Argonaut Gold Announces Record Q3 Gold Production of 31,074 Ounces and Increases 2012 Production Guidance to 101-103,000 Ounc...
Argonaut Gold Inc. ("Argonaut Gold" or the "Company") (TSX:AR), announced today
that the Company had record gold production of 31,074 ounces during the 3rd
quarter ended September 30, 2012. This included 24,575 ounces at its 100% owned
El Castillo Mine ("El Castillo") which is located 100 km north of the city of
Durango, Mexico and 6,499 ounces at its 100% owned La Colorada Mine ("La
Colorada") which is located 50 kilometers southeast of Hermosillo, Mexico.
THIRD QUARTER 2012 HIGHLIGHTS:
El Castillo
-- Record production of 24,575 gold ounces represents a 46% improvement
over Q3 2011
-- 41,630 gold ounces loaded on the pad (+39% improvement over Q3 2011)
-- Conveying and stacking system on the East Side Pad was fully functional
during the third quarter
-- In September, greater than 500,000 ore tonnes were crushed and
placed on the East Side Pad thru the conveyor
-- West Side Pad 8 permit granted, with pad construction to be commenced in
fourth quarter
-- Land agreement signed extending term for an additional 10 year period
La Colorada
-- Production of 6,499 gold ounces and 41,937 silver ounces
-- 12,276 gold ounces and 1,164,742 silver ounces loaded on the pad
-- Phase 2 pad construction is one-third complete
-- Refining facility completed; now handling all materials from El Castillo
and La Colorada
-- Crushing circuit relocation and enhancements scheduled for Q4
-- Final crushing circuit expansion scheduled for early in Q2 of 2013
-- Commenced overburden removal for fresh ore mining in Q3 of 2013; 1.8M
tonnes moved
Financial
-- Cash balance of $43 million as of September 30, 2012, after repayment of
$6 million debt
-- Record 42,534 ounces of gold sold
Exploration
-- Signed letter of intent with Bravada Gold Corp.
-- Wind Mountain Project in Nevada with reported indicated and inferred
gold resource (see Bravada NI 43-101 dated April 11, 2011)
-- Aligns with Argonaut Gold's jurisdictional focus
-- Low entry risk with $250,000 commitment
-- Reasonable acquisition cost of $30/ounce for full purchase
-- Good exploration potential on the project with a goal of increasing
resources
Fourth Quarter Outlook
-- El Castillo production estimates of 22-23,000 ounces of gold
-- La Colorada production estimates of 3-4,000 ounces of gold
Full year Outlook
-- El Castillo production estimates of 84-85,000 ounces of gold
-- La Colorada production estimates of 17-18,000 ounces of gold
-- Total production guidance estimate of 101-103,000 ounces of gold
THIRD QUARTER 2012 El CASTILLO OPERATING RESULTS
Third quarter 2012 operating statistics showed improvement over third quarter
2011 results. Ore production is now at an annualized rate of approximately 12
million tonnes. Currently both sides of the operation are receiving ore to the
pads and running their respective processing plants.
El Castillo Operating Statistics
3 Months Ended September 30,
2012 2011 % Change
------ ------- ----------
Mining (Tonnes 000)
-----------------------------------------
Total tonnes mined 6,355 4,842 +31%
Tonnes ore mined 3,083 2,908 +6%
Heap Leach Pad (Tonnes 000)
-----------------------------------------
Direct ore tonnes to pad 1,811 2,283 -21%
Crushed ore tonnes to pad 1,270 613 107%
Production
-----------------------------------------
Gold grade (g/t) 0.42 0.32 +30%
Gold loaded to pad (oz) 41,630 29,997 +39%
Gold loaded to carbon (oz) 24,575 16,884 +46%
Gold sold(oz) 33,839 13,260 +155%
1 "g/t" is grams per tonne
2 "oz" means troy ounce
Richard Rhoades, Chief Operating Officer of Argonaut Gold said "Capital
expansion programs completed in the first half of 2012 provided the framework
for production improvements that are now coming to fruition. The El Castillo
team has delivered continual year over year production increases, with updated
2012 guidance providing an 18% increase in production over full year 2011
production."
Capital investments at the property included the addition of a conveying and
stacking system which is now fully functional. During September, the circuit
provided more than 500,000 tonnes of crushed ore delivered to the pad. The
strong third quarter production was positively impacted by the rainy season
which brought additional water to the pads during the quarter. Permits necessary
to begin construction on West Side Pad 8 have been granted and construction will
begin in Q4 of 2012, ahead of schedule."
