TORONTO, March 29, 2021 /CNW/ - Argonaut Gold
Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut")
is pleased to announce it has increased its Mineral Reserves by 43%
and its Measured and Indicated ("M&I") Mineral Resources by 26%
from December 31, 2019 to
December 31, 2020. The majority
of the increase to Mineral Reserves and Mineral Resources are in
relation to the acquisition of Alio Gold Inc. (see press release
date July 1, 2020). Both the
San Agustin mine and the
La Colorada mine increased their
respective Mineral Reserves net of depletion, while the Florida
Canyon mine essentially replaced the Mineral Reserves that were
depleted. Mineral Reserves and Mineral Resources were not
updated at the Company's non-producing projects.
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The following table shows the gold and silver Mineral Resources
and Mineral Reserves at December 31,
2020. Mineral Resources are not Mineral Reserves.
Mineral Resources hold intrinsic economic interest, which has been
identified and estimated through exploration and sampling and
within which Mineral Reserves may subsequently be defined.
There is no certainty that all or any part of the Mineral
Resources will be converted into Mineral Reserves.
Measured and Indicated Mineral Resources listed below are
inclusive of Mineral Reserves.
Mineral Reserves and Mineral Resources1
MINERAL
RESERVES
|
PROVEN &
PROBABLE
|
Project
|
Category
|
Tonnes
(Millions)
|
Au Grade
(g/t)
|
Contained
Au
Ounces
(000s)
|
Ag Grade
(g/t)
|
Contained
Ag
Ounces
(000s)
|
Cu Grade
(% Cu)
|
Contained
Tonnes
Cu
|
El
Castillo2
|
Proven
|
0.2
|
0.51
|
4
|
|
|
|
|
El
Castillo2
|
Probable
|
17.1
|
0.36
|
199
|
|
|
|
|
San
Agustin2
|
Probable
|
47.2
|
0.30
|
448
|
9.4
|
14,278
|
|
|
El Castillo
Complex2
|
Proven &
Probable
|
64.5
|
0.31
|
651
|
|
14,278
|
|
|
|
|
|
|
|
|
|
|
|
La
Colorada3
|
Probable
|
24.1
|
0.58
|
453
|
8.6
|
6,702
|
|
|
|
|
|
|
|
|
|
|
|
Florida
Canyon4
|
Proven
|
59.9
|
0.43
|
822
|
|
|
|
|
Florida
Canyon4
|
Probable
|
10.9
|
0.38
|
132
|
|
|
|
|
Florida
Canyon4
|
Proven &
Probable
|
70.8
|
0.42
|
954
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Magino5
|
Proven
|
24.2
|
1.03
|
804
|
|
|
|
|
Magino5
|
Probable
|
34.7
|
1.19
|
1,332
|
|
|
|
|
Magino5
|
Proven &
Probable
|
58.9
|
1.13
|
2,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cerro del
Gallo6
|
Proven
|
70.4
|
0.59
|
1,326
|
13.7
|
31,088
|
0.10
|
67,691
|
Cerro del
Gallo6
|
Probable
|
21.3
|
0.46
|
313
|
11.7
|
8,012
|
0.08
|
17,821
|
Cerro del
Gallo6
|
Proven &
Probable
|
91.8
|
0.56
|
1,638
|
13.3
|
39,100
|
0.09
|
85,512
|
|
|
|
|
|
|
|
|
|
Ana
Paula7
|
Proven
|
6.5
|
2.62
|
550
|
5.3
|
1,115
|
|
|
Ana
Paula7
|
Probable
|
6.9
|
2.12
|
471
|
5.1
|
1,139
|
|
|
Ana
Paula7
|
Proven &
Probable
|
13.4
|
2.36
|
1,021
|
5.2
|
2,254
|
|
|
Consolidated
Mineral Reserves
|
Proven &
Probable
|
323.4
|
0.66
|
6,854
|
N/A
|
62,334
|
N/A
|
85,512
|
|
|
|
|
|
|
|
|
|
MINERAL
RESOURCES
|
MEASURED &
INDICATED ("M&I")
|
El
Castillo8
|
M&I
|
40.4
|
0.34
|
447
|
|
|
|
|
San
Agustin8
