Argonaut produced 136.7K oz Au for 2014 and is guiding for 135K oz Au to 145K oz Au in 2015 at a cash cost of $700-$750/oz.

FOURTH QUARTER 2014 HIGHLIGHTS:

El Castillo

• Quarterly production of 27,870 gold equivalent ounces; full year production of 93,379 gold equivalent ounces (at 55:1 conversion of silver to gold ounces).
• During the quarter, 37,986 gold ounces loaded on the leach pads.
• 7.4 million total tonnes mined and 3.0 million tonnes processed through the crushing circuits during the quarter.
• Heap Leach pad 3B west completed.

La Colorada

• Quarterly production of 15,682 gold ounces and 41,787 silver ounces, for 16,442 gold equivalent ounces (at 55:1 conversion of silver to gold ounces).
• Full year production of 40,535 gold ounces and 153,548 silver ounces, for 43,327 gold equivalent ounces (at 55:1 conversion of silver to gold ounces).
• During the quarter, 19,917 gold ounces and 270,601 silver ounces loaded on the leach pads.
• Average crusher throughput for the quarter of 12,140 tonnes per day.

Project updates

• Updates are expected to be provided in mid-January 2015 regarding the San Agustín Preliminary Economic Assessment (“PEA”) and the ongoing Magino metallurgical test work.

2015 GUIDANCE

• Gold production of 135,000-145,000 gold equivalent ounces (at a 55:1 conversion of silver to gold ounces).
  • El Castillo – 85,000-90,000 gold ounces at cash costs of $750-$800 per gold ounce sold (cash cost per ounce sold is a non-IFRS measure as described in the notes to this release).
  • La Colorada – 50,000-55,000 gold equivalent ounces at cash costs of $600-$650 per gold ounce sold (cash cost per ounce sold is a non-IFRS measure as described in the notes to this release).
  • Total cash cost of $700-$750 per gold ounce sold (cash cost per ounce sold is a non-IFRS measure as described in the notes to this release).
• Total capital spending of $37 million, with anticipated spending by project of:
  • El Castillo – $16 million in total capital, consisting of $4 million in leach pad expansion, $6 million in sustaining capital and $6 million in capitalized stripping.
  • La Colorada – $11 million in total capital, consisting of $3 million in leach pad expansion, $2 million in sustaining capital and $6 million on capitalized stripping.
  • San Antonio – $2 million on-going cost excluding any capital for construction of the project that is subject to permits being granted.
  • San Agustín – $2 million in design costs excluding drilling and any capital for construction of the project subject to permits being granted and a construction decision by the board of directors.
  • Magino – $2 million in technical and permitting studies.
  • Exploration program – $4 million primarily focused at San Agustín, Magino and fixed holding costs for land and concessions.

Pete Dougherty, Argonaut Gold’s President and CEO, said “Overall, 2014 was a challenging year for Argonaut. However, our teams have overcome these obstacles as can be seen in the record production results of the fourth quarter. We are pleased with the efforts made and look forward to 2015.  In addition to the strong 2014 operational results, we continued to move forward other projects in our portfolio. At the San Agustín project, an updated resource nearly tripled the previous resource, and we believe there continues to be upside exploration potential still to be realized. At Magino, we finalized a transaction with Richmont Mines Inc. that will allow us to look at adding further value to the project with possible resource expansion onto this adjacent property.

During 2015, the Company aims to deliver additional value on the key development projects in our portfolio. A PEA for San Agustín is expected to be presented to the market in January. At Magino, the upcoming drill campaign and the release of the Magino metallurgical test work on the lower grade ore are key catalysts to unlocking the true potential of the project. We continue to be patient at San Antonio, as the election process works itself out in 2015. We will use this time to position ourselves to be able to move this project forward.

In spite of the challenging market conditions, as an organization we have made great strides during 2014. In 2015, the focus will continue to be on the core principles of our Company; safe and efficient operations, meeting production goals and targets, producing at a cost that allows us to generate returns to our shareholders and finding value in development projects.”

FOURTH QUARTER 2014 El CASTILLO OPERATING STATISTICS

El Castillo Mine Plan 2015
	Q1	Q2	Q3	Q4	FY 2015
Ore Tonnes	3.3M	3.4M	3.1M	3.3M	13.1 M
Oxide	80%	78%	71%	87%	79%
Transition	20%	22%	29%	13%	21%
Strip ratio	1.24	1.24	1.24	1.24	1.24

Richard Rhoades, Chief Operating Officer of Argonaut Gold, said “At El Castillo, we are pleased that we were able to deliver a record quarter from the operations. After recovering from the extensive third quarter rains, we were able to resume efficient mine operations by delivering tonnes to the pad and recovering ounces placed on the pad. In 2015, El Castillo will implement an optimization program designed to improve the operating margins of the ounces and to fully take advantage of our expansion programs including the west overland conveyor system.

At the La Colorada mine, expansion projects were completed in the third quarter and the mine delivered record quarterly production to finish out the year. The crushing circuit continues to process greater than 12,000 tonnes per day, and we are set up to continue to deliver strong results. The added flexibility of reprocessing leach pad material from the pad 6 area, and mining the main La Colorada/Gran Central pit, will provide the operational flexibility to more effectively manage operations and costs.”

FOURTH QUARTER 2014 LA COLORADA OPERATING STATISTICS

2015 Development and Growth
Peter Dougherty said “In 2015, we look forward to continuing to deliver production results as we build upon the momentum of the fourth quarter. We are now realizing the benefits of the increased crushing capacity at La Colorada and have the flexibility to meet production and cost targets by combining newly mined ore in combination with the reprocessing of historic heap leach pad material. At El Castillo, we anticipate another year of consistent delivery on guidance.

At San Agustín, we are encouraged by the upcoming release of the PEA and our ability to realize additional upside potential through future drilling programs. We continue to believe in the social and economic benefits of the San Antonio project, but recognize the need to be patient as 2015 is an election year. At Magino, we anticipate the commencement of a drill campaign focusing on property related to the recently finalized agreement with Richmont Mines Inc. This campaign will test further extension of mineralization, along with in-fill drilling in some of the higher grade portions of the deposit where gaps were created by the exclusion of some historic drilling that was not utilized in compiling the current resource. This campaign, coupled with additional metallurgical test work, will allow us to unlock potential additional value.”

Argonaut Gold Q4 Financial Results Conference Call and Webcast – March 16, 2015:
The Q4 financial results call is scheduled to take place on March 16, 2014 at 8:30 AM (ET). Details for the call-in participation are:

Q4 and Year End 2014 Conference Call Information for March 16, 2015:

Q4 and Year End 2014 Conference Call Replay:

The conference call replay will be available from 11:30 AM (ET) on March 16, 2015 to March 30, 2015.

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 in Durango, Mexico, and the La Colorada Mine in Sonora, Mexico. Advanced exploration stage projects are the San Antonio project in Baja California Sur, Mexico, the Magino project in Ontario, Canada and the San Agustín project in Durango, Mexico. The San Agustín and Magino projects will be the primary exploration targets for Argonaut in 2015. The Company also has several exploration stage projects, all of which are located in North America.

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 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.

Non-IFRS Measures
The Company included the non-IFRS measure “cash cost per gold ounce sold” in this press release to supplement its regular financial statement reporting which is presented in accordance with International Financial Reporting Standards (“IFRS”). Cash cost per gold ounce sold is equal to production costs less silver sales divided by gold ounces sold. 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.

