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ARGONAUT GOLD ANNOUNCES NEW CHIEF OPERATING OFFICER
Toronto, Ontario - (December 14, 2011) Argonaut Gold Inc. (TSX: AR) (“Argonaut Gold”,
“Argonaut” or the “Company”) has named Mr. Richard Rhoades as the new Chief Operating
Officer for the Company. This is in conjunction with the retirement of Mr. Edgar Smith, the
current COO. Mr. Rhoades is the former General Manager of the Mission Complex in Sahuarita,
AZ for Asarco LLC. He will take over duties as Argonaut’s COO on January 3, 2012.
Mr. Rhoades has over 35 years’ experience in mine development, operations and corporate
management roles. In addition to diverse operational experience, he has managed
responsibilities in a corporate capacity, serving as the Assistant to the Vice President of Mining
and the Director of Mine Planning for Asarco. Throughout his career, Mr. Rhoades has focused
on productive operations, safety, training, process optimization, efficient capital allocation and
ore reporting. Mr. Rhoades holds a bachelor's degree in mining engineering from the University
of Arizona. He is also a Registered Professional Engineer (mining).
Mr. Peter Dougherty, President & Chief Executive Officer of Argonaut Gold in regards to Edgar
Smith’s retirement stated: “Edgar has been instrumental in the development and growth of the
Company since its inception. On behalf of Senior Management and the Board, I thank Edgar for
his enormous contribution to the formation of Argonaut Gold. Edgar will continue to provide
guidance in an advisory role for Argonaut’s future growth and development”
Mr. Dougherty also noted, in reference to adding Mr. Rhoades to the Argonaut team, "We are
very pleased to have Richard join Argonaut Gold. We welcome his addition to the senior
management team, and appreciate the unique versatile technical expertise his experiences will
contribute to Argonaut.”
ARGONAUT GOLD REPORTS Q3 2011 REVENUE OF $22.7 MILLION Net Income of $6.0 Million; Cash Flow from Operating Activities of $7.7 Million
http://www.argonautgoldinc.com/s/NewsReleases.asp?ReportID=490555&_Type=News-Releases&_Title=ARGONAUT-GOLD-REPORTS-Q3-2011-REVENUE-OF-22.7-MILLION-Net-Income-of-6.0-Mil...
Argonaut Gold Increases Measured and Indicated Resource at La Colorada to 1.1 million Gold Ounces up 76% 14 million Silver Ounces up 173%
http://marketwire.denverpost.com/client/denver_post/release.jsp?actionFor=1518233
Argonaut Gold Announces Q3 Gold Production of 16,884 0unces, East Side Plant has been commissioned for production
http://www.argonautgoldinc.com/s/NewsReleases.asp?ReportID=485504&_Type=News-Releases&_Title=Argonaut-Gold-Announces-Q3-Gold-Production-of-16884-0unces-East-Side-Plant-...
Argonaut Gold Updates Resources for San Antonio
http://www.marketwire.com/press-release/argonaut-gold-updates-resource-for-san-antonio-tsx-ar-1512045.htm
Argonaut Gold Announces Q1 Gold Production of 18,005 0unces
El Castillo Production is on target for 70-75,000 ounces in 2011
TORONTO, ONTARIO--(Marketwire - April 14, 2011) - Argonaut Gold Inc. ("Argonaut" or the "Company") (TSX:AR), announced today that the Company produced 18,005 ounces of gold during the 1st quarter (ending March 31, 2011) at its 100% owned El Castillo Mine ("El Castillo"), located 100 km north of the city of Durango, Mexico. Expansion on the East Side of the property and the current core drilling program continue as expected at the property.
FIRST QUARTER PRODUCTION 2011
The El Castillo mine is targeting 70-75,000 ounces at $575-$600 cash cost in 2011. Currently, production is only coming from the West Side plant. During the first quarter work continued on the East Side expansion projects at El Castillo. Core drilling began at El Castillo, which is planned to provide samples for metallurgical testing of the sulphides at the property.
FIRST QUARTER 2011 HIGHLIGHTS:
Operations
-- Continued greater than 1.5 million total tonnes mined per month in the
1st quarter of 2011
-- Record ore tonnes crushed for the 1st quarter of 729,104 tonnes, 132%
increase over Q1 2010
-- 28,225 ounces loaded on the pad for 1st quarter, 72% increase over Q1
2010
-- Gold Production of 18,005 ounces for the 1st quarter, 76% increase over
Q1 2010
East Side Expansion program
-- Plant wet testing and barren pipe testing have been completed
-- Loading of overliner, which is required before loading ore for leaching,
is underway
-- East Side crushing projects are well underway
2011 Exploration Programs
-- El Castillo - 1,500 meter core drill program initiated to obtain
sulphide samples for metallurgical test work
-- 7 out of an estimated 16 holes of sulphide core drilling complete
-- San Antonio - 10,000 meter program
-- Drilling commenced with a total 1,000 meters completed by quarter
end
-- La Colorado - 19,000 meter RVC program, 6,000 meter core program and
Becker drill program
-- Phase I of the Becker program complete on the ROM pad and stockpiles
confirming mineralization.
-- 5,900 meters of the 19,000 meter RVC program complete
-- 650 meters of the 6,000 meter Core program complete
-- Currently 7 drill rigs drilling across the projects including: 3 RC rigs
and 4 Core rigs
Pete Dougherty, President and CEO of Argonaut Gold noted: "First Quarter gold production continued to be strong as a result of the improvements implemented in 2010. First Quarter production was consistent with production in the fourth quarter of 2010. The production rate of 18,000 ounces of gold in Q1 is on target with our forecasted production of 70-75,000 ounces in 2011". Discussing other developments at El Castillo, Dougherty added: "Construction continued on the East Side crushing circuit, processing plant, pads and ponds. A core drilling program that will enable us to conduct metallurgical testing on the sulphides at El Castillo has begun and we look forward to the metallurgical findings."
Q1 2011 Q1 2010
El Castillo Operating Statistics 3/31/2011 3/31/2010 % Change
------------------------------------
Mining
----------------------------------------
Total Tonnes mined 4,759,458 2,893,334 +65%
Tonnes Ore mined 2,538,264 1,316,547 +93%
Heap Leach Pad
----------------------------------------
ROM Tonnes Ore 1,813,011 999,121 +82%
(direct to leach pad)
Tonnes Crushed 729,104 314,405 +132%
Production
----------------------------------------
Gold Grade (g/t) 0.35 0.39 - 12%
Gold Loaded to Pad (oz) 28,225 16,430 +72%
Gold Produced (oz) 18,005 10,242 +76%
Gold Sold 18,065 8,398 +115%
----------------------------------------------------------------------------
Tonnes
greater
Au than
Cutoff Cutoff Grade greater
Location Class (g/t) (tonnes) than Cutoff Contained Metal
-----------------------------------
Au (g/t)Ag (g/t) Au (ozs) Ag (ozs)
----------------------------------------------------------------------------
El Creston Measured 0.30 1,230,000 0.837 14.82 33,000 590,000
----------------------------------------------------------------------------
La Colorada Measured 0.30 2,340,000 1.160 9.17 87,000 690,000
----------------------------------------------------------------------------
Total Measured 0.30 3,570,000 1.049 11.12 120,000 1,280,000
----------------------------------------------------------------------------
El Creston Indicated 0.30 3,830,000 0.912 13.763 112,000 1,690,000
----------------------------------------------------------------------------
La Colorada Indicated 0.30 11,860,000 0.979 5.682 373,000 2,170,000
----------------------------------------------------------------------------
Total Indicated 0.30 15,690,0000 0.963 7.65 485,000 3,860,000
----------------------------------------------------------------------------
El Creston M&I 0.30 5,060,000 0.894 14.019 145,000 2,280,000
----------------------------------------------------------------------------
La Colorada M&I 0.30 14,190,000 1.008 6.257 460,000 2,850,000
----------------------------------------------------------------------------
Total M&I 0.30 19,250,000 0.978 8.30 605,000 5,130,000
----------------------------------------------------------------------------
El Creston Inferred 0.30 4,070,000 0.981 15.719 128,000 2,060,000
----------------------------------------------------------------------------
La Colorada Inferred 0.30 16,000,000 0.883 8.036 454,000 4,130,000
----------------------------------------------------------------------------
Total Inferred 0.30 20,070,000 0.903 9.59 582,000 6,190,000
----------------------------------------------------------------------------
Argonaut Gold Begins Resource Expansion Drilling at the La Colorada Project, Sonora, Mexico
http://www.stockhouse.com/news/CanadianReleasesDetail.aspx?n=8120991
Argonaut Gold Reports on Resource Expansion Drilling at San Antonio; Intermediate Zone looks to expand resource, reports 34 Meters of 2.51 g/t gold
http://www.argonautgoldinc.com/s/NewsReleases.asp?ReportID=448360&_Type=News-Releases&_Title=Argonaut-Gold-Reports-on-Resource-Expansion-Drilling-at-San-Antonio-Interme...
Argonaut Gold to begin trading on the S&P Canadian Index Operations
Toronto, Ontario - (March 16, 2011) Argonaut Gold Inc. (TSX: AR) (“Argonaut” or the “Company”) is pleased to announce that Standard & Poor's Index Operations will be adding Argonaut Gold to the S&P/TSX Global Gold Index and the Global Mining Index, effective as at the open on Monday, March, 21, 2011. The S&P/TSX Global Gold Index and Global Mining Index are leading benchmarks of the global gold and mining industry sectors.
At the end of 2010, Argonaut Gold had a fully diluted market cap of $383 million and an average trading volume of 150,000 shares a day. Since closing the Pediment Gold transaction on February 1, the fully diluted market capitalization is approximately $536 million with average trading volume of over 400,000 shares. The Pediment Gold transaction added approximately 30 million shares.
