Month: September 2017

Defiance Announces $1.45M First Tranche of Private Placement Closed

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https://www.defiancesilver.com/news/defiance-announces-usd1-45m-first-tranche-of-private-placement-closed

Defiance Silver Corp. (“Defiance”) is pleased to announce that it has closed the first tranche of its private placement in the amount of $1,458,000 and issued 4,860,001 Units at a price of $0.30 per Unit. These Units are subject to a four month hold period expiring January 20, 2018. Defiance management and directors have subscribed for a total of 310,000 Units.

The proceeds of the private placement will be used by Defiance to commence a drill program at the San Acacio Silver Deposit located in Zacatecas, Mexico as well as for working capital purposes.

Each Unit consists of one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to acquire one additional common share of Defiance for a period of twenty-four (24) months at an exercise price of $0.45. Finder’s fees of $112,920 and 376,400 finders’ warrants were paid in connection with the first tranche of the private placement. Each finder’s warrant entitles the holder to acquire one common share of Defiance at $.45 for 24 months.

Highlights on the Third Week of September, 2017. Mineral Exploration in Mexico

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During the 38th week of the year (September 18th to September 24th, 2017), at least 26 press releases were announced by companies working in Mexico. ON MEXICO ISSUES, Primero Mining acknowledged the receipt of US$4.6 M of VAT refunds. ON EXPLORATION, in Sonora, Azure is to begin a 5,000 m drill program at Oposura, and San Marco is re-shaping its exploration strategy in Chunibas, to reflect the new porphyry model for the mineralization. In Chihuahua, Radius is giving shape to a coherent epithermal target at its Amalia project, and Mammoth released trench results from its Tenoriba property. In Hidalgo, Prospero is to start drilling at El Petate. ON MINING, Argonaut poured the first gold from its San Agustin project in Durango. Primero Mining is struggling while ramping up production at San Dimas, in Durango. ON FINANCING, Telson Resources entered into a loan facility for US5 M with Trafigura. McEwen Mining entered into a bought deal financing for US$46.6 M. Alamos Gold increased its revolving credit facility to US$400 M ON RESOURCES AND DEVELOPMENT; Americas Silver released a new resource estimate for its Cosalá operations in Sinaloa. Torex Gold released high-grade intercepts from the sub-sill zone at its El Limon-Guajes mine in Guerrero. Argonaut Gold updated mineral the mineral resource estimate for its La Colorada and El Castillo mines in Sonora and Durango, respectively. Alio Gold received an important permit on its Ana Paula project in Guerrero, and is working on the definitive feasibility study (DFS). ON DEALS AND CORPORATE ISSUES, Rose Petroleum presented an update on its operations in Sinaloa, and some notes on the transferal of its San Dieguito mill in Nayarit to Magellan Gold. Alio Gold is to commence the construction of a 1,200 m long decline at its Ana Paula project in Guerrero. Primero Mining provided an update on its operations, along with a description of its financial struggle. Soleil Capital and Goldplay Exploration are to create a TSX listed company. Goldgroup Mining provided its side of the story on the legal battle with DynaResource Inc.

ON MEXICO ISSUES

  • Primero Mining Inc. acknowledged having received US$4.6 M in VAT refunds from the Mexican authorities in two installments over July and August, and is working closely with the SAT to recover in due time the outstanding US$32 M.

