Argonaut Gold Announces Positive Initial Drill Results from 2016 Program at Magino

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Plan View Map of Key Highlight Hole Locations

Argonaut Gold Inc. is pleased to release assay results for the first 227 reverse-circulation (“RC”) holes of a 350-hole program completed at its 100%-owned Magino project in Ontario.  These results represent 59% of the total 39,447 metres drilled during July to November 2016.  Remaining results will be released once all assay data has been compiled.  The RC drilling program was designed to reclassify reserves from Probable to Proven within the proposed starter pit at Magino.  These drill results, along with the remaining 123 holes and assays, will be incorporated into a feasibility study, which is expected to be completed during the second half of 2017.

Tom Burkhart, Vice President of Exploration stated: “The drill results to date support the current block model and the interpreted geometry of the mineralization.  The work is providing valuable data for the definition of higher-grade gold deposition and confirming continuity of overall mineralization.  The Magino gold deposit contains a series of parallel shear zones hosting low to moderate grade mineralization.  Within these relatively continuous shear zones there exists high-grade gold hosted in quartz veins and lenses of varying magnitudes.  Generally, these are multi-gram occurrences and are significant to the economics of the Magino deposit.  The current definition drilling was mainly designed to convert Probable reserves to Proven reserves within a central starter pit to help drive cash flow and de-risk the first two to three years of production at Magino.”

Pete Dougherty, President and CEO commented: “We liken the Magino deposit to a large river of low-grade mineralization with higher-grade fish swimming within it.  In keeping with this analogy, by tightening the drill spacing to 10 to 12 metres we have been able to define additional high-grade fish.  This continues to strengthen our understanding of the initial starter pit within the deposit, which reduces uncertainty and increases our confidence in the project’s economics.”

Table 1 below illustrates key highlight holes from the drill program:

Table 1: Key Highlight Holes

Hole Azimuth Dip From To Length Grade
(metres) (metres) (metres) (g/t Au)
MA16-RC-013 159.79 -67.44
Interval 64 91 27 2.80
Including 86 89 3 20.10
MA16-RC-017 349.65 -53.83
Interval 24 49 25 4.04
Including 30 37 7 10.46
MA16-RC-021 352.81 -66.92
Interval 74 124 50 1.23
MA16-RC-087 163.9 -60.52
Interval 48 105 57 1.51
Including 84 90 6 7.07
MA16-RC-093 165 -50
Interval 79 96 17 4.74
MA16-RC-100 165 -50
Interval 23 94 71 1.03
MA16-RC-117 164.34 -48.34
Interval 93 105 12 5.86
MA16-RC-122 163.57 -48.45
Interval 42 84 42 2.36
Including 46 50 4 4.43
Including 53 57 4 14.78
MA16-RC-143 166.91 -50.59
Interval 28 72 44 1.41
MA16-RC-171 164.49 -60.68
Interval 6 22 16 4.37

 

To view a table of all drill results and cross sections, please visit:
http://www.argonautgold.com/gold_operations/drill_results/

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 the construction stage San Agustin project 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, and the Magino project in Ontario, Canada.  The Company also has several exploration stage projects, all of which are located in North America.

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