THIRD QUARTER 2012 LA COLORADA OPERATING RESULTS
Third quarter operating statistics showed continued improvement at the mine. To
date, more than 75% of the Phase I run of mine material to be reprocessed has
been recrushed and stacked for leaching.
Overburden removal has begun at La Colorada in preparation for the mining of
fresh ore in the first quarter of 2013. Original plans for relocating the
crusher were pushed to the fourth quarter; as a result the fourth quarter
production expectations are approximately 3-4,000 ounces of gold, with 2012
guidance at La Colorada revised to 17-18,000 ounces.
La Colorada Operating Statistics
Q3 2012 Q2 2012 % Change
--------- --------- ---------
Mining (Tonnes 000)
----------------------------------
Total tonnes moved 2,708 840 +222%
Ore tonnes moved 924 806 +15%
Heap Leach Pad (Tonnes 000)
----------------------------------
Crushed ore tonnes to pad 848 743 +14%
Production
----------------------------------
Gold grade (g/t) 0.43 0.43 -
Gold loaded to pad (oz) 12,276 10,173 +21%
Gold loaded to carbon (oz) 6,499 4,590 +42%
Silver loaded to carbon (oz) 41,937 25,796 +63%
Gold sold (oz) 8,695 5,298 +64%
Silver sold (oz) 52,861 9,748 +442%
1 "g/t" is grams per tonne
2 "oz" means troy ounce
Richard Rhoades, Chief Operating Officer of Argonaut Gold said "La Colorada has
seen record production at the mine during the third quarter. The Company awarded
a mining contract for the property and began pre-stripping to prepare for fresh
ore mining to commence in early 2013. The capital expansion program for La
Colorada is now well underway and with significant accomplishments made at the
mine contributing to the growing production profile."
In discussing the Company's third quarter highlights, Mr. Pete Dougherty,
President and CEO said "I am extremely proud of the men and women in our
organization who daily achieve exceptional results, reflected in the Company's
accomplishments. In just two and a half years the El Castillo production rate
has more than tripled. The team at site has delivered upon yearly production
expectations along with timely completion of construction and expansion projects
necessary for future growth. This coupled with a fantastic start-up of the
recently commissioned La Colorada property have now pushed annual production
guidance over the 100,000 ounce mark for the Company."
Record sales for the quarter reflect 8,200 ounces carried over from the Q2 and
should contribute to record earnings which will be released November 14th. With
a fully functioning refining circuit at La Colorada we have now been able to
reduce the time and finished goods build up associated with final gold sales all
of which were reflective in the quarter.
At La Colorada record production has yielded way to the preparation for mining
activities to advance in 2013. The project continues in its development with
construction and expansion programs laying the ground work for production growth
at that property. The Company anticipates that the experiences at El Castillo
will lend themselves well in the growth and development of La Colorada.
Furthermore, we look to the exploration team for additional drilling on the La
Colorada property, with an aim to add further value to the project."
Argonaut Gold Q3 Financial Results Conference Call and Webcast:
The Q3 financial results call is set to take place on November 14, 2012 at 8:30
am ET. Details for the call in participation are included below:
Q3 Conference Call Information:
------------------------------------------
Toll Free (North America): 1-877-440-9795
International: 1-416-340-8527
Webcast: www.argonautgold.com
Q3 Conference Call Replay:
-----------------------------------------------
Toll Free Replay Call (North America): 1-800-408-3053
International Replay Call: 1-905-694-9451
Passcode: 7860049
The conference call replay will be available from 10:30 a.m. ET on November 14,
2012 until November 21, 2012.
Argonaut Gold Confirms Filing of Preliminary Economic Assessment for San Antonio
Argonaut Gold is pleased to confirm the filing today, pursuant to NI 43-101, the
Preliminary Economic Assessment in relation to its San Antonio Property. For
further information on the San Antonio Project please see the technical report
entitled "NI 43-101 Technical Report on Resources San Antonio Project" dated
effective as of September 1, 2012 and available on www.sedar.com and under the
Company's profile as well as the Company's website, www.argonautgold.com.
The preliminary economic assessment is preliminary in nature, includes inferred
mineral resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be categorizes
as mineral reserves, and that there is no certainty that the preliminary
economic assessment will be realized. Mineral resources are not mineral reserves
and do not have demonstrated economic viability. There is no certainty that all
or any part of the mineral resource will be converted into mineral reserves.
