November 4, 2010 / 8:58 PM / 7 years ago

UPDATE 1-Argonaut Gold Q3 production jumps; sees Q4 up

* Q3 production 12,724 ounces vs 7,655 ounces last year

* Backs 2010 production view of 47,000 ounces

Nov 4 (Reuters) - Argonaut Gold Inc (AR.TO) posted a 66 percent jump in quarterly gold production at its El Castillo mine in Durango, Mexico and expects to produce more in the fourth quarter than the year-ago period.

The gold producer, which also operates the exploration-stage La Fortuna Project in Durango, also said it surpassed its mining rate of 1.5 million tons per month it set for the third quarter.

The company reported quarterly gold production of 12,724 ounces, compared with 7,655 ounces last year.

The company, which produced 33,031 ounces year-to-date, reiterated that it is on target to meet its forecast of 47,000 ounces of gold in 2010.

“We anticipate a fourth quarter production increase based on the October results, which will fulfil our production estimate of 47,000 ounces of gold produced in 2010,” Chief Operations Officer Edgar Smith said.

On Oct. 19, the company said it agreed to acquire junior miner Pediment Gold Corp PEZ.TO for about C$137.1 million in an all-stock deal, to increase its leverage to gold resources. [ID:nSGE69I0IE]

The company’s shares closed at C$3.73 on Thursday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Don Sebastian) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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