Argonaut Gold Inc. (TSX:AR) announced a resource estimate for its wholly owned San Agustin project in Durango, Mexico. The estimate has resulted from the first phase of a multiple-phase drill program at the project.

As quoted in the press release:

The San Agustin pit constrained indicated resource now stands at 845,000 gold ounces and 28,263,000 silver ounces contained in 82.2 million tonnes of material at a grade of 0.32 grams per tonne (‘g/t’) gold and 10.7 g/t silver, for a total of 1,280,000 gold equivalent ounces. The constrained pit resource has an additional inferred resource category of mineralization of 103,000 gold equivalent ounces including 65,000 contained gold ounces and 2,459,000 contained silver ounces within 7 million tonnes of material at a grade of 0.29 g/t gold and 11.0 g/t silver. The resource only includes oxide material and minimal transition material. The gold equivalent ounces are calculated utilizing a 65:1 gold price to silver price ratio and does not incorporate the recovery differential between gold and silver.

Argonaut Gold’s president and CEO, Pete Dougherty, said:

We are very pleased with the work done on the San Agustin project to date. The Phase I drill program was completed ahead of schedule and under budget. This resource is only composed of oxide and transition material. Conceptually, the planned preliminary economic assessment (‘PEA’) is intended to evaluate the San Agustin property as a heap leach operation. The upside potential to add mineralization by expanding the current resource area and assessing other defined targets immediately surrounding the resource is the primary focus for our ongoing drilling activities.

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