Scotland Zone Returns 7.0 Metres at 14.0 g/t
Gold; #42 Zone Returns 8.0 Metres at 9.3 g/t Gold; Sandy Zone
Returns 9.0 Metres at 5.4 g/t and South Zone Returns
7.0m at 4.2 g/t Gold
TORONTO, Nov. 23, 2020 /CNW/ - Argonaut Gold
Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut")
is pleased to announce that it has discovered four new, high-grade
zones below or adjacent to the planned open pit at its 100% owned
Magino property in Ontario,
Canada: the Scotland Zone, the #42 Zone, the Sandy Zone and
the South Zone, which sit between 350 and 700 metres southwest of
the previously identified Elbow Zone. Since commencing the
exploration drilling program in July
2019, the Company has completed 56 diamond drill holes and
approximately 48,000 metres of drilling targeting high-grade
mineralized structures at depth.
Recent highlights include:
- Scotland Zone: MA20-50A with 7.0m
at 14.0 g/t Au, including 3.0m at
31.9 g/t Au;
- #42 Zone: MA20-051 with 8.0m at
9.3 g/t Au, including 5.0m at 14.6
g/t Au;
- Sandy Zone: MA20-051 with 9.0m at
5.4 g/t Au, including 3.0m at 13.5
g/t Au;
- South Zone: MA20-051 with 7.0m at
4.2 g/t Au, including 2.0m at 10.0
g/t Au; and
- Elbow Zone: MA20-053 with 4.4m at
14.1 g/t Au, including 3.4m at 18.15
g/t Au.
Pete Dougherty, President and CEO
stated: "The discovery of these four new high-grade zones below the
planned Magino open pit demonstrates the exploration potential of
the Magino project. Magino is a past-producing mine and has
been a well-known project for decades; yet, we are only now
beginning to scratch the surface of the full potential of the
exploration upside to this mineralized system. The fact that
we are now discovering new high-grade zones speaks to the future
possibilities at Magino. These results continue to
demonstrate the high-grade gold potential at the project.
Importantly, we have now demonstrated results at depth
farther westward from the boundary between Magino and the adjacent
Island Gold Mine."
Brian Arkell, Vice President of
Exploration commented: "Through an ongoing structural investigation
over the past two years, we can now trace higher-grade ore shoots
within the planned open pit and test the down dip potential of
these structures. It's very encouraging to intersect
high-grade gold mineralization in our initial drill holes testing
these structures at depth, and we've hit some of the highest grades
encountered to date. Based on the success we have
demonstrated in our first drilling at depth at the new Scotland, #42, Sandy and South zones, combined
with the Elbow and Central zones, we now have six very exciting
high-grade mineralized targets that all warrant further
drilling."
Recent drilling has focused on widely spaced scout drilling to
test multiple potential high-grade mineralized structures at depth
westward from the Elbow and Central zones. Results indicate
that the four high-grade structures continue down dip, as the first
drilling to test these down dip extensions has encountered
high-grade gold mineralization in all four targets. Drilling
will now focus on continuing to test the continuity of the Elbow
and Central zones as well as moving westward to continue testing
new targets below and to the west of the planned open pit.
Table 1 below highlights select drill results from the on-going
drill program. A three-dimensional model of the Magino
deposit and these drill results in relation to the planned open
pit, Elbow and Central zones and property boundary is available on
the Company's website at
https://www.argonautgold.com/English/assets/drill-results/default.aspx
Table 1: Select Drill Results
Hole
|
Zone
|
Azimuth
|
Dip
|
From
(metres)
|
To
(metres)
|
Length
(metres)
|
Grade*
(Au
g/t)
|
Estimated
True
Width
(meters)
|
MA20-017W1
|
Elbow
|
170.1
|
-61.2
|
647.0
|
648.0
|
1.0
|
5.4
|
0.8
|
and
|
Elbow
|
|
|
767.0
|
769.0
|
2.0
|
6.4
|
1.6
|
including
|
Elbow
|
|
|
767.0
|
768.1
|
1.1
|
11.4
|
0.9
|
|
|
|
|
|
|
|
|
|
MA20-050A
|
Scotland
|
160.0
|
-60.3
|
431.0
|
438.0
|
7.0
|
14.0
|
5.3
|
including
|
Scotland
|
|
|
431.0
|
434.0
|
3.0
|
31.9
|
2.3
|
and
|
#42
|
|
|
717.0
|
725.0
|
8.0
|
4.5
|
6.0
|
including
|
#42
|
|
|
721.0
|
724.0
|
3.0
|
10.1
|
2.3
|
|
|
|
|
|
|
|
|
|
MA20-051
|
#42
|
165.1
|
-62.1
|
365.0
|
373.0
|
8.0
|
9.3
|
6.0
|
including
|
#42
|
|
|
366.0
|
371.0
|
5.0
|
14.6
|
3.8
|
and
|
Sandy
|
|
|
605.0
|
613.0
|
8.0
|
5.5
|
6.0
|
including
|
Sandy
|
|
|
605.0
|
607.0
|
2.0
|
18.3
|
1.5
|
and
|
Sandy
|
|
|
741.0
|
750.0
|
9.0
|
5.4
|
6.8
|
including
|
Sandy
|
|
|
742.0
|
745.0
|
3.0
|
13.5
|
2.3
|
and
|
South
|
|
|
884.0
|
891.0
|
7.0
|
4.2
|
5.3
|
Including
|
South
|
|
|
884.0
|
886.0
|
2.0
|
10.0
|
1.5
|
|
|
|
|
|
|
|
|
|
MA20-052
|
#42
|
164.8
|
-71.9
|
703.0
|
708.0
|
5.0
|
7.3
|
3.5
|
including
|
#42
|
|
|
706.0
|
708.0
|
2.0
|
17.5
|
1.4
|
and
|
Sandy
|
|
|
945.00
|
950.00
|
5.0
|
5.7
|
3.5
|
including
|
Sandy
|
|
|
945.00
|
948.00
|
3.0
|
8.9
|
2.1
|
|
|
|
|
|
|
|
|
|
MA20-053
|
Elbow
|
182.1
|
-72.0
|
419.60
|
424.00
|
4.4
|
14.1
|
3.1
|
including
|
Elbow
|
|
|
419.60
|
423.00
|
3.4
|
18.2
|
2.4
|
|
|
|
|
|
|
|
|
|
All table of all drill results as well as maps are available on
the Company's website at
https://www.argonautgold.com/English/assets/drill-results/default.aspx
This round of drilling has shown promising results in the #42
