Argonaut Gold (TSX: AR) had a notable update this morning for its Magino project, with the announcement that the government of Ontario has filed the closure plan for the project. The advent of this effectively enables operations to begin on site, with the removal and clearing of trees at the project now to begin imminently, while construction is to begin as soon as site preparation is complete.
Argonaut Gold is currently forecasting construction of the mine site to take approximately two years, with the first gold production to occur during the first half of 2023. Initial capital costs are estimated to be between $480 million and $510 million, while the company anticipates all in sustaining costs of the operation to come in at US$711 per gold ounce.
The project itself is expected to have an annual average gold production figure of 150,000 ounces over the first five years, while mine life is pegged at 17 years.
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Approximately 40% of the construction costs of the project is covered by a fixed-bid contract, and the project is considered fully financing through the firms cash balance and anticipated cash flow from operations.
Argonaut Gold last traded at $2.61 on the TSX.
Information for this briefing was found via Sedar and Argonaut Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