ON EXPLORATION

  • Azure Minerals Ltd. plans to start a 100 diamond hole, 5,000 m drill program at its Oposura property in Sonora during October, once the permits have been received. “Drilling by previous explorers of 85 surface holes tested the mineralised zone over an area of approximately 1,400m (east-west) x 400m (north-south) (see Figure 1). Early drilling by Azure will twin some of these historical holes to assess whether they can be used in defining the deposit and estimating the mineral resource”. With all the historical and recent work compiled Azure has derived an exploration target of 2.5 M tonnes @ 10% – 12% Zn+Pb.
  • Prospero Silver Corp. has received from SEMARNAT the permit to drill the Petate property in Hidalgo. Drilling is to start on September 17th, 2017, with 12 holes to test four targets: Apartadero SE, Apartadero Central, Tajo and Petate #3. “High-level epithermal alteration is exposed over a 5×4 km area with highly anomalous gold and silver hosted in extensive outcrops and float of steep to strata-bound jasperoid.”
  • Radius Gold Inc. released high-grade channel sampling results from the recently optioned Amalia property in Chihuahua. At the Campamento zone, where a 150 m by 300 m zone of intense silicification, brecciation and stockwork veining has been mapped, results include 62 m @ 0.43 g/t Au, 98 g/t Ag; 14 m @ 1.47 g/t Au, 167 g/t Ag; including 7 m @ 2.37 g/t Au, 239 g/t Ag. At the Guadalupe target, a quartz sulfide vein breccia hosted in andesites returned 7 m @ 3.62 g/t Au, 1,048 g/t Ag; 7 m @ 2.4 g/t Au, 188 g/t Ag; 4 m @ 3.92 g/t Au, 888 g/t Ag. At Dulces Nombres the vein in a short tunnel returned 1 m @ 34 g/t Au, 13 g/t Ag; 1 m @ 20.3 g/t Au, 44 g/t Ag; 1.5 m @ 114.5 g/t Au, 57 g/t Ag. Au-Ag mineralization occurs over a vertical interval of 600 m, at multiple targets over 3.5 km of strike length.
  • Mammoth Resources Corp. released channel sample results from 14 trenches at its Tenoriba project in Chihuahua. Results include (true width) 11.5 m @ 0.64 g/t Au, 2 g/t Ag; 16.0 m @ 0.38 g/t Au, 4 g/t Ag; 15.5 m @ 0.99 g/t Au, 6 g/t Ag in the Moreno zone; 7.0 m @ 1.28 g/t Au, 8 g/t Ag; 13.5 m @ 1.50 g/t Au, 3 g/t Ag; 10.0 m @ 0.42 g/t Au, 7 g/t Ag; 6.2 m @ 0.88 g/t Au, 4 g/t Ag at the Carneritos zone; 13.1 m @ 0.66 g/t Au, 1 g/t Ag; 6.4 m @ 0.47 g/t Au, 10 g/t Ag in the Masuparia zone and 6.4 m @ 0.54 g/t Au, 2 g/t Ag in the Cerro Colorado zone.
  • San Marco Resources Inc. is readjusting its exploration strategy to accommodate an evolving geologic model on its Chunibas project in Sonora. The discovery of breccias in the recent core drilling program led to re-mapping and re-logging of the core, and the generation of a larger porphyry related breccia gold model with over printing epithermal quartz-carbonate veining. The surface mineralized footprint is 3 km x 1.5, and still open. The gold mineralization occurs disseminated and vein controlled. The re-logging of the core highlighted an 88 m breccia interval @ 0.37 g/t Au, and several drill holes present magnetite bearing potassic alteration associated with elevated gold grades. To test the property under the new model a magnetic survey is to be undertaken, along with the extension of some soil lines and deeper drill holes.

ON MINING

  • Argonaut Gold Inc. announced the first pour of gold at San Agustin, Durango, as scheduled. Impressive is the claim by the company of having had no lost time accidents during the 10 months construction period.
  • Primero Mining Corp. informed that the expected ramp-up production following successful negotiations with unionized workers has been significantly delayed due to persistent issues with underground equipment reliability, which has impacted development rates and stoping activities. As a result the production guidance has been lowered to 75 K to 85 K Oz AuEq at total cash costs of between $800 and $900 per AuEq Oz and all-in sustaining cost (AISC) of $1,050 to $1,150 per Au Oz.

