Quarterly Production of 41,536 Gold
Equivalent Ounces and Net Cash1 Increase of $6.0 Million
TORONTO, May 12, 2020 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is
pleased to announce its operating and financial results for the
first quarter ended March 31,
2020. The Company reports quarterly production of 41,536 gold
equivalent ounces2 ("GEO" or "GEOs"), a quarterly net
cash1 increase of $6.0
million, cash flow from operating activities before changes
in operating working capital of $14.8
million, net loss of $9.5
million or loss per share of $0.05 and adjusted net income1 of
$8.4 million or adjusted earnings per
share1 of $0.05. All
dollar amounts are expressed in United
States dollars, unless otherwise specified (C$ refers to
Canadian dollars).
![Argonaut Gold Inc. (CNW Group/Argonaut Gold Inc.) Argonaut Gold Inc. (CNW Group/Argonaut Gold Inc.)](https://mma.prnewswire.com/media/1167252/Argonaut_Gold_Inc__Argonaut_Gold_Announces_First_Quarter_2020_Op.jpg)
CEO Commentary
Pete
Dougherty, President and CEO stated: "We are starting to see
the benefits of the operational changes we implemented in late 2019
and early 2020 and expect to see the positive impact of these
benefits throughout the balance of the year. During the
quarter, we delivered strong cash flow that allowed us to reduce
our accounts payable balance by $10
million, reduce our debt by $3
million, invest nearly $13
million in capital projects and still increase our cash
balance by $3 million. While
mining, crushing and stacking operations were ceased in early April
due to the COVID-19 restrictions in Mexico, we are preparing to restart these
activities on May 18, 2020. The
safety and security of our workforce and the communities in which
we operate is paramount and we are going above and beyond the
government requirements for re-opening full operations. Given
the nature of heap leach operations, metal production and sales
have not been impacted to date. Also, since we were ahead on
our leach pad construction year-to-date, we will have the
opportunity to quickly ramp production back up to planned levels
given our ability to place ore very close to plastic."
Key operating and financial statistics for the first quarter of
2020 are outlined in the following table:
1
|
Please refer to the
section below entitled "Non-IFRS Measures" for a discussion of
these Non-IFRS Measures.
|
|
|
2
|
GEOs are based on a
conversion ratio of 75:1 for silver to gold for 2019 and 80:1 for
2020. The silver to gold conversion ratio is based on the
three-year trailing average silver to gold ratio. These are
the referenced ratios for each year throughout the
release.
|
|
3 months
ended March 31
|
Change
|
2020
|
2019
|
Financial Data (in
millions except for earnings per share)
|
|
|
|
Revenue
|
$66.6
|
$73.9
|
(10%)
|
Gross
profit
|
$13.9
|
$11.5
|
21%
|
Net income
(loss)
|
($9.5)
|
$4.1
|
(332%)
|
Earnings (loss) per
share – basic
|
($0.05)
|
$0.02
|
(350%)
|
Adjusted net
income1
|
$8.4
|
$2.4
|
250%
|
Adjusted earnings per
share – basic1
|
$0.05
|
$0.01
|
400%
|
Cash flow from
operating activities before changes in non-cash operating working
capital
|
$14.8
|
$18.0
|
(18%)
|
Cash and cash
equivalents
|
$41.8
|
$28.1
|
49%
|
Net
cash1
|
$34.8
|
$14.1
|
147%
|
Gold Production
and Cost Data
|
|
|
|
GEOs loaded to the
pads2
|
97,180
|
76,840
|
26%
|
GEOs projected
recoverable2,3
|
44,284
|
48,181
|
(8%)
|
GEOs
produced2,4
|
41,536
|
54,169
|
(23%)
|
GEOs
sold2
|
42,204
|
56,674
|
(26%)
|
Average realized
sales price
|
$1,585
|
$1,309
|
21%
|
Cash cost per gold
ounce sold1
|
$967
|
$892
|
8%
|
All-in sustaining
cost per gold ounce sold1
|
$1,323
|
$1,123
|
18%
|
1
|
Please refer to the
section below entitled "Non-IFRS Measures" for a discussion of
these Non-IFRS Measures.
