When CEO Mary Little made the first presentation on Claudia at PDAC this year she kept emphasizing that most/many of the read outs for gold were 4 g/t. They can use heap leach in Santa Cruz and open pit methods so costs will be low. Argonaut Gold just bought out Prodigy and look at their production numbers for .4g/t ore and we have 10X that grade at Claudia. Cost per oz is about $550.
Mr. Pete Dougherty, Argonaut's President and CEO states: "The Company saw both record gold production as well as record gold sales during the third quarter. The record sales during the third quarter provided a nice boost in earnings for our shareholders and allowed us to repay a $6 million short term debt note. The increase in production is the result of higher grade than that anticipated by the mine plan grade, commissioning of the west side pad and realizing the full benefits of the new stacking and conveying system at El Castillo."
In commenting on the recent announcement regarding the acquisition of Prodigy Gold, Mr. Dougherty added: "Argonaut Gold was created with the idea of building a company that would produce between 300,000-500,000 ounces of gold annually. With the pending addition of the Magino mine in Ontario, we will have the gold resources available to achieve our vision to continue the creation of a gold mining company with a high leverage to gold resources, low capital entry point, low operational costs and a stream of projects that contain hidden value drivers. Execution of that vision will be the result of the Argonaut employees striving to obtain greater results every day, as they have previously demonstrated, since we have been in operation."