Mr. Peter Dougherty, President and CEO for Argonaut Gold, stated “Argonaut is proud to join the S&P/TSX indices for both Global Gold and Global Mining. This is a significant milestone for the company. In addition, we’ve seen a tremendous increase in both our market cap and share liquidity since completing the transaction. The acquisition of Pediment Gold provides an important building block in the development of our company and our commitment to Creating the Next Quality Mid-Tier Gold Producer in the Americas.”
Argonaut Exploration plans Gold Mine Work Permit
Calgary, Alberta, Mar. 4, 2011, Argonaut Exploration Inc. TSX-V; AGA (“Argonaut or the Company”) is pleased to announce that a four year exploration work permit has been submitted to the British Columbia Government to explore the Columario Gold Mine Project near Terrace, British Columbia.
The work permit is the next step in exploring and diamond drilling historic gold targets located underground and at surface on the Columario Gold Property. The 2011 activity will include; mine road rehabilitation, surface drilling from several locations testing the mine and regional vein system, securing safe underground access and underground drilling. The property and mine workings have never been drilled.
The Company has retained Mr. Ken MacDonald, P.Geol of Ridgeview Resources Ltd. to assist with permitting and planning for underground drill exploration at the Columario Gold Mine Project (“the Property”). Mr. MacDonald is an independent geology consultant with extensive permitting experience in British Columbia and a former Inspector of Mines with the British Columbia Ministry of Energy, Mines and Petroleum Resources. He has also worked at several underground gold mines.
Argonaut acquired a 100% interest in 31 mineral claims totalling 2,230 hectares on September 27th, 2010 that included the historic Columario Gold Mine and associated mineralized vein systems (see Argonaut PR dated Sept. 30, 2010). In evaluating the potential of the Columario property and the Columario Gold Mine the Company has acquired a variety of reports, maps, mine blueprints and underground photographs some of which are historic in nature and no longer available to the public record. These documents, when obtained, will be posted to the Company’s website at www.argonautexploration.com to aid in illustrating the property potential.
The Columario Property is located 11 km north of the city of Terrace British Columbia and bordered to the west by Highway 16 (Yellowhead HWY) with associated electric power and nearby railway access. Deepwater seaports are available 70 km and 190 km distant at Kitimat and Prince Rupert respectively. The property is located on the traditional lands of the Kitselas First Nations Band.
The Columario Property was actively explored and developed from 1921 to 1935 during the Great Depression of the late 1920’s and 1930’s. Historic reports between1921 to 1935 describe the surface location of 14 to 27 distinct sub-parallel veins on the property. Individual veins containing gold, silver and sulphide values were traced over distances of 858 metres and elevations ranging between 457 to 915 metres (m). The system of veins was summarized in 1931 as extending 3.6 kilometres (km) in length, 600 m in width and 1.37 km in elevation (W.G. Norrie, 1931; H.L. Batten, 1931; Report on the Property of Columario Gold Mines, Limited).
The public company Columario Gold Mines Limited underwent consolidation in 1933 to become Columario Consolidated Gold Mines Limited and through debt and equity financing, raised sufficient funds to build the Columario Mine, 100 ton per day Mill and aerial Tramway which were completed in 1934. The mine workings in 1935 included 11 adits and 2,400 metres of underground development based on a start-up ore resource (non 43-101 compliant) of 68,182 tonnes grading 18 grams per tonne (g/t) (0.58 oz/ton) indicating 1,227.2 kilograms (43,500 oz) of gold (W.G. Norrie, 1931; H.L. Batten, 1931; Report on the Property of the Columario Gold Mines Ltd). The ore resource was based on the ore shoots discovered by developing seven sub-parallel mineralized quartz veins. In 1934, a single assay was reported from underground vein development to grade as high as 754 g/t (24.3 oz/ton) gold and 1,742 g/t (56 oz/ton) silver across a 1.45 metre vein width (The Omineca Herald, 1934, June 13, No. 49). New reserves were planned to be sourced from additional property veins.
In 1935 and 1936, mounting debt, unplanned development costs, delayed production and the destruction of the mine ore transport route by flooding, bankrupted the company and terminated mining at the Columario Gold Mine. The total documented tonnage mined was 2,090 tonnes with a resultant 19.34 kg (622 oz) of gold produced (B.C. Minfile No. 103I, 077). The Company receivers subsequently decommissioned the Mine and removed the Mill and aerial Tramway by 1939. The property has never been drill tested.
Argonaut is currently raising a non-brokered private placement of up to 4,800,000 units ("Units") at a price of $0.125 per Unit for gross proceeds of up to $600,000. Each Unit will consist of one common share of the Corporation and one common share purchase warrant. Each whole Warrant issued pursuant to this private placement is exercisable into one Common Share for a period of 12 months at an exercise price of $0.175 per Common Share (see Argonaut PR dated Feb. 24, 2011).
About Argonaut Exploration Inc.
Argonaut is a junior mineral exploration company focused on the acquisition, exploration and development of mineral properties. For more information on the Corporation visit its website at www.argonautexploration.com.
For more information contact:
Dale Hansen or CFO, Director Argonaut Exploration Inc. Tel: (403) 455-5641
Email: hansendj@shaw.ca
Argonaut provides 2011 guidance on El Castillo production of 70-75,000 ounces and outlines substantive exploration and capital expansion programs
Toronto, Ontario (February 14, 2011) Argonaut Gold Inc. (TSX: AR) ("Argonaut" or the "Company") is pleased to provide guidance on estimated production and anticipated operating costs for El Castillo in 2011. Argonaut will also begin an aggressive exploration program to further define and understand the potential at its major gold projects.
2011 Highlights
El Castillo Production and Cash Cost Forecast
o 70-75,000 ounces of gold at cash costs ranging between $575 -$600 per ounce. (51,323 ounces were produced in 2010)
o Increase in production from 2010 guidance of 60-65,000 ounces.
$17 million Capital Expenditure Investments
o El Castillo – Capital expenditures are estimated at $8 million, going towards expanding the east side processing facilities.
o San Antonio - Capital expenditures are estimated at $9 million, funds have been allocated for engineering and environmental studies as well as permitting for the project; a new 43-101 report is expected by the end of the second quarter.
$6 million Exploration program
o El Castillo – 1,000 meter drill program to test sulphides with accompanying metallurgical test work.
o San Antonio – 10,000 meter drill program to further define the intermediate zone
o La Colorada – 19,000 meter drill program aimed at converting inferred resource
o La Fortuna – 1,000 meter program to follow up on earlier identified targets
Peter Dougherty, President and CEO of Argonaut Gold said “2010 was a banner year at the El Castillo gold mine; with extensive expansion and drilling programs that dramatically changed El Castillo’s production profile. 2011 looks to be another year of significant growth starting with the recently completed Pediment merger. The acquisition of the development stage property San Antonio, as well as the historical producer La Colorada, offers potential to further add to Argonaut’s future production outlook. During 2011, we will carry out an aggressive exploration program on our portfolio of quality properties. In addition, we look forward to further unlocking additional value at El Castillo, utilizing internal cash flow in order to establish additional gold ounces across all of our properties, as well as fund further development of our projects.”
About Argonaut
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the development stage San Antonio project and the past producing La Colorada project, both located in Mexico. Argonaut is a producing gold company created by former executive management team members of Meridian Gold Inc.
Creating the Next Quality Mid-Tier Gold Producer in the Americas.
Cautionary Note Regarding Forward-looking Statements
This news release contains forward-looking statements that involve risks and uncertainties that could cause results to differ materially from management’s current expectations. Actual results may differ materially due to a number of factors. Except as required by law, Argonaut Gold Inc. assumes no obligation to update the forward-looking information contained in this news release.
For more information, contact: Argonaut Gold Inc. Nichole Cowles Investor Relations Manager Tel: (775) 284-4422 x 101 Email: nichole.cowles@argonautgoldinc.com www.argonautgoldinc.com
Argonaut Gold Inc. Shareholders and Pediment Gold Corp Shareholders Approve Business Combination
Toronto, Ontario - (January 24, 2011) Argonaut Gold Inc. (TSX: AR) (“Argonaut” or the “Company”) and Pediment Gold Corp. (TSX:PEZ and OTCBB:PEZGF; “Pediment”) are pleased to announce that the shareholders of Pediment (the “Pediment Shareholders”) have overwhelmingly approved a special resolution (the “Arrangement Resolution”) authorizing the previously announced business combination (the “Business Combination”) involving Argonaut and Pediment to be completed by way of statutory plan of arrangement (the “Arrangement”) under the British Columbia Business Corporations Act and the shareholders of Argonaut (the “Argonaut Shareholders”) have overwhelmingly approved an ordinary resolution (the “Share Issuance Resolution”) authorizing the issuance of the common shares (“Argonaut Common Shares”) of Argonaut in connection with Business Combination at the special meetings of the Pediment Shareholders (the “Pediment Meeting”) and Argonaut Shareholders (the “Argonaut Meeting”), respectively, held earlier today.
The Arrangement Resolution was approved by 99.95% of the votes cast by Pediment Shareholders present in person or represented by proxy at the Pediment Meeting. In addition, as required by Multilateral Instrument 61-101 of the Canadian Securities Administrators, the Arrangement Resolution was approved by 99.94% of the votes cast by Pediment Shareholders excluding votes cast by interested parties. The total votes cast for the Arrangement Resolution represented approximately 47% of Pediment’s total issued and outstanding common shares (“Pediment Common Shares”). The Share Issuance Resolution was approved by approximately 95% of votes cast by the Argonaut Shareholders present in person or represented by proxy at the Argonaut Meeting, representing approximately 80% of the total issued and outstanding Argonaut Common Shares.
