AR-T
Argonaut Gold Announces Drill Results at La Colorada Mine's El Creston Deposit that Signal Potential Open Pit Expansion
TORONTO, March 20, 2017 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce that it has completed a 22 hole reverse-circulation ("RC") drill program totaling 5,139 metres at the La Colorada mine in Sonora, Mexico (the "2017 drill program"). The drilling was designed to test for the down dip extension of potential open pit mineralization at the El Creston deposit. The Company believes the results of the 2017 drill program, coupled with the results of 70 RC holes drilled during 2016 (see press release dated October 3, 2016) (the "2016 drill program"), have the potential to expand the El Creston open pit beyond its current design. The recently completed El Creston drill program was mainly designed to convert Inferred Resource projected down-dip to a Measured and Indicated Resource. All 22 holes were spaced along the northern fringes of the historical El Creston pit and drilled to intersect mineralized zones that dip northerly below the currently designed pit limits. In addition to upgrading Inferred Resources and confirming Indicated Resource, the 2017 drill program was intended to further de-risk the project prior to the commencement of mining. Table 1 below illustrates the El Creston deposit Mineral Resource estimate year-over-year that was most recently updated at December 31, 2016 and shows the high conversion rate of Inferred Resource to Indicated Resource through the 2016 drill program as well as the ability to discover new Inferred Resource. The results from the 2017 drill program are not included in the Mineral Resource estimate.
Table 1: El Creston Mineral Resource Estimate – 2015 vs. 20161
El
Creston
Deposit | | Class | | Tonnes(000s) | | Au
Grade(g/t) | | Au Ozs(000s) | | Ag
Grade(g/t) | | Ag Ozs(000s) | | December | | Indicated | | 12,869 | | 0.61 | | 251 | | 12.5 | | 5,154 | | 31, 2015 | | Inferred | | 487 | | 0.92 | | 14 | | 17.9 | | 280 | | | | | | | | | | | | | | | | December | | Indicated | | 13,097 | | 0.63 | | 264 | | 16.5 | | 6,937 | | 31, 2016 | | Inferred | | 2,381 | | 0.82 | | 63 | | 12.1 | | 923 |
1 The El Creston Deposit December 31, 2015 Mineral Resource Estimate was updated internally and reviewed by Qualified Persons Mike Lechner and Richard Rhoades. The Mineral Resource update used a gold price of $1,300 and a silver price of $18. A gold equivalent cut-off grade of 0.106 g/t was used.
The El Creston Deposit December 31, 2016 Mineral Resource Estimate was updated internally and reviewed by Qualified Persons Mike Lechner and Richard Rhoades. The resource update used a gold price of $1,400 and a silver price of $20. A cut-off grade of 0.11 g/t Au was used and is supported by the current operating costs. The Mineral Resources are confined within a conceptual pit using MineSight software and slope templates developed by Golder Associates.
Pete Dougherty, President and CEO commented: "The results of the drill campaigns over the past 11 months have further delineated and de-risked the El Creston deposit and give us further confidence in the potential to expand the El Creston open pit beyond its current design. These results substantiate the Company's decision to accelerate stripping at El Creston and is an example of how brownfields exploration continues to yield positive results at La Colorada."
Gold samples were capped at 10 g/t Au. Table 2 below illustrates key highlight holes from the 2017 drill program. For a full table of all drill results, plan view maps and cross sections, please visit: argonautgold.com
Table 2: Key Highlight Holes
| Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-479 | 180 | 65° | | | | | | | Interval | | | 161.5 | 166.1 | 4.6 | 0.32 | 1 | | Interval | | | 175.3 | 190.5 | 15.2 | 0.62 | 5 | | Including | | | 179.8 | 182.9 | 3.0 | 1.69 | 8 | | Interval | | | 195.1 | 214.9 | 19.8 | 0.72 | 10 | | Including | | | 201.2 | 204.2 | 3.0 | 2.32 | 17 | | Including | | | 211.8 | 213.4 | 1.5 | 1.93 | 7 | | Interval | | | 245.4 | 257.6 | 12.2 | 0.44 | 5 | | Interval | | | 265.2 | 271.3 | 6.1 | 0.33 | 5 | | Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-481 | 180 | 53° | | | | | | | Interval | | | 189.0 | 192.0 | 3.0 | 0.15 | 4 | | Interval | | | 199.6 | 240.8 | 41.1 | 1.15 | 6 | | Including | | | 199.6 | 201.2 | 1.5 | 3.81 | 2 | | Including | | | 225.6 | 230.1 | 4.6 | 6.57 | 24 | | Including | | | 231.6 | 233.2 | 1.5 | 2.62 | 7 | | Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-482 | 180 | 50° | | | | | | | Interval | | | 100.6 | 106.7 | 6.1 | 0.16 | 10 | | Interval | | | 147.8 | 166.1 | 18.3 | 0.26 | 33 | | Interval | | | 201.2 | 208.8 | 7.6 | 0.49 | 2 | | Interval | | | 213.4 | 240.8 | 27.4 | 0.96 | 5 | | Interval | | | 248.4 | 251.5 | 3.0 | 0.65 | 9 | | Interval | | | 262.1 | 278.9 | 16.8 | 2.69 | 3 | | Including | | | 262.1 | 268.2 | 6.1 | 6.86 | 5 | | Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-483 | 180 | 50° | | | | | | | Interval | | | 123.4 | 128.0 | 4.6 | 0.21 | 1 | | Interval | | | 150.9 | 153.9 | 3.0 | 0.28 | 11 | | Interval | | | 184.4 | 243.8 | 59.4 | 1.24 | 6 | | Including | | | 184.4 | 185.9 | 1.5 | 7.39 | 7 | | Including | | | 189.0 | 195.1 | 6.1 | 3.32 | 8 | | Including | | | 219.5 | 224.0 | 4.6 | 2.85 | 6 | | Including | | | 227.1 | 228.6 | 1.5 | 10.00 | 10 | | Interval | | | 248.4 | 249.9 | 1.5 | 6.89 | 5 | | Interval | | | 262.1 | 268.2 | 6.1 | 0.19 | 10 | | Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-484 | 180 | 57° | | | | | | | Interval | | | 135.6 | 137.2 | 1.5 | 1.08 | 2 | | Interval | | | 155.4 | 157.0 | 1.5 | 1.30 | 3 | | Interval | | | 179.8 | 182.9 | 3.0 | 0.89 | 6 | | Interval | | | 190.5 | 242.3 | 51.8 | 0.52 | 4 | | Interval | | | 251.5 | 253.0 | 1.5 | 0.22 | 14 | | Interval | | | 259.1 | 262.1 | 3.0 | 0.67 | 1 | | Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-485 | 180 | 59° | | | | | | | Interval | | | 106.7 | 115.8 | 9.1 | 0.38 | 28 | | Interval | | | 184.4 | 233.2 | 48.8 | 0.97 | 12 | | Including | | | 208.8 | 211.8 | 3.0 | 1.56 | 5 | | Including | | | 217.9 | 224.0 | 6.1 | 1.74 | 3 | | Including | | | 231.6 | 233.2 | 1.5 | 10.00 | 24 | | Interval | | | 245.4 | 268.2 | 22.9 | 0.32 | 4 | | Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-486 | 180 | 57° | | | | | | | Interval | | | 167.6 | 222.5 | 54.9 | 0.89 | 5 | | Including | | | 170.7 | 172.2 | 1.5 | 10.00 | 9 | | Including | | | 196.6 | 198.1 | 1.5 | 3.08 | 13 | | Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-489 | 180 | 55° | | | | | | | Interval | | | 201.2 | 207.3 | 6.1 | 0.24 | 81 | | Interval | | | 214.9 | 251.5 | 36.6 | 1.22 | 12 | | including | | | 217.9 | 221.0 | 3.0 | 6.36 | 21 | | including | | | 234.7 | 237.7 | 3.0 | 4.83 | 22 | | Interval | | | 288.0 | 345.9 | 57.9 | 1.00 | 4 | | including | | | 298.7 | 309.4 | 10.7 | 4.22 | 3 | | Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-490 | 180 | 57° | | | | | | | Interval | | | 152.4 | 285.0 | 132.6 | 1.29 | 24 | | including | | | 155.4 | 157.0 | 1.5 | 4.17 | 27 | | including | | | 166.1 | 170.7 | 4.6 | 8.19 | 44 | | including | | | 184.4 | 187.5 | 3.0 | 7.05 | 274 | | including | | | 268.2 | 272.8 | 4.6 | 3.64 | 103 | | Hole | Azimuth | Dip | From (m) | To (m) | Interval
(m) |
Au (g/t) | Ag (g/t) | | 17-LCRC-492 | 180 | 69° | | | | | | | Interval | | | 166.1 | 181.4 | 15.2 | 1.32 | 4 | | including | | | 167.6 | 169.2 | 1.5 | 10.00 | 19 | | Interval | | | 185.9 | 213.4 | 27.4 | 1.01 | 16 | | including | | | 195.1 | 199.6 | 4.6 | 4.86 | 25 | | Interval | | | 217.9 | 222.5 | 4.6 | 3.00 | 70 | | including | | | 219.5 | 221.0 | 1.5 | 6.53 | 85 | | Interval | | | 228.6 | 236.2 | 7.6 | 0.35 | 22 |
Tom Burkhart, Vice President of Exploration commented: "The El Creston open pit exploits a large structural controlled vein system that comes to surface and dips to the north. This system was an important historical producer in the district and an obvious drill target beneath the designed pit. We are very pleased that the 2017 drill program confirms what we suspected and are optimistic that these encouraging results will positively impact the continuing development of the El Creston deposit."
Qualified Person Comments / Quality Control Procedures
The preparation of this Press Release was supervised and approved by Thomas Burkhart, Argonaut Gold's Vice President of Exploration and a Qualified Person under NI 43-101. Mr. Burkhart also reviewed the reverse circulation and on-site sample preparation procedures at La Colorada.
For sample analysis, the Company utilizes a system of Quality Assurance/Quality Control that includes insertion and verification of standards, blanks and duplicates consistent with industry standards.
Samples from the El Creston deposit are collected at site by Argonaut's personnel and transported to ALS-Chemex preparation laboratory in Hermosillo, where samples are prepared and pulps sent for assay in ALS-Chemex's Vancouver, BC laboratory. Samples are analyzed for gold by fire assay and atomic absorption finish (Au-AA23 assay code; 0.005 to 10 ppm detection limit) plus silver by aqua regia and atomic absorption finish (0.1 to 100 ppm detection limit). Samples over 10 g/t Au are assayed with gravimetric finish (Assay code Au-GRA21).
Argonaut is not aware of any legal, political, environmental or other risks that could materially affect the potential development of the El Creston deposit other than those set out in its annual information form filed on www.sedar.com. Please see below under the heading "cautionary note regarding forward-looking financial information" for further details regarding risks facing Argonaut.
For further information regarding the La Colorada Mine, please see the Technical Report titled National Instrument 43-101 Preliminary Economic Assessment La Colorada Project Sonora, Mexico effective October 15, 2011.
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 and the construction stage San Agustin project in Durango, Mexico and the production stage La Colorada mine in Sonora, Mexico. Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada. The Company also has several exploration stage projects, all of which are located in North America. |
