Argonaut Gold Provides Exploration Update on San Antonio and La Colorada
Published : May 08, 2012

Drill Programs to Continue in 2012

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TORONTO, ONTARIO--(Marketwire - May 8, 2012) - Argonaut Gold Inc. (News - Market indicators) ("Argonaut" or the "Company") is pleased to report on exploration results at its San Antonio project in Baja California Sur, Mexico and the La Colorada project in Sonora, Mexico. 

2012 Exploration Update:

  • La Colorada 
    • 35,962 meters for 244 holes completed since the last update in October of 2011
  • San Antonio
    • 20,600 meters for 130 holes completed since the last update in May of 2011
  • El Castillo
    • Minimum 1,000 meter Core Drill Program is estimated to be completed in early May with mineralized sulfide intervals shipped to Kappas, Cassiday & Associates ("KCA") in Reno for metallurgical testing.


Zone RC
Meters # Holes
La Colorada - 392 - 392 3
El Creston 1,344 4,920 - 6,265 26
Veta Madre 7,966 14,686 - 22,652 115
Sombreretillo 700 466 - 1,165 5
Tinajitas 616 - - 616 2
Condemnation 2,338 - - 2,338 10
Stockpiles - - 2,535 2,535 83
TOTAL DRILLING 12,964 20,464 2,534 35,962 244

Highlights from the La Colorada Drill Program

Drill hole Section From
11-LCRC-259 El Creston 62.48 68.58 6.10 2.31 32.80
  including   62.48 65.53 3.05 4.44 12.75
and   161.54 164.59 3.05 3.29 0.23
LC-11-DD-92 El Creston 15.00 24.30 9.30 0.37 8.64
and   58.40 64.00 5.60 5.83 10.60
  including   62.00 64.00 2.00 16.99 10.10
LC-11-DD-109 El Creston 150.00 152.00 2.00 10.80 26.40
and   306.00 314.00 8.00 8.99 5.90
  including   306.00 308.00 2.00 34.73 12.60
12-LCRC-303 Veta Madre 192.02 219.45 27.43 10.52 6.62
  including   199.64 201.17 1.52 108.41 33.20
  including   201.17 202.69 1.52 8.85 7.00
  including   205.74 207.26 1.52 30.19 9.10
  including   211.84 213.36 1.52 14.21 9.80
  including   213.36 214.88 1.52 8.37 3.80
12-LCRC-304 Veta Madre 193.55 195.07 1.52 3.86 2.00
and   205.74 239.26 33.52 0.90 7.28
  including   205.74 207.26 1.52 3.93 4.30
  including   216.41 224.03 7.62 1.91 9.38
LC-11-DD-114 Veta Madre 81.50 176.00 94.50 1.07 11.25
  including   103.00 110.00 7.00 3.54 24.03
and   186.00 194.00 8.00 8.60 5.25
  including   188.00 190.00 2.00 31.85 12.60

Note: All 2011 drillholes from the Veta Madre zone were drilled oriented to an azimuth of 160 with dips ranging from -90 to -45 to the southeast. 2012 drillholes were drilled oriented to an azimuth of 180 with dips ranging from -90 to -45 to the south. The Veta Madre zone has a general ENE strike of azimuth 070 and dips to the northwest. Its northernmost part is subvertical but its dip softens in angle to the south becoming -45 and even subhorizontal in some parts. The drill holes with a dip around -50 will be closer to the true width of the main mineralized zone at Veta Madre. Vertical holes will be the most representative of true width in its subhorizontal portion. Also, the western half of Veta Madre has a tilt towards the west, becoming increasingly deeper in that direction.

(Please see our website ( for La Colorada Drill Release results as well as select cross sections.)

To view Veta Madre Mineralization, please visit the following link:

To view Veta Madre Cross Section, please visit the following link:

Mineralization at the El Creston zone consists of several subparallel mineralized structures that dip to the north, with the exception of the southernmost structure which is subvertical. Drilling dipping about -50 to the south will be the closest representation of true width for most veins at El Creston.