Qualified Person, Technical Information and Mineral Properties Reports
Technical information included in this release was supervised and approved by Thomas Burkhart, Argonaut Gold’s Vice President of Exploration, and a Qualified Person under National Instrument (“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:

For more information, contact:
Argonaut Gold Inc.
Curtis Turner
Corporate Development Officer
Tel:  (775) 284-4422 x 104
Email: curtis.turner@argonautgold.com
www.argonautgold.com

]]> https://thedailygold.com/argonaut-gold-announces-q3-production-32122-oz-au-eq/ Wed, 15 Oct 2014 17:01:04 +0000 http://thedailygold.com/?p=20548 Production was flat year over year….]]> Toronto, Ontario – (October 15, 2014) Argonaut Gold Inc. (“Argonaut”, “Argonaut Gold” or the “Company”; TSX: AR), announced today that the Company produced 32,122 gold equivalent ounces (“GEOs” or “GEO”) during the third quarter (“Q3”) ended September 30, 2014. This included 22,980 GEOs at its 100% owned El Castillo Mine (“El Castillo”) located in Durango, Mexico and 9,142 GEOs at its 100% owned La Colorada Mine (“La Colorada”) located near Hermosillo, Mexico. Additionally, the Company reported record GEOs loaded to the pads in Q3, which will be reflected in the fourth quarter (“Q4”) production numbers.

¹ GEOs are based on conversion ratio of 55:1 for silver to gold and is the referenced ratio throughout this release.
² Recoverable ounces – see tables titled Third Quarter 2014 El Castillo Operating Statistics and Third Quarter 2014 La Colorada Operating Statistics.

THIRD QUARTER 2014 HIGHLIGHTS:
At both mines, operational improvements resulted in record GEOs being loaded to the pads. These improvements made in the third quarter are expected to result in significantly increased gold and silver production being realized in the fourth quarter, which has been demonstrated in first days of October. Tonnes mined and processed continue to show steady improvement year over year. However, seasonal rains during the third quarter caused dilution of the leaching solutions, thereby reducing the recovered ounces. Due to these seasonal effects, the Company is adjusting full year production guidance to 130,000 to 135,000 GEOs, from previous guidance which was at the lower end of the range of 135,000 to 150,000 GEOs. Management anticipates higher production in the fourth quarter, as the Company begins to recover the record ounces loaded during the third quarter coupled with drier weather.

Click Here for the Full Release

Argonaut Gold Q2 2014

¹ GEOs are based on conversion ratio of 55:1 for silver to gold and is the referenced ratio throughout the release.

² Recoverable ounces – see tables titled Second Quarter 2014 El Castillo Operating Statistics and Second Quarter 2014 La Colorada Operating Statistics

SECOND QUARTER 2014 HIGHLIGHTS:

El Castillo

• GEO production of 21,359 ounces consisting of 21,041 gold ounces and 17,474 silver ounces (GEOs at 55:1 conversion rate).
• 37,352 gold ounces loaded on the leach pads equating to 21,424 projected recoverable gold ounces.
• Mining:
  • The daily mining rate for the quarter increased from 87 thousand tonnes per day (“ktpd”) in the first quarter to 91 ktpd in the second quarter, an increase of 5% quarter over quarter (24% year over year).  The mine plan incorporated mostly oxidized ore, increasing from 75% to 87% of total ore to the pads for the second quarter over the first quarter. This should result in improved recoveries in the coming quarter.
  • Strip ratio increased to 1.2:1 which is consistent with mine plan expectations.
• Crushing and conveying:
  • West crusher conveyor moved a record 1,468,000 tonnes to the pads.
  • East crusher conveyor moved a record 1,615,000 tonnes to the pads.
• West side pad expansion continues ahead of schedule.
  • Cell 2a was completed in May and over liner placement is nearly complete, well ahead of schedule.
  • Cell 3b the rock fill was completed in June and the cell construction will be finalized in the third quarter, which is also ahead of schedule.

La Colorada

• GEO production of 8,951 ounces, consisting of 8,420 gold ounces and 29,224 silver ounces (GEOs at 55:1 conversion rate).
• 15,651 gold ounces and 189,621 silver ounces loaded on the pad; equating to 10,425 projected recoverable GEOs to leach pad.
• We are ahead on stripping for the year.  The strip ratio for the quarter of 4.49 fell in comparison to 7.22 realized during the first quarter, as ore shipments to the crusher increased.
• Record 880,000 tonnes of crushed ore was loaded to the leach pad which is an increase of 182% year over year.  A new level of 10 ktpd of crushed ore to the pads has now been established.  Since Q1 of this year we have achieved nearly a 40% improvement in crushing.
• An additional tertiary crusher was added to the crushing circuit and commissioned at the beginning of July in an effort to further increase crushing capacity.

Magino

• The Richmont surface and mining rights expansion agreement was finalized. A budget and exploration plan for this property will be developed.
• We have identified additional material for further heap leach column test work to be performed, and will begin this metallurgical test work in Q3.
• We continue to advance the permitting studies on the project.

San Antonio

• The Company continues to work on a dual permitting path; plans include pursuing a mutually beneficial project for all stakeholders by simultaneously pursuing the legal path to obtaining permits as well as working with local and federal agencies and officials.

San Agustín

• The Phase I drill program of 22,114 metres has been completed to date including 21,115 metres of reverse circulation (“RC”) in 217 drill holes and 999 metres of PQ core in 13 drill holes.
• Initiated Phase II drill program, completing 1,750 of 13,000 metres to date.
• Metallurgical test work continues with column tests being run by independent laboratory Kappes, Cassiday & Associates in Reno, Nevada and bulk run of mine column tests at El Castillo.
• Argonaut Gold purchased Geologix Resources claims for the Nuestra Senora del Carmen II property, and has an agreement to acquire the Consejo 1 title.
  • These concessions total 489 hectares immediately to the west and east of the current drill program for the Company.
• A cash payment of $10M was made to Silver Standard Resources Inc. (“Silver Standard”), as well as a $1.6M VAT payment to the government of Mexico on this transaction.

CEO Commentary
Pete Dougherty, President and CEO for Argonaut Gold said “Operationally we have achieved marked improvement quarter over quarter in our mining and processing. These operational improvements will lead to production increases in the 2nd half of the year as we see mining capacity and gold recovery increasing.

At El Castillo, we are ahead with our heap leach pad construction. At La Colorada, we have commissioned the new secondary cone crusher and installed a fourth tertiary cone crusher which should further improve crushing production.  We anticipate further production gains to be achieved in the second half of the year through these capital investments.

On the exploration front, we are pleased with the initial drilling results from the newly acquired San Agustin project.  We have expanded our mineral concessions further with the purchase of the Nuestra Senora del Carmen II and the Consejo 1 title.

We continue to work toward permitting at both San Antonio and Magino.  At Magino, we announced positive heap leach column results which have prompted further test work which will begin in Q3.  At the San Antonio project, we are seeking an approach to move this project forward as it represents significant value to all stakeholders.

With steady improvement at the operations through the first half of the year, we anticipate a strong second half of the year as outlined in January.

The Company continues to advance all of our projects as we work to build up our production profile to join the ranks of the intermediate gold producers. We are excited by the process improvements, our operating team’s ability to set new mining and processing records and our exploration group’s positive drill results to date. We are looking forward to a strong second half of the year.”

