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FOURTH QUARTER 2012 El CASTILLO OPERATING RESULTS
Fourth quarter 2012 operating statistics showed improvement over fourth quarter 2011 results. Ore production is now at an annualized rate of approximately 13 million tonnes.
El Castillo Operating Statistics 3 Months Ended Year End 12/31/2012 12/31/2011 Change 12/31/2012 12/31/2011 Change--------------------------------------------------------------------------------------------------------------------------------------------------------Mining (000)Total tonnes mined 6,695 5,437 23% 24,052 20,009 20%Tonnes ore 3,321 2,912 14% 11,962 11,145 7%Heap Leach Pad (000)Direct ore tonnes to leach pad 2,033 2,098 -3% 7,561 8,114 -7%Crushed Ore tonnes to pad 1,282 839 53% 4,555 3,041 50%ProductionGold grade (g/t) 0.37 0.32 15% 0.39 0.33 18%Gold loaded to pad (oz) 39,329 30,162 30% 151,462 117,939 28%Gold loaded to carbon(oz) 25,805 19,698 31% 87,712 72,049 22%Gold sold (oz) 23,595 20,468 15% 89,881 66,521 35%1 "g/t" is grams per tonne2 "oz" means troy ounce
Richard Rhoades, Chief Operating Officer of Argonaut Gold said "Year-end production at El Castillo of 87,712 gold ounces came in above increased guidance of 85,000 ounces for the year. The team at El Castillo team delivered yet another quarter of continued improvement, providing a 10% increase over the initial 2012 guidance. In addition to exceeding guidance expectations, the Company has seen dramatic improvement in crushing at the operation. The operation is now crushing at a rate of approximately 5 million tonnes per year."
Production has approached a near steady state at El Castillo. Higher grade material during the fourth quarter of 2012 provided for production of over 25,000 ounces against to guidance of 21-22,000 ounces for the quarter. In 2013, the operation anticipates lower grades, offset by higher volumes of material, for an estimated 5-10% increase over total 2012 production.
FOURTH QUARTER 2012 LA COLORADA OPERATING RESULTS
Overburden removal continues at La Colorada in preparation for full scale mining. During the fourth quarter, the crusher was relocated with a minimal impact to the production plan. Fourth quarter production provided 6,195 ounces of gold, for a total 2012 production of 20,369 ounces. Final production exceeded expectations due to higher than anticipated recoveries from the reprocessing of material and positive grade reconciliation.
La Colorada Operating Statistics 3 Months Ended Year Ended 12/31/2012 12/31/2012--------------------------------------------------------------------------------------------------------------------------------------------------------Mining (000)Total Tonnes mined 2,945 7,173Tonnes ore 922 3,332Heap Leach Pad (000)Crushed ore tonnes to pad 623 2,895ProductionGold grade (g/t) 0.43 0.43Gold loaded to pad (oz) 8,845 40,180Gold loaded to carbon(oz) 6,195 20,369Silver loaded to carbon (oz) 47,890 132,805Gold sold (oz) 5,907 19,900Silver sold (oz) 54,108 116,7171 "g/t" is grams per tonne2 "oz" means troy ounce
