Argonaut Gold sees Magino capex rise 57%; CEO departs

Argonaut has invested about C$342 million into Magino up to now, leaving about C$459 million wanted to finish the venture.

Will increase have been seen in all however one (web site infrastructure) areas of the venture, however Argonaut says the biggest will increase are associated to greater price of products, inflation, Covid-19 impacts, modifications to the scope of the venture, the tailings administration facility (TMF), and everlasting energy.

The price of the TMF is up 69% to C$130 million and including pure gasoline energy era for the location is available in 140% greater at C$41 million. Website improvement prices are up 120% to C$138 million, and the proprietor’s pre-production G&A can also be up 120% to C$55 million. Even the quantity put aside for contingencies is up 118% to C$33 million. That makes the 13% rise in course of plant prices, to C$219 million, look modest.

Checked out one other method, Argonaut says impacts from price will increase, inflation and Covid-19 quantity to 32% of the capital improve. Adjustments in scope account for about 28% of the uptick, and elevated portions for materials for web site improvement and venture indirects quantity to about 20% of the rise.

The suspended mine is 195 km north of Sault Ste Marie, Ontario, and 100% owned by Argonaut.

Aside from the method plant, many of the Magino venture is on schedule. Initially there have been challenges in civil works on the mill web site that led to its being not on time. Argonaut has determined to spend additional to get the mill again on schedule reasonably than delay your complete venture awaiting its completion. Nevertheless, the corporate stated its EPC contract with Ausenco Engineering Canada has shielded it from many of the price will increase and inflation for the plant.

Argonaut is making ready an up to date 43-101 report for Magino which is to be printed throughout the first quarter subsequent 12 months. It’s going to deal with the venture presently beneath building reasonably than enlargement alternatives.

The Magino venture presently has measured and indicated sources of 144 million tonnes grading 0.91 g/t gold for 4.2 million contained oz. and an inferred sources of 33.2 million tonnes at 0.83 g/t gold for 886,000 contained oz. of gold. A gold value of $1,200 per ounce was utilized in these calculations.

Open pit mining and carbon-in-pulp gold restoration are deliberate. Manufacturing is anticipated within the first half of 2023.

(This text first appeared within the Canadian Mining Journal)


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Argonaut Gold sees Magino capex rise 57% to $800M; CEO departs

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