The Magino project.
Canada-based mining company Argonaut Gold has cleared a “pivotal” permitting milestone at its Magino project – a past-producing underground gold mine, near Wawa, Ontario.
The company concluded the Canadian federal government Schedule 2 processing process, which president and CEO Pete Dougherty said significantly derisked the Magino project and made it “much more attractive” to potential joint venture partners and project financing lenders.
“Magino is truly a valuable and strategic asset given existing project infrastructure, the already-known mineral endowment of the orebody and the existing exploration potential, its location within the mining-friendly jurisdiction of Ontario, Canada and its proximity to other strong cash flowing operations such as the Island Gold mine,” said Dougherty.
Argonaut anticipates having project approvals and development financing options organised to enable the company to make a decision on the advancement of the Magino project during the second half of 2020.
A 2017 feasibility study estimates that Magino will require $405-million in total capital expenditure (capex), of which the initial capex is estimated at $320.9-million. The mine will produce an average of 115 700 oz/y over a 17-year mine life.
Meanwhile, Argonaut said it continued its deep drilling exploration programme uninterrupted and that it was encouraged with the results to date.
Magino is an opportunity for Argonaut to diversify its asset base, which is currently focused on Mexico. It owns the producing mines of El Castillo and San Agustin, which together form the El Castillo Complex in Durango, as well as the La Colorada mine in Sonora. It also has advanced exploration stage projects, including the San Antonio project in Baja California Sur, Mexico, the Cerro del Gallo project in Guanajuato, Mexico.