SECOND QUARTER 2014 EL CASTILLO OPERATING STATISTICS

Richard Rhoades, Chief Operating Officer for the Company, said, “At El Castillo, operations continued to increase productivity in the mining and crushing/conveying areas. The mining fleet moved more than 91 thousand tonnes of material per day, a new production record. Both the west and east crushing/conveying systems set records for throughput. As anticipated, we have experienced seen a higher strip ratio for the 1st half of 2013, which peaked in the second quarter at 1.2. The strip ratio is expected to decline to 1.0 by the 4th quarter. The percentage of transition ore (which has lower leach recoveries) continued to decrease, accounting for only 13% of the total ore placed on the pad during the quarter.

The progress to date on the heap leach pad construction is well ahead of schedule, which will allow the mining operations to increase placements during the second half of the year.”

SECOND QUARTER 2014 LA COLORADA OPERATING STATISTICS

Richard Rhoades said “At La Colorada, the mine grades continue to improve averaging 0.68 g/t during the second quarter. We have added to the tertiary crushing capacity, with throughput improving by nearly 40% over Q1. We have begun reprocessing an old heap leach pad, which should result in lower operating cost.  We are now in a position to achieve greater production increases in the second half of the year.”

Exploration at San Agustín
The majority of the Company’s 2014 exploration budget is focused on the recently acquired San Agustín project, located 10 kilometres southwest of El Castillo. The two deposits lie on the same regional mineral trend and are geologically very similar.

Argonaut Gold has now completed Phase I of the two phase drilling program. Phase I drilling consisted of more than 22,000 metres at San Agustín. RC drilling includes 21,115 metres in 217 holes; PQ core drilling includes nearly 1,000 metres in 13 holes. The results from this Phase I drilling will be incorporated into a current resource and then followed up with a preliminary economic assessment anticipated by the end of the year.

Drill Summary

Tom Burkhart, Vice President of Exploration for the Company, said “When Argonaut acquired the San Agustin project there was an historic resource and potential to fill-in and expand the known zone of mineralization.  The Company completed a tight spaced Phase I drill program in what was termed the Main Zone of the deposit in order to report a new resource from this area in Q3 of this year. The required drilling for this was accomplished ahead of schedule and under budget.  Our work combined with earlier drilling has established mineral continuity in the Main Zone.   We also conducted additional wide space drilling which we believe supports our assumption that the San Agustin mineral system has the potential to grow.

The wide spaced drill holes outside the Main Zone drilling primarily focused on testing the potential to the northwest.  Drilling to date has yielded positive results and indicates the San Agustin mineral system remains open. Our next Phase of drilling will consist of approximately 13,000 metres, and is designed to establish the broader limits of the mineral system.  This is an exciting project and our Mexican exploration team is doing a fantastic job moving this project forward.”

The Phase II RC drill program has begun on exploration ground for which the Company has received exploration permits. As additional exploration permits are received, the budget and scope of this drilling will be evaluated.

The majority of drilling is oriented to cross the mineral system as close as possible to determine true widths. However, the Company cannot assure that all the reported intervals represent the true widths of the mineral system.

Complete results from the drilling campaign are posted on the Company’s website at www.argonautgold.com.

2014, Phase I grade thickness drill hole map

2014, Phase I &II drill hole map

Argonaut Gold Q2 Financial Results Conference Call and Webcast:
The Q2 financial results call is scheduled to take place on August 14, 2014 at 8:30 am EDT.

The conference call replay will be available from 11:30 am EDT on August 15, 2014 until August 29, 2014.

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. For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

The San Agustín project is not a material property of Argonaut.  For further information on the San Agustín project, please see the historic estimates disclosed in the technical report titled “San Agustín Resource Estimate” dated March 2009 and available under the profile of Silver Standard at www.sedar.com. Per Silver Standard, the historic mineral reserves estimate was completed by Gilles Arseneau, Ph.D., P.Geo, a Qualified Person, pursuant to NI 43-101, in a technical report completed by Wardrop, a TetraTech company, entitled “San Agustín Resources Estimate” dated March, 2009.  The report was reviewed by Thomas Burkhart on behalf of Argonaut Gold, who has concluded that it continues to be relevant and reliable as a basis for understanding the potential resources at the property. To the best of Argonaut Gold’s knowledge, information and belief, there is no new material, scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading. Argonaut Gold has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves and is not treating the historical estimate as current mineral resources or mineral reserves.  The Company has begun an approximately 25,000 metre drill program to update the resource model and verify or upgrade the historic work to support the development of a current estimate.

Qualified Person Comments/Quality Control Procedures
For sample analysis the Company utilizes a system of Quality Assurance/Quality Control that includes insertion and verification of standards, blanks and duplicates consistent with industry standards. The preparation of this Press Release was supervised and approved by Thomas Burkhart, Argonaut Gold’s Vice President of Exploration and a Qualified Person under National Instrument 43-101. Mr. Burkhart also reviewed the reverse circulation and core drilling programs and on-site sample preparation procedures at La Colorada.

Samples from the San Agustin Project are collected at site by Argonaut’s personnel and transported to ALS-Chemex preparation laboratory in Zacatecas, where samples are prepared and pulps sent for assay in ALS-Chemex’s Vancouver, BC laboratory. Samples are analyzed for gold by Fire Assay and Atomic absorption finish (Au-AA23 assay code; 0.005 to 10 ppm detection limit) plus Silver by Aqua Regia and Atomic Absorption finish (0.1 to 200 ppm detection limit). Samples over 10 g/t Au are assayed with gravimetric finish (Assay code Au-GRA21). All samples are also assayed by ICP-AES (code ME-ICP41) for a suite of 35 elements.

(Au AA-23 assay method code;). Samples over 10 g/t Au are assayed with gravimetric finish (Assay code AU-GRA21). All samples are also assayed by ICP-MS (code ME-ICP41) for a suite of 35 elements.

The potential quantities and grades disclosed herein are conceptual in nature, there has been insufficient exploration to define an updated mineral resources and it is uncertain if further exploration will result in these targets being delineated as an updated mineral resource.

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 in Durango, Mexico, and the 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 recently acquired San Agustín project is the primary exploration target for Argonaut in 2014. The Company also has several exploration stage projects, all of which are located in North America.

Toronto, Ontario – (May 6, 2014) 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, 2014.  All dollar amounts are expressed in United States dollars unless otherwise specified.

¹ Gold equivalent ounces (“GEOs”) are based on conversion ratio of 55:1 for silver to gold
² Recoverable ounces – see tables titled First Quarter 2014 El Castillo Operating Statistics and First Quarter 2014 La Colorada Operating Statistics

FIRST QUARTER 2014 FINANCIAL HIGHLIGHTS:

• Production increased to 30,963 GEOs, a 4% improvement over the first quarter of 2013 and 7% over the fourth quarter of 2013.
• Cash cost per gold ounce sold of $731, below 2014 guidance of $750 to $775 (cash cost per gold ounce sold is a non-IFRS measure, see note below).

FIRST QUARTER 2014 COMPANY HIGHLIGHTS:

El Castillo

• GEO production of 22,171 ounces consisting of 21,976 gold ounces and 10,737 silver ounces.
• 39,924 gold ounces loaded on the leach pads equating to 22,278 projected recoverable gold ounces.
• Mining:
  • New mining equipment added to increase capacity from 69 thousand tonnes per day (“ktpd”) to 87 ktpd, or a 26% increase.
  • Mine plan has moved out of transitional ore into more oxidized material which is expected to result in improved recoveries in the future.
• Crushing and conveying:
  • West overland conveyor moved a new record 1,345,339 tonnes.
  • East crusher – 1,497,323 tonnes crushed and loaded to pad.
• Pad expansion of cell 8 is ahead of schedule.
  • Cell portion 2a to be completed in June and cell portion 3b to be completed in September.
• Negotiated new lease for mining equipment which reduced the overall finance cost of the equipment by decreasing the interest rate from 10.4% to 5.7%.