To view El Creston Cross Section 542,625 E, please visit the following link:

To view El Creston Cross Section 542,700 E, please visit the following link:

Tom Burkhart, Argonaut's VP Exploration, noted, "We are very excited about the drill program results at La Colorada. The drill program at La Colorada has been mainly focused on the Veta Madre target with four drill rigs active through the first four months of 2012. We have expanded Veta Madre, doubling the area of mineralization approximately 400 by 300 meters. The El Creston resource also remains a high priority with drilling scheduled during the second and third quarters of this year. Drilling in the El Creston mineralization continues down depth, below previous drilling, and on strike in both directions. In addition to ongoing resource delineation on Veta Madre and El Creston, the Company has identified multiple target areas within the large La Colorada mineral system that are also scheduled for continued exploration and drilling."


Exploration at San Antonio continued with RC and Diamond during 2011 and with RC only during 2012. RC drilling was mainly focused on extending the La Colpa area, located east of the Las Colinas zone, and also on condemnation drilling, mainly to the west of the resource zone. Diamond drilling was contracted to obtain samples for further metallurgical testing from the North Zone and La Colpa.

Zone RC
Los Planes 3,695 2,183 - 5,878 38
Las Colinas 659 - - 659 3
La Colpa 5,686 745 - 6,431 51
Intermedia 412 - - 412 3
Condemnation 3,471 1,890 - 5,361 24
Monitoring Well 877 - 1,026 1,903 11
TOTAL 14,800 4,818 1,026 20,644 130
Table 1 Gold assays from drilling at San Antonio. Gold intervals calculated using a 0.2gpt Au cutoff grade and no high grade capping. No more than three consecutive barren or low-grade samples were considered.
Drill hole Section From
11LCDD-112 La Colpa 0 7.55 7.55 1.55
11LCRC-317 La Colpa 26.52 52.42 25.91 0.56
  including   26.52 28.04 1.52 3.31
11LCRC-399 La Colpa 5.18 8.22 3.04 1.19
11LCRC-404 La Colpa 28.04 85.95 57.91 0.6
  including   44.81 47.85 3.05 1.26
  including   61.57 66.14 4.57 1.17
12SARC-425 La Colpa 1.21 17.37 16.16 0.64
  including   5.18 11.28 6.10 1.45
12SARC-418 Las Colinas 227.68 242.92 15.24 0.94
  including   229.21 230.73 1.52 2.09
11PLDD-100 Los Planes 36 45.5 9.5 0.2
and   87.5 90 2.5 0.24
and   143 197.5 54.5 2.58
  including   163.00 173.50 10.50 10.38
and   204.5 256.2 51.7 0.75
  including   222.50 224.00 1.50 3.05
11PLDD-102 Los Planes 109.95 122.8 12.85 1.73
  including   109.95 113.80 3.85 4.01

Note: Drill holes are designed to cross cut known structures at 90 degrees and reported thicknesses are approximately true widths, thicknesses on vertical holes are estimated thicknesses.

(Please see our website for San Antonio Drill Release results as well as select cross sections.)

To view San Antonio Drill Map, please visit the following link:

To view La Colpa Cross Section, please visit the following link:

Tom Burkhart noted, "Results to date at the San Antonio drill program are promising. The drill program at San Antonio was designed to explore the extent and depth of mineralization of the newly identified La Colpa mineral zone. Mineralization at La Colpa has expanded, by approximately 250 meters north/south by 200 east/west, and remains open to the south and down dip. Our current thinking is that La Colpa represents a localized parallel zone of mineralization situated approximately 100 meters east of the main resource area. Additional drilling will be required to define the limits of La Colpa mineralization and the Company expects that La Colpa may provide a near surface addition to the San Antonio resource base."

Notes for La Colorada drill program:

RC drilling (buggy mounted) and Becker Hammer percussion drilling (truck mounted) are contracted from Layne de México. Diamond drilling is contracted by Landdrill, Falcon Perforaciones and GDA perforaciones. All of the drill contractors are based out of Hermosillo, Sonora except GDA which has offices in Chihuahua, Mexico. All three Diamond rigs are skid mounted and drill with HQ size, except when there is the need to reduce to NQ to continue the hole. Recoveries are typically high and range from 85 to 90%.

RC and Becker hammer samples are taken at 1.5m intervals (5 feet). In both cases 50% of the total recovered sample is discarded, 25% is sent to laboratory and 25% is kept at the project in case of re-assay. This is the case for all samples except duplicates in which 50% of the sample goes to the laboratory and 50% is kept at the site.

