Welcome!

News Feed Item

CORRECTION FROM SOURCE: Argonaut Gold Announces Full Year 2013 Gold Production of 120,224 Gold Equivalent Ounces

2014 guidance of 135-150,000 gold equivalent ounces of production at cash cost of $750-$775

TORONTO, ONTARIO -- (Marketwired) -- 01/20/14 -- This document corrects and replaces that which was sent on January 20th, 2014 at 8:55 AM ET.

Argonaut Gold Inc. ("Argonaut", "Argonaut Gold" or the "Company") (TSX: AR) announced today that it had production of 28,648 gold equivalent ounces during the 4th quarter ended December 31, 2013. This included 20,848 ounces at its 100% owned El Castillo Mine ("El Castillo") located in the State of Durango, Mexico and 7,800 gold equivalent ounces at its 100% owned La Colorada Mine ("La Colorada") located near Hermosillo, Mexico.

FOURTH QUARTER 2013 HIGHLIGHTS:

El Castillo


--  Q4 production of 20,848 gold ounces; full year production of 94,804 gold
    ounces,
--  During Q4, 39,269 gold ounces loaded on the pad,
    --  West side crusher and overland conveyor project was completed and
        1.3 million tonnes was moved during the fourth quarter,
--  New south waste dump is operational.

La Colorada


--  Q4 production of 7,017 gold ounces and 47,759 silver ounces, for 7,800
    gold equivalent ounces (at 61:1 conversion),
--   Full year production of 22,544 gold ounces and 169,673 silver ounces,
    for 25,420 gold equivalent ounces (at 59:1 conversion),
--  During Q4, 9,799 gold ounces and 136,476 silver ounces loaded on the
    pad,
--  La Colorada pit is now fully opened, and the average life of mine grade
    was achieved in December.

Magino


--  Announced prefeasibility study on Magino indicating an after-tax
    internal rate of return ("IRR") of 18% and an after-tax net present
    value ("NPV") of $199 million incorporating 40% of the current mineral
    resource estimate.

San Agustin


--  Completed purchase of the San Agustin gold-silver project from Silver
    Standard Resources Inc.,
--  Provided first cash payment of $15 million for the asset, together with
    agreed share consideration. Purchase completion also requires IVA (VAT)
    payment of $6.5 million.

2014 GUIDANCE


--  Gold production of 135-150,000 gold equivalent ounces (at a 60:1
    conversion),
    --  El Castillo - 90-100,000 gold ounces at cash costs of $775-
        $800/ounce sold,
    --  La Colorada - 45-50,000 gold equivalent ounces at cash costs of
        $640-$665/ounce sold,
--  Cash cost per ounce sold of $750-$775,
--  Sustaining capital program of $6 million, and $11 million on capitalized
    stripping at La Colorada,
--  Expansion capital program of $70 million,
--  Exploration program of $5 million for in-fill and step-out drilling
    primarily focused at San Agustin and La Colorada,
--  Total anticipated spending by project:
    --  El Castillo - $11 million, split 60% sustaining and 40% expansion,
    --  La Colorada - $3 million expansion capital and $11 million on
        capitalized stripping,
    --  San Antonio - $56 million capital expansion subject to permits being
        granted,
    --  San Agustin - $3 million expansion capital,
    --  Magino - $4 million expansion capital.

Pete Dougherty, Argonaut Gold's President & CEO said, "Overall, 2013 was a tremendous year at Argonaut. The Company announced the results of a prefeasibility study on Magino with a positive after-tax IRR of 18%, incorporating 40% of the resource. Potential upside in terms of exploration and economics for the project, may exist at Magino based on the pending surface land acquisition.

In terms of resources, ounces were added at both La Colorada and El Castillo. Exploration drilling added 110,000 ounces at La Colorada's Veta Madre discovery. At El Castillo, additional metallurgical work conducted added 360,000 in-pit gold ounces.

In terms of improving efficiencies, capital projects aimed at decreasing the production costs at both El Castillo and La Colorada were implemented. Total gold equivalent production of almost 95,000 ounces at El Castillo and 26,000 ounces at La Colorada resulted in a gold equivalent ounce production increase of 7% year over year. Additionally, at La Colorada, the Company acquired the outstanding royalty providing full ownership of the project.

Lastly, Argonaut expanded our near term development projects by acquiring the San Agustin project located 10 km from El Castillo, and by increasing our land position at the Magino project. The San Agustin projects proximity and likeness to the El Castillo mine allows us to leverage our understanding and regional strength to undertake timely exploration and development. A surface and mining rights expansion agreement with Richmont Mines Ltd. ("Richmont") was signed. This provides a key strategic initiative for the Company as now the full Magino resource envelope (an additional 60% of the resource) at Magino may be exploited while allowing for additional exploration upside on the Richmont ground.

As an organization, we have made great accomplishments, and we look forward to the challenges and opportunities 2014 bring as we embark upon continuing the development of the Company in the future."