ON FINANCING

  • Telson Resources Inc. has entered into a loan facility and offtake agreements with Trafigura Mexico, S.A. de C.V., to sell 100% of the lead and zinc concentrate produced at its Campo Morado mine in Guerrero. The US$5 M loan has a three-year term with a six-month grace period followed with 30 repayment installments. The loan facility matures on September 2010 and bears interest at rate equal to LIBOR (3M) plus 5%.
  • McEwen Mining Inc. has entered into an agreement on a bought deal basis under which up to 9 M shares are to be purchased, for gross proceeds of $46.6 M, before deducting underwriting commissions and estimated offering expenses. If all the associated warrants are exercised before the two year expiration date aggregate proceeds are to reach US$74 M.  (El Gallo, Sinaloa).
  • Alamos Gold Inc. has secured amendments to its existing undrawn revolving credit facility, including an increase of the facility from US$150 M to US$400 M on more favourable terms (Mulatos, La Yaqui; Sonora).

ON RESOURCES AND DEVELOPMENT

  • Americas Silver Corp. released an updated mineral reserve and resource estimate for its Cosalá operations in Sinaloa. Proven and probable mineral reserves stand at 4.0 M tonnes @ 100 g/t Ag, 0.02% Cu, 1.6% Pb, 3.9% Zn; Measures and indicated resources include 8.0 M tonnes @ 128 g/t Ag, 0.24% Cu, 0.5% Pb, 1.2% Zn; Inferred mineral resources include 4.1 M tonnes @ 147 g/t Ag, 0.33% Cu, 0.6% Pb, 1.0% Zn. The updated estimate reflects the drilling programs conducted at the property between January 2016 and the end of June 2017.
  • Torex Gold Resources Inc. released high-grade intercepts in the step-out drilling to the NW of the current Sub-Sill resource area, at its El Limon-Guajes mine in Guerrero. Some highlighted core length intercepts comprise 19.3 m @ 41.4 g/t Au, 43 g/t Ag, 2.1% Cu; including 5.6 m @ 69.8 g/t Au, 57 g/t Ag, 1.7% Cu; 35.9 m @ 5.7 g/t Au, including 3.5 m @ 32.2 g/t Au and 3.5 m @ 14.1 g/t Au; 4.8 m @ 8.5 g/t Au, 20 g/t Ag, 1.2% Cu; 6.1 m @ 15.7 g/t Au. A 240 m step-out drill hole intercepted 3.6 m @ 11.6 g/t Au. These results confirm the potential for extending the current resource, already defined in an area of 250 m x 150 m. “The Sub-Sill area is located between the El Limon and El Limon Sur ore deposits and under the El Limon Sill. The Sub-Sill area occurs in the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene granodiorite stocks, sills and dikes. Skarn-hosted gold mineralization is developed along the contacts of the intrusive rocks and the enclosing carbonate-rich sedimentary rocks”.
  • Argonaut Gold Inc. provided updated pit-constrained mineral resource estimates for its El Castillo and La Colorada mines in Durango and Sonora respectively. At El Castillo measured and indicated resources stand at 63.97 M tonnes @ 0.36 g/t Au, and inferred resources at 1.57 M tonnes @ 0.36 g/t Au, for contained 751 K Oz Au and 18 K Oz Au respectively. At La Colorada indicated resources stand at 29.87 M tonnes @ 0.61 g/t Au, 10 g/t Ag and inferred resources of 1.24 M tonnes @ 0.80 g/t Au, 12 g/t Ag, for contained 596 K OZ Au, 9.9 M Oz Ag and 32 K Oz Au, 488 K Oz Ag respectively.
  • Alio Gold Inc. received approval for its change of land use application from SEMARNAT on its Ana Paula project in Guerrero. A definitive feasibility study (DFS) was initiated on July 2017 and is expected to be completed on the second quarter of 2018. The Pre-feasibility study (PFS) contemplated $137 M in capital for construction of the mine, Alio has $64 M of cash on hand and is looking to raise between $90 and $100 M in project financing.

