Argonaut Gold Announces Record Q2 Gold Production of 33,586 Ounces

Toronto, Ontario – (July 15, 2013) Argonaut Gold Inc. (“Argonaut Gold” or the “Company”; TSX: AR), announced today that the Company had gold production of 33,586 ounces during the 2nd quarter ended June 30, 2013. This included 28,075 ounces at its 100% owned El Castillo Mine (“El Castillo”) located in Durango, Mexico and 5,511 ounces of gold at its 100% owned La Colorada Mine (“La Colorada”) located in Hermosillo, Mexico. For the first six months of 2013, the company has produced 62,493 ounces of gold. Ramp up of production at La Colorada is continuing, and we expect greater production in the second half of the year.

El Castillo

  • Production of 28,075 gold ounces, representing a 44% improvement over Q2 2012.
  • 40,169 gold ounces loaded on the pad, a 14% improvement over Q2 2012.
  • Record tons crushed and loaded to the east pad
  • West Side Pad 8 loading continues with ongoing construction during 2013.
  • Overland conveying construction initiated with completion and operation expected in the third quarter.

La Colorada

  • Production of 5,511 gold ounces, a 20% improvement over Q2 2012.
  • Production of 45,318 silver ounces, a 76% improvement over Q2 2012.
  • 2,796 gold ounces and 48,339 silver ounces loaded on the pad.
  • Pre-Stripping continues at the La Colorada pit.
  • New crushing system expected to be complete and operational in the third quarter of 2013.


3 Months Ended June 30    6 Months Ended June 30
  2013 2012 % Change   2013 2012 % Change
Mining (Tonnes 000)              
Total tonnes mined 6,713 5,037 ↑33% 12,900 11,002 ↑17%
Total ore mined 3,278 2,507 ↑31% 6,450 5,557 ↑16%
Heap Leach Pad (Tonnes 000)            
Tonnes ore direct to leach pad 1,710 1,533 ↑12%

3,440 3,717 ↓8%
Tonnes crushed 1,526 1,164 ↑31% 2,958 2,003 ↑48%
Gold grade (g/t) 0.39 0.41 ↓5% 0.37 0.38 ↓3%
Gold loaded to leach pad (oz) 40,169 35,220 ↑14% 76,192 70,503 ↑8%
Gold produced (oz) 28,075 19,533 ↑44% 51,200 37,332 ↑37%
Gold ounces sold 26,705 17,949 ↑49% 46,214 32,447 ↑42%
1 “g/t” is grams per tonne
2 “oz” means troy ounce

Richard Rhoades, Chief Operating Officer of Argonaut Gold, said “Q2 production at El Castillo as a stellar effort by our team as they integrated mining services from the contractor. We achieved records in material processed through mining, crushing, and more importantly, in ounces recovered.  As we look to the future, we have submitted permits for the relocation of our new overburden facilities, and are in the process of receiving and constructing the new west crushing and overland conveying system.  Production was aided by a positive reconciliation in grade at the mine (1.5%). We do not anticipate this continuing as we expect the second half of the years grade to fall closer to the forecasted (or budgeted) 0.31 grams per ton.”


3 Months Ended June 30    6 Months Ended June 30
  2013 2012 % Change   2013 2012 % Change
Mining (Tonnes 000)              
Total tonnes mined 4,143 840 ↑393% 8,499 1,521 ↑459%
Total ore mined 342 806 ↓58% 898 1,486 ↓40%
Heap Leach Pad (Tonnes 000)       
Crushed ore tonnes to pad 312 744 ↓58% 715 1,424 ↓50%
Gold grade (g/t) 0.28 0.43 ↑35% 0.29 0.42 ↓31%
Gold loaded to leach pad (oz) 2,796 10,173 ↓73% 6,559 19,059 ↓66%
Gold produced (oz) 5,511 4,590 ↑20% 11,293 7,675 ↑47%
Silver produced (oz) 45,318 25,796 ↑76% 90,197 42,978 ↑110%
Gold ounces sold 5,051 5,298 ↓5% 10,983 5,298 ↑110%
Silver ounces sold 27,801 9,748 ↑185% 82,070 9,748 ↑742%
1 “g/t” is grams per tonne
2 “oz” means troy ounce

Commenting on La Colorada production, Mr. Rhoades said, “Operations during the first half of the year produced 25% more gold than our initial forecast, primarily, due to continued re-leaching of the old heap leach pad material processed last year. During the second half of the year, we anticipate the tonnes processed to increase, along with the overall grade.  We are pleased to report that all parts for the new crusher have been received and have begun assembly of the system.  With the new crusher in place during the third quarter we anticipate production to increase from 4-5 thousand tonnes per day to roughly 10-12 thousand tonnes per day, during the fourth quarter.”

Argonaut Gold Q2 Financial Results Conference Call and Webcast:
The Q2 financial results call is scheduled to take place on August 13, 2013 at 8:30 am ET. Details for the call in participation are:

Q2 Conference Call Information:

Toll Free (North America): 1-866-226-1792
International: 1-416-340-2216
Webcast: www.argonautgold.com

Q2 Conference Call Replay:
Toll Free Replay Call (North America): 1-905-694-9451
International Replay Call: 1-800-408-3053
Passcode: 7979249

The conference call replay will be available from 10:30 a.m. ET on August 13, – August 20, 2013.

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 in Durango, Mexico and, the La Colorada Mine in Sonora, Mexico, the advanced exploration stage San Antonio project in Baja California Sur, Mexico, the advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

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, 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.

Qualified Person, Technical Information and Mineral Properties Reports
Preparation of this release was supervised by Thomas Burkhart, Argonaut Gold’s Vice President of Exploration, and a Qualified Person under NI 43-101. Mr. Alberto Orozco, Argonaut’s Mexico Exploration Manager also supervised the drill programs and on-site sample preparation procedures at La Colorada.

For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

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 Mine NI 43-101 Preliminary Economic Assessment La Colorada Project, Sonora, Mexico dated December 8, 2011

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel:  (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com