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Argonaut Gold Ltd. announces productionresults,80% improvement in gold production over Q1 20094/8/201010:07AM - Canada NewsWire
TORONTO, Apr 8, 2010 (Canada NewsWireviaCOMTEX News Network) --
Expansion Plans at El Castilloanticipated toyield further increases
Argonaut Gold Ltd. (TSX:AR), is pleasedto provide production results for the first quarterperiod ending onMarch 31, 2010. The Company achieved record goldproduction of 10,200ounces in Q1 of 2010 at its 100% owned El CastilloMine, located 100 kmnorth of Durango, Mexico.
In discussing theresults, ArgonautGold's President and CEO Peter Dougherty said: "I ampleased to reportthat since acquiring El Castillo in early January, keyoperationalchanges and upgrades to the mine have dramaticallyincreased overall goldproduction. The improvements made at El Castilloput the operation wellon the way towards achieving a 75,000 ounce runrate in 2011".
ProductionHighlights for Q1 operating statisticsshow increase in total tonnesmined and gold recovered.
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- Record monthly production of3,676 ounces in March 2010.
- Over 100% increase in total oretonnes mined year over year.
- 91% increase in total material minedyear over year.
- 80% increase in Gold ounces recovered year overyear.
Q1 2010 Q1 2009
3/31/2010 3/31/2009
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Operating Statistics
Total Tonnes mined2,888,489 1,509,900
Tonnes Ore1,311,704 661,500
Tonnes Ore-directto leach pad 999,121 452,900
TonnesCrushed 314,403 198,500
GoldGrade (grams/tonne) 0.39 0.42
GoldProduced (ounces) 10,242 5,968
>>
ExpansionHighlights for the Capital Expansion programsinitiated in 2010
Duringthe last three months (ended on March31, 2010) Argonaut has made thefollowing improvements at El Castillo.
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- Resource Expansion:
-14,350 meters completed to date of a planned 16,000 meter drill
programto expand mineralization to the south and east.
Encouraging resultsfrom the program thus far will be used to
prepare a new NationalInstrument 43-101 report aimed at expanding
resources and reserves atEl Castillo. (Refer to Press Release
dated March 31, 2010 on SEDAR'swebsite 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.
- Newmining contract negotiated for a 10% cost reduction over a six
yearterm at an average of
.97/tonne versus $1.06/tonne.
- New fleetof 100 ton trucks to arrive in July 2010 increasing
production to 1.5million tonnes per month.
- Crushing Circuit Enhancement:
-Current quarterly rate shows a 58% increase in capacity over
Q12009.
- Over 108,000 tonnes crushed in March.
- Equipment inplace to increase monthly crushing capacity to
300,000 tonnes permonth.
- Commissioning has begun on the circuit.
- New crushingcontract 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 milliontonnes 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 ofJune.
- East pad expansion design awarded to Golder Associates of
Denver,Colorado
- East pad cleared and construction underway. Initialphase I
designed capacity is 5 million tonnes.
- By year end2010, the company will have 15 million tonnes of pad
capacity.
-Processing Plant
- New carbon tanks rolled & scheduled fordelivery in mid May for
existing carbon plant.
- Construction fornew east pad processing plant was awarded to
Kappes, Cassidy &Associates.
- The new east pad plant facility is scheduled forNovember
completion.
>>
Mr. Doughertyadded: "Last week, Argonaut announced veryencouraging results from itsongoing drill program aimed at defining theapproximate limits of the ElCastillo ore body to the south and east. Anew National Instrument 43-101report will incorporate drill resultsfrom the 100 meter space drillprogram as well as results from anupcoming 50 meter spaced drillprogram. The results from these drillprograms, combined with theexpansion initiatives at El Castillo thatare well underway with thecrushing circuit startup and heap leach padcapacity increases, will laythe foundation for the anticipatedincreases in production, to anannualized run rate of 75,000 ounces ofgold per year at the end of 2011.The changes at the site, includingencouraging exploration results todate, provide management with theconfidence to deliver on the 2011production target as well as insightstowards future potential increasesin production".
About Argonaut
Argonaut is a Canadian goldcompany engaged in exploration, minedevelopment and productionactivities. Its primary assets being theproduction-stage El CastilloProject and the exploration-stage LaFortuna Project, both located in theState of Durango, Mexico. Argonautis a new venture created by formerexecutive management team members ofMeridian Gold Inc.
Creatingthe Next Quality Mid-Tier GoldProducer in the Americas.
CautionaryNote RegardingForward-looking Statements
This news releasecontainsforward-looking statements that involve risks and uncertaintiesthatcould cause results to differ materially from management'scurrentexpectations. Actual results may differ materially due to anumber offactors. Except as required by law, Argonaut Gold Ltd. assumesnoobligation to update the forward-looking information contained inthisnews release.
%SEDAR: 00025546E
SOURCE: Argonaut GoldLtd.
Argonaut Gold Ltd., Nichole Cowles, Investor RelationsManager,Tel: (775) 284-4422 x 101, Email:nichole.cowles@argonautgoldinc.com,www.argonautgoldinc.com
Copyright(C) 2010 CNW Group. All rightsreserved.