FOURTH QUARTER 2013 El CASTILLO OPERATING STATISTICS
----------------------------------------------------------------------------
                     3 Months Ended December 31  12 Months Ended December 31
                        2013     2012  % Change      2013     2012  % Change
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Mining (Tonnes 000s)
Total tonnes mined     7,574    6,695      +13%    26,997   24,052      +12%
Total ore tonnes
 mined                 3,764    3,321      +13%    13,621   11,962      +14%
Heap Leach Pad
 (Tonnes 000s)
Tonnes ore direct to
 leach pad             1,045    2,034      -49%     6,352    7,561      -16%
Tonnes crushed         1,407    1,282      +10%     5,736    4,555      +26%
Tonnes overland
 conveyor              1,312                        1,486
Production
Gold grade (g/t)        0.32     0.37      -13%      0.35     0.39       -9%
Gold loaded to leach
 pad (oz)             39,269   39,329         0   154,581  151,462       +2%
Gold produced (oz)    20,848   25,805      -19%    94,804   87,712       +8%
Gold sold (oz)        20,620   23,595      -13%    92,675   89,881       +3%
(1) "g/t" is grams
 per tonne
(2) "oz" means troy
 ounce

Richard Rhoades, Chief Operating Officer of Argonaut Gold, said, "At El Castillo, during the fourth quarter, production results were lower than anticipated, due to the processing of some transitional material which resulted in lower recovery. It is anticipated that the Company will progress through this material and by second quarter of this year we should see more traditional oxide ores and recovery improve. During 2014, the Company aims to deliver record ore tonnes to the pad, while lower ore grades are expected. The increase in tonnage should offset the lower grades and recoveries early in the year and we anticipate producing between 90-100 thousand ounces of gold.

At the La Colorada mine, the La Colorada pit has reached life of mine grades as the pit has been opened. During December, we were able to achieve average life of mine grade from the pit. While this is very encouraging, we are still experiencing lower than projected crusher throughput. We have brought additional crushing equipment to the site and believe that further increases can be made."


FOURTH QUARTER 2013 LA COLORADA OPERATING STATISTICS
----------------------------------------------------------------------------
                     3 Months Ended December 31  12 Months Ended December 31
                        2013     2012  % Change      2013     2012  % Change
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Mining (Tonnes 000s)
Total tonnes mined     4,536    2,945      +54%    16,335    7,174     +128%
Total ore tonnes
 mined                   434      923      -53%     1,747    3,332      -48%
Heap Leach Pad
 (Tonnes 000s)
Crushed ore tonnes
 to pad                  669      623       +7%     1,919    2,895      -34%
Production
Gold grade (g/t)        0.41     0.43       -4%      0.34     0.43      -21%
Gold loaded to leach
 pad (oz)              9,799    8,845      +11%    21,928   40,180      -45%
Gold produced (oz)     7,017    6,195      +13%    22,544   20,369      +11%
Silver produced (oz)  47,759   47,890         0   169,673  132,805      +28%
Gold equivalent
 ounces produced       7,800    7,097      +10%    25,420   22,828      +11%
Gold sold (oz)         6,298    5,907       +7%    22,234   19,900      +12%
Silver sold (oz)      40,800   54,108      -25%   173,751  116,717      +49%
(1) "g/t" is grams
 per tonne
(2) "oz" means troy
 ounce
(3) Conversion ratios used: Q4 2012 at 53:1, Q4 2013 at 61:1, full year 2012
 at 54:1, and full year 2013 at 59:1

2014 Development and Growth

Peter Dougherty said, "In 2014, we anticipate a production increase at La Colorada as the pit is opened up, higher tonnes are being processed and the grade continues to increase on the main ore zone. At El Castillo, we anticipate lower grade in 2014 and higher tonnes, as we move from the southeast side of the pit back to the main zone.

In terms of advancing projects, at San Antonio, we anticipate that we will be able to provide a third quarter update in regards to the zoning issue at the project. Currently, our hope is that this issue can be resolved to benefit all parties, paving the way for construction. Capital expenditures at San Antonio are subject to the permitting process.

At the newly acquired San Agustin property, a reverse circulation drill program totaling 14,000 meters (approx. 150 holes) and a core drill program totaling 1,000 meters (12-15 holes) is scheduled for completion during the first half of 2014. Further metallurgical test work is also planned for the San Agustin project. At Magino, permitting-related activities will continue."

Argonaut Gold Q4 Financial Results Conference Call and Webcast - March 25, 2013:

The Q4 financial results call is scheduled to take place on March 25, 2014 at 8:30 am ET. Details for the call-in participation are:


Q4 and Year End Conference Call Information for March 25, 2014:
Toll Free (North America):                            1-866-696-5910
International:                                        1-416-340-2217
Webcast:                                              www.argonautgold.com

Q4 and Year End Conference Call Replay:
Toll Free Replay Call (North America):                1-905-694-9451
International Replay Call:                            1-800-408-3053
Passcode:                                             4950688

The conference call replay will be available from 11:30 a.m. ET on March 25, 2014 to April 8, 2014.

About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo Mine in Durango, Mexico, and the La Colorada Mine in Sonora, Mexico. Advanced exploration stage projects are the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada. The recently acquired San Agustin project is the primary exploration target for Argonaut in 2014. The Company also has several exploration stage projects, all of which are located in North America.

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 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, 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 Thomas Burkhart, Argonaut Gold's Vice President of Exploration, and a Qualified Person under NI 43-101.

Non-IFRS Measures

The Company included the non-IFRS measure "Cash cost per gold ounce sold" in this press release to supplement its regular financial statement reporting which is 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. The Company believes that this measure provides investors with an improved ability 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 MD&A for full disclosure on non-IFRS measures.

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 Mine          NI 43-101 Technical Report on Resources and
                          Reserves, Argonaut Gold Inc., El Castillo Mine,
                          Durango State, Mexico dated November 6, 2010
----------------------------------------------------------------------------
La Colorada Mine          NI 43-101 Preliminary Economic Assessment
                          La Colorada Project, Sonora, Mexico dated December
                          30, 2011
----------------------------------------------------------------------------
Magino Gold Project       NI 43-101 Technical Report and Mineral Resource
                          Estimate on the Magino Gold Project, Ontario,
                          Toronto, Canada dated October 4, 2012
----------------------------------------------------------------------------
San Antonio Gold Project  NI 43-101 Technical Report and Mineral Resource
                          Estimate on the San Antonio Gold Project, Baja
                          California Sur, Mexico dated October 10, 2012
----------------------------------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...