Argonaut Gold Releases Revised Mineral Estimate for New San Agustin Mine

Argonaut gold has recently completed the first phase of drilling at its San Agustin pit mine near Durango, Mexico and released updated resource estimates for the project on Friday.

The new estimates indicate a 200% increase of deposits over what has been the "historic understanding of the property."

The recently completed drill phase at the pit mine has indicated resource estimates of 845,000 ounces of gold and 28.2 million ounces of silver within 82.2 million tonnes of material. The data reveals a grade of .32 grams of gold per tonne, and 10.7 grams per tonne for silver.

"Phase 1 of the drilling was completed ahead of schedule and under-budget," the company announced in a press release on August 22nd. Argonaut hopes to again increase its estimates as phase 2 of the drilling will cover an additional 16,000 meters.

"We are very pleased with the work done on the San Agustin project to date. The Phase I drill program was completed ahead of schedule and under budget. This resource is only composed of oxide and transition material. Conceptually, the planned preliminary economic assessment (“PEA”) is intended to evaluate the San Agustin property as a heap leach operation." said Pete Dougherty, the CEO of Argonaut. "All of the necessary engineering work, base-line permitting studies, land acquisition and other activities are well underway. We anticipate that a PEA (preliminary economic assessment) for the project will be completed by year-end."