Mr. Pete Dougherty reports
ARGONAUT GOLD ANNOUNCES COMPLETION OF EL CRESTON CONFIRMATION DRILLING AT ITS LA COLORADA MINE
Argonaut Gold Inc. has completed a 70-hole reverse-circulation drill program. The program's primary objective was to confirm historical gold-silver resource estimates for its El Creston gold-silver deposit at the La Colorada mine located in Sonora, Mexico (indicated mineral resource of 14.4 million tonnes at 0.618 gram per tonne gold and 12.1 g/t silver and inferred mineral resource of 2.2 million tonnes at 0.887 g/t Au and 13.3 g/t Ag -- see preliminary economic assessment technical report with an effective date of Oct. 15, 2011).
The La Colorada mine sequencing plan calls for a series of three pits: La Colorada-Gran Central, El Creston and Veta Madre. The company is currently mining in the La Colorada-Gran Central pit, and the mine plan calls for stripping to begin at El Creston during the fourth quarter of 2016.
The company's objectives with this drill program were to both confirm the mineral resource completed by previous mine operators during the 1990s and also to drill test areas where mineralization could be projected beyond the known resource. The drill program consisted of 70 RC holes totalling approximately 10,600 metres.
Pete Dougherty, president and chief executive officer, commented, "The results of the drill program are very encouraging as they not only show confirmation of the known resource but also show greater widths and higher grades, which bolster our excitement about the upside at La Colorada as we look to start mining the El Creston pit later this year."
Gold samples were capped at 10 g/t Au. The attached table illustrates key highlight holes from the drill program.
KEY HIGHLIGHT HOLES
Interval
Hole From (m) To (m) (m) Au g/t Ag g/t
16-LCRC-464
Interval 6.1 12.2 6.1 5.95 19.5
Including 6.1 9.1 3.0 10.00 (i) 33.7
Interval 76.2 108.2 32.0 1.74 74.0
Including 77.7 82.3 4.6 6.91 470.6
Including 100.6 102.1 1.5 10.00 (i) 17.7
16-LCRC-466
Interval 24.4 64.0 39.6 0.80 4.8
Including 25.9 27.4 1.5 10.00 (i) 8.6
Including 61.0 62.5 1.5 3.55 2.5
Interval 73.2 117.3 44.2 0.86 5.3
Including 82.3 85.3 3.0 2.88 1.8
Including 106.7 111.3 4.6 2.87 22.4
16-LCRC-470
Interval 163.1 249.9 86.9 0.80 7.5
Including 205.7 222.5 16.8 2.39 12.6
Including 248.4 249.9 1.5 3.39 31.8
16-LCRC-415
Interval 24.4 51.8 27.4 1.29 15.4
Including 29.0 35.1 6.1 3.05 34.6
Including 45.7 48.8 3.0 2.59 14.3
16-LCRC-440
Interval 99.1 143.3 44.2 2.12 16.6
Including 112.8 118.9 6.1 8.24 11.9
16-LCRC-412
Interval 29.0 45.7 16.8 0.32 14.4
Interval 97.5 118.9 21.3 2.87 182.5
Including 97.5 99.1 1.5 6.08 184.0
Including 102.1 103.6 1.5 10.00 (i) 655.0
16-LCRC-413
Interval 30.5 57.9 27.4 1.63 35.9
Including 42.7 45.7 3.0 9.47 78.2
16-LCRC-444
Interval 73.2 146.3 73.2 1.40 15.0
Including 93.0 97.5 4.6 6.46 19.6
Including 103.6 108.2 4.6 6.13 11.1
16-LCRC-439
Interval 114.3 140.2 25.9 1.57 33.8
Including 128.0 131.1 3.0 8.03 95.3
Interval 193.5 210.3 16.8 1.27 66.2
Including 199.6 201.2 1.5 3.69 66.2
Interval 219.5 233.2 13.7 0.44 10.2
Interval 242.3 259.1 16.8 0.25 9.6
Interval 269.7 277.4 7.6 2.37 55.5
Including 269.7 271.3 1.5 9.85 198.0
16-LCRC-448
Interval 158.5 173.7 15.2 0.31 29.7
Interval 237.7 259.1 21.3 1.70 45.4
Including 246.9 249.9 3.0 10.00 (i) 125.6
16-LCRC-435
Interval 137.2 169.2 32.0 1.16 109.6
Including 146.3 152.4 6.1 3.64 360.0
Interval 193.5 202.7 9.1 0.19 49.5
Interval 210.3 236.2 25.9 0.55 43.0
Including 210.3 213.4 3.0 2.10 72.4
Interval 253.0 263.7 10.7 0.80 22.0
Including 253.0 256.0 3.0 1.95 52.0
16-LCRC-472
Interval 143.3 259.1 115.8 0.49 28.6
Including 157.0 161.5 4.6 5.62 236.3
16-LCRC-471
Interval 126.5 152.4 25.9 1.10 128.3
Including 132.6 141.7 9.1 2.16 81.1
Interval 216.4 237.7 21.3 1.11 42.8
Including 216.4 217.9 1.5 6.92 139.0
(i) The gold grade was capped at 10 grams per tonne.
Tom Burkhardt, vice-president, exploration, stated: "The drill results support the mineralization model, and in some cases, we are seeing higher-grade and thicker intervals than expected. We also note that the mineralization continues downdip to the north below the current pit limits. It was a very successful program in that the drilling not only confirmed the historical mineralization model but also provided us with numerous drill targets as we look to the future."
Qualified person comments/quality control procedures
The preparation of this press release was supervised and approved by Mr. Burkhart, Argonaut Gold's vice-president of exploration and a qualified person under NI 43-101. Mr. Burkhart also reviewed the reverse circulation and on-site sample preparation procedures at La Colorada.
For sample analysis, the company utilizes a system of quality assurance/quality control that includes insertion and verification of standards, blanks and duplicates consistent with industry standards.
Samples from the El Creston deposit are collected at site by Argonaut's personnel and transported to ALS-Chemex preparation laboratory in Hermosillo, where samples are prepared and pulps sent for assay in ALS-Chemex's Vancouver, B.C., laboratory. Samples are analyzed for gold by fire assay and atomic absorption finish (Au-AA23 assay code; 0.005- to 10-part-per-million detection limit) plus silver by aqua regia and atomic absorption finish (0.1- to 100-part-per-million detection limit). Samples over 10 g/t Au are assayed with gravimetric finish (assay code Au-GRA21).
Argonaut is not aware of any legal, political, environmental or other risks that could materially affect the potential development of the El Creston deposit other than those set out in its annual information form filed on SEDAR.
For further information regarding the La Colorada mine, please see the technical report titled National Instrument 43-101 preliminary economic assessment, La Colorada project, Sonora, Mexico, effective Oct. 15, 2011.
We seek Safe Harbor.
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