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Argonaut Gold Ltd. announces productionresults, 80% improvement in gold production over Q1 20094/8/201010:07 AM - Canada NewsWire
TORONTO, Apr 8, 2010 (Canada NewsWirevia COMTEX News Network) --
Expansion Plans at El Castilloanticipated to yield further increases
Argonaut Gold Ltd. (TSX:AR), is pleased to provide production results for the first quarterperiod ending on March 31, 2010. The Company achieved record goldproduction of 10,200 ounces in Q1 of 2010 at its 100% owned El CastilloMine, located 100 km north of Durango, Mexico.
In discussing theresults, Argonaut Gold's President and CEO Peter Dougherty said: "I ampleased to report that since acquiring El Castillo in early January, keyoperational changes and upgrades to the mine have dramaticallyincreased overall gold production. The improvements made at El Castilloput the operation well on the way towards achieving a 75,000 ounce runrate in 2011".
Production Highlights for Q1 operating statisticsshow increase in total tonnes mined and gold recovered.
<<
- Record monthly production of 3,676 ounces in March 2010.
- Over 100% increase in total ore tonnes mined year over year.
- 91% increase in total material mined year over year.
- 80% increase in Gold ounces recovered year over year.
Q1 2010 Q1 2009
3/31/2010 3/31/2009
--------- ---------
Operating Statistics
Total Tonnes mined 2,888,489 1,509,900
Tonnes Ore 1,311,704 661,500
Tonnes Ore-direct to leach pad 999,121 452,900
Tonnes Crushed 314,403 198,500
Gold Grade (grams/tonne) 0.39 0.42
Gold Produced (ounces) 10,242 5,968
>>
Expansion Highlights for the Capital Expansion programsinitiated in 2010
During the last three months (ended on March31, 2010) Argonaut has made the following improvements at El Castillo.
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- Resource Expansion:
- 14,350 meters completed to date of a planned 16,000 meter drill
program to expand mineralization to the south and east.
Encouraging results from the program thus far will be used to
prepare a new National Instrument 43-101 report aimed at expanding
resources and reserves at El Castillo. (Refer to Press Release
dated March 31, 2010 on SEDAR's website or Argonaut Gold's
Website).
- Mining Capacity:
- Current quarterly rate demonstrates a 91% improvement over
Q1 2009.
- Approximately 1 million total tonnes mined in March of 2010.
- New mining contract negotiated for a 10% cost reduction over a six
year term at an average of
.97/tonne versus $1.06/tonne.
- New fleet of 100 ton trucks to arrive in July 2010 increasing
production to 1.5 million tonnes per month.
- Crushing Circuit Enhancement:
- Current quarterly rate shows a 58% increase in capacity over
Q1 2009.
- Over 108,000 tonnes crushed in March.
- Equipment in place to increase monthly crushing capacity to
300,000 tonnes per month.
- Commissioning has begun on the circuit.
- New crushing contract awarded for 5 years at a rate of $1.02/tonne
versus $1.95/tonne in 2009.
- Heap Leach Pad Capacity Expansion
- Completion of Pad 5 and Pad 6, providing approximately
5 million tonnes capacity
- Permitting granted for Pad 7 & East Pad
- Pad 7 is anticipated to provide approximately 5 million tonnes of
capacity, construction is underway with expected completion by the
end of June.
- East pad expansion design awarded to Golder Associates of
Denver, Colorado
- East pad cleared and construction underway. Initial phase I
designed capacity is 5 million tonnes.
- By year end 2010, the company will have 15 million tonnes of pad
capacity.
- Processing Plant
- New carbon tanks rolled & scheduled for delivery in mid May for
existing carbon plant.
- Construction for new east pad processing plant was awarded to
Kappes, Cassidy & Associates.
- The new east pad plant facility is scheduled for November
completion.
>>
Mr. Dougherty added: "Last week, Argonaut announced veryencouraging results from its ongoing drill program aimed at defining theapproximate limits of the El Castillo ore body to the south and east. Anew National Instrument 43-101 report will incorporate drill resultsfrom the 100 meter space drill program as well as results from anupcoming 50 meter spaced drill program. The results from these drillprograms, combined with the expansion initiatives at El Castillo thatare well underway with the crushing circuit startup and heap leach padcapacity increases, will lay the foundation for the anticipatedincreases in production, to an annualized run rate of 75,000 ounces ofgold per year at the end of 2011. The changes at the site, includingencouraging exploration results to date, provide management with theconfidence to deliver on the 2011 production target as well as insightstowards future potential increases in production".
About Argonaut
Argonaut is a Canadian gold company engaged in exploration, minedevelopment and production activities. Its primary assets being theproduction-stage El Castillo Project and the exploration-stage LaFortuna Project, both located in the State of Durango, Mexico. Argonautis a new venture created by former executive management team members ofMeridian Gold Inc.
Creating the Next Quality Mid-Tier GoldProducer in the Americas.
Cautionary Note RegardingForward-looking Statements
This news release containsforward-looking statements that involve risks and uncertainties thatcould cause results to differ materially from management's currentexpectations. Actual results may differ materially due to a number offactors. Except as required by law, Argonaut Gold Ltd. assumes noobligation to update the forward-looking information contained in thisnews release.
%SEDAR: 00025546E
SOURCE: Argonaut Gold Ltd.
Argonaut Gold Ltd., Nichole Cowles, Investor Relations Manager,Tel: (775) 284-4422 x 101, Email: nichole.cowles@argonautgoldinc.com,www.argonautgoldinc.com
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