Argonaut Gold (AR-T) trading on word of significant increases in its reserve and resource estimates at Magino, its troubled, under construction mine in Northern Ontario, and at Florida Canyon, in Nevada. The new estimate, says Mr. Young, president and chief executive officer, "underpins our belief that the combination of Magino and a development of Florida Canyon can provide the foundation for Argonaut's transition into a low-cost, mid-tier gold producer."
At Magino, Argonaut now lists 150.8 million tonnes measured and indicated at 0.94 gram of gold per tonne and 31.6 million tonnes inferred at 0.83 gram per tonne, good for a total of nearly 5.4 million ounces of gold. Of those, 2.36 million ounces are deemed a reserve. Marc Leduc, chief operating officer, applauded the resource as having grown, as a year ago there were nearly 900,000 ounces fewer, although he conceded that the Magino reserve was "largely unchanged." That is promoterese for slightly lower, as 66,000 ounces went poof courtesy of a higher gold-price cut-off.
Magino is the $500-million mine proposed in a 2017 feasibility study that became the $800-million boondoggle that cost Pete Dougherty his job in the corner office late in 2021. Mr. Dougherty's sacking was not the last bit of front-office carnage at Argonaut. His replacement, Larry Radford, saw prices rise further and he left within a year, citing "personal health reasons." Further cost overruns have followed, and Magino is now slated to cost $980-million to completion, so hopefully Mr. Young is not worrying himself sick. Argonaut did end well today, adding five cents to 65 cents on 10.65 million shares on the news.
By Business Reporter |