“We are pleased with this strong vote of confidence from the shareholders on the business combination with Pediment. The merger with Pediment provides Argonaut with an early stage development project and an advance stage exploration project as well as several exploration holdings in the prolific Sonora Mojave megashear We will continue our commitment to value creation by focusing on the development of projects we now hold in our portfolio and seeking meaningful acquisitions within the Americas." said President and Chief Executive Officer of Argonaut Pete Dougherty.
Gary Freeman, President and Chief Executive Officer of Pediment, said “We could not be more pleased with the voting results received from the shareholders of Pediment and Argonaut. I would like to take this opportunity to thank the shareholders of Pediment for their support over the past six years. It is my belief that the Business Combination will provide significant value to the shareholders going forward. Argonaut has a very experienced and competent team along with a strong track record needed take the combined company to the next level.”
Pursuant to the Business Combination, Argonaut will acquire all of the issued and outstanding Pediment Common Shares. Each Pediment Common Share will be acquired in exchange for 0.625 of an Argonaut Common Share. The Argonaut Common Shares issued in connection with the Business Combination are expected to be listed on the Toronto Stock Exchange after closing.
Completion of the Business Combination remains subject to, among other things, the final approval of the Supreme Court of British Columbia (the “Court”). Pediment expects to make the application to the Court for final approval of the Arrangement on January 25, 2011. The closing date of the Business Combination is expected to occur on or about January 27, 2011, provided that all of the conditions of the Business Combination are satisfied or waived.
About Argonaut Gold Inc.
9377302_1
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine and the exploration-stage La Fortuna Project, both located in the State of Durango, Mexico. For further information about Argonaut, including summary technical information, please see the Annual Information Form of Argonaut dated March 31, 2010 in relation to the year ended December 31, 2009.
Cautionary Note Regarding Forward-looking Statements
This news release contains forward looking statements of Argonaut and Pediment, within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of applicable Canadian provincial securities legislation. Forward- looking statements are statements which are not historical facts, including, without limitation, statements regarding the proposed acquisition of Pediment by Argonaut and the expected timing of the application to the Court and completion date of the Arrangement. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Argonaut's or Pediment's expectation are in the documents filed by Argonaut and Pediment, respectively, from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com. Other than as required by applicable securities legislation, Argonaut and Pediment disclaim any intention and assumes no obligation to revise or update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
For more information, contact: Argonaut Gold Inc. Nichole Cowles Investor Relations Manager www.argonautgoldinc.com
Argonaut Exploration releases final 2010 drill results from the High Gold property, B.C.
Read more: http://www.benzinga.com/press-releases/11/01/c790123/argonaut-exploration-releases-final-2010-drill-results-from-the-high-go#ixzz1BaMOt2ZD
Argonaut Gold Produces 51,324 oz gold in 2010; 18,292 oz in Q4
TORONTO, ONTARIO--(Marketwire - Jan. 10, 2011) - Argonaut Gold Inc. (TSX:AR) ("Argonaut" or the "Company") is pleased to announce fourth quarter gold production at its wholly owned El Castillo open pit gold mine located in Durango, Mexico ("El Castillo") totaling 18,292 ounces. The 2010 total gold production of 51,324 ounces exceeded the Company's projection of 47,000 gold ounces by 9%. Quarterly highlights include a 110% increase in the mineral reserve estimate at El Castillo.
Fourth Quarter Highlights
-- 2010 Q4 compared to 2009 Q4
-- Total Tonnes mined increased +75%
-- Ore Tonnes processed increased +102%
-- Gold Production increased +110%
-- Record ounces loaded on the pad (31,000 ounces)
-- Solution flow increase to pads at the west side to 800 m3/hr
-- Increase in NI 43-101 compliant mineral reserves and mineral resources
-- Increase in mineral reserves to 1,231,000 gold ounces
-- Increase in total measured and indicated mineral resources to
1,730,000 gold ounces
Pediment Merger Updates
-- Institutional Shareholder Services has recommended in favor of the
resolution for both sets of shareholders
-- Shareholder materials were sent to Pediment shareholders on December 23;
materials were sent to Argonaut shareholders on December 24, 2010.
-- 17% Lock-up commitments as of January 7, 2011
-- 9% Pediment shareholder voting as of January 7, 2011; estimated 100%
support
-- Shareholder meeting on January 24, 2011
Fourth Quarter Production 2010
The Company produced over 18,000 ounces of gold in the fourth quarter 2010. This represents the highest quarterly production to date at El Castillo. The Company continued at an average mining rate of over 1.5 million total tonnes per month during the fourth quarter. Year-to-date production of more than 51,000 ounces of gold is a 77% increase year over year.
El Castillo Q4 2010(1) Q4 2009(2) % Change
Operating Statistics 12/31/2010 12/31/2009 Year Over Year
--------------- ---------- --------------
Total Tonnes mined 4,897,000 2,799,302 +75%
Tonnes Ore 2,558,000 1,266,400 +102%
ROM Tonnes Ore 2,053,000 932,798 +120%
(direct to leach pad)
Tonnes Crushed 511,000 293,602 +74%
Gold Grade (g/t) 0.38 0.38 0%
Gold Loaded to Pad (oz) 31,000 15,128 +105%
Gold Produced (oz) 18,292 8,724 +110%
Year Ended Year Ended % Change
Operating Statistics 12/31/2010 12/31/2009(i) Year Over Year
--------------- ------------- --------------
Total Tonnes mined 15,989,000 8,766,215 +82%
Tonnes Ore 7,755,000 3,704,226 +109%
ROM Tonnes Ore 6,290,000 2,741,829 +129%
(direct to leach pad)
Tonnes Crushed 1,465,000 962,397 +52%
Gold Grade (g/t) 0.37 0.45 -18%
Gold Loaded to Pad (oz) 92,000 52,940 +73%
Gold Produced (oz) 51,324 28,768 +78%
(1)Fourth Quarter mine production is based upon truck count and is subject
to revision after survey.
(2)Information obtained from Castle Gold Corporation press release dated
April 16, 2010.
Peter Dougherty, President and CEO for Argonaut noted "We are pleased that we exceeded our production goal in 2010. Fourth quarter production gives us the confidence that we will be able to achieve 70,000 - 75,000 ounces of gold production in 2011. Expansion initiatives along with targeted improvements in operating efficiencies will continue in 2011."
Mr. Dougherty added "The recently completed NI 43-101 has significantly increased our reserves at El Castillo. The expansion changes made in 2010, in addition to the reserve estimation, should enable Argonaut to plan for even higher production in 2012."
New National Instrument 43-101 ("NI 43-101") Reserve and Resource Estimation
The mineral reserve was completed by SRK Consulting ("SRK") in Lakewood, CO. Due to material changes in reserve and resource estimates over the previously released 43-101 on the El Castillo property (posted on Sedar under ACA Howe, July 31, 2008), an updated technical report will be filed on SEDAR within 45 days of the date hereof.
The stated Proven and Probable mineral reserves have been prepared in accordance with Canada's National Instrument 43-101 Standards of Disclosure for Mineral Projects. The Qualified Person, as defined by National Instrument 43-101, for the mineral reserve update, is Principle Mining Engineer, Bret C. Swanson BE (Mining), MAusIMM of SRK.
The Mineral Reserve for the El Castillo property is detailed in Table 1.
Table 1- Mineral Reserve of the El Castillo Pit as of November 8th, 2010.
---------------------------------------------------------------------------
Metric Tonnes Gold Ounces
Classification (000's) Gold g/t (000's)
---------------------------------------------------------------------------
Proven
---------------------------------------------------------------------------
Oxidized 85,470 0.36 994
---------------------------------------------------------------------------
Transition 19,180 0.37 228
---------------------------------------------------------------------------
Sub Total 104,650 0.36 1,222
---------------------------------------------------------------------------
Probable
---------------------------------------------------------------------------
Oxidized 772 0.33 8
---------------------------------------------------------------------------
Transition 73 0.35 1
---------------------------------------------------------------------------
Sub Total 844 0.33 9
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Proven and Probable 105,494 0.36 1,231
---------------------------------------------------------------------------
Footnotes:
Reserves are based on a gold price of US$1000/Oz Au; Full mining recovery is assumed; Mine reserves are not diluted; An internal CoG of 0.15 g/t Au was used on Oxide rock within the pit design; An internal CoG of 0.175 g/t Au was used on Transition rock within the pit design; In-situ Au ounces do not include metallurgical recovery losses; Internal CoG determination includes metallurgical gold recoveries of 70% for oxide if ore is crushed, 50% if not; Internal CoG determination includes metallurgical gold recoveries of 60% for Transition if ore is crushed, 0% if not; Oxide and Transition rock types are interpreted from drill logs to estimate changes in weathering profile of the orebody; and In Situ reserves based on end of month survey dated November 8th, 2010.
When comparing to the prior ACA Howe reserves of 752,000 ounces less mining to date of 165,500 ounces yields 586,000 remaining gold ounces as of Nov. 8, 2010. This is compared to the SRK estimated reserves of 1,231,000 contained gold ounces yields a 110% increase.
"The increase in reserves at El Castillo has added significant gold ounces and has the potential to expand the mine life and production profile at El Castillo." noted Tom Burkhart, Vice President of Exploration for Argonaut. Mr. Burkhart added "We are planning further exploration at El Castillo and look to forward continuing our drilling program in 2011."
Measured and indicated resources at El Castillo now stand at 1,730,000 ounces of gold. When comparing to the prior ACA Howe resource of 1,180,000 ounces less mining to date of 165,500 ounces yields 1,014,500 remaining gold ounces as of Nov. 8, 2010. This is compared to the SRK estimated reserves of 1,740,000 contained gold ounces yields a 70% increase. The updated resource estimate is found in table 2 below:
Table 2 - Mineral Resource Estimate with Drill Data as of November 8, 2010
(Includes Mineral Reserves).
