Argonaut Gold has sprinted into action, arranging a swift and definitive $59 million bought deal public offering. The company plans to use the net proceeds to fund the development and optimization of its Magino gold mine in Ontario and the Florida Canyon gold mine in Nevada.
A crowning achievement for Argonaut, the Magino mine recently attained commercial production after surmounting significant obstacles along the way. These included soaring capex costs, operational hiccups, and even the ousting of a chief executive. Despite this, the company remains resolute in its conviction that the Magino mine is set to become one of Canada’s largest and most cost-efficient gold mines, projected to produce 148,000 gold equivalent ounces in 2024, its first full year of operation, at a cash cost of $868 per ounce. Moreover, the resource base is currently being expanded below the reserves in the conceptual pit, further solidifying Argonaut’s position in the market.
Meanwhile, in Nevada, the Florida Canyon mine engineers have deftly optimized the processing of oxide ore, positioning production to yield over 40% more gold equivalent ounces in 2023 than in 2022. The team is also devotedly evaluating the sulphide mineralization below the oxide material to enhance both production and mine life, further exemplifying Argonaut’s unwavering commitment to growth and optimization. A preliminary economic analysis for mining the sulphide ore is already in the pipeline.