TORONTO, ONTARIO--(Marketwire - Feb. 25, 2013) - Argonaut Gold Inc. (TSX:AR) ("Argonaut", "Argonaut Gold" or the "Company") is pleased to announce Company 2013 production guidance, project initiatives and exploration objectives across the Company's properties throughout the Americas. Production in 2013 is planned to increase to between 120,000 and 140,000 ounces of gold up from 108,000 ounces of gold in 2012. Cash cost of production is also expected to increase slightly to between $630 and $660 per ounce.

The Company is undertaking an aggressive capital expansion program in 2013 which should prepare the Company for further production expansions in 2014 and beyond. This will essentially complete capital expansion programs at both La Colorada and El Castillo until 2015, when we will finalize the remaining 15mm tons of pad capacity at El Castillo.

Exploration drilling totaling 89,000 meters has taken place at Magino, part of this drilling has revealed a new zone.

Capital Expansion Program for 2013

El Castillo $32 million
La Colorada(1) $14 million
Magino $3 million
San Antonio(2) $3-15 million
Exploration(3) $5-11 million
TOTAL $57-75 million
Notes: (1) Including $5 million in pre-stripping costs
(2) Subject to permitting process timeline
(3) Subject to exploration results

El Castillo 2013 Capex Initiatives:

The funding can be classified into three main initiatives:

  • $15 mm: New West side pad and ponds with 30mm ton capacity to be built in 2013
  • $10 mm: Transfer of Contractor mining equipment to the Company
  • $7 mm: New crushing and overland conveying system for the West pad 8

La Colorada 2013 Capex Initiatives:

The funding can be classified into three main initiatives:

  • $7mm: New crushing system capable of producing +4mm tonnes per year at <3/8"
  • $5mm: Pre-stripping of pit
  • $2mm: Plant and pad expansions

Pete Dougherty, Argonaut Gold's President and CEO stated: "2012 was a significant year for the Company; we exceeded gold production guidance, added La Colorada as a second operation and completed the acquisition of Prodigy Gold. El Castillo is near a steady state of production with 2013 guidance of between 90,000 and 100,000 gold ounces at cash costs of $700 to $725 per ounce. Due to an anticipated 14% reduction in grade, we will be increasing the volume of ore tonnes processed to maintain gold ounce production levels. From a capital perspective we are looking to make improvements to our cost basis by taking over the mining from our contractor, and adding an in-pit crushing and conveying system to deliver to West pad 8."

Mr. Dougherty added "At La Colorada, fresh ore mining has begun. The mine plan anticipates grades to increase quarter over quarter with production loaded towards the second half of the year. Installation of the new crusher and pad construction will be completed in the second quarter of this year. Full year 2013 gold production at La Colorada is expected to be between 30,000 and 40,000 ounces of gold at average cash costs for the year of $450 to $475 per ounce, net of silver credits."

Magino Exploration Update:

Argonaut Gold is pleased to report on exploration results at its recently acquired Magino project located 40 kilometers northeast of Wawa, Ontario. In 2012 an additional 89,000 meters of drilling in 340 holes was completed to advance the project toward a proposed pre-feasibility study. The drilling consisted of in-fill drilling in the pit and condemnation drilling for site layout. In-fill drill spacing averaged of 25 meters within the constrained pit. The drilling campaign also outlined a new zone of mineralization depicted in the southeast corner of the drilling which we are calling the PD zone. (See Figure 1 and Holes PD-atm12-002-100).

Prior Resource Drilling Additional Drilling
Meters 220,000 89,000
Holes 1,210 340
Drill Spacing (meters) 40 25 in constrained pit
(Note: Prior Resource drilling cut-off was 6-8-2012, the additional 89,000 meters completed since 6-8-2012).
Program Meters # Holes
Deep Holes 4,963 5
Condemnation 31,723 127
Pit Definition 17,643 121
Infill 33,599 75
Metallurgical 1,403 12
TOTAL 89,330 340
Highlights from the Magino Drill Program
Drill Hole From (meters) To (meters) Length (meters) Gold Grade
PD-MA12-002 9.00 50.00 41.00 1.45
PD-MA12-004 13.00 52.00 39.00 1.35
PD-MA12-023 93.00 131.00 38.00 2.06
PD-MA12-027 54.00 96.20 42.20 1.13
PD-MA12-042 39.00 66.00 27.00 2.31
PD-MA12-044 105.00 133.00 28.00 3.41
PD-MA12-060 6.50 29.00 22.50 1.30
PD-MA12-080 22.00 36.00 14.00 1.41
PD-MA12-100 75.00 86.00 11.00 1.81
MA12-364 74.00 162.00 88.00 0.75
MA12-378 175.00 319.00 144.00 0.45
including 231.00 265.00 34.00 1.19
MA12-380 84.00 108.00 24.00 0.87
MA12-384 180.00 642.00 462.00 0.59
including 180.00 336.00 156.00 0.99
MA12-389 157.00 374.00 217.00 0.85
including 329.00 374.00 45.00 2.16
MA12-392 54.00 75.00 21.00 0.89
MA12-414 191.00 235.90 44.90 1.38
Note: All drillholes were drilled oriented to an azimuth of 165 with dips ranging from -45 to -60 to the South-east. The Webb Lake Stock zone has a general ENE strike of azimuth 075 and dips to the North. Its Majority part is sub vertical but its dip softens in angle to the south-west becoming -30 and even sub horizontal in some parts. The drill holes with a dip around -50 will be closer to the true width of the main mineralized zone at less than 400m depth. Vertical holes will be the most representative of true width in its sub horizontal portion. Also, the western half of Webb Lake Stock has a tilt (plunge) towards the west, becoming increasingly deeper in that direction.