---------------------------------------------------------------------------
Metric Tonnes
Resource Category (000's) Gold g/t Gold Ounces(000's)
---------------------------------------------------------------------------
Measured 160,704 0.322 1,661
---------------------------------------------------------------------------
Indicated 7,438 0.290 69
---------------------------------------------------------------------------
Total Measured and Indicated 168,142 O.320 1,730
---------------------------------------------------------------------------
Inferred Sulphides 43,071 0.423 586
---------------------------------------------------------------------------
Mineral resources that are not mineral reserves do not demonstrate economic viability. The mineral resource estimate was also completed by SRK and is based on a gold price of US$1,300 per ounce and a 0.15 g/t gold cutoff grade. SRK's estimated Mineral Resources are hosted within a Whittle Pit design demonstrating reasonable chances for economic extraction; whereas previous NI 43-101 resource estimations were report as global resources.
The increased resource results from the 2010 drill program which included 308 drill holes, spanning more than 35,400 meters of reverse circulation drilling, completed between December 2009 and November 2010. The 2010 drill program expanded the extent of known mineralization approximately 500 meters to the south and 400 meters to the east. Drilling is still open in some areas to the south and east of the current El Castillo open pit, providing future upside potential. We anticipate filing the revised 43-101 in compliance with the statutory requirements as outlined under 43-101 rules.
Qualified Persons
Preparation of this press release was supervised by Mr. Thomas Burkhart, Argonaut's Vice President of Exploration and a 'Qualified Person' as defined by NI 43-101. Mr. Burkhart also supervised the reverse circulation drill program and on-site sample preparation procedures at El Castillo. The release was also reviewed by Mr. Bart Stryhas and Mr. Bret Swanson of SRK, each of them being a 'Qualified Person' as defined by NI 43-101.
The SRK resource estimation is based on information from 512 holes totaling of 83,817m. The average drillhole spacing is approximately 50m. The geologic model consists of six rock types, four of which are mineralized and two that are post mineralization. The primary host rocks consist of granodiorite and meta-sediments including meta-argilite, hornfels and limestone-marbles. The model blocks are 10m x 10m x 6m in the x, y, z directions, respectively. All block grade estimates were made using 6m bench composites. An Ordinary Kriging algorithm was employed to generate a categorical indicator grade shell based on a 0.125ppm Au threshold. Ordinary Kriging was also used for the gold grade estimation. The results of the resource estimation provided a CIM classified Measured, Indicated and Inferred Mineral Resource. The quality of the drilling and data is very good and the Mineral Resource was classified mainly according to the general drillhole spacing.
About Argonaut
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets being the production-stage El Castillo Mine and the exploration-stage La Fortuna Project, both located in the State of Durango, Mexico. Argonaut is a new venture created by former executive management team members of Meridian Gold Inc.
Creating the Next Quality Mid-Tier Gold Producer in the Americas.
Cautionary Note Regarding Forward-looking Statements
This news release contains forward-looking statements that involve risks and uncertainties that could cause results to differ materially from management's current expectations. Actual results may differ materially due to a number of factors. Except as required by law, Argonaut Gold Inc. assumes no obligation to update the forward-looking information contained in this news release.
Read more: http://www.benzinga.com/pressreleases/11/01/m765232/argonaut-gold-produces-51-324-oz-gold-in-2010-18-292-oz-in-q4#ixzz1AjtRkFwp
Argonaut Gold Inc. Announces Mailing of Circular; Seeks Shareholder Support for Business Combination with Pediment Gold
Shareholder meeting scheduled for January 24th
Toronto, Ontario - (December 23, 2010) Pursuant to its previously announced business combination with Pediment Gold Corp (TSX:PEZ and OTCBB;PEZGF, "Pediment"), Argonaut Gold Inc. (TSX: AR) has begun mailing the meeting materials to Argonaut shareholders seeking support for the issuance of shares of Argonaut necessary to complete its business combination with Pediment.
Pediment has also began mailing materials to its shareholders.
On October 18, 2010, Argonaut entered into a binding agreement to complete a business combination (the “Transaction”) with Pediment. The combined entity will focus on generating value for its shareholders by increasing production, bringing new and existing projects into production, expanding the resource base, and growing cash flow.
Pursuant to the terms of the Agreement, all of the Pediment common shares (the "Pediment Common Shares") issued and outstanding immediately prior to consummation of the business combination shall become exchangeable into the common stock of Argonaut on the basis of 0.625 of a common share of Argonaut for each one (1) Pediment Common Share. Based on the closing price of Argonaut on the Toronto Stock Exchange ("TSX") on October 18, 2010, the exchange ratio implies an offer price of C$2.56 per Pediment common share and values Pediment's equity at approximately C$137.1 million on a fully diluted in-the-money basis.
Rescheduled Mailing
Pediment and Argonaut delayed the planned mailing to investigate the proposed amendments to the local environmental laws in the State of Baja California Sur, Mexico the ("BCS") which, if implemented, could adversely affect the ability to secure a building licence for the development of its San Antonio Project as currently envisioned.
Based on the information received to date, the parties understand that the legislation, as originally proposed, has not been approved by the Governor and the Governor has stated publicly that it will not be approved in its current form. The current sitting of the BCS legislature has now ended. The legislature is not expected to resume sitting until March 2011, at which time new members and, shortly thereafter, a new Governor will be sworn in, following elections. There can be no certainty with respect to future legislative action, however, Pediment and Argonaut have held
(“Argonaut” or the “Company”)
meetings with a variety of local stakeholders and legislators and believe there is broad opposition to the proposed legislation and support for the San Antonio Project.
Pediment and Argonaut have, given the results of these investigations to date, determined to proceed with their proposed business combination.
Directors’ recommendation
Directors of both companies have carefully considered the proposed business combination and unanimously recommend that their respective shareholders vote in favour of the business combination. Each Director of the Argonaut Gold Board and Pediment Board intend to vote all their respective shares in favour of the business combination.
Argonaut – Pediment Circular Mailing
The Pediment Circular will be mailed to Pediment shareholders on December 23, 2010 and subsequently be posted on SEDAR.
The Argonaut Circular will be mailed to Argonaut shareholders on December 24, 2010 and subsequently be posted on SEDAR.
Shareholders will receive the meeting documents through the mail and should expect to receive the documents in late December or early January.
Pediment Shareholder Information Line
If Pediment shareholders have questions about the business combination, they should contact Kingsdale at 1-866-581-1479 or via email at contactus@kingsdaleshareholder.com.
Argonaut Shareholder
If Argonaut shareholders have questions about the business combination, they should contact Nichole Cowles, Investor Relations Manager at 1-775-240-4172 or via email at nichole.cowles@argonautgoldinc.com
About Argonaut
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets being the production-stage El Castillo Project and the exploration-stage La Fortuna Project, both located in the State of Durango, Mexico. Argonaut is a new venture created by former executive management team members of Meridian Gold Inc. Creating the Next Quality Mid-Tier Gold Producer in the Americas.
About Pediment Gold Corp.
Pediment Gold Corp. is a junior mining company with a focus on the exploration and development of low-cost gold assets in Mexico. With an experienced team of geologists, financiers and miners, in management and on the board, the company is dedicated to
advancing its projects. To date, the company established a Measured and Indicated Resource of 1.22 million oz gold and an Inferred Resource of 28,449 oz of gold at San Antonio in Baja Sur (NI 43-101 compliant, AMEC, Edward Orbock III, June 2010). Pediment also outlined its initial gold resource at the past producing La Colorada gold mine in Sonora with 605,000 oz of gold in the Measured and Indicated category and 582,000 oz of gold in the Inferred category (NI 43-101 compliant, Giroux 2009). For further information about Pediment please see the Annual Report of Pediment on Form 20-F dated December 21, 2009 in relation to the year ended September 30, 2009."
Cautionary Note Regarding Forward-looking Statements
This news release contains forward-looking statements that involve risks and uncertainties that could cause results to differ materially from management’s current expectations. Actual results may differ materially due to a number of factors. Except as required by law, Argonaut Gold Inc. assumes no obligation to update the forward-looking information contained in this news release.
For more information, contact: Argonaut Gold Inc. Nichole Cowles Investor Relations Manager Tel: (775) 284-4422 x 101 Email: nichole.cowles@argonautgoldinc.com www.argonautgoldinc.com
Argonaut Exploration confirms significant surface gold and drills additional molybdenum and copper at the High Gold property.
Argonaut Exploration Inc AGA
12/22/2010 9:30:06 AM
Dec 22, 2010 (TheNewswire.ca via COMTEX News Network) --
(via Thenewswire.ca)
Argonaut Exploration confirms significant surface gold and drills additional molybdenum and copper at the High Gold property.
Calgary, Alberta, Dec. 22, 2010, Argonaut Exploration Inc. ("Argonaut or the Company") (TSX-V: AGA) is pleased to release the results from the Gold Zone surface sampling program and the third set of drill results from the 100% owned High Gold porphyry system 60 kilometres northeast of Terrace, British Columbia.
Significant gold values were discovered from the Company's 2010 field program with select vein chip assays to 6.61 grams/tonne (g/t) gold (Au), channel samples across 3 metres (m) to 0.91 g/t Au and float samples to 27.96 g/t Au. The Gold Zone was discovered by Teck Exploration Ltd. ("Teck") in 1998. Teck collected twenty-three rock chip and float grab samples from the Gold Zone area which is approximately 800 metres east-west by 250 metres north-south. Historic assays returned results ranging from 1.2 g/t to 29.7 g/t Au. Argonaut systematically explored the Gold Zone in 2010 with geologic mapping, detailed vein/shear sampling plus sampling for bulk tonnage potential in the adjacent host rocks. The table below highlights some of the more significant Argonaut results.