zone where visible gold has been observed in many of the quartz
veins. Several stopes from past production are within this
zone and using the historical level plans, detailed information on
vein orientation and density was extracted. Hole MA20-051
intersected the down-plunge extension some 150m below the old workings returning
8.0m at 9.3 g/t Au. Testing
along strike on this zone, MA20-050A intersected 8.0m at 4.5 g/t Au, including 3.0m at 10.2 g/t Au. This intersection was
a further 150m down plunge and to the
east of MA20-051. Along with these holes, MA20-052 also
intersected 5.0m at 7.3 g/t Au
another 200m down plunge. With
these positive intersections in this pattern of drilling, the zone
has expanded by 350m down plunge and
approximately 150m of strike length
to a vertical depth from surface greater than 650m.
Qualified Person Comments / Quality Control
Procedures
The preparation of this press release was supervised and
approved by Brian Arkell, Argonaut
Gold's Vice President Exploration and a Qualified Person under NI
43-101. Mr. Arkell also reviewed the diamond drilling,
sampling, and on-site sample preparation procedures at Magino.
For sample analysis, the Company utilizes a system of Quality
Assurance/Quality Control (QA/QC) that includes insertion and
verification of standards, blanks, and duplicates consistent with
industry standards.
The Company has implemented a QA/QC program to ensure sampling
and analysis of all exploration work is conducted in accordance
with the CIM Exploration Best Practices Guidelines. The
entire drill hole is sampled and tagged by geologic personnel.
Cores are then photographed and sawn in half by experienced
geotechnicians, placed in numbered plastic bags, and gathered in
rice bags which are sealed with tamper-proof security tags under
the supervision of the project geologists. The other half of
the core is retained for future assay verification and/or
metallurgical testing. Other QA/QC procedures include the
insertion of coarse blanks and Canadian Reference Standards for
every tenth sample in the sample stream. Samples are bagged, sealed
with numbered security tags and shipped to the Activation
Laboratories facility, Thunder Bay,
Ontario, for sample preparation and assaying. The
laboratory has its own QA/QC protocols, running standards, blanks,
and duplicate samples in each batch stream. Gold analysis is
conducted by lead collection, fire assay with a gravimetric finish
on a 50-gram sample. Metallic screen fire assaying is now completed
using a 1.0 kg sample and two 50 gm fire assays of the pass (-100
mesh) pulverized material on all samples containing visible gold.
Check assays are conducted at a secondary ISO certified
laboratory.
Please see below under the heading "Cautionary note regarding
forward-looking statements" for further details regarding
risks.
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 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 permitting and legal processes in relation to mining permitting
and approvals; estimated production and mine life of the
various mineral projects of Argonaut; the ability to obtain permits
for operations; synergies; the realization of mineral reserve
estimates; the timing and amount of estimated future production;
costs of production; 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; 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", "should" 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
variations in ore grade or recovery rates, changes in market
conditions, risks relating to the availability and timeliness of
permitting and governmental approvals; 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.
These factors are discussed in greater detail in Argonaut's most
recent Annual Information Form and in the most recent Management's
Discussion and Analysis filed on SEDAR, which also provide
additional general assumptions in connection with these statements.
Argonaut cautions that the foregoing list of important factors is
not exhaustive. Investors and others who base themselves on
forward-looking statements should carefully consider the above
factors as well as the uncertainties they represent and the risk
they entail. Argonaut believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements included in this press release
should not be unduly relied upon. These statements speak only as of
the date of this press release.
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.
For further information on the Magino project, please see the
report as listed below on the Company's website or on
www.sedar.com:
Magino Gold
Project
|
Feasibility Study
Technical Report on the Magino Project, Ontario, Canada dated
December 21, 2017 (effective date November 8, 2017)
|
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, the La Colorada
mine in Sonora, Mexico and the
Florida Canyon mine in Nevada,
USA. Advanced exploration projects include the Magino project
in Ontario, Canada and the Cerro
del Gallo project in Guanajuato,
Mexico. The Company continues to hold several other
exploration stage projects, all of which are located in
North America.
For more information, contact:
Argonaut Gold Inc.
Dan
Symons
Vice President, Corporate Development & Investor Relations
Phone: 416-915-3107
Email: dan.symons@argonautgold.com
Source: Argonaut Gold Inc.
SOURCE Argonaut Gold Inc.