Name of the Project
Magino gold project.

Location
The project is located 40 km north-east of Wawa, Ontario, Canada.

Client
Argonaut Gold.

Project Description
The project has total proven and probable reserves of 59-million ounces grading 1.13 g/t gold. A feasibility study on the project has determined that the Magino project is a strategic, long-life asset.

Envisaged is a 115 700 oz/y gold operation with a 17-year mine life.

Openpit mining operations will use a fleet comprising 16 m3 front shovels, a 13 m3 front-end loader and 140 t haul trucks. 

This fleet will be supplemented by drills, graders, and track and rubber-tire dozers.

A 10 000 t/d processing facility has been selected for the feasibility study, compared with the 30 000 t/d plant presented in the January 2016 prefeasibility study.

The adopted flowsheet includes primary crushing, single-stage semiautogenous grinding and a gravity recovery circuit, as well as a cyanide leach and carbon-in-pulp gold adsorption circuit with cyanide recovery and detoxification, as well as thickening, before tailings are discharged to a tailings facility.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of $408-million and an internal rate of return of 22.6%, with a payback of 3.8 years.

Value
Total capital costs have been estimated at $405-million.

Duration
The project is expected to be completed over 24 months.

Latest Developments
Argonaut Gold has received a positive decision statement for the environmental assessment (EA) under the Canadian Environmental Assessment Act 2012 for its Magino project.

The decision follows an EA conducted by the Canadian Environmental Assessment Agency with participation of indigenous groups, public and federal departments, including Fisheries and Oceans Canada, Environment and Climate Change Canada, Natural Resources Canada, Health Canada and Transport Canada.

Argonaut President and CEO Pete Dougherty has said the approval of the EA is a “major milestone”.

Subsequent key authorisations under way for Magino include the conclusion of the provincial EA, the construction permit, the mine closure plan and the Schedule 2 authorisation.

The company expects the conclusion of the provincial EA later in the first half of 2019 and subsequent authorisations during 2020.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Argonaut Gold, tel +1 775 284 4422, fax +1 775 284 4426 or email info@argonautgold.com.