GOLD ZONE HIGHLIGHTS
-----------------------------------------
|Sample #|Width (m) |Au (g/t)|Ag (g/t)|
|---------------------------------------|
|A092009 |3.0 |0.912 |3.7 |
|---------------------------------------|
|A092010 |grab |27.960 |19.3 |
|---------------------------------------|
|A092208 |outcrop grab|1.636 |1.6 |
|---------------------------------------|
|A092209 |outcrop grab|6.613 |4.1 |
|---------------------------------------|
|A092217 |1.0 |1.077 |1.4 |
|---------------------------------------|
|A092231 |1.4 |1.036 |1.8 |
|---------------------------------------|
|A092234 |0.5 |0.275 |0.9 |
-----------------------------------------
The Gold Zone is located 500 m north of the High Gold molybdenum-copper porphyry system and consists of a series of precious metal mineralized quartz - carbonate veins controlled by steeply dipping north - south faults and shear zones. A minimum of 11 separate vein systems were identified by Argonaut across a distance of 600 m east - west in andesitic volcanics. The shear zones can range up to several metres in width, but the central vein, where present, is usually 2 m or less in width. Gold values ranged from trace amounts in the wall rock up to significant grams/tonne within the vein. The mineralized veins commonly contain pyrite, chalcopyrite and barite.
Ray Cook, President and C.E.O. of Argonaut states: "The gold discovered in the High Gold Zone increases the value of the High Gold property. The High Gold molybdenum - copper porphyry system and the gold bearing vein systems in the Gold Zone continue to indicate an important emerging asset for the Company and our shareholders."
Third Set Of Drill Results From The High Gold Porphyry
The third set of drill results from the 100% owned High Gold porphyry property continue to yield significant molybdenum and copper mineralization.
DRILL RESULTS
---------------------------------------------------------------------
|Drill hole|Interval (m) |Width (m)|Mo (%)|Cu (%)|Au (g/t)|Cu Eq (%)|
|-------------------------------------------------------------------|
|HG10-06 |33.5 - 318.5 |285 |0.019 |0.07 |0.016 |0.20 |
| |EOH | | | | | |
|-------------------------------------------------------------------|
|Including |33.5 - 165.0|131.5 |0.021 |0.09 |0.019 |0.24 |
|-------------------------------------------------------------------|
|Including |57.0 - 121.0 |64 |0.031 |0.08 |0.016 |0.31 |
|-------------------------------------------------------------------|
|HG10-07 |18.9 - 218.2 |199.3 |0.007 |0.07 |0.017 |0.13 |
| |EOH | | | | | |
|-------------------------------------------------------------------|
|Including |47.0 - 99.0 |52 |0.011 |0.09 |0.027 |0.18 |
|-------------------------------------------------------------------|
|70-5 |14.9 - 107.0|92.1 |0.014 |0.07 |0.027 |0.18 |
| |EOH | | | | | |
|-------------------------------------------------------------------|
|71-8 |16.8 - 304.2 |287.4 |0.015 |0.04 |0.019 |0.16 |
|-------------------------------------------------------------------|
|Including |48.2 - 78.6 |30.4 |0.018 |0.08 |0.041 |0.22 |
---------------------------------------------------------------------
* based on $3.60/lb Cu, $16.00/lb MoO3 and $1300/oz Au
This third set of drill results completes the southern part of a north-south fence of drill holes that cross-section the 900 m width of the 2,500 m long porphyry system. The holes are located near the headwaters of the central creek valley and include HG-10-06 and HG-10-07, drilled by Argonaut, plus old holes 70-5 and 71-8 that were stored on the property.
Plagioclase porphyry, hornblende plagioclase porphyry, hornfels and volcaniclastics were the dominant lithologies logged in the core. The anomalous metals continue to include molybdenum (Mo), copper (Cu), gold (Au) and rhenium (Re). These metals and their importance have been described in prior news releases (Argonaut PR dated Oct. 20th 2010 and Nov. 9th, 2010).
The drill results continue to reveal two separate mineralization patterns. The patterns include a copper-gold enriched zone that caps a much larger molybdenum-rhenium mineralized porphyry system. Further concentration of the metals are located in a centralized stockwork zone that continues to grow in apparent volume.
John Nebocat P. Eng., PGS Pacific Geological Services, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information in the News Release. Analytical results are provided by Assayers Canada (recently acquired by SGS Laboratories) of Vancouver, British Columbia. All core and rock samples were digested by a four acid leach followed by a 47 element ICP analysis. Gold was determined separately using a 30 gram sample split treated by fire assay with an AA/ICP finish.
Argonaut Exploration Inc. has 26,658,139 shares issued and outstanding and trades on the TSX Venture Exchange with the trading symbol AGA.
President and CEO
Ray Cook, B.Sc., M.Sc., Geology
Tel: 403-969-7903; email: ray@argoexp.com; website: www.argonautexploration.com or contact:
Argonaut Announces Closing of Private Placement with the MineralFields Group
Calgary, Alberta December 14, 2010
Argonaut Exploration Inc. (the "Corporation" or "Argonaut") (trading symbol "AGA" TSXV) is pleased to announce that it has completed the 1st tranche of its previously announced non-brokered private placement of flow-through units (each a "Flow-Through Unit"). The Corporation issued 1,200,000 Flow-Through Units at a price of $0.20 per Flow-Through Unit for gross proceeds of $240,000 each to the MineralFields Group in this 1st tranche of the private placement. Each Flow-Through Unit issued pursuant to the private placement consisted of one common share of the Corporation issued on a tax "flow-through" basis (each a "Flow-Through Share") and one common share purchase warrant (each a "Warrant"). Each Warrant is exercisable into one non "flow-through" common share of the Corporation ("Common Share") at an exercise price of $0.30 per Common Share for a period of 12 months from the date of issuance of the Warrant, and thereafter at an exercise price of $0.35 per Common Share for a period of 24 months from the date of issuance of the Warrant. In the event that the Common Shares trade at a closing price on the TSX Venture Exchange of $0.40 or higher during the first 12 months of the exercise period or at a price of $0.45 or higher during the second 12 months of the exercise period for a period of 10 consecutive trading days at any time after four months and one day after the closing of the private placement, the Corporation may accelerate the expiry date of the Warrants by giving notice to holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Corporation. The securities issued pursuant to the 1st tranche of the private placement are subject to a four-month hold period which expires on April 15, 2011.
"We are very pleased to be entering into this relationship with MineralFields Group", said Charles Chebry, a director of the Corporation. "This is an important milestone in the growth of Argonaut and we look forward to working with MineralFields Group as we develop our holdings in the Terrace and Smithers areas of west-central British Columbia."
Finders acting in connection with the 1st tranche of this private placement received a finder’s fee in the total amount of $12,000 and 60,000 finder’s options with each option entitling the holder thereof to purchase one unit of the Corporation at price of $0.20 per unit, each unit being comprised of one Common Share and one Warrant.
Proceeds of the private placement will be used for 2011 exploration activity. Following the completion of the 1st tranche of the private placement, the Corporation has 26,658,139 Common Shares issued and outstanding. The completion of the private placement is subject to TSX Venture Exchange acceptance and other regulatory approval.
About MineralFields, Pathway and First Canadian Securities®
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow- through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.
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About Argonaut Exploration Inc.
Argonaut is a junior mineral exploration company focused on the acquisition, exploration and development of mineral properties. For more information on the Corporation visit its website at www.argonautexploration.com.
For more information contact:
Charles Chebry Director Argonaut Exploration Inc. Tel: (403) 283-0001 Email: charles@argoexp.com
Argonaut Announces Private Placement and Appointment of New Chief Financial Officer and Director
Calgary, Alberta December 9, 2010
Argonaut Exploration Inc. (the "Corporation" or "Argonaut") (trading symbol "AGA" TSXV) is pleased to announce that it intends to complete a non-brokered private placement of up to 5,000,000 flow-through units (each a "Flow- Through Unit") at a price of $0.20 per Flow-Through Unit for gross proceeds of up to $1,000,000. The MineralFields Group intends to subscribe for up to 2,000,000 Flow-Through Units for gross proceeds of up to $400,000 pursuant to the private placement. Each Flow-Through Unit will consist of one common share of the Corporation issued on a tax "flow-through" basis (each a "Flow-Through Share") and one non "flow-through" common share purchase warrant (each a "Warrant"). Each Warrant is exercisable into one common share of the Corporation ("Common Share") for a period of 24 months at an exercise price of $0.30 per Common Share for the first 12 months of the exercise period and at an exercise price of $0.35 per Common Share for the remaining 12 months of the exercise period. In the event that the Common Shares trade at a closing price on the TSX Venture Exchange of $0.40 or higher during the first 12 months of the exercise period or at a price of $0.45 or higher during the second 12 months of the exercise period for a period of 10 consecutive trading days at any time after four months and one day after the closing of the private placement, the Corporation may accelerate the expiry date of the Warrants by giving notice to holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Corporation.
"We are very pleased to be entering into this relationship with MineralFields Group", said Charles Chebry, a director of the Corporation. "This is an important milestone in the growth of Argonaut and we look forward to working with MineralFields Group as we develop our holdings in the Terrace and Smithers areas of west-central British Columbia."
The Corporation may pay commissions or finder's fees in accordance with the TSX Venture Exchange policies. The completion of the private placement is subject to TSX Venture Exchange acceptance and other regulatory approval.
Proceeds of the private placement will be used for exploration activity throughout 2010 and 2011, general corporate purposes and to increase the Corporation's working capital.
Argonaut is also pleased to announce that Mr. Dale Hansen has been appointed as the Corporation's Chief Financial Officer and a director. Mr. Hansen replaced Charles Chebry, who resigned as the Chief Financial Officer of the Corporation. Mr. Chebry will continue to serve as a director of the Corporation.
Subject to regulatory approval, Argonaut is granting to Mr. Hansen, under the terms of its stock option plan, options to purchase up to 300,000 Common Shares at a price of $0.15 per Common Share for a period of five years. The Corporation has determined that exemptions are available from the requirements of the TSX Venture Exchange Policy 5.9 with respect to the granting of the stock options.
