Argonaut Gold Inc T.AR

Magino

[ritamlajci]

IMO, Magino has a tremendous  potential.

production 126,000 oz/yr
aisc $711 per oz
LOM 17 years
development cost $321M 

With an average gold price at $1,350
126,000 x ($1,350 - $711) x 17 = $1.37B
And minus $321, still over $1B

With gold at $1,500
$1.80B - $321M = $1.48B

With gold at $1,800
$2.33B - $321 = $2B

$2B not bad for this “inferior” mine.

I would say that Magino alone is worth more than today’s Argonaut enterprise value.

Magino currently has more P+P ounces than the Island Gold mine (2.137M vs. 1.215M) and these ounces are within only 300m from the surface.

[templetooth2]

Rita, I admire your enthusiasm and share your optimism about Magino. I too think it will be a very reasonable project, and most importantly, Argonaut has in place the equity component to bring it to production. Other projects may look better on paper, but lack that all too important 30-40% equity component that lenders demand. Your math is a little off, however. When you hear "all in

[ritamlajci]

I am aware that AISC doesn’t cover all costs but it covers the most of them. As for Jaime Carasco, he is well respected and his previous comments  regarding Argonaut were much better. Today, he seemed confused and I think that he mistaken QMX (Eldorado has nearly 20% stake there). Argonaut made a deal with Urbangold, not QMX. Anyway, he stated in the past that he owns and likes Argonaut.

[bobofet]

Yes Magino has a lot of possibilties and room to grow it seems.  But some times we forget about the other growth potentials.   Building this mine in Canada is going to be expensive,,, its Canada.   But they have amassed alot of lands  this Ana Paula mine in Mexico was supposedly interesting,,, but than thats southern Mexico ,, hmmm.   Point is with so many