Argonaut has executed an engineering, procurement, construction and commissioning contract (EPC) with Ausenco, noting that the contract's value is approximately 40% of the initial capital estimate for Magino of between US$360 million and US$380 million.

The construction work planned for the Magino project was given the go-ahead last October, with first gold slated for the first half of 2023. 

Magino will use the planned 10,000 tonne per day processing facility to produce an average 150,000 ounces of gold over the first five years of a 17-year openpit, at all-in sustaining costs of US$711/oz.

"We are excited for Magino to be one of the first projects entering construction in the current gold price environment, as we feel first mover advantage is critical when securing a construction team of the highest quality and with a superior track record," said Pete Dougherty, president and chief executive.

The company expects the Magino project Closure Plan to be filed by the province of Ontario in January 2021, which will allow for construction to start. The mine property is a past producing underground gold mine located 40 kilometres northeast of Wawa, Ontario.