|
2
|
GEOs are based on a
conversion ratio of 75:1 for silver to gold for 2019 and 80:1 for
2020. The silver to gold conversion ratio is based on the
three-year trailing average silver to gold ratio.
|
3
|
Expected recoverable
GEOs are based on the assumptions and parameters as set forth in
the El Castillo Complex Technical Report dated March 27, 2018 and
the La Colorada Gold/Silver Mine Technical Report dated March 27,
2018. In periods where the Company mines and processes
material not specifically defined in a technical report (for
example: low grade stockpile material or run-of-mine ore),
management uses its best estimate of recovery based on the
information available. The El Castillo mine is currently
processing run-of-mine ore and has several years of data to support
run-of-mine recoveries.
|
4
|
Produced ounces are
calculated as ounces loaded to carbon.
|
First Quarter 2019 and Recent Company Highlights:
- Corporate
-
- Announced friendly, at-market merger with Alio Gold Inc.
("Alio") to create a diversified, North American intermediate
producer.
- Increased net cash by $6.0
million (see "Non-IFRS Measures" section).
- Social Responsibility
-
- Participated in a signing ceremony with the Michipicoten First
Nation for the Community Agreement for the Magino project.
- Delivered Argonaut's 3,000th academic scholarship in
Mexico.
- Initiated a local program with the community of Cerro del Gallo
for the cleaning of the San Antón de las Minas River in
Guanajuato, Mexico.
- Provided 150 food support pantries for families in San Juan del Rio, a community near the El
Castillo Complex.
- Held the opening ceremony for the Argonaut Community House in
La Colorada, a centre that the
Company donated to the community that is open for local
stakeholders to interact with Argonaut team members and attend
courses.
- El Castillo Complex
-
- First quarter production of 28,508 GEOs.
-
- El Castillo production of
14,729 GEOs.
- San Agustin production of
13,779 GEOs.
- Zero lost time incidents.
- Initiated construction of two El
Castillo leach pad expansions, which were approximately 90%
and 40% complete at May 1, 2020.
- Averaged nearly 30,000 tonnes per day crushing and stacking at
San Agustin.
- La Colorada
-
- First quarter production of 13,028 GEOs.
- Initiated construction of a leach pad expansion, which was
approximately 80% complete at May 1,
2020.
- Cerro del Gallo
-
- Prepared revised permit applications that are ready to submit
once the regulatory agency staff returns to work following the
temporary closure of these services due to COVID-19.
- Magino
-
- Completed over 25,000 metres of drilling in phase one drill
program targeting deeper, higher-grade mineralization adjacent to
and below the proposed pit.
- Continued to intersect high-grade mineralization below the
proposed pit (see press release dated March
3, 2020).
Financial Results – First Quarter 2020
Revenue for the
three months ended March 31, 2020 was
$66.6 million, a
decrease from $73.9 million for
the three months ended March 31,
2019. During the first quarter of 2020, gold ounces
sold totaled 40,169 at an average realized price per ounce of
$1,585, compared to 54,779 gold
ounces sold at an average realized price per ounce of $1,309 during the same period of 2019. Gold
ounces sold for the three months ended March
31, 2020 decreased compared to the same period in 2019
primarily due to a decrease in gold ounces produced at the
El Castillo mine due to a decrease
in ore tonnes to leach pads and at the La
Colorada mine due to a decrease in grade.
Production costs for the first quarter of 2020 were $41.6 million, a decrease from $51.1 million in the first quarter of 2019,
primarily due to a decrease in gold ounces sold. Cash
cost per gold ounce sold (see "Non-IFRS Measures" section) was
$967 in the first quarter of 2020, an increase from
$892 in the same period of 2019,
primarily due to an increase in cash cost per gold ounce sold at
the El Castillo and La Colorada mines due to lower ounces sold at
both mines and lower grades processed at the La Colorada mine. The depreciation,
depletion and amortization ("DD&A") expense included in cost of
sales for the first quarter of 2020 totaled $11.1 million, a decrease from
$11.9 million in the first quarter of
2019, due to a decrease in gold ounces sold offset by the increase
in average DD&A expense per ounce due to the significant
capital additions during 2019.
