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Argonaut intersects 1,207 gram-meter gold at La Colorada

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(Kitco News) - Argonaut Gold (TSX: AR) announced today it has discovered high-grade gold veins below the El Crestón open pit at its La Colorada mine in Sonora, Mexico.

The company said that the high-grade intercepts in drill hole 20-LCRC-592 include 12.2 metres at 98.9 g/t Au (1,207 gram-meter) and 30.3 g/t Ag, including 3.0 metres of 383.0 g/t Au and 113.5 g/t Ag.

In drill hole 20-LCRC-562, the company intersected 21.3 metres at 44.6 g/t Au and 274.9 g/t Ag, including 3.0 metres of 283.1 g/t Au and 858.0 g/t Ag.

President and CEO Pete Dougherty commented, "It has always been our intension to drill test below the El Crestón pit to determine whether the La Colorada mine has the potential to transition from an open pit mine to an underground mine in the future. These high-grade gold and silver results vastly exceeded our expectations and obviously warrant follow up drilling. We are excited to continue exploration at depth at La Colorada, as we work to determine if a future underground mine is viable. The initial gold and silver grades encountered are clearly encouraging."

Mining activity in the La Colorada district dates to the mid-1700s when underground mining took place at various periods of time until the early 1900s. In the 1990s, La Colorada was re-started as an open pit, heap leach mine until decommissioning in 2002. Argonaut re-started open pit, heap leach operations in 2012 and, through 2020, has produced over 400,000 gold ounces at La Colorada.

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, USA. The Company also holds the construction stage Magino project, the advanced exploration stage Cerro del Gallo project and several other exploration stage projects, all of which are located in North America.

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