ON DEALS AND CORPORATE ISSUES

  • Rose Petroleum PLC. Entered into a memorandum of understanding with Magellan Gold Corp. for transferring 100% interest on the San Dieguito de Arriba mill in Nayarit. Magellan is to pay Rose a total consideration of US$1.5 M, with US$1.0 M in cash and US$0.5 M in Magellan restricted common shares. Rose operated the mill for 10 years with ore from its Charay mine in Sinaloa. The company continues to hold the 3,954 has Tango property in Sinaloa, with permitting for drilling Cu-Mo porphyry targets and the Au-Ag vein structure.
  • Alio Gold Inc. has approved the construction of a $16 M, 1,200 m long decline and exploration program at its Ana Paula project in Guerrero. The decline permitting has been approved by SEMARNAT, and mobilization of the contractor is expected to begin in October 2017. In about nine months, once the decline has reached its target, A 20,000 m underground drilling program with 80 holes is to test the high-grade mineralization below the planned pit.
  • Primero Mining Corp. “continues to operate in a cash conservation mode as management works on possible alternatives to refinance or repay its upcoming debt obligation. The Company continues with negotiations on the potential sale of San Dimas or potential renegotiation of its silver stream. Primero had approximately $12 million in cash at August 31st and has fully-drawn its $75 million revolving credit facility (“RCF”). The Company expects to use the proceeds from Black Fox transaction to reduce its total debt position.” “Primero has recently received approximately $4.6 million in Mexican VAT refunds over two instalments in July and August, and is working closely with SAT to arrange for the remaining eligible outstanding VAT amounts totalling $32 million to be refunded in due course.”
  • Soleil Capital Corp. signed a letter of intent (LOI) with Goldplay Exploration Ltd. to create a public TSX listed precious metals exploration company utilizing Goldplay’s exploration strategy and experience in the Rosario district, in Sinaloa. The resulting issuer will be named Goldplay Exploration Ltd.
  • Goldgroup Mining Inc. states that the company was never notified of the court case where DynaResource Inc. was awarded US$48 M (See last week Highlights), and does not recognize any of the claims therein “and is of the belief that such claims are entirely without merit.”

Content like what you have just read can be seen at https://gambusinoprospector.com/ and at LinkedIn’s Mexico Mineral Exploration Group.

On the picture below, high-grade gold milky quartz vein with pyrrothite in Chihuahua, near Batopilas. Photo by Jorge Cirett.

DSCN5549

Goldgroup Provides a Legal Update

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https://www.goldgroupmining.com/news/news-releases/2017/goldgroup-provides-a-legal-update

Vancouver, British Columbia (September 22, 2017) – Goldgroup Mining Inc. (“Goldgroup” or the “Company”) (TSX:GGA, OTC:GGAZF, BMV SIX:GGAN.MX) would like to provide a legal update in regards to DynaResource, Inc.’s (“DynaUSA”) award in excess of USD$48 million in damages against the Company. On August 24, 2017, a Federal Amparo judge in the state of Veracruz, Mexico, dismissed Goldgroup Resources Inc.’s Amparo challenge. Goldgroup’s position in response to the USD$48 million claim remains the same with its previous press release (see Goldgroup’s August 31, 2016 and October 14, 2015 press releases). Goldgroup was never notified of the purported court case, and does not recognize any of the claims mentioned therein and is of the belief that such claims are entirely without merit. More importantly, the Company expects the claim to be voided at the Mexican Supreme Court level due to the unambiguous arbitration result in favor of Goldgroup in August, 2016.

“We remain confident in our position and expect that we will get favorable resolution in all current legal proceedings and regain control of San Jose de Gracia,” said Keith Piggott, Chairman, President and CEO of Goldgroup, “We’ll continue to work towards the enforcement of the favorable results and award from the conclusion of the arbitration between Goldgroup and Dyna USA” (see press release on August 31, 2016).

Mammoth Resources Corrects Disclosure on Previous Press Release at the Request of IIROC

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https://www.newsfilecorp.com/release/29191/Mammoth-Resources-Corrects-Disclosure-on-Previous-Press-Release-at-the-Request-of-IIROC#.WcW-isjyjIU

Toronto, September 22, 2017 – Mammoth Resources Corp. (TSXV: MTH), (the “Company”), at the request of IIROC would like to clarify previous disclosure in the press release regarding its channel sampling program dated September 21, 2017. Mammoth would like to clarify the disclosure “Mammoth Resources Reports Average 0.77 Grams per Tonne Gold Equivalent over a Total Of 129 Metres”, that the total length of the average 0.77 grams per tonne gold equivalent over a total of 129 meters consisted of assay results from 12 separate sample locations taken at discreet points along the approximate 5 kilometre strike length, and was not a single continuous channel. Also Mammoth would like to clarify that the samples taken were taken as close to perpendicular to the strike of the geological structures sampled and were not taken along the strike of the geological structures of the 5 kilometre strike. And finally, Mammoth retracts the averaging of the results of the channel samples as the average 0.77 grams per tonne gold equivalent over 129 metres did not represent a single continuous representative sample. In addition, two low grade sample intervals were omitted that would have negatively influenced the calculated “average”.

