TORONTO, ONTARIO--(Marketwire - May 13, 2010)- Argonaut Gold Ltd. (TSX:AR) is pleased to announce that its 2010 PhaseI Resource Expansion Program at El Castillo was completed on April 22nd. This program was designed to extend andidentify the approximate limits of the El Castillo mineral system to thesouth and east of the reported gold resource. This program consisted ofcompleting a minimum 100 meter drill grid as a means to better identifythe approximate size of the El Castillo mineral system. Results of the121 hole drill program, spanning 16,250 meters, have significantlyincreased the dimensions of the gold zone by upwards of 500 meters tothe south and 300 to 400 meters to the east. Several areas remain openand will require additional step-out drilling. (Please refer to contourmap of mineral distribution & supporting cross section location mapand cross sections on Company website, www.argonautgoldinc.com).
PeteDougherty, President and CEO for Argonaut noted, "All indicationscontinue to support the probability that the El Castillo resources areexpected to double from what was reported at the end of 2009." He alsostated that "El Castillo was acquired, in part, for its explorationupside and it is gratifying to see the exploration success at theproject. It is also important to note that the drilling was completedahead of schedule and on budget."
Subsequent to the Company's lastpress release on March 31, 2010 an additional 30 holes were completedwith the best results tabulated as follows:
*Note:Reported mineral widths have not been verified as true widths as moredrilling will be required to identify the orientation of themineralization. All distances shown are in meters.
(For afull table of drill results please refer to the Company website, www.argonautgoldinc.com).
Phase2 in-fill drill Program
Immediately upon the conclusionof the Phase I, 100 meter drill-spacing program, the Company embarked onan aggressive in-fill drill program that is expected to bring much ofthe known mineralization into a measured and indicated category. Theobjective of the in-fill program is to drill-out the resource on 50meters or less spacing. This program commenced on April 23 and willconsist of an estimated 140 drill holes totaling approximately 16,000meters. This program is scheduled for completion by the end ofSeptember. The results of the 2010 drill programs will be incorporatedinto a new 43-101 report that is scheduled for completion by the end of2010.
Other work currently in the planning stages on the projectfor 2010 includes the completion of at least six core holes within theore body to obtain metallurgical samples. These samples will be utilizedto better determine potential heap leach recoveries of partiallyoxidized gold bearing material (Transition Ore) and sulfidemineralization. Both the transition and sulfide zones occur below theoxide mineralization and represent considerable tonnages of goldmineralized material that could add significantly to the long termeconomics of the El Castillo Mine. (See Castle Gold Corporation pressrelease May 7, 2009).
La Fortuna, Llano Colorado and LaCompa
With the acquisition of Castle Gold and the ElCastillo Mine, the Company also acquired the advanced exploration stageLa Fortuna gold-silver project in western Durango State and the La Compaand Llano Colorado gold-silver exploration properties in Sonora State,Mexico.
Sufficient drilling at the La Fortuna project has beencompleted to produce a compliant NI-43-101 report, with a measured andindicated resource of 4.8 million tons grading 2.96 g/t for 308,000ounces of gold at a 0.5 gpt cutoff (Toren Olson Consulting, NationalInstrument 43-101 (October 21, 2008). Prior to Argonaut acquiring theproperty the most recent emphasis on the project was metallurgicalstudies where both heap leach and conventional milling possibilitieswere being studied. Argonaut is reviewing the results andrecommendations of this work. In addition, the Company is consideringadditional step-out and in-fill drilling of the resource area. The LaFortuna property also hosts at least 20 other known mineral occurrences.Six of these were recommended for drilling by independent geologistscontracted by the previous owner of the property. Argonaut is in theprocess of prioritizing these various targets and will conduct furtherfield evaluations leading to specific exploration planning.
On theLa Compa and Llano Colorado properties field visits are scheduled togauge the potential of both land holdings with additional project workcontingent on these initial exploration results.
As stated by VicePresident of Exploration Tom Burkhart, "The ongoing in-fill and stepout drilling at El Castillo continues to increase our knowledge andunderstanding of the mineral system. This work is providing increasedconfidence in the predictability and continuity of mineralization thatbodes well for significantly expanding economic mineralization andprioritizing exploration activity. Additionally, I look forward tofurther evaluating the economic potential of other properties within thecompany's portfolio that, based on preliminary reviews, show attractivepotential."
To view the El Castillo Project, pleasevisit the following link: https://media3.marketwire.com/docs/AR0513S.jpg
AboutArgonaut
Argonaut is a Canadian goldcompany engaged in exploration, mine development and productionactivities. Its primary assets being the production-stage El CastilloProject and the exploration-stage La Fortuna Project, both located inthe State of Durango, Mexico. Argonaut is a new venture created byformer executive management team members of Meridian Gold Inc. Creatingthe Next Quality Mid-Tier Gold Producer in the Americas.
QualifiedPerson Comments/Quality Control Procedures
ThisPress Release was reviewed and approved by Thomas Burkhart, B.Sc. inGeology, Argonaut Gold's Vice President of Exploration. Mr. Burkhart is aQualified Person as defined in National Instrument 43-101.
Mr.Burkhart reviewed the reverse circulation drill program and on-sitesample preparation procedures at El Castillo.
All drill hole sampleswere composited at site into 1.5 meter intervals and split with halfthe sample transported to ALS-Chemex's sample preparation lab inHermosillo, Mexico. Pulps are prepared in Hermosillo and then sent toALS-Chemex's Laboratories in Vancouver, Canada where gold assays arecompleted using a fire assay procedure with an Atomic AbsorptionSpectroscopy finish. The Company utilizes a system of check assays andsample blanks consistent with industry standards.
Tobe reported here there must be a minimum of 5 meters of material whereeach sample interval is equal to or exceeds a .15 gram per tonne cutoff(which is representative of the current AC Howe pit design).
CautionaryNote Regarding Forward-looking Statements
This newsrelease contains forward-looking statements that involve risks anduncertainties that could cause results to differ materially frommanagement's current expectations. Actual results may differ materiallydue to a number of factors. Except as required by law, Argonaut GoldLtd. assumes no obligation to update the forward-looking informationcontained in this news release.