Argonaut Gold Inc. (TSX: T.AR, Stock Forum) released a resource estimate Friday for its San Agustin project, which is located about kilometers from the company’s El Castillo mine in Durango, Mexico.
The estimate results from phase one of a multi-phase drill program, the company said in a press release.
The San Agustin pit constrained indicated resource now stands a 845,000 gold ounces and 28.3 million silver ounces in 82.2 million tonnes of material at a grade of 0.32 grams per tonne gold and 10.7 grams silver, for a total of 1.28 million gold equivalent ounces.
A phase two drill program, comprised of 16,000 metres, will continue on the property with the objective of further expanding the resource area and testing additional targets within the company’s concession block.
“The San Agustin project is a very exciting opportunity for Argonaut,’’ said Argonaut President and Chief Executive Officer Peter Dougherty. The project is so close to the El Castillo mine, there are many potential operational synergies between the two projects in terms of overlapping infrastructure and personnel.
The new San Agustin mineral resource is based on 520 drill holes totaling approximately 80,760 metres of drilling, which includes results from Argonaut’s 2014 phase 1 drill program.
Argonaut Gold shares rose 3.6% to $4.02 on Friday, leaving a market cap of $619.7 million, based on 154.1 million shares outstanding. The 52-week range is $8.25 and $3.42.
Read more at http://www.stockhouse.com/news/newswire/2014/08/22/argonaut-gold-t-ar-rallies-on-mexico-resource-estimate#ogqbkKZ6PdEH5X0O.99