|
Indicated
|
65.6
|
0.27
|
579
|
8.4
|
17,651
|
|
|
El Castillo
Complex8
|
M&I
|
106.0
|
0.30
|
1,026
|
|
17,651
|
|
|
La
Colorada9
|
Indicated
|
35.0
|
0.56
|
631
|
8.2
|
9,270
|
|
|
Florida
Canyon10
|
M&I
|
86.0
|
0.42
|
1,161
|
|
|
|
|
Magino11
|
M&I
|
144.0
|
0.91
|
4,197
|
|
|
|
|
Cerro del
Gallo12
|
M&I
|
201.9
|
0.44
|
2,864
|
12.2
|
79,103
|
0.09
|
187,100
|
Ana Paula open
pit13
|
M&I
|
18.0
|
2.06
|
1,195
|
4.9
|
2,865
|
|
|
Ana Paula
underground13
|
M&I
|
3.0
|
2.80
|
267
|
4.2
|
404
|
|
|
San
Antonio14
|
M&I
|
65.0
|
0.86
|
1,735
|
|
|
|
|
Consolidated
Mineral Resources
|
Measured &
Indicated
|
658.9
|
0.62
|
13,076
|
N/A
|
109,293
|
N/A
|
187,100
|
Measured and
indicated Mineral Resources are inclusive of Mineral
Reserves
|
|
MINERAL
RESOURCES
|
INFERRED
|
El
Castillo8
|
Inferred
|
1.8
|
0.35
|
20
|
|
|
|
|
San
Agustin8
|
Inferred
|
2.1
|
0.36
|
25
|
8.7
|
603
|
|
|
El Castillo
Complex8
|
Inferred
|
3.9
|
0.36
|
45
|
|
603
|
|
|
La
Colorada9
|
Inferred
|
1.4
|
0.53
|
23
|
10.9
|
480
|
|
|
Florida
Canyon10
|
Inferred
|
5.8
|
0.29
|
54
|
|
|
|
|
Magino11
|
Inferred
|
33.2
|
0.83
|
886
|
|
|
|
|
Cerro del
Gallo12
|
Inferred
|
5.1
|
0.43
|
71
|
11.9
|
1,947
|
0.06
|
1
|
Ana Paula open
pit13
|
Inferred
|
0.2
|
1.27
|
10
|
8.8
|
70
|
|
|
Ana Paula
underground13
|
Inferred
|
0.6
|
2.07
|
41
|
3.9
|
79
|
|
|
San
Antonio14
|
Inferred
|
6.2
|
0.34
|
67
|
|
|
|
|
Consolidated
Mineral Resources
|
Inferred
|
56.0
|
0.65
|
1,170
|
N/A
|
3,094
|
N/A
|
1
|
Notes:
|
|
(1)
|
Mineral Reserves and
Mineral Resources have been estimated as at December 31, 2020 in
accordance with National Instrument ("NI") 43-101 as required by
Canadian securities regulatory authorities. Mineral Resources
are presented inclusive of Mineral Reserves. Numbers may not sum
due to rounding.
|
(2)
|
The Mineral Reserves
for El Castillo and San Agustin, which together form the El
Castillo Complex, set out in the above table are based on updated
models, mine plans and topography, including depletion through
mining activities and changes to recovery and cost assumptions as
of December 31, 2020. El Castillo used a gold price of $1,500
per ounce; San Agustin used a gold price of $1,500 per ounce and
silver price of $18.75 per ounce. Cut-off grades for El Castillo
range from 0.10 g/t Au to 0.51 g/t Au depending on ore type;
cut-off grades at San Agustin were 0.13 g/t Au.
|
(3)
|
The Mineral Reserves
for La Colorada set out in the above table are based on updated
models, mine plans and topography as well as updated recoveries and
cost assumptions as of December 31, 2020. La Colorada used a
gold price of $1,500 per ounce and a silver price of $18.75 per
ounce. Cut-off grade for La Colorada was 0.11 g/t gold
equivalent ("AuEQ").
|
(4)
|
The Mineral Reserves
for Florida Canyon set out in the above table are based on updated
models, mine plans and topography as well as updated recoveries and
cost assumptions as of December 31, 2020. Florida Canyon used
a gold price of $1,500 per ounce. Cut-off grade for Florida
Canyon was 0.17 g/t Au.
