TORONTO, July 28, 2020 /CNW/ - Argonaut Gold Inc.
(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased
to announce drill results from Phase Two of its drill campaign
specifically targeting high-grade mineralization below the proposed
pit at its 100% owned Magino property in Ontario, Canada, including 6.0 metres at 8.31
g/t Au, 1.0 metre of 48.50 g/t Au and 2.0 metres at 25.88 g/t
Au.
The Phase Two program has focused on tightening drill spacing
around high-grade intercepts encountered during the Phase One
program at both the Elbow Zone and Central Zone. The results
in this press release are from the Elbow Zone and the Company
anticipates reporting results from the Central Zone once all assays
have been received (Figure 1). To date, the Company has
completed 54 diamond drill holes, including six (6) wedge holes,
for a total of 34,852 metres of drilling in the Phase One and Phase
Two programs.
The Phase One program discovered a number of high-grade veins
over a widely spaced area beneath and adjacent to the Magino gold
reserve. Drill spacing in this initial phase was up to 400
metres between holes and reached vertical depths up to 1,000
metres. Phase Two of the program utilized structural modeling from
oriented core and optical televiewer measurements to focus on
defining gold continuity within the high-grade shoots. In
general, holes were designed to offset Phase One high-grade
intercepts by approximately 40 metres. Results to date show
promising gold grade continuity in the upper and deep portions of
the Elbow Zone.
Recent highlights include:
- MA20-040 with 20.0m at 4.58 g/t
Au, including 6.0m at 8.31 g/t
Au
- MA20-041A with 16.0m at 4.86 g/t
Au, including 1.0m at 48.50 g/t
Au
- MA20-026A with 7.0m at 7.84 g/t
Au, including 2.0m at 25.88 g/t
Au
- MA20-026AW5 with 3.0m at 7.01 g/t
Au, including 2.0m at 10.31 g/t
Au
- MA20-038 with 4.0m at 8.70 g/t
Au, including 1.0m at 29.10 g/t
Au
- MA20-039 with 6.0m at 5.49 g/t
Au, including 1.0m at 25.20 g/t
Au
Pete Dougherty, President and CEO
stated: "We continue to intersect high-grade gold and more
importantly, we are seeing promising high-grade continuity within
the Elbow Zone where we have now tightened drill spacing averaging
between 40 metres and 50 metres in two areas. We are
anxiously awaiting results from Phase Two drilling in the Central
Zone where, like results from the Elbow Zone, we continue to
encounter visible gold."
Table 1 below highlights select drill results from the Elbow
Zone from the on-going Phase Two program. A three-dimensional
model of the Magino deposit and the Elbow zone in relation to the
proposed pit and property boundaries is available on the Company's
website at
https://www.argonautgold.com/English/assets/drill-results/default.aspx
Table 1: Select Drill Results – Phase Two
Hole
|
Azimuth
|
Dip
|
From
(metres)
|
To
(metres)
|
Length
(metres)
|
Grade
(Au
g/t)
|
Estimated
True Width
(metres)
|
MA20-026A
|
170.20
|
-80.1
|
984.00
|
991.00
|
7.00
|
7.84
|
5.60
|
including
|
|
|
984.00
|
986.00
|
2.00
|
25.88
|
1.60
|
MA20-026AW1
|
170.00
|
-79.9
|
934.00
|
938.25
|
4.25
|
8.67
|
3.40
|
including
|
|
|
937.00
|
938.25
|
1.25
|
28.10
|
1.00
|
MA20-026AW2
|
170.00
|
-79.9
|
950.00
|
952.15
|
2.15
|
5.28
|
1.72
|
MA20-026AW3
|
170.00
|
-79.9
|
928.00
|
929.00
|
1.00
|
5.65
|
0.80
|
MA20-026AW5
|
170.20
|
-80.1
|
1017.00
|
1020.00
|
3.00
|
7.01
|
2.40
|
including
|
|
|
1017.00
|
1019.00
|
2.00
|
10.31
|
1.60
|
MA20-038
|
155.4
|
-68.0
|
387.00
|
391.00
|
4.00
|
8.70
|
3.20
|
including
|
|
|
390.00
|
391.00
|
1.00
|
29.10
|
0.80
|
and
|
|
|
419.00
|
424.00
|
5.00
|
4.63
|
4.00
|
including
|
|
|
423.00
|
424.00
|
1.00
|
18.90
|
0.80
|
and
|
|
|
611.00
|
614.00
|
3.00
|
5.71
|
2.40
|
including
|
|
|
613.00
|
614.00
|
1.00
|
15.10
|
0.80
|
MA20-039
|
145.3
|
-58.9
|
39.00
|
41.00
|
2.00
|
10.31
|
1.50
|
including
|
|
|
39.00
|
40.00
|
1.00
|
18.90
|
0.75
|
and
|
|
|
388.00
|
390.80
|
2.80
|
5.50
|
2.10
|
including
|
|
|
389.00
|
390.00
|
1.00
|
14.70
|
0.75
|
and
|
|
