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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Klipper2 who wrote (76619)	4/14/2020 8:29:17 PM
From: stuffbug	Read Replies (1) \| Respond to of 78425

Argonaut Gold is a good acquisition candidate even though they are merging with Alio Gold. The company has a couple of mines in Mexico and the Magino project in Canada that abuts on to the Island Gold mine. Magino is open pit whereas Island Gold is an underground operation. Earlier this year Argonaut released some drill holes with good results from targets under the open pit. Along the ridge, grades increase with depth. The on-going, 20,000 meter exploration program at the Magino property is demonstrating extensions to the Island Gold structure. Argonaut had some hiccups with their Mexican mines last year (Q4 results were ugly) but mining operations are expected to improve as the year wears on. That is one reason for the low share price. Also, the street doesn't know how they will finance construction of the Magino mine ($300+ million); project now has its environmental permits in hand. The upshot is that Argonaut will most likely be acquired by Alamos Gold (who owns the Island Gold deposit and also has operations in Mexico). So, there are massive synergies between the two companies. A 75% premium would still be a steal for Alamos (AGI), who had their own issues in 2019 (problems with permits in Turkey). On the daily chart, Argonaut could be in the process of forming either a cup and handle or an inverse head and shoulders pattern.