Pre Feasibility Study for Magino

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drandres

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Pre Feasibility Study for Magino

posted on Dec 17, 2013 08:11AM

December 17, 2013

Argonaut Gold Announces Pre-Feasibility Study Results for the Magino Project With After-Tax IRR of 18% and Total Cash Flow of US$350 Million

TORONTO, ONTARIO--(Marketwired - Dec. 17, 2013) - Argonaut Gold Inc. (TSX:AR) (the "Company", "Argonaut Gold" or "Argonaut") is pleased to announce the results of a prefeasibility study ("PFS") for the Magino property, located 40 kilometers ("km") northeast of Wawa, Ontario. The study was completed by JDS Energy & Mining Inc., Vancouver, Canada and is based on a December 2013 mineral resource estimate. The Magino mine PFS study takes into consideration the PFS design pit, representing 40% of a larger defined resource. It does not include any potential expansion from the land or mineral rights acquisition pending from neighboring landowner Richmont Mines Inc. All amounts are indicated in US dollars.

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  ECONOMIC HIGHLIGHTS OF PRE-FEASIBILITY STUDY ($1250 per ounce gold price) 
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  Net Present Value ("NPV" After-Tax at a 5% discount                       
   rate)                                                   $199 million     
  Cash Flow (Undiscounted, After-Tax)                      $350 million     
  Internal Rate of Return (After-Tax "IRR")                18%              
  Payback (After-Tax, Years of production)                 4.2 years        
  Capital Cost (pre-production)                            $356 million     
    Sustaining and Closure                                   $58 million    
  Cash Cost (including leasing costs of $78 million)       $693 per ounce Au
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To view the report : http://finance.yahoo.com/news/argonaut-gold-announces-pre-feasibility-123000156.html

Good to see some news about our little Magino dumpling.

Doc

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