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Argonaut produces record quarterly output, intersects high-grade mineralisation at Magino

21st January 2021

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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TSX-listed Canadian gold explorer, developer and producer Argonaut Gold produced a record 56 986 of gold-equivalent ounces (GEOs) in the fourth quarter of 2020, representing a 16% increase over the previous quarter.

This contributed to full-year production of 203 483 GEO.

President and CEO Pete Dougherty says 2020 was a “spectacular year” for Argonaut, as the company completed a merger, saw the conclusion of Schedule 2 amendment and executed on a financing plan for Magino’s development and achieved record quarterly production.

“As we look to 2021, we are taking a cautious approach to guidance when considering potential productivity challenges owing to Covid-19 protocols and contact tracing, as the health and safety of our workforce is paramount.”

He adds that Argonaut’s focus is to deliver cash flow from the operating mines to fuel its growth through the construction of Magino, as Argonaut embarks on the transition from a relatively high-cost junior producer with short mine-life assets to an intermediate lower-cost producer with long life assets.

As such, the company anticipates it will produce between 210 000 GEO and 250 000 GEO during 2021 at a cash cost of between $950/oz and $1 050/oz, and an all-in sustaining cost of between $1 250/oz and $1 350/oz sold.

Argonaut owns and operates two mines in Mexico and one in Nevada, in the US.

MAGINO EXPLORATION

Argonaut has intersected gold mineralisation of 10 m at a grade of 19 g/t at its 100% owned Magino property in Ontario. This includes mineralisation also found for 6.3 m at a grade of 30.2 g/t, 3.1 m at a grade of 47.1 g/t, and 1.3 m at a grade of 112 g/t in the south zone of the property.

As such, the south zone has now been intersected in numerous drill holes extending from the border between the Island Gold mine and the Magino project westward over a strike length of 1.5 km and remaining open at depth and to the west.

The south zone follows the contact of the Webb Lake Stock (granodiorite rocks) and volcanic rocks.

Dougherty says the geology team at Magino has done remarkable work over the last two years in identifying the structural controls on the high-grade mineralisation at Magino and has demonstrated this through an “extremely high success rate” of encountering high-grade gold at depth nearly everywhere the company has targeted.

Exploration VP Brian Arkell says Argonaut continues to encounter high-grade gold mineralisation in several structural zones identified to date. “We are now recognising the potential for the mineralised system to not only extend at depth, but also to the west of the main Magino orebody.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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