Argonaut Exploration Inc.

August 14, 2013 09:00 ET

Argonaut Exploration Inc. Creates Data Room for Columario Gold Mine Investment Opportunity

CALGARY, ALBERTA--(Marketwired - Aug. 14, 2013) - Argonaut Exploration Inc. (the "Company" or "Argonaut") (TSX VENTURE:AGA) announces that it has completed a virtual data room to complement a direct ownership investment opportunity in the Company's 100% owned Columario Gold Mine and 5,883 acre associated property. The property is located 11 kilometers (km) north of Terrace, British Columbia with road access and exceptional infrastructure.

The data room includes a detailed in-house (non NI 43-101 compliant) analysis of all historic and contemporary assay, drill and development data obtained, analyzed and evaluated by the Company. Upon request, Argonaut will make the data room available to serious investment inquiries.

Columario Gold Mine and Property

The Columario property and mine were actively explored and developed for 14 years from 1921 to 1935 by a publicly traded company Columario Gold Mines Ltd. and its successor company Columario Consolidated Gold Mines Ltd. Historic reports from between1921 to 1935 describe and illustrate the surface location of 14 to 27 distinct sub-parallel veins on the property. Individual veins containing gold, silver and sulphide values were traced over distances of 858 metres (m) and elevations ranging between 457 to 915 m.

During this period, the Columario Gold Mine underwent exploration and typical early stage development. This included approximately 2,400 m of tunnelling and underground workings. Records state that from 1934 to 1935 the mine produced a minimum of 2,090 tonnes with a resultant 21.15 kg (622 oz.) of gold and 58.1 kg (1709 oz.) of silver (B.C. Minfile No. 103I, 077). The highest documented gold grade encountered in the mine was reported by "The Omineca Herald" in 1934 which stated that a 4 foot 8 inch (1.42 m) sampled vein width from a raise graded 24.24 oz./ton gold and 53 oz./ton silver.

Argonaut has recently acquired most of the 1929 to 1934 pre-production gold assay data and resultant gold assay plots that were prepared by consultant mining engineers and geologists of that day. Mounting debt with a lack of additional funds, unplanned development costs, delayed production and the destruction of the mine ore transport route by flooding, bankrupted the company and terminated the early stage mining at the Columario Gold Mine in 1935.

Between 1935 and 1987 no significant work occurred on the property with the exception of additional gold high grading in 1939 and 1940. In 1987 and 1988, Hillsborough Resources Ltd. re-examined approximately 70% of the underground workings after building a new mine access road that enabled the company to survey, geologically map and channel sample the accessed mine tunnels. The property remained unexplored from 1988 until 2010 when Argonaut Exploration Inc. acquired 100% ownership of the property and mine.

Since 2011, Argonaut Exploration Inc. has obtained a five year exploration permit from the B.C. Government, re-habilitated the 2.8 km mine access road and conducted two surface exploration drill programs totalling 29 drill holes that targeted the mine veins and the 2 km distant Victor vein. The drill programs produced a total of 3,326 m of NQ sized drill core. Quartz veining with highly variable quantities of gold bearing sulphides were encountered in all completed drill holes. Fifty channel samples were collected from the surface outcrops of 6 veins with one vein sampled underground and along strike for 20 meters (all Argonaut reports and news released exploration results are posted to SEDAR).

Historic and contemporary documents, many of which are no longer public, were obtained by the Company for evaluation. The documents contain the detailed gold assay results of approximately 450 fire assayed channel samples collected and plotted from the Columario Gold Mine workings and associated veins by consulting mining engineers and geologists. Detailed gold assay maps prepared by consultants in 1933 and 1934, prior to mine production, illustrate the gold content and vein widths present in the historically located ore shoots thus indicating the gold potential of the mine and property.

Mine and Property Potential

Historically delineated ore shoot examples from the mine are tabled and referenced below. Norrie, W.G., a mining engineer based out of Vancouver, consulted to Columario Consolidated Gold Mines Ltd. in 1931. Norrie sampled and reviewed all mine development data in 1931 and based in part on the summarized ore shoots below advised the Company on the justification of financing and building a mill and tramline. As a result of Norrie's and other consultant mining engineers recommendations a 100 ton per day flotation mill and 12 bucket tramline were constructed, completed and in operation near the mine site by 1934.


Value Per Ton
$ to ounces/ton @ 1931 Average Gold price of
$17.06 /ounce
Ounces/ton/36 inch minimum mining width
No. 4 Upper Tunnel 30 feet 32 inches $ 12.60 0.738 0.655
78 " 30 " $ 11.20 0.656 0.546
60 " 30 " $ 14.30 0.838 0.698
No.4 Lower Tunnel 20 " 18 " $ 7.15 0.419 0.209
No.5 Lower Tunnel 100 " 16 " $ 9.60 0.562 0.249
Dakota Tunnel 40 " 21 " $ 14.60 0.855 0.498
No.7 Tunnel 90 " 31 " $ 18.30 1.072 0.923
Tenderfoot Tunnel 100 " 17 " $ 7.35 0.430 0.203
Total 518 " 22 " $ 12.30 0.721 0.440

*Columns 1 to 4 are quoted verbatim from Norrie, 1931; Columns 5 and 6 are conversions of Norrie's results by Argonaut Exploration Inc.

Documented collective surface vein lengths exceed 2.3 km with depths to greater than 150 m indicating an approximate gross tonnage potential for narrow vein widths of greater than 830,000 tons. In-house estimated gold ounce potential (non NI 43-101 compliant) appears significant and based on suggested mine vein convergence south of the workings a bulk tonnage potential could be present.

About Argonaut Exploration Inc.
Argonaut is a junior mineral exploration company focused on the acquisition, exploration and development of gold, silver and copper bearing mineral properties. For more information on the Corporation visit its website at

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Company's disclosure documents on the SEDAR website at The Company does not undertake to update any forward-looking information except in accordance with applicable securities laws.

Certain information contained in this press release is taken from historical reports. Information from these historical reports has not been confirmed and there can be no assurance that such information will prove to be accurate. Further, a qualified person has not done sufficient work to classify the historical information as current mineral resources or mineral reserves.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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