Argonaut Gold Announces Record Quarterly Production of 59,704 Gold Equivalent Ounces, Record Quarterly Revenue of $105.3 Million and Earnings per Share of $0.09

TORONTO, May 4, 2021 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce its financial and operating results for the first quarter ended March 31, 2021.  The Company reports record quarterly production of 59,704 gold equivalent ounces¹ ("GEO" or "GEOs"), record quarterly revenue of $105.3 million, cash flow from operating activities before changes in operating working capital of $27.7 million and net income of $27.0 million or earnings per share of $0.09.  All dollar amounts are expressed in United States dollars, unless otherwise specified (C$ refers to Canadian dollars).

Overview of the Magino construction project timeline through 2023. (CNW Group/Argonaut Gold Inc.)

CEO Commentary
Pete Dougherty, President and CEO stated: "It was our second consecutive quarter of record quarterly production and revenue.  We demonstrated strong cash flow during the first quarter, which underpins our strategy to harvest cash from the existing operations, replace depleted ounces and invest in our growth asset portfolio to transform Argonaut from a high-cost, junior producer with short mine lives to a lower cost intermediate producer with long mine lives.  With the cash we are generating, the recent announcement of an increase of Mineral Reserves by 43% and Measured and Indicated Mineral Resources by 26% year-over-year and the early progress of the Magino construction project, we are delivering on all three phases."

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¹ GEOs are based on a conversion ratio of 85:1 for silver to gold for 2021 and 80:1 for 2020.  The silver to gold conversion ratio is based on the three-year trailing average silver to gold price.  These are the ratios for each year throughout the press release.

Key operating and financial statistics for the three months ended March 31, 2021 are outlined in the following table:

	3 months ended  March 31		Change
	2021	2020
Financial Data (in millions except for earnings per share)
Revenue	$105.3	$66.6	58%
Gross profit	$27.6	$13.9	99%
Net income (loss)	$27.0	($9.5)	382%
Earnings (loss) per share – basic	$0.09	($0.05)	280%
Cash flow from operating activities before changes in non-cash operating working capital	$27.7	$14.8	88%
Cash and cash equivalents	$227.3	$41.8	444%
Gold Production and Cost Data
GEOs loaded to the pads^2	113,821	97,180	17%
GEOs projected recoverable^2,3	63,287	44,284	43%
GEOs produced^2,4	59,704	41,536	44%
GEOs sold^2	59,116	42,204	39%
Average realized sales price	$1,761	$1,585	12%
Cash cost per gold ounce sold^1	$1,003	$967	4%
All-in sustaining cost per gold ounce sold^1	$1,313	$1,323	(1%)

¹ Please refer to the section below entitled "Non-IFRS Measures" for a discussion of these Non-IFRS Measures.

² GEOs are based on a conversion ratio of 85:1 for silver to gold for 2021 and 80:1 for 2020. The silver to gold conversion ratio is based on the three-year trailing average silver to gold ratio.

³ Expected recoverable GEOs are based on the assumptions and parameters as set forth in the El Castillo Complex Technical Report dated March 27, 2018, the La Colorada Gold/Silver Mine Technical Report dated March 27, 2018 and the Florida Canyon Technical Report dated July 8, 2020.  In periods where the Company mines material not specifically defined in a technical report (for example: run-of-mine ore or low grade stockpile material), management uses its best estimate of recovery based on the information available.

⁴ Produced ounces are calculated as ounces loaded to carbon.

First Quarter 2021 and Recent Company Highlights:

• Corporate Highlights:
• Set a new record for quarterly GEO production.
• Set a new record for quarterly revenue.
• Closed a C$26.5 million bought deal of flow-through shares to fund qualifying development expenditures at Magino.
• Completed a C$10.0 million non-brokered private placement with Ausenco Engineering Canada Inc.
• Strengthened the management team with the appointment of Lowe J. Billingsley in the role of Senior Vice President, Operations.
• Social and Environmental Responsibility:
• Inauguration of the "Solar Farm" solar panel park located at La Colorada, in collaboration with the Mining Fund and the municipality of La Colorada, Sonora.
• Continue work on our education initiative, the "Assignment's Club", which assists mothers with pre-school and elementary school students doing at-home study in the communities near the Cerro del Gallo project.
• Distribution of food baskets and scholarships in communities neighbouring the El Castillo Complex.
• El Castillo Complex:
• Produced 31,175 GEOs representing a 9% increase compared to the first quarter of 2020.
• Reduced cash cost per gold ounce sold to $916 or by 3% compared to the first quarter of 2020 (see "Non-IFRS Measures" section).
• La Colorada:
• Produced 16,516 GEOs representing a 27% increase compared to the first quarter of 2020.
• Reduced cash cost per gold ounce sold to $765 or by 25% compared to the first quarter of 2020 (see "Non-IFRS Measures" section).
• Discovered high-grade gold veins below the El Crestón open pit including 12.2 metres at 98.9 g/t Au and 30.3 g/t Ag and 21.3 metres at 44.6 g/t Au and 274.9 g/t Ag.
• Florida Canyon:
• Produced 12,013 GEOs representing a 6% increase compared to the previous quarter.
• Received all regulatory approvals required for the construction, installation and operation of a new conveying and stacking system.
• Magino:
• Construction, Permitting & Community
• Executed a fixed-bid contract for a significant portion of the Magino project initial capital.
• Completed a major permitting milestone with the Magino Closure Plan filing.
• Executed an Indigenous community accommodation agreement with Garden River First Nation.
• Initiated and advanced the construction project, including:
• Logging;
• Early site works;
• Assembled and mobilized teams and set up camps;
• Began installation of construction offices;
• Ordered all long lead time equipment; and,
• Held a virtual Indigenous ceremony to bless the grounds of the Magino site.
• Launched a monthly newsletter from the CEO to provide regular updates on the Magino construction project, which is available here: https://www.argonautgold.com/English/assets/development/magino/default.aspx
• Exploration
• Continued to intersect high-grade gold mineralization below and adjacent to the planned pit and identified multiple new high-grade structures hosting multiple veins:
• South zone strike length extended to 1.5 kilometers and remains open to the west and at depth.
• Cerro del Gallo:
• Advanced an updated permit application for the project.

Financial Results – First Quarter 2021
Record quarterly revenue was $105.3 million for the first quarter of 2021, an increase from $66.6 million from the first quarter of 2020.  During the first quarter of 2021, the Company sold 56,727 gold ounces at an average realized price per ounce of $1,761, compared to 40,169 gold ounces sold at an average price per ounce of $1,585 during the same period of 2020.  Gold ounces sold for the first quarter of 2021 increased 41% compared to the same period in 2020, primarily due to the addition of the gold ounces sold from the Florida Canyon mine and by increases in gold ounces sold at the San Agustin and La Colorada mines.  The addition of a Merrill Crowe recovery plant during the fourth quarter of 2020 at San Agustin and higher grades and better than expected recoveries at La Colorada led to higher production and sales, partially offset by a decrease in gold ounces sold at the El Castillo mine as a result of a decrease in grade and changing from crushed to run of mine material during the first quarter of 2020.

Income from continuing operations for the first quarter of 2021 was $27.8 million or $0.09 per basic or diluted share compared to a loss from continuing operations of $9.5 million or $0.05 per share in the first quarter of 2020.  Loss from discontinued operations for the first quarter of 2021 was $0.8 million as a result of the Ana Paula project being classified as a held-for-sale asset as at March 31, 2021 and as a discontinued operation for the three months ended March 31, 2021.  Net income for the first quarter of 2021 was $27.0 million or $0.09 per basic or diluted share compared to a net loss of $9.5 million or $0.05 loss per share for the same period in 2020.

Cash flow from operating activities before changes in non-cash operating working capital for the first quarter of 2021 was $27.7 million compared to $14.8 million in the first quarter of 2020.  The 88% increase is due to an 11% increase in the average realized gold price, the increase in ounces sold due to the addition of the Florida Canyon mine and the net increase in ounces sold at the three mines in Mexico.  During the first quarter of 2021, cash increased by $13.2 million due primarily to $26.3 million of cash flows from operations (including changes in non-cash operating capital and other items), $19.5 million from issuance of flow-through shares and $7.9 million from a private placement with Ausenco Engineering Canada Inc., offset by $38.4 of capital expenditures incurred, as compared to the first quarter of 2020 in which cash increased by $3.0 million due primarily to $18.6 million of cash flows from operations, partially offset by $12.5 million of capital expenditures incurred and the repayment of $3.0 million of debt. 

Operating Results – First Quarter 2021
During the first quarter of 2021, the Company achieved record quarterly production of 59,704 GEOs at a cash cost per gold ounce sold of $1,003 and an all-in sustaining cost ("AISC") per gold ounce sold of $1,313, compared to 41,536 GEOs at a cash cost of $967 per gold ounce sold and an AISC per gold ounce sold of $1,323 during the first quarter of 2020 (see "Non-IFRS Measures" section). Higher GEO production is primarily related to the addition of the Florida Canyon mine and increased production at the San Agustin and La Colorada mines.  The addition of a Merrill Crowe recovery plant during the fourth quarter of 2020 at San Agustin and higher grades and better than expected recoveries at La Colorada led to higher production, partially offset by a decrease in GEOs produced at the El Castillo mine as a result of a decrease in grade and changing from crushed to run of mine material during the first quarter of 2020.

Higher cash cost per gold ounce sold and AISC per gold ounce sold was primarily due to the addition of the Florida Canyon mine, which is currently Argonaut's highest cost operation.

FIRST QUARTER 2021 EL CASTILLO COMPLEX OPERATING STATISTICS

	3 Months Ended March 31
	2021	2020	% Change
Mining (in 000s except waste/ore ratio)
Tonnes ore El Castillo	2,404	1,922	25%
Tonnes ore San Agustin	2,870	2,709	6%
Tonnes ore	5,274	4,631	14%
Tonnes waste El Castillo	3,137	3,414	(8%)
Tonnes waste San Agustin	1,774	1,869	(5%)
Tonnes waste	4,911	5,283	(7%)
Tonnes mined El Castillo	5,541	5,336	4%
Tonnes mined San Agustin	4,644	4,578	1%
Tonnes mined	10,185	9,914	3%
Tonnes per day El Castillo	62	59	5%
Tonnes per day San Agustin	52	50	4%
Tonnes per day	114	109	5%
Waste/ore ratio El Castillo	1.30	1.78	(27%)
Waste/ore ratio San Agustin	0.62	0.69	(10%)
Waste/ore ratio	0.93	1.14	(18%)
Leach Pads (in 000s)
Tonnes crushed East to leach pads El Castillo	0	214	(100%)
Tonnes crushed West to leach pads El Castillo	0	3	(100%)
Tonnes direct to leach pads El Castillo	2,402	1,732	39%
Tonnes crushed to leach pads San Agustin	2,982	2,733	9%
Tonnes to leach pads	5,384	4,682	15%
Production
Gold grade loaded to leach pads El Castillo (g/t)^1	0.29	0.55	(47%)
Gold grade loaded to leach pads San Agustin (g/t)^1	0.27	0.36	(25%)
Gold grade loaded to leach pads (g/t)^1	0.28	0.44	(36%)
Gold loaded to leach pads El Castillo (oz)^2	22,176	34,471	(36%)
Gold loaded to leach pads San Agustin (oz)^2	25,910	31,255	(17%)
Gold loaded to leach pads (oz)^2	48,086	65,726	(27%)
Projected recoverable GEOs loaded El Castillo^4	9,737	13,072	(26%)
Projected recoverable GEOs loaded San Agustin^4	18,889	22,781	(17%)
Projected recoverable GEOs loaded^4	28,626	35,853	(20%)
Gold produced El Castillo (oz)^2,3	11,972	14,435	(17%)
Gold produced San Agustin (oz)^2,3	17,271	12,835	35%
Gold produced (oz)^2,3	29,243	27,270	7%
Silver produced El Castillo (oz)^2,3	21,795	23,545	(7%)
Silver produced San Agustin (oz)^2,3	142,431	75,504	89%
Silver produced (oz)^2,3	164,226	99,049	66%
GEOs produced El Castillo^3	12,228	14,729	(17%)
GEOs produced San Agustin^3	18,947	13,779	38%
GEOs produced^3	31,175	28,508	9%
Gold sold El Castillo (oz)^2	13,602	13,626	0%
Gold sold San Agustin (oz)^2	16,666	13,461	24%
Gold sold (oz)^2	30,268	27,087	11%
Silver sold El Castillo (oz)^2	21,118	23,545	(10%)
Silver sold San Agustin (oz)^2	128,921	85,137	51%
Silver sold (oz)^2	150,039	108,682	38%
GEOs sold El Castillo	13,851	13,920	0%
GEOs sold San Agustin	18,182	14,525	25%
GEOs sold	32,033	28,445	13%
Cash cost per gold ounce sold El Castillo^5	$1,049	$1,099	(5%)
Cash cost per gold ounce sold San Agustin^5	$807	$782	3%
Cash cost per gold ounce sold^5	$916	$941	(3%)

¹"g/t" is grams per tonne.

²"oz" means troy ounce.

³Produced ounces are calculated as ounces loaded to carbon.

⁴Expected recoverable GEOs are based on the assumptions and parameters as set forth in the El Castillo Complex Technical Report dated March 27, 2018.  In periods where the Company mines material not specifically defined in a technical report (for example: run-of-mine ore or low grade stockpile material), management uses its best estimate of recovery based on the information available.

⁵Please refer to the section below entitled "Non-IFRS Measures" for a discussion of this Non-IFRS Measure.

Summary of Production Results at the El Castillo Complex – First Quarter 2021
During the first quarter of 2021, the El Castillo Complex produced 9% more GEOs at a cash cost per gold ounce sold 3% less than during the first quarter of 2020.  Higher GEO production was due to a 38% increase in production at the San Agustin mine offset by a 17% decrease in production at the El Castillo mine.  Higher GEO production at San Agustin was driven by a 9% increase is crusher throughput and higher metal recoveries associated with a Merrill Crowe recovery plant that was installed during the fourth quarter of 2020.  Lower GEO production at El Castillo was primarily due to a 47% reduction in gold grades loaded to the leach pads associated with anticipated recoveries based on ore type and the change from crushed ore to run-of-mine ore, which lowered unit costs and allowed for lower grade ore to become economic.  Cash cost per gold ounce sold was relatively in line with the same period of 2020. 

FIRST QUARTER 2021 LA COLORADA OPERATING STATISTICS

	3 Months Ended March 31
	2021	2020	% Change
Mining (in 000s except for waste/ore ratio)
Tonnes ore	1,227	947	30%
Tonnes waste	4,014	4,683	(14%)
Total tonnes	5,241	5,630	(7%)
Tonnes per day	59	62	(5%)
Waste/ore ratio	3.27	4.95	(34%)
Leach Pads (in 000s)
Tonnes crushed to leach pads	1,266	966	31%
Production
Gold grade loaded to leach pads (g/t)^1	0.54	0.35	54%
Gold loaded to leach pads (oz)^2	22,091	11,022	100%
Projected recoverable GEOs loaded^4	17,634	8,431	109%
Gold produced (oz)^2,3	15,894	12,349	29%
Silver produced (oz)^2,3	52,912	54,315	(3%)
GEOs produced^3	16,516	13,028	27%
Gold sold (oz)^2	13,630	13,082	4%
Silver sold (oz)^2	44,438	54,198	(18%)
GEOs sold	14,153	13,759	3%
Cash cost per gold ounce sold^5	$765	$1,021	(25%)

¹ "g/t" refers to grams per tonne.

² "oz" refers to troy ounce.

³ Produced ounces are calculated as ounces loaded to carbon.

⁴ Expected recoverable GEOs are based on the assumptions and parameters as set forth in the La Colorada Gold/Silver Mine Technical Report dated March 27, 2018.  In periods where the Company mines material not specifically defined in a technical report (for example: run-of-mine ore or low grade stockpile material), management uses its best estimate of recovery based on the information available.

⁵ Please refer to the section below entitled "Non-IFRS Measures" for a discussion of this Non-IFRS Measure.

Summary of Production Results at La Colorada – First Quarter 2021
During the first quarter of 2021, the La Colorada mine produced 27% more GEOs at a cash cost per gold ounce sold 25% less than during the first quarter of 2020.  Higher GEO production was primarily due to a 54% increase in gold grade and a 31% increase in crusher throughput.  Lower cash cost per gold ounce sold was primarily due to the increase in gold grade and a 34% reduction in strip ratio. 

FIRST QUARTER 2021 FLORIDA CANYON OPERATING STATISTICS

	3 Months Ended March 31
	2021
Mining (in 000s except for waste/ore ratio)
Tonnes ore	2,203
Tonnes waste	3,228
Total tonnes	5,431
Tonnes per day	58
Waste/ore ratio	1.47
Leach Pads (in 000s)
Tonnes crushed to leach pads	1,795
Tonnes direct to leach pads	412
Production
Gold grade loaded to leach pads (g/t)^1	0.34
Gold loaded to leach pads (oz)^2	23,915
Projected recoverable GEOs loaded^4	17,027
Gold produced (oz)^2,3	11,928
Silver produced (oz)^2,3	7,232
GEOs produced^3	12,013
Gold sold (oz)^2	12,829
Silver sold (oz)^2	8,535
GEOs sold	12,930
Cash cost per gold ounce sold^5	$1,462

¹ "g/t" refers to grams per tonne.

² "oz" refers to troy ounce.

³ Produced ounces are calculated as ounces loaded to carbon.

⁴ Expected recoverable GEOs are based on the assumptions and parameters as set forth in the Florida Canyon Mine Technical Report dated July 8, 2020.  In periods where the Company mines material not specifically defined in a technical report (for example: run-of-mine ore or low grade stockpile material), management uses its best estimate of recovery based on the information available.

⁵ Please refer to the section below entitled "Non-IFRS Measures" for a discussion of this Non-IFRS Measure.

Summary of Production Results at Florida Canyon
As Argonaut did not own nor operate the Florida Canyon mine during the first quarter of 2020, it is not making comparisons to a previous period.  Florida Canyon produced 12,013 GEOs at a cash cost of $1,462 per gold ounce sold during the first quarter of 2021 (see "Non-IFRS Measures" section). 

Argonaut has identified potentially significant operating cost savings once it can eliminate the re-handle on the back end of the secondary crushing by switching to a conveying and stacking system to transport crushed ore to the leach pads.  All necessary regulatory approvals, including a modification to the existing Air Quality permit, to allow for the construction, installation and operation of a new conveying and stacking system have been received (see press release dated April 28, 2021).  The equipment associated with the conveying and stacking system has been ordered and/or procured, and it is estimated that the new system will be operational and ramped up to design capacity during the third quarter of 2021.  The capital associated with the convey and stack project was included in Argonaut's 2021 capital guidance (see press release dated January 19, 2021).    

Pete Dougherty commented: "All three mines in Mexico are meeting or exceeding our expectations to start the year and delivered strong first quarter results, leading to record quarterly production and revenue.  We still have work to do to optimize Florida Canyon and have a plan in place to do so now that the minor modification to our Air Quality permit has been approved, which will allow for the installation of a conveying and stacking system.  We believe this will significantly reduce operating costs at Florida Canyon once it is installed and ramped up to design specifications, and we expect to achieve this during the third quarter of 2021.  On a consolidated basis, we are on track to meet our 2021 production, cost and capital guidance after a solid first quarter."

Magino Construction Update

Site preparation and early site earthworks are well underway, and the Magino construction project continues to advance on schedule.  Regular updates to the Magino construction project progress are available here:
https://www.argonautgold.com/English/assets/development/magino/default.aspx

Recent milestones include:

• Logging completed and commenced scaling of hardwood and hauling of softwood to local mills for processing and making firewood available to local dealers;
• Initiated red spruce seedling grow program with Lakehead University Greenhouse;
• Fish capture and relocation program initiated with biologists in preparation for construction water treat system commissioning;
• Obtained draft Permit to Take Water in support of spring construction works;
• Plant site stripping/excavation is 90% complete;
• Prep for plant footprint underway – includes drilling and blasting;
• Pre-production reverse circulation (RC) grade control drilling commenced;
• Main haul road to the open pit is established;
• Open pit overburden stripping is ongoing with production drilling commencing;
• Crushing plant mobilized in a temporary set-up;
• Screening plant mobilized;
• Main office hub in Dubreuilville, Ontario is online and operational;
• Completion of 144-person onsite camp modules 1 and 2, including a large kitchen;
• Installed hydrophones at Goudreau Lake; and
• Installed 12 metre communications tower, server and repeater.

Upcoming milestones:

• Commencing plant site pad blasting and continuing pad development;
• Commencing open pit production drilling and blasting;
• Continuing onsite haul road construction to tailing management facility (TMF) from open pit mine area;
• Completion of modules for the onsite 144-person camp and commence pad construction for the 458-person camp at the old mill site in Dubreuilville, Ontario;
• Testing and taking I.T. and communications servers and towers online;
• Ongoing RC grade control drilling program;
• Ordering of concrete aggregate; and
• Ausenco leadership team mobilizing on-site.

It is anticipated that the pace of capital spend will increase late second quarter 2021 or early third quarter 2021 as the following activities take place:

• Mining commences in support of construction and pre-stripping;
• Process plant construction commences; and
• TMF construction commences.

An overview of the Magino construction project timeline through 2023 is provide below:

The Magino construction project is tracking on schedule.  Argonaut is currently reviewing all inputs including potential cost inflation, impacts of foreign currency exchange rates and changes in scope related to the initial capital estimate.  While this review is ongoing, based on the best available information to date, the Company believes the initial capital remains within 15% of the previous guided estimate of between C$480 million and C$510 million.  

Outlook

Argonaut is on track to achieve its 2021 consolidated production, cost and capital guidance.  The table below outlines the first quarter of 2021 actuals compared to full year 2021 guidance:

	First Quarter 2021	Full Year 2021 Guidance
GEO production	59,704	210,000 – 250,000
Cash cost per gold ounce sold^1	$1,003	$950 – $1,050
AISC per gold ounce sold^1	$1,313	$1,250 – $1,350
Capital (including exploration and excluding Magino construction capital)^2	$12.3 million	$75 million – $85 million
Magino construction capital^2	$26.1 million	$180 million – $190 million

¹ See "Non-IFRS Measures" section.

² Assumes exchanges rates of MXN:USD of 20:1 and CAD:USD of 1.3:1.

Argonaut Gold First Quarter 2021 Financial and Operating Results Conference Call & Webcast
The Company will host a conference call and webcast on May 5, 2021 at 9:00 am EDT to discuss the first quarter 2021 financial and operating results.

First Quarter 2021 Conference Call Information for May 5, 2021:

Toll Free (North America):	1-888-231-8191
International:	1-647-427-7450
Conference ID:	2067781
Webcast:	www.argonautgold.com

First Quarter 2021 Conference Call Replay:

Toll Free Replay Call (North America):	1-855-859-2056
International Replay Call:	1-416-849-0833
Passcode:	2067781
The conference call replay will be available from 12:00 pm EDT on May 5, 2021 to 11:59 pm EST May 12, 2021.

Non-IFRS Measures
The Company has included certain non-IFRS measures including "Cash cost per gold ounce sold" and "All-in sustaining cost per gold ounce sold" in this press release to supplement its financial statements which are presented in accordance with International Financial Reporting Standards ("IFRS").  Cash cost per gold ounce sold is equal to production costs plus the total impact of impairment write downs related to work-in-process inventory less silver sales divided by gold ounces sold.  AISC per gold ounce sold is equal to production costs plus the total impact of impairment write downs related to work-in-process inventory less silver sales plus general and administrative, exploration, accretion and other expenses and sustaining capital expenditures divided by gold ounces sold.  The Company believes that these measures provide investors with an alternative view 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 management's discussion and analysis ("MD&A") for full disclosure on non-IFRS measures.

This press release should be read in conjunction with the Company's audited consolidated financial statements for the three months ended March 31, 2021 and associated MD&A, for the same period, which are available from the Company's website, www.argonautgold.com, in the "Investors" section under "Financial Reports", and under the Company's profile on SEDAR at www.sedar.com.

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 business, operations and financial performance and condition of Argonaut Gold Inc. ("Argonaut" or "Argonaut Gold"). Forward-looking statements and forward-looking information include, but are not limited to statements with respect to the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; estimated production and mine life of the various mineral projects of Argonaut; timing of approval for modifications to existing permits; permitting and legal processes in relation to mining permitting and approval; 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; 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", "should" 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 variations in ore grade or recovery rates, changes in market conditions, risks relating to the availability and timeliness of permitting and governmental approvals; 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.

These factors are discussed in greater detail in Argonaut's most recent Annual Information Form and in the most recent Management's Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. Argonaut cautions that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. Argonaut believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

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, Technical Information and Mineral Properties Reports
Technical information included in this release was supervised and approved by Brian Arkell, Argonaut's Vice President, Exploration and a Qualified Person under NI 43-101.  For further information on the Company's material properties, please see the reports as listed below on the Company's website or on www.sedar.com:

El Castillo Complex	NI 43-101 Technical Report on Resources and Reserves, El Castillo Complex, Durango, Mexico dated March 27, 2018 (effective date of March 7, 2018)
La Colorada Mine	NI 43-101 Technical Report on Resources and Reserves, La Colorada Gold/Silver Mine, Hermosillo, Mexico dated March 27, 2018 (effective date of December 8, 2017)
Florida Canyon Gold Mine	NI 43-101 Technical Report on Mineral Resource and Mineral Reserve Florida Canyon Gold Mine Pershing County, Nevada, USA dated July 8, 2020 (effective date June 1, 2020)
Magino Gold Project	Feasibility Study Technical Report on the Magino Project, Ontario, Canada dated December 21, 2017 (effective date November 8, 2017)
Cerro del Gallo Project	Pre-Feasibility Study Technical Report on the Cerro del Gallo Project, Guanajuato, Mexico dated January 31, 2020 (effective date of October 24, 2019)

About Argonaut Gold

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. 

For more information, contact:

Argonaut Gold Inc.
Dan Symons
Vice President, Corporate Development & Investor Relations
Phone:  [phone]
Email: [email protected]

Source: Argonaut Gold Inc.

SOURCE Argonaut Gold Inc.

Related Links

http://www.argonautgold.com/