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Argonaut Gold Boosts Production at El Castillo

Canadian Gold mining company Argonaut Gold (TSX:AR) has recorded an increase of 57% in gold production in the second quarter. Argonaut produced 10,062 oz of gold during this time frame.

The Toronto based gold miner owns and operates the El Castillo mine located 100km north of Durango in Mexico as well as other exploration projects in Mexico and Guatemala.

Argonaut Gold is spending close to $20 million to boost production at the mine. With the increase in mining operations the company has also increased its output forecast to 47,000 oz of gold for 2010. They expect to replace the crusher circuit on the west side of the El Castillo mine with a larger crusher. The new crusher is expected to triple the crushing capacity of the mine on the west side.

El Castillo Mine. Image Credit: Argonaut Gold

Also aiding the higher gold production will be a soon to be completed 10 million ton heap leach capacity expansion. A new modern facility has been installed to improve flow rates in the processing plant at the mine as well.

Argonaut Gold bought Castle Gold in February this year. Castle Gold originally owned the El Castillo mine and also had a 50% interest in the El Saste gold mine in Guatemala.


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