Argonaut Gold Inc. (TSX:AR) released an updated prefeasibility study for its Ontario-based Magino property, commenting that it builds on the previous study and more fully uses the project’s resource.

Pete Dougherty, president and CEO of Argonaut Gold, commented:

Since increasing our property position and completing additional drilling, we were able to re-assess the deposit in its entirety, including considering many alternative development approaches for the project, such as processing rates ranging from 10,000 tonnes per day (“tpd”) up to 30,000 tpd. We have determined that this PFS presents the best alternative for development. Not only have the NPV and IRR increased since the previous PFS (based on a Canadian dollar denominated gold price of C$1,538/oz., which is below the current spot gold price of C$1,580/oz.), but the ounces to be produced have increased by 70% and the cash costs have decreased by 16%. Magino is a unique project – there are few gold projects of this scale and quality located in Canada, and the project’s economics continue to benefit from a strong Canadian dollar denominated gold price. On an ongoing basis, we will consider alternatives to finance and develop the project in order to efficiently realize the full potential of this asset.

Click here to read the full Argonaut Gold Inc. (TSX:AR) press release.