Argonaut Gold Earns $6 Million in Q3

TORONTO, ONTARIO–(Marketwire – Nov. 14, 2011) – Argonaut Gold Inc. (TSX:AR) (“Argonaut Gold”, “Argonaut” or the “Company”) announces financial and operating results for the third quarter ended September 30, 2011. All dollar amounts are expressed in United States dollars unless otherwise specified. All financial results are presented in accordance with IFRS, unless otherwise noted.


  • Q3 2011 revenue of $22.7 million
  • Q3 2011 net income of $6.0 million, $0.07 per basic share
  • Cash flows from operating activities before changes in non-cash operating working capital and other items of $9.7 million
  • Cash on hand was $35 million at September 30, 2011
  • Gold production and cost:
    • 29,997 ounces of gold loaded to the pad (up 24% from Q3 2010)
    • Gold ounces produced in Q3 of 2011 were 16,884 ounces (up 33% from Q3 2010)
    • Cash cost per ounce sold – $628
  • Q3 2011 El Castillo operating statistics:
    • Total tonnes mined — 4.8 million tonnes (up 2% from Q3 2010)
    • Record ore tonnes mined — 2.9 million tonnes (up 44% from Q3 2010)
  • Operational improvements:
    • Finalized agreement with the Company’s mining contractor to expand from 13 to 18 trucks with 100 tonne capacity and a fourth 992 loader added to the mining fleet
    • West crusher relocated to east side for consolidated crushing circuit with design capacity of 500,000 tonnes per month (“TPM”); operational in October
    • East side pad loading initiated and east carbon plant operational in October with the ramp up to continue thru Q4 of 2011
    • Finalized an agreement expanding surface rights on the western side of the property by 100 hectares, for an increase in overall surface rights to 1385 hectares.
  • Exploration & resources:
    • La Colorada –Indicated resource increase to 1.06 mm oz. within an NI 43-101 compliant technical resource (up 76% Au and up 173% Ag over previous NI 43-101)
      • Completed 36,234 metres of drilling in 245 holes total (39 pending release)
      • Three drill rigs continue on 52,000 metre drill program with a fourth drill rig scheduled to arrive in early November
    • El Castillo — Sulphide metallurgical work pending completion
    • San Antonio — Two drill rigs continue on +10,000 metre drill program
      • Completed 10,242 metres for 71 holes pending release

This press release should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements for the three months ended September 30, 2011 and associated Management’s Discussion and Analysis (“MD&A”) which are available from the Company’s website, www.argonautgoldinc.com, in the “Investors” section under “Financial Filings”, and under the Company’s profile on SEDAR at www.sedar.com.

Read about Argonaut’s Earnings Here