About MineralFields, Pathway and First Canadian Securities®
MineralFields Group (a division of Pathway Asset Management), based in Toronto, Vancouver Montreal and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged super flow- through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities ® (a division of Limited Market Dealer Inc.) is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and
-2-
acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities ®.
Argonaut Gold Inc. Completes Resource Expansion Drill Program at El Castillo
Toronto, Ontario - (December 2, 2010) Argonaut Gold Inc. (TSX: AR) (“Argonaut” or the is pleased to present the final assay results for the 2010 resource expansion drill
program at the 100 percent owned El Castillo gold mine in the State of Durango, Mexico.
The 2010 drill program included 308 drill holes spanning over more than 35,400 meters. The drilling, which commenced in December of 2009, was divided into two phases. Phase I consisted principally of a 100 meter drill grid to define the approximate limits of the El Castillo gold system. This program was completed in mid April and consisted of 136 drill holes totaling 15,851 meters.
A second phase of drilling immediately followed and was designed to fill-in and better define mineralized zones identified from Phase I. The Phase II program, which totaled 172 drill holes spanning over 19,500 meters, brought the drill spacing to approximately 50 meters. Since the last update on October 12, 2010 an additional 28 holes were completed.
All drill results have been compiled and are being utilized to complete an updated resource estimate as part of a revised National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant technical report which is scheduled for completion by year end.
Visit www.argonautgoldinc.com for a list of drill hole assay results completed in 2010.
Mining Speculator (11/22/2010)
". . .A week and a half ago the state legislature in La Paz initiated a bill to ban open-pit mining in southern Baja, which could affect companies like Pediment Gold that has projects in this area. . .What we now understand is that the bill has gone back to be rewritten to enforce further safety and environmental concerns rather than try to ban open-pit mining all together.
Companies like Pediment Gold are totally committed to safe and environmentally sound mining practices and will responsibly reclaim the land once it is through with its mining activities. While I expect a favorable conclusion that will allow responsible mining to move forward, the timing of this activity is not ideal for Pediment who in the process of a merger with Argonaut Gold and seeks to put the San Antonio gold project into production. I wanted subscribers to have the facts and not panic as this news is reported in the media. . .In the end, I don't think this will affect PEZ in any way regardless of what the state legislature ultimately can pass. . .nothing will change for PEZ and Argonaut. The problem is a community problem and new and special rules will need to be followed to allow mining near the sensitive biosphere reserve area. It will not prohibit mining. The San Antonio project's water drainage moves away from the biosphere area not toward it. . .PEZ remains a BUY. As a contrarian, you are getting a great chance to buy a nice dip right now."
Argonaut Gold Reports Q3 2010 Financial Results - 66% Increase in Gold production in Q3
Over 5,000 ounces produced in October
Toronto, Ontario -- (November 15, 2010) Argonaut Gold Inc. ("Argonaut" or the "Company"; TSX: AR), today announced its full financial results for the 3rd quarter, ended on September 30, 2010. The capital expansion program at El Castillo is nearing completion, with the east side processing plant expected to be operational by year end.
Third Quarter Highlights
2010 Q3 compared to 2009 Q3
Total Tonnes mined ? +83%
Ore Tonnes processed ? + 92%
Gold Production ? +66%
Record ounces loaded on the pad (24,202 ounces)
$621 Cash cost per Oz. produced (El Castillo); $605 year to date
Revenue $9.8 million
Operating Income $3.2 million
Net Income $345,358
October Highlights
Over 1.5 million total tonnes moved in October 2010
Over 5,000 ounces of production in October 2010
Barren solution upgrade project completed
CAPEX Program Updates
West Side Improvements
Commissioned pad 7 and began loading ore in Q3
Barren solution volume capacity for the west carbon plant upgraded to 1000 cubic meters/hr of flow from 400 cubic meters per/hr of flow, more than doubling the previous flow rate
East Side Additions
Stage 1, cell 1 was complete
Cell 2 and 3 of Stage 1 will be complete by year end
Barren and PLS ponds will be complete by year end
East Carbon plant will be commissioned by year end
CEO Commentary
Noting El Castillo's continuous improvements and increase in production, Argonaut's President and CEO Peter Dougherty noted:
"The 3rd quarter marks the third consecutive quarter of increased gold production at El Castillo (12,724 ounces). During the 3rd quarter there were 24,202 ounces delivered to the pad. This was a record month for ounces delivered to the pad at El Castillo. Upgrades to the west side processing plant more than doubled the previous flow rate.
The capital expansion program is scheduled for completion by year end, which will include commissioning of the east side processing plant. Combined, the two plants' facilities will provide a processing capacity of over 1 million tonnes of ore per month.
October demonstrated production abilities of operations at El Castillo following the CAPEX improvements. October production was over 5,000 ounces, with over 1.5 total tonnes mined. The improvements made at the El Castillo mine were key to establishing a 75,000 ounce run rate in 2011."
This press release should be read in conjunction with the Company's unaudited consolidated
interim financial statements for the quarter-ended September 30, 2010 and associated
Management's Discussion and Analysis ("MD&A") which are available from the Company's
website www.argonautgoldinc.com, in the "Investors" section under "Financial Filings", and under the Company's profile on SEDAR at www.sedar.com.
Summary of Production Results:
Year over year, total tonnes mined increased by +83% for the quarter. With a full quarter of utilizing a larger, more efficient truck fleet at El Castillo, the rate of mining production exceeded 1.5 million tonnes per month. The total of ounces loaded to the pads also increased. In the 3rd quarter 24,202 ounces were placed on the pad, representing a 20% increase over 2nd quarter in 2010.
Gold production of 12,724 ounces in the third quarter of 2010 was a 66% increase compared to the third quarter of 2009.
The 3rd quarter strip ratio was slightly higher than previous quarters. The Company chose to begin mining the $1,000 pit limit in accordance with the arrival of the new larger capacity fleet. This was done in anticipation of the new 43-101 technical report to be completed and released in January 2011. The strip ratio is expected to return to the range historically mined at El Castillo.
Key operational metrics and production statistics for the third quarter of 2010 compared to 2009 are presented below:
Q3 2010
Q3 2009
9 Months Ended
El Castillo Operating Statistics 9/30/2010 9/30/2009* 9/30/2010 9/30/2009
Total Tonnes mined 4,749,610 2,594,800 11,093,516 5,966,900
Tonnes Ore 2,013,668 1,051,300 5,197,406 2,477,800
ROM Tonnes Ore
(direct to leach pad) 1,675,504 782,900 4,237,532 1,809,000
Tonnes Crushed 369,275 268,300 954,559 668,800
Gold Grade (g/t) 0.37 0.42 0.37 0.48
Gold Loaded to Pad (oz) 24,202 14,100 60,744 37,851
Gold Produced (oz) 12,724 7,655 33,032 20,044
Gold Sales (oz) 7,994 7,311 26,779 19,426
*Note: Information obtained from Castle Gold Corporation press release dated October 21, 2009 and Castle Gold Corporation 3rd quarter MD&A dated November 25, 2009.
Financial Results -- Third Quarter 2010
During the third quarter of 2010, revenue was $9.8 million compared to $7.0 million for El Castillo in Q3 of 2009 as reported by Castle Gold Corporation ("Castle Gold") for the El Castillo Mine in its Management's Discussion and Analysis for the Quarter ended September 30, 2009 posted on November 26, 2009 on www.sedar.com. The increase in revenue is due to more gold ounces sold and higher gold prices. During the third quarter of 2010, cost of sales and depletion, depreciation and accretion expenses were $6.7 million. Cash cost per gold ounce for units sold was $622. (Cash cost per gold ounce for units sold is a non-GAAP measure and is cost of sales less silver sales divided by gold ounces sold.) Income from mining operations was $3.2 million and net income was $345,358. Cash cost per ounce of gold produced was $621. (Cash cost per ounce of gold produced is a non-GAAP measure and is mining and processing cost over units produced.)
During the nine months ended September 30, 2010, revenue was $31.7 million compared to $18.1 million for El Castillo as reported by Castle Gold. The increase in revenue is due to 7,343 more gold ounces sold and higher gold prices. During the first nine months of 2010, cost of sales & depletion, depreciation and accretion expenses were $25.0 million. Cost of sales included 11,032 gold ounces, of the 26,779 gold ounces sold, that were fair valued at acquisition of Castle Gold at market price of gold less cost to process units. The year-to-date cash cost per gold ounce for units sold (a non-GAAP measure) was $809 which includes the above fair value adjustment. During the first nine months of 2010, income from mining operations was $6.6 million and net loss was $1.6 million. During the first nine months of 2010, cash cost per ounce of gold produced (a non-GAAP measure) was $605.
Looking Forward -- 4th Quarter:
East side processing facility scheduled for year-end completion
Current production rate on target to achieve 47,000 ounces in 2010
Vote on proposed merger with Pediment Gold Corp
Cash Requirements:
The capital expansion program is anticipated to be funded by operating cash flow and
cash on hand.
Q3 2010 Financial Results Conference Call and Webcast:
Argonaut Gold will host a conference call on Monday, November 15th, 2010 at 9:30 am EST to discuss the third quarter 2010 results and provide an update of the Company's operating, exploration, and development activities.
Participants may join the conference call by dialing 1(877)240-9772 or 1(416)340-8530 for calls outside of Canada and the United States. The pass code is 6778610 followed by the # key. The conference call may also be accessed via webcast by visiting the Company's website, www.argonautgoldinc.com.
A recorded playback of the conference call can be accessed after the event until November 22, 2010 by dialing 1(800)408-3053 or 1(905)694-9451 for calls outside Canada and the United States. The pass code for the conference call playback is 6778610 followed by the # key.