General and administrative expenses for the first quarter of
2020 were $4.1 million, an increase
from $3.8 million for the same period
of 2019, primarily due to Alio acquisition-related costs.
Losses on derivatives for the first quarter of 2020 were
$1.8 million, compared to gains
of $0.2 million in the first quarter
of 2019, primarily due to unrealized mark-to-market losses on the
Company's outstanding zero-cost collar commodity contracts entered
into in August 2019.
Other expense for the first quarter of 2020 was
$5.9 million, a decrease from
other income of $0.6 million in the
first quarter of 2019, due to differences in foreign currency
translation effects as a result of the significant weakening of the
Mexican peso and Canadian dollar against the US dollar during the
quarter.
Income tax expense for the first quarter of 2020 was
$11.2 million, compared to
$3.9 million in the same period of
2019. The change is due to the foreign exchange effects of
the weakening Mexican peso on the calculation of deferred taxes
during the first quarter of 2020.
Net loss for the first quarter of 2020 was $9.5 million or $0.05 per basic share, a decrease from net
income of $4.1 million or
$0.02 per basic share for the first
quarter of 2019. Adjusted net income for the first quarter of
2020 was $8.4 million or adjusted
earnings per basic share of $0.05, an
increase from adjusted net income of $2.4
million or adjusted earnings per basic share of $0.01 for the first quarter of 2019 (see
"Non-IFRS Measures" section).
Operational Results – First Quarter 2020
During the
first quarter 2020, the Company achieved quarterly production of
41,536 GEOs at a cash cost of $967
per gold ounce sold and all-in sustaining cost of $1,323 per gold ounce sold compared to 54,169
GEOs at a cash cost of $892 per gold
ounce sold and an all-in sustaining cost of $1,123 per gold ounce sold during the first
quarter 2019 (see "Non-IFRS Measures" section).
The El Castillo Complex produced 28,508 GEOs at a cash cost of
$941 per gold ounce sold during the
first quarter of 2020 versus 38,067 GEOs at a cash cost of
$867 per gold ounce sold during the
first quarter of 2019 (see "Non-IFRS Measures" section).
Higher cash costs per ounce are related to lower gold ounces sold,
which was driven by a planned reduction in recovery rates at the
El Castillo mine due to the
processing of a higher percentage of transitional and sulphide ores
and switching to run-of-mine ore versus crushed ore.
La Colorada produced 13,028
GEOs at a cash cost of $1,021 per
gold ounce sold during the first quarter of 2020 compared to 16,102
GEOs at a cash cost of $952 per gold
ounce sold during the first quarter of 2019 (see Non-IFRS Measures
section). Higher cash cost per ounce is due to lower gold
ounces sold as a result of lower gold grades processed.
Pete Dougherty commented: "We
achieved higher than expected production at the El Castillo mine, similar production to plan
at the La Colorada mine and lower
than planned production at the San
Agustin mine. On a consolidated basis, first quarter
production was generally in line with expectations. Costs per
ounce were higher than anticipated since a higher portion of the
quarterly production was from El
Castillo and a lower portion of production was from
San Agustin – our highest and
lowest cost operations, respectively. At the El Castillo
Complex, we have made positive strides in lowering our unit cost
per tonne processed and this will continue to be a focus of the
organization."