La Colorada

• GEO production of 8,792 ounces, consisting of 7,563 gold ounces and 67,579 silver ounces.
• An internal assessment of reprocessing old heap leach material shows positive results incorporating four million tonnes of 0.35 grams per tonne (“g/t”) gold and 11.2 g/t silver into the mine plan, with recoveries estimated at 50% gold and 30% silver.
• 10,812 gold ounces and 102,766 silver ounces loaded on the pad; 7,048 projected recoverable GEOs to leach pad.
• An additional secondary cone crusher was added to the crushing circuit in March increasing the crushing circuit to five cones from four cones for a 25% increase in crushing capacity.
• Former El Castillo crusher in place at La Colorada.

Magino

• Two rounds of heap leach metallurgical test work have been completed at Magino; positive results warranted further test work to analyze the heap leach potential of the lower grade material at Magino.

San Antonio

• The Company was notified on April 10, 2014 that the appeal to overturn the 2012 Medio Impacto Ambiental (“MIA”) ruling was denied. The Company has appealed this ruling.
• The Company continues to work with the municipality to amend the zoning to accommodate the project.
• The Company believes that the project continues to have strong community support.

San Agustín

• 13,000 metres of drilling completed to date including 12,000 metres of reverse circulation (“RC”) in 119 drill holes and 1,000 metres of core in 13 drill holes.
• Metallurgical test work:
  • Core drilling is complete and all PQ core has been shipped to Kappes, Cassiday & Associates in Reno, Nevada to conduct metallurgical column tests.
  • Run of mine (“ROM”) coarse ore samples have been collected and transported to El Castillo for bulk ROM column testing.
• 2 RC drill rigs operating at site.
• Preliminary mineral resource estimate expected by the end of the third quarter or early fourth quarter, followed by a preliminary economic assessment (“PEA”) by year-end.
• While this asset is not yet categorized as a material property to Argonaut, work is progressing to upgrade historic resource work on this property.

CEO Commentary

Pete Dougherty, President and CEO of Argonaut Gold, stated “In terms of production at El Castillo, the mining rate increased during the quarter with the addition of new equipment. We also saw an increase in utilization of the west side conveying unit. The strip ratio increased during the quarter as a result of commencing the final push back on the northern portion of the pit. Though we had a higher strip ratio, the grade reconciled positively at 0.34 g/t compared to expectations of 0.32 g/t. With March achieving an 18% increase over production from January, we anticipate continual improvement at El Castillo in terms of production. Our production guidance is 90,000 to 100,000 gold ounces at a cash cost per gold ounce sold of $775 to $800 at El Castillo in 2014 (cash cost per gold ounce sold is a non-IFRS measure, see note below).

At La Colorado, we have added to the crushing capacity by installing another cone crusher. We aim to increase our crushing rates, and thus production at the La Colorada mine. In regards to the mine plan, the processing of old heap leach pad material is expected to have positive results on the La Colorada production. Over the next two years, the mine plan will incorporate approximately four million tonnes of this material at 0.35 g/t gold and 11.2 g/t silver, with recoveries estimated at 50% gold and 30% silver. Current mining rates of 51,000 tonnes per day are sufficient to meet production guidance with the inclusion of the old heap leach material. At La Colorada, the guidance is for 45,000 to 50,000 ounces of gold equivalent production at a cash cost of $640 to $665 per gold ounce sold (cash cost per gold ounce sold is a non-IFRS measure, see note below). 
Overall, the Company confirms its 2014 guidance of 135,000 to 150,000 gold equivalent ounces of production at a cash cost per gold ounce sold of $750 to $775 (cash cost per gold ounce sold is a non-IFRS measure, see note below).

Magino heap leach testing results are encouraging and more work will be done in regards to how these results may impact the project. We will continue to work on the permitting and expect to submit permit applications by the end of the year.

At San Antonio, we received notification that our appeal to reverse the decision on the 2012 MIA was rejected. While we would have liked to see a different result in the ruling, we will continue to pursue permits on both a community and social front, as well as via an appeal of the recent legal ruling.  Meanwhile, we will continue to pursue an amendment to the municipal zoning plan in an effort to zone the project for 100% industrial use. The Company continues to believe in the merits and benefits of the project to all stakeholders, and continues to enjoy broad community support.

Finally at San Agustín, the exploration team has completed 13,000 metres of drilling. This work was focused on fill-in and step-out drilling of the known historic resource area.  Drill results confirmed the continuity and grade of mineralization. In addition, the deposit remains open in all directions. A Phase II drill program is in progress and the Company expects to complete an additional 10,000 metres of RC drilling in approximately 100 holes. We are very pleased to have this exciting project in our portfolio. We expect to release an initial resource on the project in the late third quarter or early fourth quarter, followed by a PEA to be completed by the end of the year.”

Financial Results – First Quarter 2014

During the first quarter of 2014, revenue was $39.1 million from gold sales of 28,639 ounces, compared to $43.1 million from gold sales of 25,441 ounces in the first quarter of 2013. Cash cost per gold ounce sold in the quarter was $731, compared to $594 in the same period of the prior year reflecting a decrease in capitalized stripping (cash cost per gold ounce sold is a non-IFRS measure, see note below).

During the first quarter of 2014, gross profit was $8.0 million, compared to $21.0 million in the first quarter of 2013. During the quarter, profit from operations was $4.6 million, compared to $17.2 million in the same period of the prior year. Net income for the period was $2.8 million, or $0.02 per basic share, versus $11.6 million, or $0.08 per basic share, in the first quarter of 2013.

Cash and cash equivalents was $59.7 million at March 31, 2014. Cash spent towards capital expenditures in the first quarter were $13.6 million, primarily spent on capitalized stripping, mining equipment purchases and equipment overhauls.

FIRST QUARTER 2014 EL CASTILLO OPERATING STATISTICS

Summary of Production Results at El Castillo

Total tonnes mined increased by 27% for the first quarter 2014 over first quarter 2013. The ounces loaded to the pads in the first quarter 2014 increased by 11% over first quarter 2013.

Gold production of 21,976 ounces in the first quarter of 2014 was 5% lower compared to the first quarter of 2013; production rates are improving and expected to increase in the second half of the year. 2014 guidance at El Castillo is for 90,000 to 100,000 gold ounces.

The strip ratio of waste to ore increased in the first quarter of 2014 to 1.14 compared to 0.95 in the first quarter of 2013, reflecting a push back on the north side of the pit.

Summary of Production Results at La Colorada

Total tonnes mined increased by 6% for the first quarter 2014 over first quarter 2013. There were 10,812 ounces placed on the pad in the first quarter of 2014, compared to 5,142 ounces placed on the pad in the first quarter of 2013 (an increase of 110%).

First quarter production in 2014 of 8,792 GEO’s was an increase of 33% over first quarter 2013 production of 6,598 GEO’s.  We anticipate gold equivalent ounce production rising to 45,000 to 50,000 ounces for 2014 as we ramp up crushing capacity and mine higher grade ore.

San Antonio

The Company continues to pursue approvals for its San Antonio project.  As previously disclosed, on August 2, 2012 the Secretary for Environment and Natural Resources denied the MIA authorization for the Company’s San Antonio project due to municipal zoning incompatibility over a portion of the site.

In response, the Company appealed the determination in connection with its MIA before the Mexican Federal Court.  The Company’s appeal regarding the MIA authorization was denied by the Mexican Federal Court on April 10, 2014. The Company will appeal the decision of the Mexican Federal Court and is also working with the local municipality to seek an amendment to the municipal zoning plan for the change of use of land permit required.