Soleil Capital Corp. Announces Qualifying Transaction

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http://www.newswire.ca/news-releases/soleil-capital-corp-announces-qualifying-transaction-646451833.html

CALGARY, Sept. 21, 2017 /CNW/ – Soleil Capital Corp. (TSX.V: SOLE.P – the “Company” or “Soleil“), a capital pool company (a “CPC“), is pleased to announce it has entered into a letter of intent dated September 21, 2017 (the “LOI“) to enter into an arm’s length business combination transaction (the “Proposed Transaction“) with Goldplay Exploration Ltd. (“Goldplay“).  Goldplay is a private mineral exploration company incorporated under the laws of British Columbia and active in gold exploration in the Rosario Gold District, Sinaloa, Mexico (the “Rosario District“).

The purpose of the Proposed Transaction is the creation of a public, TSX Venture Exchange-listed, Mexico-focused, precious metals exploration company utilizing Goldplay’s mineral exploration strategy and experience related to the Rosario District.  The working capital of the combined entity (the “Resulting Issuer“), upon successful closing of the Proposed Transaction and the Concurrent Financing (as defined herein) will be approximately CDN$2,000,000, sufficient to support Goldplay’s current 12 month exploration strategy, and the ongoing evaluation of new opportunities.

Soleil intends that the Proposed Transaction will constitute its Qualifying Transaction, as such term is defined in the policies of the TSX Venture Exchange (the “Exchange“).  Upon completion of the Proposed Transaction, the Company expects that the Resulting Issuer will be named Goldplay Exploration Ltd. and will be listed as a Tier 2 Mining Issuer on the Exchange.

ALAMOS GOLD ANNOUNCES INCREASE IN CREDIT FACILITY TO US$400 MILLION

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http://www.alamosgold.com/news-and-media/news-releases/news-releases-details/2017/Alamos-Gold-Announces-Increase-in-Credit-Facility-to-US400-Million/default.aspx

TORONTO, ONTARIO–(Marketwired – Sept. 21, 2017) –

All amounts are in United States dollars, unless otherwise stated.

Alamos Gold Inc. (TSX:AGI)(NYSE:AGI) (“Alamos” or the “Company”) is pleased to announce that it has secured amendments to its existing undrawn revolving credit facility (the “Facility”) including an increase in the size of the Facility from US$150 million to US$400 million on more favourable terms.

Under the amended Facility, the Company will benefit from improved pricing at its current leverage ratio including undrawn fees of 0.45% and drawn fees of LIBOR plus 2.00%. This compares to undrawn fees of 0.48% and drawn fees of LIBOR plus 2.125% under the previous credit facility. The Facility remains undrawn and the Company debt free with cash and equity securities of approximately US$150 million as of June 30, 2017. The maturity date of the Facility has been extended to September 20, 2021.

“The amended facility adds significant liquidity on very attractive terms. Combined with existing cash and expected cash from the recently announced acquisition of Richmont Mines, Alamos will be debt free with more than US$600 million of available liquidity. This greatly improves our financial flexibility as we fund development of our portfolio of growth projects,” said John A. McCluskey, President and Chief Executive Officer.

The amended Facility was joint-led by the Bank of Nova Scotia, BMO Capital Markets, and TD Securities. Additionally, the syndicate includes the Canadian Imperial Bank of Commerce, National Bank of Canada, HSBC Bank Canada, ING Capital LLC, and Export Development Canada.