|
(5)
|
The Mineral Reserves
for the Magino Project set out in the table above were taken from
the Magino Technical Report. The Mineral Reserves were estimated at
a gold price of $1,200 per ounce. The Mineral Reserves used a
gold cutoff grade of 0.41 g/t.
|
(6)
|
The Mineral Reserves
for Cerro del Gallo set out in the table above were taken from the
Cerro del Gallo Technical Report. The Mineral Reserves were
estimated at a gold price of $1,200 per ounce and a silver price of
$14.50 per ounce. The Mineral Reserves used a gold cutoff
grade of between 0.30 g/t AuEQ and 0.39 g/t AuEQ depending on ore
type.
|
(7)
|
The Mineral Reserves
for Ana Paula set out in the table above were taken from the Ana
Paula Technical Report. The Mineral Reserves were estimated at a
gold price of $1,200 per ounce and a silver price of $17.00 per
ounce. The Mineral Reserves used a gold cutoff grade of 0.67 g/t
Au.
|
(8)
|
The M&I Mineral
Resources and Inferred Mineral Resources for El Castillo and San
Agustin, which together form the El Castillo Complex, set out in
the above table were based on pit cones using $1,800 per ounce gold
and $22.50 per ounce silver. Cut-off grades range from 0.08
g/t Au to 0.43 g/t Au for El Castillo and 0.10 to 0.23 g/t AuEQ for
San Agustin, depending on ore type.
|
(9)
|
The M&I Mineral
Resources and Inferred Mineral Resources for La Colorada set out in
the above table were based on pit cones using $1,800 per ounce gold
and $22.50 per ounce silver. Cut-off grade was 0.09 g/t
AuEQ.
|
(10)
|
The M&I Mineral
Resources and Inferred Mineral Resources for Florida Canyon set out
in the above table were based on pit cones using $1,800 per ounce
gold. Cut-off grade was 0.15 g/t Au.
|
(11)
|
The M&I Mineral
Resources and Inferred Mineral Resources for the Magino Project set
out in the table above were taken
from the Magino Technical Report. The Mineral Resources were
estimated at a gold price of $1,300 per ounce. The Mineral
Resources used a gold cutoff of 0.25 g/t.
|
(12)
|
The M&I Mineral
Resources and Inferred Mineral Resources for the Cerro del Gallo
Project set out in the table above were taken from the Cerro del
Gallo Technical Report. The Mineral Resources were estimated
at a gold price of $1,600 per ounce and a silver price of $20.00
per ounce. Cut-off grades range from 0.25 g/t AuEQ to 0.30
g/t AuEQ depending on ore type.
|
(13)
|
The M&I Mineral
Resources and Inferred Mineral Resources for Ana Paula set out in
the table above were taken from the Ana Paula Technical Report. The
Mineral Resources were estimated at a gold price of $1,350 per
ounce and a silver price of $17.00 per ounce. The Mineral Resources
used a gold cutoff grade of 0.60 g/t Au for the Mineral Resources
amenable to open pit extraction and 1.65 g/t Au for the Mineral
Resources amenable to underground extraction.
|
(14)
|
The M&I Mineral
Resources and Inferred Mineral Resources for the San Antonio
Project set out in the table above were taken from the San Antonio
Technical Report. The Mineral Resources were estimated at a gold
price of $1,500 per ounce using a cutoff grade of 0.11 g/t Au for
oxide and transition and 0.15 g/t Au for sulphide.
|
Qualified Persons
Estimates of Mineral Reserves and Mineral Resources for
Argonaut's operating mineral properties have been prepared under
the general supervision of Brian
Arkell, Argonaut's Vice President of Exploration, and a
Qualified Person for the purposes of NI 43-101.
Mineral Reserve and Mineral Resource reconciliation for
Argonaut's operating mines is shown in the following tables:
2019 – 2020 Mineral Reserve
Reconciliation
Gold Reserves (Proven and Probable)
|
YE-2019
Mineral
Reserves
Contained Au
Ounces (000s)
|
Depletion of
Contained Au
Ounces
(000s)
|
Addition of
Contained Au
Ounces due to
Gold Price
(000s)
|
Drilling,
Modeling &
Mine Plan
Changes to
Contained Au
Ounces (000s)
|
YE-2020
Mineral
Reserve
Contained Au
Ounces (000s)
|
El
Castillo
|
242
|
(98)
|
40
|
20
|
203
|
San
Agustin
|
418
|
(94)
|
56
|
69
|
448
|
La
Colorada
|
375
|
(53)
|
16
|
117
|
455
|
Florida
Canyon
|
962
|
(62)
|
0
|
54
|
954
|
Note:
|
|
(1)
|
Footnotes from the
Mineral Reserves and Mineral Resources statement apply. The 2020
Mineral Reserves are based on a gold price of $1,500 per ounce, and
2019 Mineral Reserves were based on a gold price of $1,450 per
ounce at the El Castillo Mine and $1,350 per ounce at the San
Agustin Mine, the La Colorada Mine and the Florida Canyon
Mine. Florida Canyon 2019 Mineral Reserves were calculated by
Alio Gold Inc. ("Alio") prior to the with Alio, which was completed
on July 1, 2020.
|
2019 – 2020
M&I Mineral Resource Reconciliation
Gold Resources (M&I)
|
YE-2019
M&I
Mineral
Resources
Contained Au
Ounces (000s)
|
Depletion of
Contained Au
Ounces
(000s)
|
Addition of
Contained Au
Ounces due to
Gold Price
(000s)
|
Drilling,
Modeling &
Mine Plan
Changes to
Contained Au
Ounces (000s)
|
YE-2020
M&I
Mineral
Resources
Contained Au
Ounces (000s)
|
El
Castillo
|
418
|
(104)
|
105
|
49
|
467
|
San
Agustin
|
664
|
(106)
|
40
|
6
|
579
|
La
Colorada
|
558
|
(60)
|
36
|
91
|
625
|
Florida
Canyon
|
N/A
|
-
|
-
|
-
|
1,161
|
Note:
|
|
(2)
|
Footnotes from the
Mineral Reserves and Mineral Resources statement apply.
M&I Mineral Resources are inclusive of Mineral Reserves. The
2020 Mineral Resources are based on a gold price of $1,800 per
ounce and 2019 Mineral Resources were based on a gold price of
$1,600 per ounce. Mineral Resources were not calculated in 2019 at
the Florida Canyon Mine by Alio at the end of 2019.
|
Pete Dougherty, President &
CEO commented: "The replacement of depleted Mineral Reserves is a
key part of our business strategy. Our strategy is to harvest
cash from these operations, replace depleted Mineral Reserves to
extend mine lives and focus on executing on our growth projects to
transition Argonaut from a high-cost junior producer with
relatively short mine lives to a lower cost intermediate producer
with much longer mine lives."
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; 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;
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; and synergies. 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 Company's mineral properties,
please see the reports as listed below on the Company's website or
on www.sedar.com:
El Castillo
Complex
|
NI 43-101 Technical
Report on Resources and Reserves, El Castillo Complex, Durango,
Mexico dated March 27, 2018 (effective date of March 7,
2018)
|
La Colorada
Mine
|
NI 43-101 Technical
Report on Resources and Reserves, La Colorada Gold/Silver Mine,
Hermosillo, Mexico dated March 27, 2018 (effective date of December
8, 2017)
|
Florida Canyon Gold
Mine
|
NI 43-101 Technical
Report on Mineral Resource and Mineral Reserve Florida Canyon Gold
Mine Pershing County, Nevada, USA dated July 8, 2020 (effective
date June 1, 2020)
|
Magino Gold
Project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada dated
December 21, 2017 (effective date November 8, 2017)
|
Cerro del Gallo
Project
|
Pre-Feasibility Study
Technical Report on the Cerro del Gallo Project, Guanajuato, Mexico
dated January 31, 2020 (effective date of October 24,
2019)
|
Ana Paula
Project
|
Amended Preliminary
Feasibility Study Technical Report on the Ana Paula Project,
Guerrero, Mexico dated June 7, 2017 (effective date May 16,
2017)
|
San Antonio
Project
|
NI 43-101 Technical
Report on Resources, San Antonio Project, Baja California Sur,
Mexico dated October 10, 2012 (effective date September 1,
2012)
|
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 construction 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.