Toronto, Ontario – (April 12, 2018) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) reports that its wholly-owned subsidiary that owns the La Colorada mine has had its permit for the use of explosives at the site temporarily suspended as a result of a pending legal action brought by four individuals against the Secretary of National Defense (“SEDENA”) and the Municipality of La Colorada. Activities at site continue unaffected due to the availability of blasted and stockpiled material adequate to allow for operations to continue normally. Stockpiles are sufficient that operations will continue normally through at least April 16, 2018, at which time there is a hearing scheduled where Argonaut hopes to resolve the issue.
The claim is based on assertions that the explosive permit should not have been granted. SEDENA, the local community and government officials have filed documents that refute this claim and contend that it is without merit. The Company also believes the legal action is totally without merit and that the proper process for the issue of the permit was carefully followed with active community consultation. The Company is reassured by the overwhelming support of the community and the government.
The Company is taking every possible legal measure to prove its case and to re-activate blasting activities at its La Colorada mine as soon as possible. The Company has also taken operational measures in order to ensure the continuity of its operations without blasting until at least the hearing to be held on April 16, 2018 and does not anticipate any significant near term impact to processing operations. The Company will provide additional information as the legal process continues and is hopeful that it can resolve the issue on or before the April 16, 2018 hearing date.
Cautionary Note Regarding Forward-looking Statements
This press release contains certain “forward-looking statements” and “forward-looking information” under applicable Canadian securities laws concerning the proposed transaction and the business, operations and financial performance and condition of Argonaut Gold Inc. (“Argonaut” or “Argonaut Gold”). Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production and mine life of the various mineral projects of Argonaut; synergies and financial impact of completed acquisitions; the benefits of the development potential of the properties of Argonaut; the future price of gold, copper, and silver; the estimation of mineral reserves and resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; success of exploration activities; and currency exchange rate fluctuations. Except for statements of historical fact relating to Argonaut, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of Argonaut and there is no assurance they will prove to be correct.
Factors that could cause actual results to vary materially from results anticipated by such forward-looking statements include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated. Although Argonaut has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Argonaut undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent they involve estimates of the mineralization that will be encountered if the property is developed. Comparative market information is as of a date prior to the date of this document.
About Argonaut Gold
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the production stage La Colorada mine in Sonora, Mexico. Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, the Cerro del Gallo project in Guanajuato, Mexico and the Magino project in Ontario, Canada. The Company also has several exploration stage projects, all of which are located in North America.
For more information, contact:
Argonaut Gold Inc.
Vice President, Investor Relations