life;
- Cash cost of US$669 per gold
ounce sold*; and
- All-in sustaining cost of US$711
per gold ounce sold*.
*
|
See Non-IFRS Measures
Section
|
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)
|
Non-IFRS Measures
The Company has included certain non-IFRS measures including
"Cash cost per gold ounce sold" and "All-in sustaining cost per
gold ounce sold" in this press release. Cash cost per gold
ounce sold is equal to production costs less silver revenue divided
by gold ounces sold. All-in sustaining cost per gold ounce
sold is equal to production costs less silver revenue plus general
and administrative expenses, exploration expenses, accretion of
reclamation provision and sustaining capital expenditures divided
by gold ounces sold. The Company believes that these measures
provide investors with an improved ability to evaluate the
performance of the Company. Non-IFRS measures do not have any
standardized meaning prescribed under International Financial
Reporting Standards ("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. Please see the
most recent management's discussion and analysis for full
disclosure on non-IFRS measures.
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 the realization of mineral reserve estimates; the timing and
amount of estimated future production; costs of production;
estimated production and mine life of the various mineral projects
of Argonaut; permitting and legal processes in relation to mining
permitting and approval; 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.
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. The Company also holds the development stage Magino
project, the advanced exploration stage Cerro del Gallo project and several other
exploration stage projects, all of which are located in North
America.
For more information,
contact:
Argonaut Gold Inc.
Dan
Symons
Vice President, Corporate Development & Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
Source: Argonaut Gold Inc.
SOURCE Argonaut Gold Inc.