Argonaut Gold Achieves Record Quarterly and Annual Production, Meets 2018 Production Guidance and Provides 2019 Guidance
Record Quarterly and Annual Production of 51,658 and 165,117 Gold Equivalent Ounces Respectively, Setting the Stage for 2019
TORONTO, Jan. 22, 2019 /CNW/ - Argonaut Gold Inc.(TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce it has met its 2018 production guidance with record gold equivalent ounce1 ("GEO" or "GEOs") production of 51,658 during the fourth quarter of 2018 and 165,117 during 2018. During the quarter, production was 37,977 GEOs at the El Castillo Complex (18,984 from the El Castillo mine and 18,993 from the San Agustin mine) located in the State of Durango, Mexico and 13,681 GEOs at the La Colorada mine located near Hermosillo, Sonora, Mexico. During 2018, the El Castillo Complex and La Colorada mine production totaled 117,126 GEOs and 47,991 GEOs, respectively. All dollar amounts are expressed in United States dollars unless otherwise specified.
Argonaut Gold Inc. (CNW Group/Argonaut Gold Inc.)
Pete Dougherty, President & CEO stated: "We achieved record quarterly production of nearly 52,000 GEOs, which contributed to record annual production of over 165,000 GEOs. I commend the team on this accomplishment. We achieved 51% production growth quarter over quarter and are now at a run rate that indicates we can produce over 200,000 GEOs in 2019. This represents an approximate 65% increase in full year production between 2017 and 2019 – a goal that we set for ourselves early in 2017. With the strong finish to 2018, the stage is set for a robust beginning to 2019. Our main focuses as a Company during 2019 will be expanding the San Agustin mine's crushing capacity and adding cash to the balance sheet through the free cash flow generated by our operations while continuing to de-risk and advance our development assets."
The Company anticipates it will produce between 200,000 to 215,000 GEOs during 2019 at a cash cost2 of between $775 to $875 per gold ounce sold and all-in sustaining costs ("AISC")2 of between $875 to $975 per gold ounce sold. Table 1 below illustrates the 2019 production and cost guidance: