Argonaut Gold Expands Mineral Resources at its Operating Mines

TORONTO, Sept. 21, 2017 /CNW/ - Argonaut Gold Inc. (TSX: AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to provide updated pit-constrained Mineral Resource estimates for its operating mines.  The updated Mineral Resource estimates are net of mining depletion at July 1, 2017 and incorporate recent resource expansion drilling at both El Castillo and La Colorada (see press releases dated March 20, 2017, May 8, 2017 and June 1, 2017).  All dollar amounts are expressed in United States dollars unless otherwise specified.

El Castillo Mineral Resource Estimates^(1)
Category	Tonnes (000s)	Au Grade (g/t)	Contained Au Ounces (000s)	Ag Grade (g/t)	Contained Ag Ounces (000s)
Measured	4,482	0.54	77	-	-
Indicated	59,484	0.35	673	-	-
Measured & Indicated ("M&I")	63,966	0.36	751	-	-
Inferred	1,571	0.36	18	-	-

(1)

The pit-constrained M&I Mineral Resource and Inferred Mineral Resource for El Castillo in the above table were updated internally, are valid as of July 1, 2017 and were reviewed by Michael Lechner, who is a "qualified person" for purposes of NI 43-101. The Mineral Resources update used a gold price of $1,400. Cut-off grades, depending on rock and ore type, varied from 0.093 g/t for oxide to 0.467 g/t for silicified sulphide.  Mineral Resources do not have demonstrated economic viability.  There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.  Numbers may not sum exactly due to rounding.

At December 31, 2016, pit-constrained M&I Mineral Resources at El Castillo totalled approximately 486,000 contained gold ounces.  Through the acquisition of the adjacent San Juan concession in February 2017 and the subsequent resource expansion drilling programs, the Company added approximately 328,000 gold ounces bringing the M&I Mineral Resources to approximately 814,000 gold ounces.  Between December 31, 2016 and July 1, 2017, the Company depleted approximately 63,000 gold ounces through mining activities leaving M&I Mineral Resources of approximately 751,000 contained gold ounces at El Castillo at July 1, 2017.

La Colorada Mineral Resource Estimates^(2)
Category	Tonnes (000s)	Au Grade (g/t)	Contained Au Ounces (000s)	Ag Grade (g/t)	Contained Ag Ounces (000s)
Indicated	29,869	0.61	586	10.3	9,913
Inferred	1,238	0.80	32	12.3	488

(2)

The pit-constrained Indicated Mineral Resource and Inferred Mineral Resource used for La Colorada in the above table were updated internally, are valid as of July 1, 2017 and were reviewed by Michael Lechner, who is a "qualified person" for purposes of NI 43-101. The Mineral Resources update used a gold price of $1,400 and a silver price of $20. The gold equivalent cutoff grade varied depending on deposit and ranged from 0.085 g/t to 0.118 g/t.  Mineral Resources do not have demonstrated economic viability.  There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.

At December 31, 2016, pit-constrained Indicated Mineral Resources at La Colorada totalled approximately 560,000 contained gold ounces and 9.9 million contained silver ounces.  Through the 2017 resource expansion drilling program primarily focused at the El Creston pit, the Company added approximately 57,000 gold ounces and 391,000 silver ounces bringing the Indicated Mineral Resource to approximately 617,000 gold ounces and 10.3 million silver ounces.  Between December 31, 2016 and July 1, 2017, the Company depleted approximately 31,000 gold ounces and 408,000 silver ounces through mining activities leaving M&I Mineral Resources of approximately 586,000 contained gold ounces and 9.9 million contained silver ounces at La Colorada at July 1, 2017. 

Pete Dougherty, President and CEO stated: "We had a successful year of resource drilling which will extend the mine lives at both El Castillo and La Colorada.  At El Castillo, the additional ounces were made accessible with the acquisition of the San Juan mineral concession.  At La Colorada, the resource increase came through an aggressive program of in-fill and step-out drilling adjacent to the El Creston pit.  We are now preparing to publish updated life-of-mine plans at both El Castillo and La Colorada during the first quarter of 2018."

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" or "Argonaut Gold").  Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and resources; the realization of mineral reserve estimates; 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 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 variations in ore grade or recovery rates, changes in market conditions,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, Technical Information and Mineral Properties Reports
Technical information included in this release was supervised and approved by Michael Lechner, 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 Mine	NI 43-101 Technical Report on Resources and Reserves, Argonaut Gold Inc., El Castillo Mine, Durango State, Mexico dated February 24, 2011 (effective date of November 6, 2010)
La Colorada Mine	NI 43-101 Preliminary Economic Assessment La Colorada Project, Sonora, Mexico dated December 30, 2011 (effective date of October 15, 2011)
San Agustin Project	NI 43-101 Technical Report and Preliminary Economic Assessment San Agustin Heap Leach Project, Durango, Mexico dated June 10, 2016 (effective date of Resources April 29, 2016)
Magino Gold Project	Preliminary Feasibility Study Technical Report on the Magino Project, Wawa, Ontario, Canada dated February 22, 2016 (effective date January 18, 2016)
San Antonio Gold Project	NI 43-101 Technical Report on Resources, San Antonio Project, Baja California Sur, Mexico dated October 10, 2012 (effective date of September 1, 2012)

About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities.  Its primary assets are the production stage El Castillo mine and the construction stage San Agustin project in Durango, Mexico and the production stage La Colorada mine in Sonora, Mexico.  Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, and the Magino project in Ontario, Canada.  The Company also has several exploration stage projects, all of which are located in North America.

SOURCE Argonaut Gold Ltd.

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