San Agustín Drilling Resource Update

Argonaut Gold has now completed a total of 13,000 metres of the 15,000 metre Phase I drill program at San Agustín. The RC drilling includes 12,000 metres of drilling and approximately 119 holes.  The core drilling includes 1,000 metres and approximately 13 holes. This program has provided positive results and the mineral system remains open. A Phase II RC drill program of approximately 10,000 metres has commenced.

The objective of the Phase I drill program was to enhance our understanding of the deposit and confirm the known historic resource area. Drilling is now completed on an approximate 50 metre drill pattern. This drilling confirmed the continuity and grade of resource area. Phase II drilling is designed to step-out beyond the current drill areas and test areas of recognized geologic potential. The following table is divided into in-fill and extension drilling. Extension drilling to date has expanded the resource area upwards of 250 metres to the northwest with this area remaining a priority target area for Phase II drilling.

Total drilling for Phase I and Phase II will total approximately 25,000 metres in approximately 250 holes. Visit http://www.argonautgold.com for complete results of San Agustín drill holes from 2014.

Tom Burkhart, Vice President of Exploration for Argonaut Gold, said “The Company’s drill program at San Agustín is confirming the strength and continuity of mineralization within the known historic resource area. Importantly our work supports the potential to confirm and significantly expand the size of the resource through additional drilling.”

2014, Phase I drill hole map

2014, Phase I drill hole map #2

Capital Expenditures for 2014

The Company plans on investing a total of between $43 million and $63 million on capital expenditures and exploration initiatives in 2014. Major capital expenditures in 2014 are expected to include approximately $15 million at El Castillo (including mining service company expenditures and capitalized stripping of $4 million), $13 million at La Colorada (predominately capitalized stripping of $9 million), $3 million at San Agustín, $4 million at Magino, and $3 to $23 million at San Antonio, depending on permitting. Exploration expenditures in 2014 are expected to amount to approximately $5 million.

Argonaut Gold Q1 Financial Results Conference Call and Webcast:

The Q1 financial results call is scheduled to take place on May 6, 2014 at 7:00 am EDT. Details for the call in participation are:

Q1 Conference Call Information
Toll Free (North America): 1-866-225-0198
International: 1-416-340-2218
Webcast: www.argonautgold.com  

Q1 Conference Call Replay:
Toll Free Replay Call (North America): 1-905-694-9451
International Replay Call: 1-800-408-3053
Passcode: 1865265

The conference call replay will be available from 10:30 am EDT on May 6, 2014 until May 20, 2014.

Annual General Meeting:

Argonaut Gold Inc. will hold its annual general meeting of shareholders on Tuesday, May 6, 2014 at 11:00 am EDT at the offices of Bennett Jones LLP, on the 34th Floor at One First Canadian Place, Toronto, Ontario, Canada.

Non-IFRS Measures

The Company has included a non-IFRS measure for “Cash 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 less silver sales divided by gold ounces sold. 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 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 annual consolidated financial statements for the quarter ended March 31, 2014 and associated MD&A which are available from the Company’s website, www.argonautgold.com, in the “Investors” section under “Financial Filings”, and under the Company’s profile on SEDAR at www.sedar.com.

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. For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

The San Agustín project is not a material property of Argonaut.  For further information on the San Agustín project, please see the historic estimates disclosed in the technical report title “San Agustín Resource Estimate” dated March 2009 and available under Silver Standard at www.sedar.com. Per Silver Standard, the historic mineral reserves estimate was completed by Gilles Arseneau, Ph.D., P.Geo., a Qualified Person, pursuant to NI 43-101, in a technical report completed by Wardrop, a TetraTech company, entitled “San Agustín Resources Estimate” dated March, 2009.  The report was reviewed by Thomas Burkhart on behalf of Argonaut Gold, who has concluded that it continues to be relevant and reliable as a basis for understanding the potential resources at the property. To the best of Argonaut Gold’s knowledge, information and belief, there is no new material, scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading. Argonaut Gold has not done sufficient work to classify the historic estimate as current mineral resources or mineral reserves and is not treating the historical estimate as current mineral resources or mineral reserves.  The Company has begun a 25,000 metre drill program to update the resource model and verify or upgrade the historic work to support the development of a current estimate.

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 in Durango, Mexico, and the 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 recently acquired San Agustín project is the primary exploration target for Argonaut in 2014. The Company also has several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

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 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 parametres, 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 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.

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel:  (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
www.argonautgold.com

¹ GEOs are based on conversion ratio of 55:1 for silver to gold
² Recoverable ounces – see tables titled first quarter 2014 El Castillo Operating Statistics and first quarter 2014 La Colorada Operating Statistics

FIRST QUARTER 2014 HIGHLIGHTS:

El Castillo

• GEO production of 22,171 ounces consisting of 21,976 gold ounces and 10,737 silver ounces (GEOs at 55:1 conversion rate).
• 39,924 gold ounces loaded on the leach pads equating to 22,278 projected recoverable gold ounces.
• Mining:
  • New mining equipment added to increase capacity from 69 thousand tonnes per day (“ktpd”) to 87 ktpd, or a 26% increase.
  • Mine plan has moved out of transitional ore into more oxidized material which should result in improved recoveries in the future.
• Crushing and conveying:
  • West overland conveyor moved a new record of 1,345,339 tonnes.
  • East crusher – 1,497,323 tonnes crushed and loaded to pad.
• Pad expansion of cell 8 is ahead of schedule
  • Cell portion 2a to be completed in June and cell portion 3c to be completed in September.
• Renegotiated lease terms for El Castillo mining equipment to reduce the overall finance costs of the equipment by reducing interest rates from 10.4% to 5.7%.

La Colorada

• GEO production of 8,792 ounces, consisting of 7,563 gold (“Au”) ounces and 67,579 silver (“Ag”) ounces (GEOs at 55:1 conversion rate).
• An internal assessment of reprocessing old heap leach material shows positive results incorporating four million tonnes of 0.35 grams per tonne (“g/t”) Au and 11.2 g/t Ag, with recoveries estimated at 50% Au and 30% Ag.
• 10,812 gold ounces and 102,766 silver ounces loaded on the pad; 7,048 projected recoverable GEOs to leach pad.
• An additional secondary crusher was added to the crushing circuit in March increasing the crushing circuit to five cones from four cones for a 25% increase in crushing capacity.
• Former El Castillo crusher in place at La Colorada.

Magino

• Two rounds of heap leach metallurgical test work have been completed at Magino; positive results warranted more test work be done to analyze the heap leach potential of the lower grade material at Magino.

San Antonio

• The Company was notified on April 10, 2014 that the appeal to overturn the MIA ruling from 2012 was denied. The Company plans to appeal this ruling.

San Agustín

• 11,172 metres of drilling completed to date including 10,173 metres of reverse circulation (“RC”) in 103 drill holes and 999 metres of core in 13 drill holes.
• Metallurgical test work:
  • Drilling is complete for all PQ core and it has been sent to Kappes Cassiday & Associates in Reno, Nevada to conduct metallurgical column tests.
  • Run of mine (“ROM”) coarse ore samples have been collected and transported to El Castillo for bulk ROM column testing.
• 2 RC drill rigs operating at site.
• Drill results will be released following completion of analysis in late second quarter or early third quarter 2014.

CEO Commentary
Pete Dougherty, President and CEO said, “While we had a soft production profile in the first quarter of 2014, overall production has begun to improve at both locations (March production was up 18% over January). The Company expects a stronger second quarter of production as we continue to ramp up throughput.

