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Argonaut Gold Announces Updated Mineral Resources and Reserves

Mar 30, 2023

Argonaut Gold reported mineral resources and reserves increased at its two principal North American assets: the Magino Project, which is in the final stages of construction, located in Dubreuilvillle, Ontario and the Florida Canyon Mine located in Nevada, USA. 

Measured and indicated mineral resources increased by 14% to 5.7 million gold ounces, while inferred mineral resources more than quadrupled to 3.0 million gold ounces. On a consolidated basis, measured and indicated mineral resources total 11.3 million gold ounces, inferred mineral resources total 3.5 million gold ounces, and proven and probable mineral reserves total 5.6 million gold ounces effective December 31, 2022.

At the Magino site, most of the measured, indicated and inferred mineral resources fall into a larger open pit cone, as the deeper high-grade drill results from the 2022 exploration program targeting underground potential ended up floating into a deeper open pit cone. 

Magino’s mineral reserve estimate remains largely unchanged from the prior year at 2.4 million gold ounces. Prior year reserves were estimated using a long-term gold price of $1,600 per ounce, while this year the Company is reporting mineral reserves using $1,350 per ounce, removing 66,000 ounces of low- grade material from reserves as a result. Magino is expected to achieve commercial production in the third quarter of 2023.

“Magino is a large high-quality asset with significant growth and expansion potential. This year, we expect to begin a program to convert resources to reserves within the open pit, and target the high-grade potential at depth,” stated Marc Leduc, Chief Operating Officer. “We believe Magino will grow in size and quality to become Argonaut’s cornerstone asset and one of the largest, lowest-cost gold mines in Canada.”
At Florida Canyon, Inferred mineral resources increased to 2.1 million gold ounces from 20,000 gold ounces last year, in part due to the inclusion of 28,956 metres of drilling, and initial inclusion of sulfide mineralization. The inclusion of 700,000 ounces of sulfide mineralization helped pull an additional 1.35 million ounces of oxide mineralization into a large economic pit. The mineral reserve estimate for Florida Canyon remains largely unchanged at 930,000 gold ounces, as additional drilling offset depletion and loss from higher costs.

“Our Florida Canyon mine has significant growth potential as it resembles many gold deposits in Nevada where large sulfide deposits exist below oxide mineralization. Florida Canyon has produced 2.8 million ounces of gold since it opened in 1986, demonstrating a geological system that created significant gold mineralization. Last year, we drilled FCM-0124 that had a mineralized interval of 73 metres at 8.8 grams per tonne gold, which demonstrates the high-grade nature in some of the sulfide zones. The focus this year will be on updating the geologic model for the property and beginning a proof-of-concept drilling program on the sulfides to demonstrate the growth opportunity of this asset,” added Mr. Leduc.

The measured and indicated mineral resources at the Company’s two principal assets increased by 14% to 5.7 million gold ounces, while Inferred mineral Resources more than quadrupled to 3.0 million gold ounces. On a consolidated basis, Measured and Indicated Mineral Resources total 11.3 million gold ounces, Inferred Mineral Resources total 3.5 million gold ounces, and Proven and Probable Mineral Reserves total 5.6 million gold ounces effective December 31, 2022.

“This updated resource statement underpins our belief that the combination of Magino and a redevelopment of Florida Canyon can provide the foundation for Argonaut’s transition into a low- cost mid-tier gold producer in North America,” stated Richard Young, President and Chief Executive Officer.

For more information contact:

Joanna Longo
Argonaut Gold Inc.
Investor Relations
Phone: 416-575-6965
Email: joanna.longo@argonautgold.com

Image Location of Magino Mine

Tags: Northern Ontario / Operational Updates / Gold / All Articles