Argonaut is working towards a development decision for the project in the second half of the year, when it expects approvals and finance options to be aligned.

"Our feasibility study parameters outline strong economics at US$1,250 gold and a C78c exchange rate. In the ongoing deep drilling programme, we are consistently hitting high-grade intercepts, which are not included in our current mineral reserve or mineral resource estimates," said CEO Pete Dougherty.

Magino has measured and indicated resources of 144Mt grading 0.91 grams per tonne gold for 4.2Moz.

The company has continued its drilling programme uninterrupted during the COVID-19 pandemic and said it was encouraged with results to date. Argonaut expects to release more results as a backlog in assay laboratories is worked through after temporary closures due to COVID-19.

Argonaut Gold recently agreed an at-market merger with Alio Gold.

Argonaut shares were among a few miners to eke out gains on Thursday amid a deep market sell-off on fears of a second wave of COVID-19 infections. The TSX's metals & mining sector fell nearly 9% on Thursday.

Shares (TSX: AR) closed up 1.5% or 3c at $1.95, which capitalises it at $352 million (US$258 million).