Argonaut Gold exceeds 2012 guidance with gold production of 108,081 ounces
Friday, Jan 18, 2013Argonaut Gold Inc. ("Argonaut Gold" or the "Company") (TSX:AR), announced today that the Company achieved record gold production of 32,000 ounces during the 4th quarter ended December 31, 2012. This included 25,805 ounces at its 100% owned El Castillo Mine ("El Castillo") in Durango, Mexico and 6,195 ounces at its 100% owned La Colorada Mine ("La Colorada") in Sonora, Mexico. All dollar amounts are in US dollars except as otherwise noted.
Richard Rhoades, Chief Operating Officer of Argonaut Gold said "Year-end production at El Castillo of 87,712 gold ounces came in above increased guidance of 85,000 ounces for the year. The team at El Castillo team delivered yet another quarter of continued improvement, providing a 10% increase over the initial 2012 guidance. In addition to exceeding guidance expectations, the Company has seen dramatic improvement in crushing at the operation. The operation is now crushing at a rate of approximately 5 million tonnes per year."
Production has approached a near steady state at El Castillo. Higher grade material during the fourth quarter of 2012 provided for production of over 25,000 ounces against to guidance of 21-22,000 ounces for the quarter. In 2013, the operation anticipates lower grades, offset by higher volumes of material, for an estimated 5-10% increase over total 2012 production.
FOURTH QUARTER 2012 LA COLORADA OPERATING RESULTS
Overburden removal continues at La Colorada in preparation for full scale mining. During the fourth quarter, the crusher was relocated with a minimal impact to the production plan. Fourth quarter production provided 6,195 ounces of gold, for a total 2012 production of 20,369 ounces. Final production exceeded expectations due to higher than anticipated recoveries from the reprocessing of material and positive grade reconciliation.
In discussing the Company's fourth quarter and year end highlights, Mr. Pete Dougherty, President and CEO said "2012 has been a year of significant accomplishments for Argonaut Gold's employees. The Company has delivered on operational production expectations and added an important project, Magino, for future growth and development.
The El Castillo production rate has shown continual improvement quarter over quarter. La Colorada has exceeded initial expectations while forming the foundation for the future. There is still more work to be done to elevate the Company to the status of a mid-tier producer and I am grateful for what has been accomplished so far."
Argonaut Gold Q4 and Year End Financial Results Conference Call and Webcast:
The Q4 and year end financial results call is set to take place on March 26, 2013 at 8:30 am ET. Details for the call in participation are included below:
The conference call replay will be available from 10:30 a.m. ET on March 26, 2013 until April 2, 2013.