All samples are picked up at site by Inspectorate de Mexico's preparation lab staff from Hermosillo, Sonora. Samples are dried, crushed and split in Inspectorate's Hermosillo facilities and then shipped to their assay laboratory in Reno, NV.

Notes for San Antonio drill program:

RC drilling (buggy mounted) for the San Antonio project was contracted from Layne de Mexico which used 3 3/4 inch dual wall pipe. Recovery for the RC rig is estimated by weight to be around 90%.

Diamond drilling was contracted by Intercore Drilling who used a skid-mounted rig with HQ and NQ sizes. HQ was preferred and NQ was only used when there was need to reduce size to continue the hole. Recoveries are typically high and range from 85 to 90%.

About Argonaut Gold

Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in the State of Baja California Sur, Mexico, and several exploration stage projects, all of which are located in Mexico.

Creating Value Beyond Gold

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"). 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, 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 presentation.

Qualified Persons

Preparation of this press release was supervised by Mr. Thomas Burkhart, Argonaut's Vice President of Exploration and, a "Qualified Persons" as defined by NI 43-101. Mr. Alberto Orozco, Argonaut's Mexico Exploration Manager, also supervised the drill program and on-site sample preparation procedures at San Antonio. Mr. Edward J.C. Orbock of AMEC E & C Services of Reno, NV, who is an "Independent Qualified Person" as defined by NI 43-101 and the lead person responsible for completing the updated San Antonio resource has reviewed this press release as it relates to the San Antonio project.

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 La Colorada Project are collected at site by personnel of Inspectorate's preparation laboratory in Hermosillo where samples are prepared and pulps sent for assay in Inspectorate's Sparks, NV laboratory, which is independent of the Company. Samples are analyzed for gold by Fire Assay and Atomic absorption finish (PKG-AuAg assay code; 0.005 to 10ppm detection limit) plus Silver by Aqua Regia and Atomic Absorption finish (0.1 to 200 ppm detection limit). Samples over 10 g/t Au are assayed with gravimetric finish (Assay code Au-1AT-GV). All samples are also assayed by ICP-AES (code GENX-30 or 30-AR-TR) for a suite of 30 elements.

Samples from the San Antonio project are shipped by commercial courier from the city of La Paz to ALS Chemex's preparation laboratory in Hermosillo, Sonora, which is independent of the Company. Samples are prepared by ALS in Hermosillo and pulps sent to their assay laboratory in North Vancouver. Samples are analyzed for gold by fire assay with atomic absorption (Au AA-23 assay method code; 0.005 to 10ppm detection limit). Samples over 10 g/t Au are assayed with gravimetric finish (Assay code AU-GRA21). All samples are also assayed by ICP-MS (code ME-ICP41) for a suite of 35 elements. 

For further information on the Company's properties please see the reports as listed below on the Company's website or on

El Castillo Mine   NI 43-101 Technical Report on Resources and Reserves, Argonaut Gold Inc., El Castillo Mine, Durango State, Mexico dated November 6, 2010
La Colorada Property   NI 43-101 Preliminary Economic Assessment La Colorada Project, Sonora, Mexico dated December 30, 2011
San Antonio Gold Project   Technical Report and Mineral Resource Estimate on the San Antonio Gold Project, Baja California Sur, Mexico dated June 30, 2011
La Fortuna Property   La Fortuna, Durango, Mexico, Technical Report dated October 21, 2008

Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101
Data and Statistics for these countries : Mexico | All
Gold and Silver Prices for these countries : Mexico | All

Argonaut Gold Inc.

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Argonaut Gold is a gold producing company based in United states of america.

Argonaut Gold holds various exploration projects in Mexico.

Its main assets in production are EL SASTRE GOLD MINE, EL SASTRE, EL SASTRE - EL ARENAL, EL SASTRE BRIDGE ZONE and EL SASTRE - LUPITA ZONE in Guatemala and EL CASTILLO in Mexico and its main exploration property is SAN ANTIONIO in Mexico.

Argonaut Gold is listed in Canada. Its market capitalisation is CA$ 419.3 millions as of today (US$ 335.3 millions, € 293.7 millions).

Its stock quote reached its highest recent level on January 25, 2013 at CA$ 9.99, and its lowest recent point on March 20, 2020 at CA$ 0.76.

Argonaut Gold has 176 940 000 shares outstanding.

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