(Please see our website ( for full Magino drill results).

To view the image associated with this press release, "Figure 1 Drill Map," please visit the following link:

To view the image associated with this press release, "Magino Block Model Mineralization," please visit the following link:

Conceptually Argonaut Gold anticipates that a constrained pit would look at a 1 g/t cut-off of the delineated resource.

Tom Burkhart, Argonaut Gold's VP Exploration, noted "We are pleased with the progress of our exploration efforts at Magino. The exploration team has advanced the project and a new pre-feasibility report is expected to be issued later this year. The drilling also provided noteworthy drill intercepts in the PD Zone. Our latest drilling continues to demonstrate the robust nature of the Magino deposit and the potential to expand mineralization on the property. The optimum 25 meter drill spacing has given us increased confidence in our geologic interpretations and resource estimates. We look forward to continuing our evaluations of the property including further assessment of the new PD discovery."

About Argonaut Gold

Argonaut Gold is a Canadian gold Company engaged in exploration, mine development and production activities. Its primary assets are the El Castillo Mine in Durango, Mexico, and the La Colorada Mine in Sonora, Mexico (both in the production stage), the advanced exploration stage San Antonio project in Mexico, the recently acquired advanced exploration stage Magino project in Ontario, Canada and several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

Non-IFRS Measures

The Company included the non-IFRS measure "Cash cost of production per ounce of gold" and "Cash cost per gold ounce" in this press release to supplement its information which is periodically presented in accordance with International Financial Reporting Standards ("IFRS"). "Cash cost of production per ounce of gold" and "Cash cost per gold ounce" is equal to cost of sales less silver sales divided by gold ounces sold. Silver credits are included at $30 per ounce of silver. The Company believes that this measure provides investors with an improved ability to evaluate the performance of the Company. Non-IFRS measures do not have any standardized meaning prescribed under IFRS. Therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Please see the MD&A for full disclosure on non-IFRS measures.

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

All scientific and technical information for the Magino project, has been reviewed and approved by Tom Burkhart, Argonaut Gold's Vice President of Exploration, who is a qualified person under the definitions established by National Instrument 43-101. Drill core at Magino is boxed, covered, and sealed at the drill rig and moved to the Prodigy logging and sample preparation facilities by Prodigy Gold personnel. The core is then split down the center using a typical table fed circular rock saw normally at one-meter intervals. One half of the core is sent for assay to Activation Laboratories Ltd., 33 Iroquois Road, ON, P4N 7C5,, while the other half is returned to the core box and stored at Prodigy's sampling facility in a secure, fenced off, area. Activation Laboratories are ISO/IEC 17025 certified and are at arm's length to Prodigy. Prodigy QA/QC procedures include the regular use of blanks, standards and duplicate samples in addition to sending 10% of the samples to ALS Chemex, 2090 Riverside Dr., Timmins, ON, P4R 0A2 for check assays. ALS Chemex is at arm's length to Prodigy and is ISO 9001:2008 certified. Samples assaying > 3.0 gpt gold are automatically re-assayed by the metallic screen method. Gold assays greater than 40 gpt are capped at 40 gpt when calculating composite intervals in drill holes. Drill holes are directed as much as possible perpendicular to the strike and dip of the mineralization at Magino. As a rough estimate the true thickness of the above intercepts is approximately 76%.

Technical Information and Mineral Properties Reports

The technical information contained in this document has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut's Vice President of Exploration, and a qualified person as defined by National Instrument 43-101 ("NI 43-101"). For further information on the Company's properties discussed herein please see the reports as listed below on the Company's website or on

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
La Fortuna Property NI 43-101 La Fortuna, Durango, Mexico, Technical Report dated October 21, 2008
Hercules Technical Review and Mineral Resource Estimate of the Hercules Property dated May 26, 2010
Magino Gold Project NI 43-101 Technical Report and Mineral Resource Estimate on the Magino Gold Project, Ontario, Toronto, Canada dated October 4, 2012
San Antonio Gold Project NI 43-101 Technical Report and Mineral Resource Estimate on the San Antonio Gold Project, Baja California Sur, Mexico dated October 10, 2012

Contact Information:

Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
(775) 284-4422 x 101