Argonaut adds resources at its two operating assets

VANCOUVER (miningweekly.com) – On the heels of pouring first gold at its brand-new San Agustin project earlier this week, Mexico-focused miner Argonaut Gold has also increased the pit-constrained resources at its two operating mines, the company has advised.

At El Castillo, the Toronto-based miner added about 328 000 oz of gold, after it acquired the adjacent San Juan concession in February. Subsequent resource expansion drilling programmes, has lifted the compliant measured and indicated resources to about 814 000 oz of gold, the company said.

Between December 31,and July 1, Argonaut had depleted about 63 000 oz of gold, leaving about 751 000 oz of contained gold ounces at El Castillo at July 1.

At La Colarada, drilling mainly focused at the El Creston pit, where the company added about 57 000 oz of gold and 391 000 oz of silver, bringing the indicated resource to about 617 000 oz of gold and 10.3-million ounces of silver. Between December 31 and July 1, the company depleted about 31 000 oz of gold and 408 000 oz of silver through mining, leaving about 586 000 oz of contained gold and 9.9-million ounces of contained silver at La Colorada at July 1.

“We had a successful year of resource drilling which will extend the mine lives at both El Castillo and La Colorada. We are now preparing to publish updated life-of-mine plans at both El Castillo and La Colorada during the first quarter of 2018,” president and CEO Pete Dougherty noted.

Argonaut expects to produce between 115 000 oz and 130 000 oz of gold equivalent, calculated at a silver-to-gold ratio of 70:1.