FIRST QUARTER 2020 EL CASTILLO COMPLEX
OPERATING STATISTICS
|
3 Months Ended
March 31
|
|
2020
|
2019
|
%
Change
|
Mining (in 000s
except waste/ore ratio)
|
|
|
|
Tonnes ore El
Castillo
|
1,922
|
2,288
|
(16%)
|
Tonnes ore San
Agustin
|
2,709
|
1,661
|
63%
|
Tonnes
ore
|
4,631
|
3,949
|
17%
|
Tonnes waste El
Castillo
|
3,414
|
3,805
|
(10%)
|
Tonnes waste San
Agustin
|
1,869
|
1,317
|
42%
|
Tonnes
waste
|
5,283
|
5,122
|
3%
|
Tonnes mined El
Castillo
|
5,336
|
6,093
|
(12%)
|
Tonnes mined San
Agustin
|
4,578
|
2,978
|
54%
|
Tonnes
mined
|
9,914
|
9,071
|
9%
|
Tonnes per day El
Castillo
|
59
|
68
|
(13%)
|
Tonnes per day San
Agustin
|
50
|
33
|
52%
|
Tonnes per
day
|
109
|
101
|
8%
|
Waste/ore ratio El
Castillo
|
1.78
|
1.66
|
7%
|
Waste/ore ratio San
Agustin
|
0.69
|
0.79
|
(13%)
|
Waste/ore
ratio
|
1.14
|
1.30
|
(12%)
|
Leach Pads (in
000s)
|
|
|
|
Tonnes crushed East
to leach pads El Castillo
|
214
|
1,073
|
(80%)
|
Tonnes crushed West
to leach pads El Castillo
|
3
|
1,257
|
(100%)
|
Tonnes direct to
leach pads El Castillo
|
1,732
|
0
|
-
|
Tonnes crushed to
leach pads San Agustin
|
2,733
|
1,691
|
62%
|
Tonnes to leach
pads
|
4,682
|
4,021
|
16%
|
Production
|
|
|
|
Gold grade loaded to
leach pads El Castillo (g/t)1
|
0.55
|
0.39
|
41%
|
Gold grade loaded to
leach pads San Agustin (g/t)1
|
0.36
|
0.47
|
(23%)
|
Gold grade loaded
to leach pads (g/t)1
|
0.44
|
0.43
|
2%
|
Gold loaded to leach
pads El Castillo (oz)2
|
34,471
|
29,344
|
17%
|
Gold loaded to leach
pads San Agustin (oz)2
|
31,255
|
25,705
|
22%
|
Gold loaded to
leach pads (oz)2
|
65,726
|
55,049
|
19%
|
Projected recoverable
GEOs loaded El Castillo4
|
13,072
|
20,337
|
(36%)
|
Projected recoverable
GEOs loaded San Agustin4
|
22,781
|
18,026
|
26%
|
Projected
recoverable GEOs loaded4
|
35,853
|
38,363
|
(7%)
|
Gold produced El
Castillo (oz)2,3
|
14,435
|
22,887
|
(37%)
|
Gold produced San
Agustin (oz)2,3
|
12,835
|
14,084
|
(9%)
|
Gold produced
(oz)2,3
|
27,270
|
36,971
|
(26%)
|
Silver produced El
Castillo (oz)2,3
|
23,545
|
28,210
|
(17%)
|
Silver produced San
Agustin (oz)2,3
|
75,504
|
54,030
|
40%
|
Silver produced
(oz)2,3
|
99,049
|
82,240
|
20%
|
GEOs produced El
Castillo3
|
14,729
|
23,263
|
(37%)
|
GEOs produced San
Agustin3
|
13,779
|
14,804
|
(7%)
|
GEOs
produced3
|
28,508
|
38,067
|
(25%)
|
Gold sold El Castillo
(oz)2
|
13,626
|
22,790
|
(40%)
|
Gold sold San Agustin
(oz)2
|
13,461
|
15,906
|
(15%)
|
Gold sold
(oz)2
|
27,087
|
38,696
|
(30%)
|
Silver sold El
Castillo (oz)2
|
23,545
|
28,210
|
(17%)
|
Silver sold San
Agustin (oz)2
|
85,137
|
56,634
|
50%
|
Silver sold
(oz)2
|
108,682
|
84,844
|
28%
|
GEOs sold El
Castillo
|
13,920
|
23,166
|
(40%)
|
GEOs sold San
Agustin
|
14,525
|
16,661
|
(13%)
|
GEOs
sold
|
28,445
|
39,827
|
(29%)
|
Cash cost per gold
ounce sold El Castillo5
|
$1,099
|
$918
|
20%
|
Cash cost per gold
ounce sold San Agustin5
|
$782
|
$794
|
(2%)
|
Cash cost per gold
ounce sold5
|
$941
|
$867
|
9%
|
|
|
1
|
"g/t" refers to grams
per tonne.
|
2
|
"oz" refers to troy
ounce.
|
3
|
Produced ounces are
calculated as ounces loaded to carbon.
