Argonaut is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production-stage El Castillo Mine in the State of Durango, Mexico, the La Colorada Mine in the State of Sonora, Mexico, the advanced exploration stage San Antonio project in Mexico, the recently acquired advanced exploration stage Magino project in Ontario, Toronto and several exploration stage projects, all of which are located in Mexico and Canada.
Stonecap Securities keeps Argonaut Gold at "Sector Perform"
Stonecap Securities has kept its "Sector Perform" rating and $9.40 target price on () after the company gave an update on its San Antonio and La Colorada projects.
Argonaut is engaged in the business of gold production and related activities, including the exploration and acquisition of gold-bearing properties, development and processing.
"The company offers investors both current cash flow and excellent exposure to gold through its robust growth profile," Stonecap analyst Christos Doulis said in a note.
Amongst the highlights, Argonaut drilled 35,962 metres in 244 holes at La Colorada since October, including drill hole 12-LCRC-303 which intersected 27.43 metres grading 10.52 grams per tonne (g/t) gold and drill hole LC-11-DD-114 which intersected 94.5 metres grading 1.07 g/t gold.
At San Antonio, 20,600 metres was drilled in 130 holes since the previous update in May 2011, including drill hole 11PLDD-100, which intersected 54.5 metres grading 2.58 g/t gold, including 10.5 metres grading 10.38 g/t gold.
Stonecap noted that at La Colorada, drill results at the recently-discovered Veta Madre area are beginning to outline what may well be an economic deposit.
An updated resource for the Veta Madre area is anticipated in 2012.
"Ongoing drilling at San Antonio and La Colorada continues to advance both projects. Successful build-out at both these operations should ultimately allow the company to transform into an approximately 250,000-ounceoz gold producer without requiring any additional equity capital," Doulis added.
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