November 2012 presentation - Argonaut Gold Inc.

Prodigy - Magino’s Flexibility
Dec 2011
Prodigy’s flagship asset is the Magino gold project
(40 km northwest of Wawa, Ontario)
On December 22, 2011, Prodigy released an updated
Preliminary Economic Assessment (“PEA”):
• Pre-tax NPV of C$939 mm and pre-tax IRR of 36%
• LOM average gold production of 249k oz per year
over 11 year mine life at cash costs of US$461/oz
• LOM production of 2.6 million ounces at 1.15 g/t
• Total development capital expenditures of C$404 mm
with LOM sustaining capital expenditures of C$145
mm
• 20,000 tpd mill achieving 95% recoveries
Resource Flexibility
• Tremendous grade flexibility without the loss of
significant ounces
• Mine development that balances returns with scale
• Multiple development scenarios have been evaluated
by Argonaut management in assessing the merits of
this transaction
• Pre-feasibility study (2013 target) which will explore
the development of Magino, focusing on a higher
grade, lower scaled operation balancing returns for
the project
• Project funding through Argonaut cash flow
PEA
Cutoff
Grade
Indicated Resource
Magino Project Mineral Resource Estimate
Source: Prodigy SEDAR Company Filings as described on the slide “About Prodigy”
Note: The December 2011 PEA is shown here for comparative purposes only, readers should note
that the current technical report states as the new resource estimate is significantly different from
the existing one, the mine plan and process disclosure in the PEA is no longer current
(US$1,200/oz gold price and 0.93 USD:CAD exchange ratio)
Inferred Resource
Tonnes Grade Ounces Tonnes Grade Ounces
(g/t) (000's) (g/t) (k oz) (000's) (g/t) (k oz)
0.35 67,555 1.00 2,176 54,242 0.99 1,721
Current Indicated Resource Inferred Resource
Cutoff
Grade
Tonnes Grade Ounces Tonnes Grade Ounces
(g/t) (000's) (g/t) (k oz) (000's) (g/t) (k oz)
0.35 223,480 0.87 6,251 13,809 0.80 355
0.40 199,897 0.92 5,913 11,920 0.87 333
0.50 159,681 1.04 5,339 9,021 1.00 290
0.60 128,135 1.16 4,779 7,006 1.13 255
0.70 102,970 1.29 4,271 5,430 1.27 222
1.00 55,306 1.69 3,005 2,795 1.71 154
The December 2011 PEA is shown here for comparative purposes only, readers should note that the
current technical report states as the new resource estimate is significantly different from the
existing one, the mine plan and process disclosure in the PEA is no longer current; Prodigy is
currently working on prefeasibility study which will supersede previous technical reports
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ArgonautGold.com
November 2012
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