|
4
|
Expected recoverable
GEOs are based on the assumptions and parameters as set forth in
the El Castillo Complex Technical Report dated March 27,
2018. In periods where the Company mines and processes
material not specifically defined in a technical report (for
example: run-of-mine ore), management uses its best estimate of
recovery based on the information available. The El Castillo
mine is currently processing run-of-mine ore and has several years
of data to support run-of-mine recoveries.
|
5
|
Please refer to the
section below entitled "Non-IFRS Measures" for a discussion of this
Non-IFRS Measure.
|
Summary of Production Results at the El Castillo
Complex
During the first quarter 2020, the El Castillo
Complex produced 25% fewer GEOs at a cash cost per gold ounce sold
(see "Non-IFRS Measures" section) 9% higher compared to the first
quarter 2019. Lower production was driven by a planned
reduction in recovery rates at the El
Castillo mine due to the processing of a higher percentage
of transitional and sulphide ores and the switch to run-of-mine ore
versus crushed ore. Higher cash costs were primarily due to
lower gold ounces sold. On a unit cost basis, El Castillo and San
Agustin experienced a cost per tonne processed reduction of
14% and 15%, respectively, during the first quarter of 2020
compared to the first quarter of 2019. San Agustin averaged nearly 30,000 tonnes per
day through the crushing and stacking circuit during the first
quarter of 2020 following the expansion of this circuit from 20,000
tonnes per day to 30,000 tonnes per day in 2019. This led to
an inventory build on the heap leach pad at San Agustin during the first quarter that is
expected to be drawn down over the course of 2020.
FIRST QUARTER 2020 LA COLORADA OPERATING
STATISTICS
|
3 Months Ended
March 31
|
|
2020
|
2019
|
%
Change
|
Mining (in 000s
except for waste/ore ratio)
|
|
|
|
Tonnes ore
|
947
|
872
|
9%
|
Tonnes
waste
|
4,683
|
5,966
|
(22%)
|
Total
tonnes
|
5,630
|
6,838
|
(18%)
|
Tonnes per
day
|
62
|
76
|
(18%)
|
Waste/ore
ratio
|
4.95
|
6.84
|
(28%)
|
Leach Pads (in
000s)
|
|
|
|
Tonnes crushed to
leach pads
|
966
|
793
|
22%
|
Tonnes direct to
leach pads
|
0
|
89
|
(100%)
|
Production
|
|
|
|
Gold grade loaded to
leach pads (g/t)1
|
0.35
|
0.44
|
(20%)
|
Gold loaded to leach
pads (oz)2
|
11,022
|
12,433
|
(11%)
|
Projected recoverable
GEOs loaded4
|
8,431
|
9,818
|
(14%)
|
Gold produced
(oz)2,3
|
12,349
|
15,372
|
(20%)
|
Silver produced
(oz)2,3
|
54,315
|
54,773
|
(1%)
|
GEOs
produced3
|
13,028
|
16,102
|
(19%)
|
Gold sold
(oz)2
|
13,082
|
16,083
|
(19%)
|
Silver sold
(oz)2
|
54,198
|
57,302
|
(5%)
|
GEOs sold
|
13,759
|
16,847
|
(18%)
|
Cash cost per gold
ounce sold5
|
$1,021
|
$952
|
7%
|
|
|
1
|
"g/t" refers to grams
per tonne.
|
2
|
"oz" refers to troy
ounce.
|
3
|
Produced ounces are
calculated as ounces loaded to carbon.
|
4
|
Expected recoverable
GEOs are based on the assumptions and parameters as set forth in
the La Colorada Gold/Silver Mine Technical Report dated March 27,
2018. In periods where the Company mines and processes
material not specifically defined in a technical report (for
example: low grade stockpile material), management uses its best
estimate of recovery based on the information available.
|
5
|
Please refer to the
section below entitled "Non-IFRS Measures" for a discussion of this
Non-IFRS Measure.
|
Summary of Production Results at La Colorada
During the first quarter
2020, La Colorada produced 19%
fewer GEOs at a cash cost per gold ounce sold (see "Non-IFRS
Measures" section) 7% higher compared to the first quarter
2019. Lower production was primarily related to lower grades
processed, as the Company experienced difficulty meeting planned
mining rates due to increased water at the bottom of the pit.