Alio Gold Receives Change Of Land Use Approval And Provides Ana Paula Project Update

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http://aliogold.com/investors/news-releases/index.php?&content_id=355

September 21, 2017, Vancouver, BC – Alio Gold Inc. (TSX, NYSE AMERICAN: ALO) (“Alio Gold” or the “Company”), is pleased to provide a project update and announce that the Company has received approval for its Change of Land Use application from SEMARNAT (Mexico’s Secretary of Environment and Natural Resources) for its high grade, high margin Ana Paula Project located in Guerrero, Mexico (“Ana Paula” or the “Project”).

Key Highlights

  • Permitting milestone achieved with approval of Change of Land Use application
  • Financing proposals received indicate Project highly financeable
  • Advancing the definitive feasibility study towards completion with an investment decision expected in the second quarter of 2018

“Obtaining approval for our Change of Land Use application is the second major milestone in the permitting of Ana Paula after approval of our Environmental Impact Assessment back in April,” said Greg McCunn, Chief Executive Officer. “As we launch an exciting exploration initiative to enhance the already robust economics of Ana Paula, we are also continuing to move the Project forward towards an investment decision in the second quarter of 2018. Now that major permitting milestones are behind us, our focus is on completing the definitive feasibility study and arranging project financing. In addition, we are enhancing community and social efforts to ensure we continue to maintain respectful and mutually beneficial relationships with the surrounding communities.”

San Marco Expands the Footprint of the Newly Discovered Chunibas Porphyry-Related Breccia Gold System and Outlines Exploration Plans

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https://www.sanmarcocorp.com/news/2017/san-marco-expands-the-footprint-of-the-newly-discovered-chunibas-porphyry-related-breccia-gold-system-and-outlines-exploration/

Vancouver, B.C. – September 21, 2017: San Marco Resources Inc. (SMN: TSX-V) (“San Marco”) announces the results and recommendations of the recent Chunibas Project exploration program. As noted in the Company’s news release dated August 9th, 2017 regarding the Chunibas property, the discovery of breccias in the recent core drilling program has lead to the re-mapping of surface outcrops property wide, re-logging of the core, and generation of a revised exploration program based on the new, larger porphyry-related breccia gold model/target. As a result of this recent geological work, drilling is recommended, following a few additional surface exploration activities outlined below.

Exploration Results

The Chunibas Project is now viewed as a porphyry-related breccia gold system. Highlights include:

  • Surface mineralized footprint of 3 kilometres X 1.5 kilometres and remains open.
  • Gold mineralization occurs disseminated and vein controlled.
  • The Company is encouraged to see three stages of mineralizing development, which are apparent in the discovery:
    1) initial property-wide emplacement of an igneous breccia which intruded older diorite and andesite rocks;
    2) a magmatic hydrothermal pulse where mineralising fluids emplaced disseminated gold in the breccias; and
    3) late, overprinting epithermal gold-bearing quartz-carbonate veins cross cut all previous rock types.
  • Re-logging of the CHD-01 drill hole reveals it to host 88 metres grading 0.37 g/t gold disseminated in igneous breccias. The previously reported drill intercept in CHD 01 did not include this much wider zone of gold mineralization within breccias.
  • Several drill holes cut magnetite-bearing potassic alteration associated with elevated gold grades. In some cases holes ended in significant, but previously unrecognized mineralization. The last assay in CHD-03 is 1.05 g/t gold and last assay in CHD-02 is 2.4 g/t gold.
  • The alteration styles are indicative of a porphyry system.

Mammoth Resources : Reports Average 0.77 Grams per Tonne Gold Equivalent over a Total of 129 Metres in Surface Trenching Channel Sampling Program at Its Tenoriba Precious Metal Property, Mexico

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http://www.4-traders.com/MAMMOTH-RESOURCES-CORP-9691295/news/Mammoth-Resources-Reports-Average-0-77-Grams-per-Tonne-Gold-Equivalent-over-a-Total-of-129-Metres-25154768/

