Florida Canyon

Latest Updates

47,064

GEOs Produced in 2020(1,2)

54,215

GEOS PRODUCED IN 2021(1)

(1)Gold equivalent ounces (‘GEO” or “GEOs”) are based on a conversion ratio of 80:1 (2020) and 85:1 (2021) for silver to gold. The conversion ratios are based on three year trailing average silver to gold exchange ratio.

(2) Florida Canyon production during Q1 2020 and Q2 2020 was under Alio Gold Inc. prior to the closing of the merger between Alio Gold Inc. and Argonaut on July 1, 2020.

Key Facts
Location Nevada, USA
Ownership 100%
Status Operating
Mine Type Open Pit, Heap Leach
Metals Gold
Acquisition July 2020

Mineral Reserve and Mineral Resource estimates1

Category Tonnes
(millions)
Au Grade
(g/t)
Contained
Au ounces
(000s)
Proven2 57.5 0.43 790
Probable2 10.9 0.37 131
Proven &
Probable2
68.4 0.42 9521
Measured360.50.43 835 
Indicated 311.7 0.38 141 
Measured &
Indicated3
72.1 0.42 976
Inferred3 2.1 0.29 20

(1)Mineral Reserves and Mineral Resources have been estimated as at December 31, 2021 in accordance with NI 43-101 as required by Canadian securities regulatory authorities. Mineral Resources are presented inclusive of Mineral Reserves. Numbers may not sum due to rounding.

(2)The Mineral Reserves for Florida Canyon set out in the above table are based on updated models, mine plans and topography as well as updated recoveries and cost assumptions as of December 31, 2021. Florida Canyon used a gold price of $1,500 per ounce. Cut-off grade for Florida Canyon was 0.17 g/t Au..

(3)The M&I Mineral Resources and Inferred Mineral Resources for Florida Canyon set out in the above table were based on pit cones using $1,800 per ounce gold. Cut-off grade was 0.15 g/t Au.


Overview

Florida Canyon is an open pit and heap leach gold recovery mining operation that has been operating continuously with sporadic periods of interrupted production since 1986. Florida Canyon is located approximately 45 miles southwest of Winnemucca, Nevada, adjacent to Interstate Highway 80. An updated mineral resource was prepared by SRK Consultants (US) “The Independent Technical Report, Mineral Resource Update for the Florida Canyon Mine, Pershing County Nevada, report date, November 29, 2018” (SRK, 2018a). FCMI is a 100% owned subsidiary of Argonaut Gold. Argonaut acquired FCMI through its acquisition of Alio Gold Inc in July 2020.

Geology

The Florida Canyon Gold Mine area is situated in northwestern Nevada within the Basin and Range physiographic province, which is typified by a series of northward-trending elongate mountain ranges separated by alluvial valleys. The Florida Canyon area is dominated by a major regional structural zone, termed the Humboldt Structural Zone, which is interpreted to be a 200-km wide north-easterly-trending structural zone with left-lateral strike slip movement. One of the principal structural features within the Humboldt Structural Zone is the Midas Trench lineament, which abruptly terminates the north end of the Humboldt Range. Mineralization and alteration in the Florida Canyon Gold Mine is localized where the Midas Trench lineament is intersected by the north-south trending Basin and Range frontal faults on the northwest side of the Humboldt range.

Florida Canyon is a large, relatively young epithermal gold deposit adjacent to an active geothermal system. The close spatial association with the geothermal system has led to a general belief that Florida Canyon is a hot spring-style, epithermal gold deposit. Hydrothermal alteration assemblages and the mineralogy of both oxidized and unoxidized gold mineralization at Florida Canyon have been interpreted as having formed in a low-sulfidation, epithermal environment.

The deposit type is a large fault/fracture-controlled gold system, the overall extent being defined by alteration and oxidation of host meta-sedimentary rocks. Mineralization is preferentially located along major structural trends, in associated adjacent fracturing and rock foliations, and as disseminations in favorable host lithologies. The overall extent of mineralization, in surface exposures in the pit areas, is approximately 7500 ft east-west by 6200 ft north-south and can be up to 800 ft in vertical thickness.

History

Florida Canyon’s production history dates to 1986. Following a rehabilitation period, the mine re-started production in April 2017 and achieved commercial production in December 2017. In July 2018, SRK Consulting (US) Inc. was retained by FCMI to prepare a life of mine (LOM) plan at a prefeasibility study (PFS) level for the Florida Canyon Gold Mine. In the preparation of this technical report, SRK reviewed and used information in the amended preliminary economic assessment (PEA) report dated January 27, 2017 and prepared by Mine Development Associates (MDA, 2017).

Technical Reports