The Company is encouraged by the heap leach results at Magino prompting further studies and evaluation.

At the San Antonio project, we believe that there is broad community and government support, and we are committed to moving this project forward.

Drilling at San Agustín is going extremely well and we are happy with the progress at this time. Our goal is to provide the results from over 15,000 metres of drilling by late second quarter or early third quarter.”

FIRST QUARTER 2014 EL CASTILLO OPERATING STATISTICS

¹ “g/t” is grams per tonne
² “oz” means troy ounce
³ Recovery rates: ROM oxide 50%, crushed oxide 70%, ROM transition 40%, crushed transition 60%, crushed sulfides argilic 30%, crushed sulfides silicic 17%

Richard Rhoades, Chief Operating Officer, said, “At El Castillo we have expanded the fleet and increased the mining capacity. This increase will address a higher strip ratio in 2014 and lower projected mine grades of 0.315 g/t. The strip ratio was up 20% for the quarter as the final push back on the north side of the pit was initiated. The mine plan has moved production out of the transitional material which saw a reduction from 36% transitional material in the fourth quarter 2013 to 20% transitional material in the first quarter of 2014. For 2014, we anticipate 90% of mined material will be oxides and 10% will be transitional. At the west overland conveyor system, we have increased production and as a result the Company anticipates lower per tonne cost as we reduce the tonnes hauled by truck.”

¹ “g/t” is grams per tonne
² “oz” means troy ounce
³ Recovery rates: Gold 60%, Silver 30%
⁴ GEOs based on conversion ratio of 55:1 for silver to gold

Richard Rhoades said “At La Colorada, mine grades improved during the first quarter of 2014 to 0.57 g/t, up 111% over the prior year. Production saw an improvement to 8,792 GEOs versus 6,598 GEOs in Q1 of the prior year for a 33% increase. We have completed an internal assessment of reprocessing old heap leach material which shows positive results incorporating four million tonnes of 0.35 g/t Au and 11.2 g/t Ag, with recoveries estimated at 50% Au and 30% Ag. This will be incorporated into the mine plans in the future. In addition to adding material to the mine plan at La Colorada, the Company has added to the crushing capacity at the property. An additional secondary cone was added to the new circuit. We now have five 400 horsepower cones compared to four 400 horsepower cones in the prior circuit. We have also added a previously utilized crusher at El Castillo in parallel to increase total crushing capacity. The additional crushing capacity was installed by the end of March and should increase capacity and production throughout the year.”

Magino Metallurgical Test Work
Two sets of heap leach metallurgical test work were conducted on the low grade material at Magino with results noted below. These composites were sent to Kappes, Cassiday & Associates (“KCA”) in Reno, Nevada who completed column tests on the material.

Bob Rose, Vice President of Technical Services, said “Results from the metallurgical test work at Magino are encouraging, and justify conducting additional test work and analysis of the material. The metallurgical test results may provide the Company with an alternative to milling the lower grade portion of the Magino resource and improve our production and economic profile.”

San Antonio
The Company continues to pursue approvals for its San Antonio project.  As previously disclosed, on August 2, 2012 the Secretary for Environment and Natural Resources denied the authorization for an Environmental Impact Assessment (“MIA”) for the Company’s San Antonio project due to municipal zoning incompatibility over a portion of the site.

In response, the Company appealed the determination in connection with its MIA before Mexican Federal Court.  The Company’s appeal regarding the MIA authorization was denied by the Mexican Federal Court on April 10, 2014. The Company will appeal the decision of the Mexican Federal Court and is also working with the local municipality to seek an amendment to the zoning.

Exploration at San Agustín
The majority of the Company’s 2014 exploration budget is focused on the recently acquired San Agustín project, located 10 kilometres southwest of El Castillo. The two deposits lie on the same regional mineral trend and are geologically very similar.  However, work to date indicates that the favorable geology that hosts mineralization may be significantly more extensive at San Agustin than at El Castillo.

Tom Burkhart, Vice President of Exploration, said “The Company believes that the San Agustín project is an intrusion related mineral system. These types of systems are normally low-grade but host large tonnages mostly contained within intrusive rocks. One characteristic of this deposit type is that mineral continuity is usually extremely good. This appears to be the case at San Agustín. It is our objective to further validate and grow the historic resource into a current resource. As hoped, our drilling continues to confirm the continuity and expansion potential of the mineral system. We are very excited about the potential of this property.

Argonaut plans to present drilling results by late second quarter or early third quarter of 2014, with metallurgical results to be presented in the third quarter. By year-end, we plan to update historic work with the release of a new resource and a preliminary economic assessment for San Agustín.”

Technical Information and Mineral Properties Reports
The technical information contained in this press release has been prepared under supervision of, and reviewed and approved by Mr. Thomas H. Burkhart, Argonaut’s Vice President of Exploration, a qualified person as defined by National Instrument 43-101.

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 in Durango, Mexico and the 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 recently acquired San Agustín project is the primary exploration target for Argonaut in 2014. The Company also has several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

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 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; realization of metallurgical testing results; 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.

These factors are discussed in greater detail in Argonaut’s most recent Annual Information Form and in the most recent Management 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.

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. 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.

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel: (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
www.argonautgold.com

2013 Financial Highlights:

• Net income of $26.8 million, prior to a one-time deferred tax charge of $16.8 million in 2013.
• Cash and cash equivalents was $81.1 million at December 31, 2013.
• Successfully carried out capital expansion programs to enhance production at El Castillo and La Colorada.
  • Production increased to over 120,000 gold equivalent ounces, a 9% improvement over 2012.
  • Cash cost per gold ounce sold of $644, within guidance of $630-$660.

2013 Company Highlights:

• Completed the purchase of the San Agustin project from Silver Standard Resources Inc.
• Announced positive prefeasibility study on Magino which indicated an after-tax internal rate of return of 18% and an after-tax net present value of $199 million, while incorporating only 40% of the current mineral resource estimate.
• Drilling and metallurgical test work provided for the inclusion of an additional 360,000 new gold ounces of in-pit mineralization, consisting of more than 315,000 ounces in the measured resources category and more than 45,000 ounces in the indicated resources category. These are summarized in the Mineral Resources section at the end of this document.
• Drilling program at Veta Madre led to a new resource of 110,000 new gold ounces in the indicated category. This is summarized in the Mineral Resources section table at the end of this document.
• Completed acquisition of the La Colorada royalty to establish 100% ownership of La Colorada.
• A surface and mining rights expansion agreement with Richmont Mines Inc. (“Richmont”) was signed. This provides a key strategic initiative for the Company as now the full Magino resource envelope (an additional 60% of the resource estimate) may be exploited while allowing for additional exploration upside on the Richmont ground.
• San Antonio exploration and permitting process continued.
• Expenditures of $185.7 million on mineral properties, plant and equipment in 2013, including $88.1 million on acquisitions.

Operations:

El Castillo

• Q4 production of 20,848 gold ounces.
• Full year production of 94,804 gold ounces.
• Per ounce cash cost sold of $699, slightly below guidance of $700-$725.
• During Q4, 39,269 gold ounces loaded on the pad.
  • West side crusher and overland conveyor project was completed and 1.3 million tonnes was moved during the fourth quarter.
• New south waste dump is operational.
• Drilling and metallurgical test work provided for the inclusion of an additional 360,000 new gold ounces of in-pit mineralization, consisting of more than 315,000 ounces in the measured resources category and more than 45,000 ounces in the indicated resources category. These are summarized in the Mineral Resources section at the end of this document.

