Argonaut Gold Board of Directors Approves January Launch of US $ 380 Million Mine Project
The Toronto miner expects to make the first gold pour in the first half of 2023.
Magino is 14 kilometers southeast of Dubreuilville and 195 kilometers north of Sault Ste. Married. Argonaut acquired the Prodigy Gold project in 2012.
Located in an expanding gold belt in northeastern Ontario, Magino is located adjacent to the Island of Alamos gold mine, considered one of the cheapest and most expensive underground gold mines. productive sectors of Canada.
The Magino project could create up to 550 construction jobs and 350 mining jobs, all good news for the Township of Dubreuilville.
According to a press release from Argonaut, Magino is projected as a “long-lived, scalable asset” capable of producing 150,000 ounces per year in the first five years of an estimated 17-year lifespan of the mine.
This lifespan will likely be extended as Argonaut continues to explore and finds high grade gold below and adjacent to the pit configuration described.
The company recently raised $ 11.5 million through the sale of flow-through shares to keep the pace of exploration.
The 2,200 hectare property housed an underground mine of the same name that was developed after World War I. It has operated sporadically over the decades, producing 114,319 ounces of gold at 4.43 grams per tonne.
To date, the deposit has a measured and reported estimate of 4.2 million ounces of gold with an average grade of 0.91 grams per tonne, but this will increase as exploration continues.
A 2017 feasibility study initially awarded the project a price of $ 321 million. Taking into account inflation and contingencies, this figure rose to $ 380 million.
Argonaut initiated a project finance program of more than $ 400 million by selling $ 50 million of unsecured convertible debentures to BMO Capital Markets and Scotiabank, the sale of its Ana Paul gold project in Mexico and cash flows generated by its other producers. mines in Mexico and Nevada until 2022.
The all-inclusive sustaining cost of the mining project is US $ 711 per ounce of gold sold.
Argonaut’s other operating mines include the El Castillo mine and the San Agustin mine in Durango, Mexico, the La Colorada mine in Sonora, Mexico, and the Florida Canyon mine in Nevada, United States.
Magino is Argonaut’s only Canadian asset in the company’s portfolio of mining development and exploration projects in Mexico and North America.