|
459.00
|
465.00
|
6.00
|
5.49
|
4.50
|
including
|
|
|
464.00
|
465.00
|
1.00
|
25.20
|
0.75
|
MA20-040
|
139.6
|
-62.1
|
389.00
|
397.00
|
8.00
|
5.05
|
6.00
|
including
|
|
|
395.00
|
396.00
|
1.00
|
22.60
|
0.75
|
and
|
|
|
444.00
|
464.00
|
20.00
|
4.58
|
15.00
|
including
|
|
|
450.00
|
456.00
|
6.00
|
8.31
|
4.50
|
MA20-041A
|
147.3
|
-54.2
|
333.00
|
349.00
|
16.00
|
4.86
|
12.80
|
including
|
|
|
333.00
|
346.00
|
13.00
|
5.74
|
10.40
|
including
|
|
|
345.00
|
346.00
|
1.00
|
48.50
|
0.80
|
MA20-042
|
156.1
|
-74.1
|
892.00
|
906.00
|
14.00
|
1.86
|
10.50
|
All Elbow Zone drill results as well as maps and sections are
available on the Company's website at
https://www.argonautgold.com/English/assets/drill-results/default.aspx
A detailed structural analysis was incorporated into the vein
model for the Elbow Zone, where three veins contain high-grade gold
mineralization. Normal and wedge drilling was then
implemented to complete close-spaced offsets, nominally 40 metres,
around three high-grade zones intersected in Phase One (Figures 1
and 2).
In the upper Elbow Zone, four additional holes were completed to
test continuity around MA19-016 that returned 9.63 g/t Au over
14.0 m. A total of ten (10)
holes have now been completed in Phases One and Two around hole 16
(Figure 3). All have intercepted significant gold values over
estimated true widths (ETW) of 4.0
m to 15.0 m (Figure 3).
High-grade values show good continuity throughout the zone as
illustrated by hole MA20-041A which returned 4.86 g/t Au over
16.0 m core length, including a
higher-grade portion running 14.09 g/t Au over 4.0 m and MA20-039 which returned 5.49 g/t Au
over 6.0 m including 13.86 g/t Au
over 2.0 m. Table 1 lists other
significant intercepts.
A second area of continuity drill testing focused on the deeper
part of the Elbow Zone to a vertical depth over 900 m from surface (Figure 4). The deepest
hole to date, MA20-026A, returned 7.84 g/t Au over 7.0 m (984.0 to 991.0
m with an ETW of 5.60 m)
including a higher-grade intercept of 47.8 g/t Au over 1.0 m (985.0 to 986.0m). Four (4) wedge holes were drilled
to test the continuity of gold mineralization at these depths at an
average hole spacing of 40 m.
All four hit mineralization including 8.67 g/t Au over 4.25 m in MA20-026AW1 and 7.01 g/t Au over
3.0 m in MA20-026W5. This
mineralization remains open at depth.
Phase Two drilling is nearing completion within the Elbow Zone,
with a series of offset holes in progress around MA19-020 (10.59
g/t Au over 4.95 m) establishing a
third continuity test zone. This zone is about 650 m deep and lies approximately halfway between
the continuity tests noted above around MA19-016 (Figure 3) and
MA20-026A (Figure 4), thus giving three sequentially deeper
continuity drill tests starting from the bottom of the proposed
Magino ultimate pit to a vertical depth of over 1000 m.
Brian Arkell, Vice President
Exploration stated: "I'm very encouraged with the grade and
continuity from an underground mining standpoint. We've
drilled a diamond pattern at approximately 30 to 50 metre spacing
around MA19-016 from the Phase One program, which returned 14.0
metres at 9.63 g/t Au, and have consistently hit the zone with
high-grade mineralization in each of the surrounding holes.
Approximately 450 metres below this, our second infill pattern
around hole MA20-26 showed similar results with good grade and
continuity. We are finalizing a third pattern on the Elbow
Zone and have shifted one drill to the Central Zone offsetting
Phase One intercept MA19-012, which returned 18.1 metres of 8.31
g/t Au. We are looking forward to receiving and publishing
these results, as initial results indicate the Central Zone will
demonstrate similar continuity based on what we see visually in the
drill core."
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, the Cerro del
Gallo project in Guanajuato,
Mexico and the Ana Paula project in Guerrero, Mexico. 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.