La Colorada

• Q4 production of 7,017 gold ounces and 47,759 silver ounces, for 7,885 gold equivalent ounces (at 55:1 conversion).
• Full year production of 22,544 gold ounces and 169,673 silver ounces, for 25,629 gold equivalent ounces (at 55:1 conversion).
• Per ounce cash cost sold of $417, below guidance of $450-$475.
• During Q4, 9,799 gold ounces and 136,476 silver ounces loaded on the pad.
• La Colorada pit is now fully opened, and the average life of mine grade was achieved by year-end.
• Drilling program at Veta Madre led to a new resource of 110,000 new gold ounces in the indicated category. This is summarized in the Mineral Resources section table at the end of this document.

CEO Commentary

Peter Dougherty, Argonaut’s Chief Executive Officer stated “2013 was a year in which Argonaut Gold accomplished key advancements across all of our projects. We added ounces at our operating mines, expanded the ground surrounding our projects and brought on a new exploration property within 10 kilometers of our main producing El Castillo mine. We are also proud that the Company beat guidance on cash cost per ounce sold at both properties, coming in below $700 at El Castillo and under $450 at La Colorada.

2014 will be a key year for the organization as production is expected to increase to 135-150,000 gold equivalent ounces at El Castillo and La Colorada. We aim to expand our resource base further through drilling at San Agustín and La Colorada. In addition, Argonaut will be moving forward with permitting at San Antonio and Magino.”

Financial Results – Fourth Quarter 2013

During the fourth quarter of 2013, revenue was $34.6 million from gold sales of 26,918 ounces.  Gross profit was $8.6 million for the quarter.  Cash cost per gold ounce sold in the quarter was $654 (compared to $587 for the same period in 2012). Cash cost per gold ounce sold is a non-IFRS measure, see note below.

During the quarter, profit from operations was $5.1 million.  Net income for the quarter, prior to a one-time item, was $2.2 million or $0.01 per basic share. Net income was adversely affected by a one-time, non-cash deferred income tax charge of $16.8 million ($11.4 million for operating properties, $5.4 million for exploration/development properties) as a result of the Mexican tax law reform approved by the President of Mexico in December 2013.

Cash and cash equivalents was $81.1 million at December, 31, 2013. Capital expenditures in the fourth quarter were $19.6 million, primarily as a result of infrastructure improvements at the El Castillo and La Colorada mines, as well as stripping at La Colorada.

Financial Results – Year End 2013

For the year ended December 31, 2013, revenue was $165.1 million from gold sales of 114,909 ounces. Gross profit was $59.1 million for the year. Cash cost per gold ounce sold in the year was $644 (compared to $597 for the same period in 2012).

For the full year, profit from operations was $43.9 million. Net income for the year, prior to a one-time item, was $26.8 million or $0.18 per basic share. Net income was adversely affected by a one-time, non-cash deferred income tax charge of $16.8 million ($11.4 million for operating properties, $5.4 million for exploration/development properties) as a result of the Mexican tax law reform approved by the President of Mexico in December 2013.

Summary of Production Results

Total tonnes mined increased by 13% for the fourth quarter 2013 over fourth quarter 2012 and 12% year over year. The ounces loaded to the pads in the fourth quarter were consistent in 2013 and 2012; however, approximately 36% of these ounces came from transitional ore where recoveries are lower. Year over year, there was a 2% increase in ounces of gold loaded to the pad.

Gold production of 20,848 ounces in the fourth quarter of 2013 was 19% lower compared to the fourth quarter of 2012, primarily due to lower recoveries encountered in the transition material processed. Full year production of 94,804 ounces was an 8% increase over 2012 production due to increased tonnage processed. We anticipate gold equivalent ounce production of 90-100,000 ounces for 2014.

The strip ratio of waste to ore decreased in the fourth quarter to 1.01 compared to 1.02 in the fourth quarter of 2012. The strip ratio for the year ended December 31, 2013 was 0.98 compared to 1.01 for the year ended December 31, 2012, reflecting a push to the southwest side of the pit.

Summary of Production Results

Total tonnes mined increased by 101% for the fourth quarter 2013 over fourth quarter 2012 and 297% year over year. There were 9,799 ounces placed on the pad in the fourth quarter of 2013, compared to 8,845 ounces placed on the pad in the fourth quarter of 2012. Year over year, there was a 42% decrease in ounces of gold loaded to the pad due to lower grade.

Gold production of 7,017 ounces in the fourth quarter of 2013 was a 13% increase compared to the fourth quarter of 2012. Production in 2013 of 25,629 gold equivalent ounces was an increase of 12% over 2012 production of 22,784 gold equivalent ounces.  We anticipate gold equivalent ounce production rising to 45-50,000 ounces for 2014 as we ramp up crushing capacity and mine higher grade ore.

The strip ratio of waste to ore increased year over year in the fourth quarter to 9.9:1 compared to 8.8:1 in the fourth quarter of 2012. The strip ratio for the year ended December 31, 2012 was 8.5:1 compared to 14.4:1 for the year ended December 31, 2013.  By year-end, we had completed the majority of stripping on the La Colorada pit and are now in ore grades similar to the life of mine grade.  In 2014 we will begin opening up the Grand Central pit.

Chief Operating Officer Comments

In regards to operations, Richard Rhoades, Chief Operating Officer at Argonaut Gold said “Production for the fourth quarter at El Castillo was impacted by transitional material placed on the pads (36% being transitional material), which yields lower recovery. This is part of the mine sequencing, and we anticipate being back in oxide ores by Q3, 2014 as the mine plan expands into the next cut on the north side of the pit.

At La Colorada we are happy to report at the year end the mine was fully opened up and operations have reached life of mine grade in the La Colorada pit. Crusher throughput continues to be a challenge and we are adding additional crushing capacity by the end of the first quarter. This additional equipment is expected to help us increase our throughput capacity.”

Expansion Projects for 2014

The Company plans on investing a total of between $41 million and $61 million on capital expenditures and exploration initiatives in 2014. Major capital expenditures in 2014 are expected to include approximately $11 million at El Castillo, $14 million at La Colorada (predominately capitalized stripping of $11 million), $4 million at Magino, and $7-$27 million at San Antonio, depending on permitting. Exploration expenditures in 2014 are expected to amount to approximately $5 million.

Company Progress

Peter Dougherty added “During 2014, Argonaut’s goal is to expand production to achieve 135-150,000 ounces of gold equivalent production. Capital projects will be completed in regards to pad construction and equipment investments to ensure production meets the expectations at the mines.

The Company continues with permitting at our San Antonio and Magino development projects. These projects are expected to provide future production growth to achieve our goal of becoming a 300-500,000 ounce a year producer. Meanwhile, the San Agustín project provides the Argonaut shareholders with an exciting exploration property just 10 kilometers from our main producing mine. With three drill rigs currently running and a timeline for establishing a current preliminary economic assessment on the project by the end of 2014, the potential for the project is very promising.”

Argonaut Gold Q4 Financial Results Conference Call and Webcast – March 25, 2014: 
The Q4 financial results call is scheduled to take place on March 25, 2014 at 8:30 am EDT. Details for the call-in participation are:

The conference call replay will be available from 11:30 am EDT on March 25, 2014 to April 8, 2014.

Annual General Meeting:

Argonaut Gold Inc. will hold its annual meeting of shareholders on Tuesday, May 6, 2014 at 11:00 am EDT at the offices of Bennett Jones LLP, located at 3400 One First Canadian Place, Toronto, Ontario, Canada.

