Argonaut contractor dies at Magino project in Ontario

Argonaut Gold (TSX: AR) on Tuesday reported the death of a contractor at its Magino project in northern Ontario.

The company is working with authorities to investigate an isolated incident Monday morning at the mill’s construction site, it said in a news release.

“The loss of this individual is a shock to us all,” Larry Radford, Argonaut president and chief executive officer, said in the release. “We extend our deepest sympathy to his family and loved ones.” 

The company provided no further details on the circumstances of the death.

Argonaut is aiming to start production at the Magino open-pit project in April after costs have nearly doubled since construction began two years ago. It is located at a past-producing underground mine east of Lake Superior, less than one km from Alamos Gold’s (TSX: AGI; NYSE: AGI) Island gold mine.

Argonaut has raised nearly half a billion dollars in debt and equity deals this year to keep the project on schedule. It’s now more than 70% complete. The company is also trying to rebound from depressed third-quarter output that led to a $1.3-million loss over the three-month period to Sept. 30.

The company is targeting annual production of 142,000 oz. over the first five years of Magino with 19-year life-of-mine cash costs of US$907 per oz. Estimated development costs almost doubled to $920 million in May from $510 million in 2020. It bought the property in 2012.

Magino has proven and probable reserves of 58.9 million tonnes grading 1.13 grams gold per tonne for 2.1 million oz. of contained gold ore. Measured and indicated resources, inclusive of reserves, stand at 144 million tonnes grading 0.91 gram gold for 4.2 million gold ounces.

In afternoon trading in Toronto, Argonaut was down nearly 8% to 35¢ per share, within a 52-week range of 34¢ and $4.09. The company has about 801 million shares outstanding and a valuation of $280.5 million.