This led to a reduction of phase two ore tonnes, which were
supplemented with ore from low-grade stockpiles in order to
maintain crusher feed. The Company has added additional
pumping at La Colorada to confront
the water challenges in the pit. The Company anticipates
production at La Colorada will dip
lower in the second quarter of 2020 compared to the first quarter
of 2020 since mining and placement of ore tonnes from phase two
(the bottom) of the El Créston pit is currently behind
schedule. The Company anticipates stronger production during
the second half of 2020, as mining returns to the upper benches of
the El Créston pit. Higher cash cost per ounce was primarily
due to lower gold ounces sold as a result of lower grades
processed.
Alio Transaction
The Company mailed and filed the
joint-circular in connection with its friendly, at-market merger
with Alio on April 22, 2020 and will
hold its Annual and Special Meeting in a virtual-only format on
May 20, 2020. Leading proxy
advisory firms, Institutional Shareholder Services Inc. (ISS) and
Glass, Lewis & Co., have both recommended that shareholders
vote FOR the transaction. The Company anticipates the
transaction will close in June
2020.
COVID-19 Update
As the municipalities near the
Company's operations have low or no reported COVID-19 transmission,
Argonaut is preparing to restart mining, crushing and stacking
operations on May 18, 2020 and
anticipates it will take approximately one week to fully ramp up to
normal run rates. As Argonaut operates heap leach mines,
processing of leach solution and metal production and sales have
continued since the original government decree to cease
non-essential businesses on March 31,
2020. Argonaut has developed and implemented protocols for
the protection of its workforce and communities where it
operates.
Potential Timing of Guidance Update
Due to the
uncertainty with respect to the future developments of the COVID-19
outbreak, including the duration, severity and scope of the
outbreak, Argonaut withdrew its full year guidance across all
operations on April 1, 2020.
The Company currently anticipates it will provide updated guidance
following the closing of the Alio transaction but cautions that
this timing is subject to change depending on future developments
of the COVID-19 outbreak.
Argonaut Gold First Quarter 2020 Operational and Financial
Results Conference Call and Webcast:
The Company will host
the first quarter 2020 conference call and webcast on May 13, 2020 at 9:00 am
EDT.
Q1 Conference Call Information
Toll Free (North
America):
|
1-888-231-8191
|
International:
|
1-647-427-7450
|
Conference
ID:
|
1002839
|
Webcast:
|
www.argonautgold.com
|
Q1 Conference Call Replay:
Toll Free Replay Call
(North America):
|
1-855-859-2056
|
International Replay
Call:
|
1-416-849-0833
|
The conference call replay will be available from 12:00 pm EDT on May 13,
2020 until 11:59 pm EDT on
May 20, 2020.
Non-IFRS Measures
The Company has included certain
non-IFRS measures including "Cash cost per gold ounce sold",
"All-in sustaining cost per gold ounce sold", "Adjusted net
income", "Adjusted earnings per share – basic" and "Net cash"
in this press release to supplement its financial statements which
are presented in accordance with International Financial Reporting
Standards ("IFRS"). Cash cost per gold ounce sold is equal to
production costs less silver sales divided by gold ounces sold.
All-in sustaining cost per gold ounce sold is equal to production
costs less silver sales plus general and administrative,
exploration, accretion and other expenses and sustaining capital
expenditures divided by gold ounces sold. Adjusted net income is
equal to net income (loss) less foreign exchange impacts on
deferred income taxes, foreign exchange (gains) losses, non-cash
impairment write down (reversal) of work-in-process inventory and
unrealized (gains) losses on commodity derivatives. Adjusted
earnings per share – basic is equal to adjusted net income divided
by the basic weighted average number of common shares outstanding.
Net cash is calculated as the sum of the cash and cash equivalents
balance net of debt as at the statement of financial position date.
The Company believes that these measures provide investors with an
alternative view to evaluate the performance of the Company.
Non-IFRS measures do not have any standardized meaning prescribed
under IFRS. Therefore they may not be comparable to similar
measures employed by other companies. The data is intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
Please see the management's discussion and analysis ("MD&A")
for full disclosure on non-IFRS measures.
