TORONTO, Feb. 16, 2017 /CNW/ – Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to provide its three-year production outlook, updated mineral reserves and resources at its operating mines and a general corporate update. All dollar amounts are expressed in United States dollars unless otherwise specified.
Three-Year Production Outlook
Based on life-of-mine planning at December 31, 2016, the Company anticipates it will achieve production growth on a gold equivalent ounce1 (“GEO”) basis as its San Agustin and La Colorada projects ramp up and lower the overall cost profile. The Company’s goal is to achieve annual all-in sustaining costs per gold ounce sold2 at or below $950. Table 1 below illustrates the Company’s three-year GEO production outlook:
| Table 1 – Three-Year GEO Production Outlook | |||
| Year | El Castillo/San Agustin(1) Complex GEO Production (000s) |
La Colorada GEO Production (000s) |
Consolidated GEO Production (000s) |
| 2017 | 70 – 80 | 45 – 50 | 115 – 130 |
| 2018 | 90 – 100 | 65 – 70 | 155 – 170 |
| 2019 | 115 – 125 | 55 – 60 | 170 – 185 |
| (1) San Agustin 2017 guidance includes all expected production during the year. 2017 revenues and costs prior to declaration of commercial production will be capitalized. |