Toronto, Ontario–(Newsfile Corp. – September 21, 2017) – Mammoth Resources Corp.(TSXV: MTH ), ( the “ Company “ ) is pleased to announce results from the final 2 surface channels cut and sampled at its Tenoriba precious metal property in Chihuahua State, Mexico and average grade of the various channels cut during this program. The most recent results are from the Los Carneritos and the Cerro Colorado areas, two gold-silver mineralized areas at Tenoriba separated approximately 5 kilometres one from the other (refer to Figure 1 – Tenoriba Channel Location Map), results of which are shown in Table 1 – Channel Sample Results and are summarized in the table below (most recent results shown in bold text ), together with previously reported results from this program. A more detailed image of Carneritos 6 trench location can be seen in Figure 3 – Los Carneritos Channel Location Map in the press release dated August 22, 2017.

The average grade of the channel samples cut was 0.77 grams/tonne (g/t) goldequivalent (assuming a silver : gold ratio of 75 : 1) over a total of 129.0 metres cut at12 locations over more than a 5 kilometre strike length throughout the 15 square kilometre area of precious metal mineralization at Tenoriba, after withholding two low grade channels; Carneritos 5 (11.9 metres grading on average 0.08 g/t gold equivalent) and Masuparia 3 (12.0 metres grading on average 0.12 g/t gold equivalent).

ARGONAUT GOLD EXPANDS MINERAL RESOURCES AT ITS OPERATING MINES

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http://www.argonautgold.com/news_events/news/news_release/index.php?&content_id=354

oronto, Ontario – (September 21, 2017) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) is pleased to provide updated pit-constrained Mineral Resource estimates for its operating mines. The updated Mineral Resource estimates are net of mining depletion at July 1, 2017 and incorporate recent resource expansion drilling at both El Castillo and La Colorada (see press releases dated March 20, 2017, May 8, 2017 and June 1, 2017). All dollar amounts are expressed in United States dollars unless otherwise specified.

El Castillo Mineral Resource Estimates(1)

Category Tonnes
(000s)		 Au
Grade
(g/t)		 Contained
Au
Ounces
(000s)		 Ag
Grade
(g/t)		 Contained
Ag
Ounces
(000s)
Measured 4,482 0.54 77 – –
Indicated 59,484 0.35 673 – –
Measured & Indicated (“M&I”) 63,966 0.36 751 – –
Inferred 1,571 0.36 18 – –

1The pit-constrained M&I Mineral Resource and Inferred Mineral Resource for El Castillo in the above table were updated internally, are valid as of July 1, 2017 and were reviewed by Michael Lechner, who is a “qualified person” for purposes of NI 43-101. The Mineral Resources update used a gold price of $1,400. Cut-off grades, depending on rock and ore type, varied from 0.093 g/t for oxide to 0.467 g/t for silicified sulphide. Mineral Resources do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves. Numbers may not sum exactly due to rounding.

At December 31, 2016, pit-constrained M&I Mineral Resources at El Castillo totalled approximately 486,000 contained gold ounces.  Through the acquisition of the adjacent San Juan concession in February 2017 and the subsequent resource expansion drilling programs, the Company added approximately 328,000 gold ounces bringing the M&I Mineral Resources to approximately 814,000 gold ounces.  Between December 31, 2016 and July 1, 2017, the Company depleted approximately 63,000 gold ounces through mining activities leaving M&I Mineral Resources of approximately 751,000 contained gold ounces at El Castillo at July 1, 2017.

La Colorada Mineral Resource Estimates(2)

Category Tonnes
(000s)		 Au Grade
(g/t)		 Contained
Au
Ounces
(000s)		 Ag
Grade
(g/t)		 Contained
Ag
Ounces
(000s)
Indicated 29,869 0.61 586 10.3 9,913
Inferred 1,238 0.80 32 12.3 488

2The pit-constrained Indicated Mineral Resource and Inferred Mineral Resource used for La Colorada in the above table were updated internally, are valid as of July 1, 2017 and were reviewed by Michael Lechner, who is a “qualified person” for purposes of NI 43-101. The Mineral Resources update used a gold price of $1,400 and a silver price of $20. The gold equivalent cutoff grade varied depending on deposit and ranged from 0.085 g/t to 0.118 g/t. Mineral Resources do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.