Non-IFRS Measures

The Company has included a non-IFRS measure for “Cash 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 less silver sales divided by gold ounces sold. 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.

This press release should be read in conjunction with the Company’s audited annual consolidated financial statements for the year‐ended December 31, 2013 and associated management’s discussion and analysis (“MD&A”) which are available from the Company’s website,www.argonautgold.com, in the “Investors” section under “Financial Filings”, and under the Company’s profile on SEDAR at www.sedar.com.

Mineral Resources

The table below provides detail on the ounces provided by the drilling and metallurgical assessment of sulphides at El Castillo and drilling at La Colorada (Veta Madre).

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, a qualified person as defined by National Instrument 43-101. For further information on the Company’s properties please see the reports as listed below on the Company’s website or on www.sedar.com:

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 in Durango, Mexico, and the 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 recently acquired San Agustin project is the primary exploration target for Argonaut in 2014. The Company also has several exploration stage projects, all of which are located in North America.

Creating Value Beyond Gold

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 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.

These factors are discussed in greater detail in Argonaut’s most recent Annual Information Form and in the most recent Management 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.

For more information, contact:
Argonaut Gold Inc.
Nichole Cowles
Investor Relations Manager
Tel:  (775) 284-4422 x 101
Email: nichole.cowles@argonautgold.com
www.argonautgold.com

FOURTH QUARTER 2013 HIGHLIGHTS:
El Castillo

• Q4 production of 20,848 gold ounces; full year production of 94,804 gold ounces,
• During Q4, 39,269 gold ounces loaded on the pad,
  • West side crusher and overland conveyor project was completed and 1.3 million tonnes was moved during the fourth quarter,
• New south waste dump is operational.

La Colorada

• Q4 production of 7,017 gold ounces and 47,759 silver ounces, for 7,800 gold equivalent ounces (at 61:1 conversion),
•  Full year production of 22,544 gold ounces and 169,673 silver ounces, for 25,420 gold equivalent ounces (at 59:1 conversion),
• During Q4, 9,799 gold ounces and 136,476 silver ounces loaded on the pad,
• La Colorada pit is now fully opened, and the average life of mine grade was achieved in December.

Magino

• Announced prefeasibility study on Magino indicating an after-tax internal rate of return (“IRR”) of 18% and an after-tax net present value (“NPV”) of $199 million incorporating 40% of the current mineral resource estimate.

San Agustín

• Completed purchase of the San Agustín gold-silver project from Silver Standard Resources Inc.,
• Provided first cash payment of $15 million for the asset, together with agreed share consideration. Purchase completion also requires IVA (VAT) payment of $6.5 million.

2014 GUIDANCE

• Gold production of 135-150,000 gold equivalent ounces (at a 60:1 conversion),
  • El Castillo – 90-100,000 gold ounces at  cash costs of$775-$800/ounce sold,
  • La Colorada – 45-50,000 gold equivalent ounces at  cash costs of $640-$665/ounce sold,
• Cash cost per ounce sold of $750-$775,
• Sustaining capital program of $6 million, and $11 million on capitalized stripping at La Colorada,
• Expansion capital program of  $70 million,
• Exploration program of $5 million for in-fill and step-out drilling primarily focused at San Agustín and La Colorada,
• Total anticipated spending by project:
  • El Castillo – $11 million, split 60% sustaining and 40% expansion,
  • La Colorada – $3 million expansion capital and $11 million on capitalized stripping,
  • San Antonio – $56 million capital expansion subject to permits being granted,
  • San Agustin – $3 million expansion capital,
  • Magino – $4 million expansion capital.

Pete Dougherty, Argonaut Gold’s President & CEO said “Overall, 2013 was a tremendous year at Argonaut. The Company announced the results of a prefeasibility study on Magino with a positive after-tax IRR of 18%, incorporating 40% of the resource. Potential upside in terms of exploration and economics for the project, may exist at Magino based on the pending surface land acquisition.

In terms of resources, ounces were added at both La Colorada and El Castillo. Exploration drilling added 110,000 ounces at La Colorada’s Veta Madre discovery. At El Castillo, additional metallurgical work conducted added 360,000 in-pit gold ounces.

In terms of improving efficiencies, capital projects aimed at decreasing the production costs at both El Castillo and La Colorada were implemented. Total gold equivalent production of almost 95,000 ounces at El Castillo and 26,000 ounces at La Colorada resulted in a gold equivalent ounce production increase of 7% year over year. Additionally, at La Colorada, the Company acquired the outstanding royalty providing full ownership of the project.

Lastly, Argonaut expanded our near term development projects by acquiring the San Agustin project located 10 km from El Castillo, and by increasing our land position at the Magino project. The San Agustin projects proximity and likeness to the El Castillo mine allows us to leverage our understanding and regional strength to undertake timely exploration and development.   A surface and mining rights expansion agreement with Richmont Mines Ltd. (“Richmont”) was signed. This provides a key strategic initiative for the Company as now the full Magino resource envelope (an additional 60% of the resource) at Magino may be exploited while allowing for additional exploration upside on the Richmont ground.

As an organization, we have made great accomplishments, and we look forward to the challenges and opportunities 2014 bring as we embark upon continuing the development of the Company in the future.”

FOURTH QUARTER 2013 El CASTILLO OPERATING STATISTICS

Richard Rhoades, Chief Operating Officer of Argonaut Gold, said “At El Castillo, during the fourth quarter, production results were lower than anticipated, due to the processing of some transitional material which resulted in lower recovery.  It is anticipated that the Company will progress through this material and by second quarter of this year we should see more traditional oxide ores and recovery improve.  During 2014, the Company aims to deliver record ore tonnes to the pad, while lower ore grades are expected.   The increase in tonnage should offset the lower grades and recoveries early in the year and we anticipate producing between 90-100 thousand ounces of gold.

At the La Colorada mine, the La Colorada pit has reached life of mine grades as the pit has been opened.  During December, we were able to achieve average life of mine grade from the pit.  While this is very encouraging, we are still experiencing lower than projected crusher throughput.  We have brought additional crushing equipment to the site and believe that further increases can be made.”

FOURTH QUARTER 2013 LA COLORADA OPERATING STATISTICS

3 Conversion ratios used: Q4 2012 at 53:1, Q4 2013 at 61:1, full year 2012 at 54:1, and full year 2013 at 59:1

2014 Development and Growth
Peter Dougherty said “In 2014, we anticipate a production increase at La Colorada as the pit is opened up, higher tonnes are being processed and the grade continues to increase on the main ore zone. At El Castillo, we anticipate lower grade in 2014 and higher tonnes, as we move from the southeast side of the pit back to the main zone.

In terms of advancing projects, at San Antonio, we anticipate that we will be able to provide a third quarter update in regards to the zoning issue at the project. Currently, our hope is that this issue can be resolved to benefit all parties, paving the way for construction. Capital expenditures at San Antonio are subject to the permitting process.

At the newly acquired San Agustín property, a reverse circulation drill program totaling 14,000 meters (~150 holes) and a core drill program totaling 1,000 meters (12-15 holes) is scheduled for completion during the first half of 2014.   Further metallurgical test work is also planned for the San Agustin project. At Magino, permitting-related activities will continue.”

Argonaut Gold Q4 Financial Results Conference Call and Webcast – March 25, 2013:
The Q4 financial results call is scheduled to take place on March 25, 2014 at 8:30 am ET. Details for the call-in participation are:

The conference call replay will be available from 11:30 a.m. ET on March 25, 2014 to April 8, 2014.