This press release should be read in conjunction with the
Company's unaudited interim condensed consolidated financial
statements for the three months ended March
31, 2020 and associated MD&A, for the same period, which
are available from the Company's website, www.argonautgold.com, in
the "Investors" section under "Financial Filings", and under the
Company's profile on SEDAR at www.sedar.com.
Creating Value Beyond Gold
Cautionary Note Regarding Forward-looking
Statements
This press release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning the proposed
transaction and the business, operations and financial performance
and condition of Argonaut Gold Inc. ("Argonaut" or "Argonaut
Gold"). Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to the COVID-19 pandemic, the impact of the pandemic on
Argonaut and the impact of government action aimed at ameliorating
the pandemic on the workforce, business and operations of Argonaut
and on its transaction with Alio Gold Inc.; statements with respect
to estimated production and mine life of the various mineral
projects of Argonaut; synergies and financial impact of completed
acquisitions; the benefits of the development potential of the
properties of Argonaut; the future price of gold, copper, and
silver; the estimation of mineral reserves and resources; the
realization of mineral reserve estimates; the timing and amount of
estimated future production; costs of production; success of
exploration activities; and currency exchange rate fluctuations.
Except for statements of historical fact relating to
Argonaut, certain information contained herein constitutes
forward-looking statements. Forward-looking statements are
frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based
on the opinions and estimates of management at the date the
statements are made, and are based on a number of assumptions and
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking statements. Many of
these assumptions are based on factors and events that are not
within the control of Argonaut and there is no assurance they will
prove to be correct.
Factors that could cause actual results to vary materially from
results anticipated by such forward-looking statements include
changes in market conditions, the scope, duration and impact of the
COVID-19 pandemic, the scope, duration and impact of regulatory
responses to the pandemic on the employees, business and operations
of Argonaut and the broader market, variations in ore grade or
recovery rates, risks relating to international operations,
fluctuating metal prices and currency exchange rates, changes in
project parameters, the possibility of project cost overruns or
unanticipated costs and expenses, labour disputes and other risks
of the mining industry, failure of plant, equipment or processes to
operate as anticipated. Although Argonaut has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Argonaut undertakes no obligation to update
forward-looking statements if circumstances or management's
estimates or opinions should change except as required by
applicable securities laws. The reader is cautioned not to
place undue reliance on forward-looking statements. Statements
concerning mineral reserve and resource estimates may also be
deemed to constitute forward-looking statements to the extent they
involve estimates of the mineralization that will be encountered if
the property is developed. Comparative market information is
as of a date prior to the date of this document.
Qualified Person, Technical Information and Mineral
Properties Reports
Technical information included in this
release was supervised and approved by Brian Arkell, Argonaut's Vice President,
Exploration and a Qualified Person under National Instrument 43-101
("NI 43-101"). For further information on the Company's
material properties, please see the reports as listed below on the
Company's website or on www.sedar.com:
El Castillo
Complex
|
NI 43-101 Technical
Report on Resources and Reserves, El Castillo Complex, Durango,
Mexico dated March 27, 2018 (effective date of March 7,
2018)
|
La Colorada
Mine
|
NI 43-101 Technical
Report on Resources and Reserves, La Colorada Gold/Silver Mine,
Hermosillo, Mexico dated March 27, 2018 (effective date of December
8, 2017)
|
Magino Gold
Project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada dated
December 21, 2017 (effective date November 8, 2017)
|
Cerro del Gallo
Project
|
Pre-Feasibility Study
Technical Report on the Cerro del Gallo Project, Guanajuato, Mexico
dated January 31, 2020 (effective date of October 24,
2019)
|
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration,
mine development and production. Its primary assets are the
El Castillo mine and San Agustin mine, which together form the El
Castillo Complex in Durango,
Mexico and the La Colorada
mine in Sonora, Mexico.
Advanced exploration projects include the Cerro del Gallo project
in Guanajuato, Mexico and the
Magino project in Ontario,
Canada. The Company continues to hold the San Antonio advanced exploration project in
Baja California Sur, Mexico and
several other exploration stage projects, all of which are located
in North America.
For more information, contact:
Argonaut Gold Inc.
Dan Symons
Vice President, Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
SOURCE Argonaut Gold Inc.