The Canadian federal government has approved the environmental assessment for Argonaut Gold’s Magino gold project in Ontario.
Argonaut Gold (TSX:AR) has been given the green light by the Canadian federal government for its Magino gold project in Ontario.
The approval pertains to the asset’s environmental assessment (EA), a necessary component for the project to move forward. The EA, conducted by the Canadian Environmental Assessment Agency, was a collaborative effort between indigenous groups, the public and federal departments such as Fisheries and Oceans Canada, Natural Resources Canada and Health Canada.
“The approval of the EA is the completion of a major milestone for the Magino Project, a process that included cooperation of the company, Indigenous and non-Indigenous communities and the Canadian government to the benefit of all stakeholders,” said Argonaut President and CEO Pete Dougherty.
“Magino is a strategic, long-life asset located in the attractive mining jurisdiction of Ontario, Canada … the size, location, existing infrastructure and economics of the project give Argonaut significant flexibility to explore options around Magino on our own or with partners.”
While the EA’s approval is significant for the company, Magino still has further authorizations to acquire before going forward, including a provincial EA, a construction permit, a mine closure plan and schedule 2 authorization. Argonaut predicts that the provincial EA will be completed during the first half of 2019, with the other approvals following suit in 2020.
Dougherty added that the company’s 2019 plans for the exploration asset are to secure the necessary authorizations and to continue design and engineering efforts for the project.
The project, acquired by Argonaut in 2012, is set to see a 17-year mine life during which it will produce an average of 150,000 ounces of gold annually for the first five years, and nearly 2 million ounces overall.
Alongside Magino, the company has three operating mines and two other advanced development projects, all of which are in Mexico. Its operating mines include the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, and the La Colorada mine in Sonora.
The company’s development projects, aside from Magino, are its San Antonio project in Baja California Sur and its Cerro del Gallo project in Guanajuato.
Argonaut’s share price was up 1.84 percent as of 3:40 p.m. EST on Monday (January 28), at C$1.66.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.