Argonaut touts positive results for proposed Wawa gold mine

TORONTO — Argonaut Gold Inc. has announced it is “pleased” with the results of a feasibility study (FS) for a proposed gold mine in northern Ontario.

The FS is for its 100 per cent owned Magino gold project located 40 kilometres northeast of Wawa.

“We believe this FS demonstrates that Magino is a strategic, long-life asset in an attractive mining jurisdiction, Ontario,” said Pete Dougherty, Argonaut president and CEO, in a media release issued Nov. 8. “We have been able to appropriately scale the project to a manageable capital number while providing the optionality of expanding the scale of the project in the future either through operational cash flow during Magino’s life or through a potential joint-venture partnership.”

The statement anticipates a $321-million initial capital expenditure for the project (all prices in U.S. dollars). A 10,000 tonne per day processing facility was selected for the FS to reduce initial expenditures, reduced from the 30,000 tonne per day project presented in the January 2016 pre-feasibility study. The statement indicates the project is scalable to the larger output.

Total capital cost estimates of $405 million in the FS included $39.8 million for onsite development and $36 million for infrastructure.

The FS yields average annual production of approximately 116,000 gold ounces over a 17-year mine life including three years of ore processed from a low grade stockpile, an average of 150,000 gold ounces during the first five years and an average of 123,000 gold ounces during the 14 years of active mining.

The metallurgical testing was completed at McClelland Laboratories Inc.

Open pit mining operations will use a fleet comprised of 16 cubic metre front shovels, a 13 cubic metre front-end loader and 140 tonne haul trucks. This fleet will be supplemented by drills, graders, and track and rubber-tire dozers.

The company submitted its Environmental Impact Statement in January 2017 and the environmental permitting process is well underway, the statement indicates. Federal and provincial regulators have completed their conformity review and held indigenous and public sessions.

Company COO Bill Zisch commented in the statement: “We will continue through the Environmental Assessment process and permitting and then gauge market conditions and all available options for Magino to best unlock value for our shareholders.”