Argonaut Exploration Inc. ("Argonaut or the Company") (CA:AGA 0.19, 0.00, 0.00%) announces that the second set of drill results from the 100% owned High Gold porphyry property contained significant molybdenum and copper mineralization. The new results were obtained from holes located immediately to the north and 400 metres west of previously released drill holes (Argonaut PR dated Oct.20th, 2010).
Hole HG-10-03 was drilled to the south from the upper plateau drill site at an angle of -55 degrees for 315 metres to test the trenched stockwork zone believed central to the porphyry system (Argonaut PR Oct. 8th, 2010). Hole HG-10-03 returned 0.038% molybdenum (Mo) for 160 metres including 0.118% Mo across 30 metres and 0.159% Mo across 16 metres. Copper and gold contribute to increase value in each hole drilled.
President Ray Cook states: "These recent drill results, in particular drill hole HG-10-03, demonstrate that the High Gold porphyry is a very large molybdenum-copper mineralized system. The fact that the deposit is located 18 kilometres from a major highway with power and rail services should cause the industry to take note of a significant new discovery."
DRILL RESULTS
Drillhole Interval (m) Width (m) Mo (%) Cu (%) Au (g/t) CuEq (%)
HG10-03 12 - 315 EOH 303 0.025 0.059 0.020 0.24
Including 86 - 246 160 0.038 0.056 0.021 0.32
Including 174 - 204 30 0.118 0.028 0.011 0.82
Including 188 - 204 16 0.159 0.026 0.008 1.09
HG10-04 6 - 212 EOH 206 0.007 0.074 0.024 0.14
Including 14 - 134 120 0.011 0.080 0.024 0.17
HG10-05 15 - 292 EOH 277 0.007 0.080 0.018 0.14
Including 42 - 212 170 0.010 0.087 0.020 0.16
70-7 17.4 - 102.7 85.3 0.010 0.100 0.027 0.18
EOH
Including 67.4 - 102.7 35.3 0.015 0.115 0.027 0.23
* based on $3.60/lb Cu, $16.00/lb MoO3 and $1300/oz Au
Holes HG-10-03 and HG-10-04 are located on the upper plateau and HG-10-05 and 70-7 were drilled in the central creek valley approximately 400 metres to the east. The creek valley is 160 metres lower in elevation than the plateau providing a total drill investigated depth of 420 metres in the same porphyry system. Holes HG-10-04, HG-10-05 and old hole 70-7 tested portions of the northern side of the 2.5 km long by 0.9 km wide porphyry up to and including the contact with hornfelsed volcanics in hole HG-10-04.
Plagioclase porphyry, hornblende plagioclase porphyry, diorite and hornfels were the dominant lithologies logged in the core. The anomalous metals assayed include molybdenum (Mo), copper (Cu), gold (Au) and rhenium (Re). Rhenium grades range from 0.005 to >1gram/tonne in the holes drilled with HG-10-03 averaging 0.163 g/t for the total 305 metres cored. Rhenium is a precious metal used in super-alloys and catalysts with a recent price range of $3.70 to $6.00 U.S.D. per gram. Molybdenum is a base metal used commonly in the steel industry to improve the strength and corrosion resistance of steel and cast iron.
The metallic minerals occur in quartz and carbonate veins that contain pyrite, pyrrhotite, chalcopyrite and molybdenite in two separate mineralizing phases. The molybdenite bearing quartz veins appear to be the most recent and widespread of the mineralizing phases.
John Nebocat P. Eng., PGS Pacific Geological Services, is a qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical information in the News Release. Analytical results are provided by Assayers Canada (recently acquired by SGS Laboratories) of Vancouver, British Columbia. All core and rock samples were digested by a four acid leach followed by a 47 element ICP analysis. Gold was determined separately using a 30 gram sample split treated by fire assay with an AA/ICP finish.
Argonaut Exploration Inc. has 25,458,139 shares issued and outstanding and trades on the TSX Venture Exchange with the trading symbol AGA.
President and CEO
Ray Cook, B.Sc., M.Sc., Geology
Tel: 403-969-7903; email: ray@argoexp.com; website: www.argonautexploration.com or contact:
Investor Relations provided by
The Howard Group:
Dave Burwell
tel: 403-221-0915 ext 224
toll free: 1-888-221-0915 ext. 224
dave@howardgroupinc.com
Jeff Walker
toll free: 1-888-221-0915 ext.
toll free: 1-888-221-0915 ext. 222
jeff@howardgroupinc.comjeff@howardgroupinc.com
October 19, 2010
Argonaut Gold Inc. and Pediment Gold Corp. Announce Friendly Business Combination
TORONTO, Ontario - (October 19, 2010) Argonaut Gold Inc. (TSX:AR; "Argonaut") and Pediment Gold Corp. (TSX:PEZ and OTCBB;PEZGF, "Pediment") are pleased to announce that they have entered into a binding agreement (the "Agreement") to complete a business combination (the "Transaction") to create a premier mid-tier gold producing company focused on the Americas. The combined entity will focus on generating value for its shareholders by increasing production, bringing new and existing projects into production, expanding the resource base, and growing cash flow.
Argonaut is a gold production and exploration company and is currently producing gold at its El Castillo project in Durango, Mexico. Argonaut forecasts 2010 production of 47,000 oz gold at US$600/oz cash cost. Pediment is a junior mining company with a focus on the exploration and development of low-cost gold assets in Mexico. Pediment's most advanced project is the San Antonio gold project in the state of Baja. A positive Preliminary Assessment was completed for the San Antonio gold project in August 2010.
Pursuant to the terms of the Agreement, all of the Pediment common shares (the "Pediment Common Shares") issued and outstanding immediately prior to consummation of the business combination shall become exchangeable into the common stock of Argonaut on the basis of 0.625 of a common share of Argonaut for each one (1) Pediment Common Share. Based on the closing price of Argonaut on the Toronto Stock Exchange ("TSX") on October 18, 2010, the exchange ratio implies an offer price of C$2.56 per Pediment common share and values Pediment's equity at approximately C$137.1 million on a fully diluted in-the-money basis.
This represents a 50.7% premium to the closing price of Pediment on the TSX on October 18, 2010 and a 40.4% premium based on the 20-day VWAPs of both companies for the period ended October 18, 2010. Upon completion of the Transaction, Argonaut and Pediment shareholders will own approximately 63% and 37% of the combined company, respectively. The terms of the Transaction have been unanimously approved by the boards of directors of both Argonaut and Pediment.
The newly combined company will draw on the expertise from both companies to fulfill board and management responsibilities. The newly combined board will be comprised of the current Argonaut directors and a representative of Pediment - Peter Mordaunt. Peter Dougherty will remain President and CEO of the combined company.
Highlights of the Combined Entity:
- Diversified across 2 mining operations by 2013
- Gold production expected to grow in excess of 150,000 oz per year by 2013
- Over 3.3 million oz of measured and indicated gold resources
- Strong balance sheet
- Strong cash flow generating capabilities
- A quality portfolio of exploration projects
-Experienced management team and board of directors
Mr. Peter Dougherty, President and CEO of Argonaut stated, "Combining Argonaut and Pediment provides a mutually beneficial transaction. The newly formed company will have access to an array of development and exploration opportunities. Cash generation from a producing mine will support the development of properties with high potential for expansion."
Mr. Gary Freeman, President and CEO of Pediment stated, "This is a natural progression for Pediment as this merger brings together two talented management teams. The resulting company will encompass a strong capital markets presence, proven construction and operating experience, and a successful exploration team. It further allows realization of internal financing for the development of San Antonio and access to exploration funding. Pediment shareholders are receiving an attractive premium and will benefit from production at El Castillo."
Transaction Rationale
Argonaut and Pediment believe the Transaction will provide significant benefits for both companies' shareholders.
Benefits to the shareholders of Argonaut include:
- The San Antonio project provides an early stage development project with potential to produce in excess of 80,000 oz Au per year by 2013
- Increases Argonaut's leverage to gold resources
- Provides diversification from a single operating mine to two operating mines in 2013
- Geographic synergies with dual operations within Mexico
- An extensive pipeline of grassroots exploration properties for future development
- La Colorada has excellent potential to add significant value to the newly combined company
- Extensive grassroots exploration expertise and nine exploration projects in Sonora Mexico
- Established exploration team with extensive experience in Mexico
- Strong re-rating potential via a portfolio of multiple mines, increase in resources and strong production growth profile at below industry average cash costs
- Improvement in stock liquidity
The benefits to the shareholders of Pediment include:
- Significant premium for Pediment shareholders based on 20 day VWAP
- Immediate exposure to a record gold price environment by converting from an exploration focused company to a producing company
- Access to management with extensive construction and operational experience
- Strong balance sheet and operating cash flow which are expected to be sufficient to fund the construction of the San Antonio project
Transaction Details
The business combination is anticipated to be completed by way of a statutory plan of arrangement whereby Argonaut would acquire all of the issued and outstanding shares of Pediment in consideration for the issue of Argonaut shares on the basis of 0.625 of one Argonaut share for one (1) Pediment share.
The Transaction will be subject to certain standard conditions which will include no less than 66 2/3% of the shareholders of Pediment and a simple majority of Argonaut shareholders voting in favour of the Transaction at shareholders meetings expected to be held in December 2010, and the acceptance of the Toronto Stock Exchange.
The Transaction is unanimously supported by the Board of Directors of both Argonaut and Pediment. Management and directors of Pediment hold approximately 8.2%, for which they have indicated that they will sign lock up agreements supporting the Transaction.
The Agreement will be described in detail in Management Information Circulars of Argonaut and Pediment to be filed with the regulatory authorities and mailed to Argonaut and Pediment shareholders in accordance with applicable securities laws.
The Transaction has been structured, with respect to Pediment shareholders in the United States, so as to permit reliance upon the exemption from the registration requirements of the U.S. Securities Act of 1933 provided by Section 3(a)(10) thereof. Upon closing of the Transaction, Argonaut is expected to become the successor-registrant to Pediment under the U.S. Securities Exchange Act of 1934.
Advisors
GMP Securities L.P. ("GMP") is acting as financial advisor to the board of Argonaut (comprised of Independent Directors). GMP has provided an opinion to the board of Argonaut that, subject to certain assumptions and limitations set out therein, the proposed transaction is fair, from a financial point of view to the shareholders of Argonaut. Fraser Milner Casgrain LLP is acting as Argonaut's legal advisor and Greenberg Traurig LLP as its U.S. legal advisor.
Pediment has engaged Canaccord Genuity Corp. ("Canaccord Genuity"), PI Financial Corp. and Axemen Resource Capital Ltd. as its financial advisors, and Bull, Housser & Tupper LLP as its legal advisor, and Dorsey & Whitney LLP as its US legal advisor. Canaccord Genuity has provided an opinion to the board of Pediment that, subject to certain assumptions and limitations set out therein, the proposed transaction is fair, from a financial point of view to the shareholders of Pediment taken as a whole.
Tom Burkhart, Argonaut's VP of Exploration, a Qualified Person under NI 43-101, has read and approved the Argonaut technical information contained in this press release.
Mel Herdrick, Pediment's VP of Exploration, a Qualified Person under NI 43-101, has read and approved the Pediment technical information contained in this press release.
A conference call to discuss the transaction will be held at 10:30 AM EDT time (7:30 AM PDST time) on Tuesday, October 19, 2010 to provide shareholders, securities analysts, and investors the opportunity to hear management discuss the business transaction outlined herein. The call can be accessed by dialing 1-866-226-1792 (toll free) or 416-340-2218. The call will also be webcast live and can be accessed via the website of Argonaut. The call will be available for replay by dialing 1-800-408-3053 (toll free) or 416-695-5800 (Passcode 8724514#) for 14 days.
About Argonaut Gold Inc.
Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine and the exploration-stage La Fortuna Project, both located in the State of Durango, Mexico. Argonaut is a new venture created by former executive management team members of Meridian Gold Inc. For further information about Argonaut, including summary technical information, please see the Annual Information Form of Argonaut dated March 31, 2010 in relation to the year ended December 31, 2009.
About Pediment Gold Corp.
Pediment Gold Corp. is a junior mining company with a focus on the exploration and development of low-cost gold assets in Mexico. With an experienced team of geologists, financiers and miners, in management and on the board, the company is dedicated to advancing its projects. To date, the company established a Measured and Indicated Resource of 1.22 million oz gold and an Inferred Resource of 28,449 oz of gold at San Antonio in Baja Sur (NI 43-101 compliant, AMEC, Edward Orbock III, June 2010). Pediment also outlined its initial gold resource at the past producing La Colorada gold mine in Sonora with 605,000 oz of gold in the Measured and Indicated category and 582,000 oz of gold in the Inferred category (NI 43-101 compliant, Giroux 2009). For further information about Pediment please see the Annual Report of Pediment on Form 20-F dated December 21, 2009 in relation to the year ended September 30, 2009."
The Toronto Stock Exchange has not reviewed or accepted responsibility for the adequacy or accuracy of this news release.
Information Concerning Mineralization and Resources
Unless otherwise indicated, all resource estimates contained in this news release have been prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System in compliance with Canadian securities laws, which differ from the requirements of United States securities laws. Without limiting the foregoing, this news release uses the terms "measured resources", "indicated resources" and "inferred resources". United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission ("SEC") does not recognize them. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of contained ounces is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report resources as in place tonnage and grade without reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this news release may not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.
Forward Looking Information
This news release contains forward looking statements of Argonaut and Pediment, within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and within the meaning of applicable Canadian provincial securities legislation. Forward-looking statements are statements which are not historical facts, including, without limitation, statements regarding the proposed acquisition of Pediment by Argonaut, the potential benefits thereof and discussions of future plans, projections and objectives. In addition, estimates of mineral reserves and resources may constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if a property is developed. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Argonaut's or Pediment's expectation are in the documents filed by Argonaut and Pediment, respectively, from time to time with the Toronto Stock Exchange and provincial securities regulators, most of which are available at www.sedar.com. Other than as required by applicable securities legislation, Argonaut and Pediment disclaim any intention and assumes no obligation to revise or update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
For more information, contact:
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101 or 647-980-4127
Email: nichole.cowles@argonautgoldinc.com
Website: www.argonautgoldinc.com
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Argonaut Gold is a Canadian gold mining company engaged in exploration, mine development and production activities on gold-bearing properties in Mexico. Founded in 2009, Argonaut was created by an experienced executive management team focused on creating value for our shareholders.
Argonaut Gold's primary gold assets are the producing El Castillo Mine (Durango, Mexico), the advanced exploration stage San Antonio project (State of Baja California Sur, Mexico), the past producing and advanced exploration stage La Colorada Mine (Sonora, Mexico), as well as the exploration-stage La Fortuna Project (Durango, Mexico) and 11 gold exploration projects located in the Sonora Mojave Megashare.
Argonaut Gold's Mission - Our mission is to extract and deliver maximum value from our projects and gold operations for all our shareholders. The team has a strong history of creating value and will continue to focus on creating value.
Argonaut Gold's Vision - Create the Next Quality Mid-Tier Gold Producer in the Americas.
We will continue to move towards accomplishing our vision and our mission thru unique values for our daily operations.
Board of Directors
Brian J. Kennedy
Position: Chairman
Mr. Kennedy was President and Chief Executive Officer of Meridian from June 1996 to December 2006. He was President of FMC Gold Company, a predecessor of Meridian, from May 1987 until June 1996. Mr. Kennedy holds a B.S. from the US Naval Academy and an MBA from Harvard University. He also serves on the board of NV Energy Inc.
Peter C. Dougherty
Position: Director
Mr. Dougherty is currently the Chief Executive Officer Argonaut Gold Inc. and served as the Vice President of Finance and Chief Financial Officer of Meridian Gold Inc. ("Meridian") from 2002 to 2007. Mr. Dougherty has also served as: Chief Accounting Officer and Corporate Controller of Meridian from 1997 to 2002; IBS Financial Manager of FMC Chemicals Group from 1994 to 1997; Group Financial Analyst of FMC Chemicals Group from 1993 to 1994 and the Controller of Paradise Peak Mine, FMC Gold from 1990 to 1993. Mr. Dougherty holds a B.S. in Accounting from Southern Oregon State College and M.B.A. from Drexel University.
James E. Kofman
Position: Director
James E. Kofman has over 27 years of experience in the mergers and acquisitions and corporate finance sectors. He most recently served as Managing Director and Head of Mergers and Acquisitions for UBS Securities Canada Inc. from 1996 to 2009. Previously, from 1982 to 1996, Mr. Kofman served as a Partner in Osler, Hoskin & Harcourt, Barristers and Solicitors focused on international corporate finance and mergers and acquisitions. Mr. Kofman has vast experience working in the mining sector in equity and debt financings as well as mergers and acquisitions.
Christopher R. Lattanzi
Position: Director
Christopher Lattanzi is a mining engineer with nearly 50 years of experience in the mineral industry , initially in the planning and supervision of mining operations and, since 1969, as a consultant. He was president of Micon International Limited, an independent mineral consultancy, from its founding in 1988 until 2005. He was a director of Meridian Gold Inc. from 1999 to 2007 and, from 2004 to 2006, served as chairman of that company. He is presently a director of Skygold Ventures Ltd., a Canadian junior exploration company. He continues to maintain an active consulting practice.
Peter Mordaunt
Position: Director
Mr. Mordaunt is a Registered Professional Geoscientist with over 25 years of experience in mining, mine development and advanced exploration, including 18 years of experience in Mexico. Mr. Mordaunt recently retired in January 2010 from his role as Chairman and CEO of Stingray Copper Inc., which he founded, managed and merged with Mercator Minerals Ltd. in December 2009. Previously he founded, managed and merged Corner Bay Silver Inc. with Pan American Silver Inc in 2003. Mr. Mordaunt's business skills have been focused on advanced project development leading to bankable feasibility studies, finance, mergers and acquisitions for more than 20 years. Mr. Mordaunt graduated from the University of Guelph in 1984. He is a member of the Institute of Corporate Directors and has the Professional Certification as ICD.D which is recognized both nationally and internationally.
Dale C. Peniuk
Position: Director
Dale Peniuk is a chartered accountant that provides financial consulting services to a number of mining companies and currently serves on the Board and as Audit Committee Chair of Lundin Mining Corporation (TSX; OMX), Capstone Mining Corp. (TSX), Corriente Resources Inc. (TSX; AMEX), Quest Capital Corp. (TSX; AMEX), Rainy River Resources Ltd. (TSX-V), Reservoir Capital Corp. (TSX-V) and Q2 Gold Resources Inc. (not yet listed). Mr. Peniuk also served on the Board and as Audit Committee Chair of EuroZinc Mining Corporation (TSX; AMEX) until completion of its merger with Lundin Mining, and Rio Narcea Gold Mines, Ltd. (TSX; AMEX) following the acquisition of a controlling interest in the company by Lundin Mining until the takeover of Rio Narcea was completed. Mr. Peniuk obtained a B.Comm from the University of British Columbia in 1982 and his CA designation from the Institute of Chartered Accountants of British Columbia ("ICABC") in 1986. Mr. Peniuk spent more than 20 years with KPMG LLP, Chartered Accountants and predecessor firms, including being an assurance partner from 1996 to 2006 and was the leader of KPMG's British Columbia mining practice. Mr. Peniuk has also served on the ICABC's Public Company Technical Forum since 2000 and is currently the Chair of that Forum.
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