Toronto’s Argonaut Gold Inc. (TSX: AR) completed the first gold pour at its first Canadian mining operation on Wednesday and expects to enter commercial production at the site by Q3 this year.
The Magino Mine will produce approximately 75,000 ounces of gold this year and about 148,000 next year.
In addition to expecting commercial production in Q3, the company plans on starting a 12-15 month exploration and development program during the quarter to test underground and open-pit targets and convert its open-pit resources to reserves.
Additionally, Argonaut plans to review expansion and mill development opportunities during Q3 to improve production and throughput rates. The company believes Magino will become its largest and lowest-cost operation.
“With the first gold pour milestone behind us, we are now focused on completing commissioning and ramping up the mill to steady state,” said Arognaut’s Chief Operating Officer Marc Leduc.
Processing plant at the Magino Mine. Image via Argonaut Gold
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Argonaut began putting ore into the crushing circuit and grinding circuit in mid-May at Magino and completed its initial 48-hour run of the mills at the end of that month.
The company has partnered with Ausenco Engineering Canada as its engineering, procurement and construction manager to assist with common challenges the company may encounter during Magino’s commissioning phase.
Argonaut generated $36.8 million less revenue in Q1 this year than in 2022 due to lower production rates at its three mining operations in Mexico.
The company also recently sold the Ana Paula gold project in Guerrero, Mexico to Heliostar Metals Ltd. (TSX-V: HSTR) (OTCQX: HSTXF) (FRA: RGG1) for US$30 million.
Other mining operations in northern Ontario include Alamos Gold Inc.’s (TSX: AGI) (NYSE: AGI) Island Gold Mine near Dubreuilville; Pan American Silver Corp.’s (NYSE: PAAS) (TSX: PAAS) Bell Creek underground mine in Timmins, a site with 923.5 kilo-ounces of proven and probable gold reserves; and the Greenstone Mine near Geraldton, a 60/40 joint venture between Equinox Gold Corp. (TSX: EQX) (NYSE American: EQX) and Orion Mine Finance.
Argonaut’s shares rose by 2.54 per cent Thursday to $0.60 on the Toronto Stock Exchange where they have risen by over 40 per cent in the last six months.