TORONTO, February 19, 2015 /PRNewswire/ --
- Reserves Increase by 207,000 Ounces at Young-Davidson Underground
- Company-Wide Reserves and M&I Resources Increase by 15% to 10.4 Million Gold Ounces
AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") today reported its updated Reserves and Resources, as at December 31, 2014. (Detailed Mineral Reserve and Resource tables can be found at the end of this press release).
Mineral Reserves and Resources
Reserve Highlights
As at December 31, 2014, the Company is reporting:
Gold Reserves by asset are summarized in the table below:
Proven and Probable Mineral Reserves[1] Gold ounces (000's) Gold grade (g/t) 31-Dec-14 2014 2013 Change (%) 2014 2013 Change (%) Young-Davidson Underground 3,763 3,556 6% 2.74 2.81 (3%) Young-Davidson Surface 61 140 (57%) 0.76 1.10 (31%) Total Young-Davidson 3,823 3,696 3% 2.63 2.66 (1%) Total El Chanate 646 1,023 (37%) 0.74 0.70 5% Kemess Underground 1,805 1,805 0% 0.56 0.56 0% AuRico Total 6,274 6,524 (4%) 1.13 1.07 6% [1]. Detailed Mineral Reserve and Mineral Resource tables follow at the end of this press release.
In addition to gold reserves, the Company is also reporting copper reserves of:
"We remain encouraged with the quality of the underground reserve base reported from our cornerstone Young-Davidson mine, which has increased over the prior year with a consistent grade profile. This robust ore body is comprised of low cost, long life, high margin ounces and this asset is positioned for a long and profitable mine life." stated Scott Perry, President and Chief Executive Officer. He continued, "Company-wide, we are also reporting a significant increase in our resource base in Canada as a result of our successful drilling program at Kemess East, as well as through our strategic joint venture on the promising Lynn Lake Project."
Resource Highlights
As at December 31, 2014 the Company is also reporting the following Mineral Resources, which are in addition to reserves:
Gold mineral resources as at December 31, 2014 by asset are summarized in the table below:
Gold Resources (in thousands of gold ounces)[1] Measured & Indicated Inferred December 31, 2014 2014 2013 2014 2013 Young-Davidson Underground 1,430 1,484 320 323 Young-Davidson Surface 69 32 1 1 Young-Davidson Total 1,499 1,516 321 324 El Chanate Total 69 49 2 14 Kemess Underground 854 854 125 125 Kemess East 939 - 1,424 - Kemess Property Total 1,793 854 1,549 125 Lynn Lake Total (25%) 657 - 522 - Orion Total (50%) 65 65 10 10 AuRico Total 4,083 2,484 2,404 472
The Company is also reporting by-product mineral resources:
Chris Bostwick, Senior Vice President, Technical Services for AuRico Gold Inc. has reviewed the scientific and technical information contained within this press release and serves as the Qualified Person as defined by National Instrument 43-101.
Reserves and Resources (as of December 31, 2014)
Mineral Reserve Estimates - Gold Tonnes Grade Ounces Category (000's) (g/t) (000's) Young-Davidson Surface Proven 2,501 0.76 61 Probable - - - P&P 2,501 0.76 61 Underground Proven 12,499 2.83 1,137 Probable 30,274 2.70 2,626 P&P 42,773 2.74 3,763 Total Young-Davidson P&P 45,273 2.63 3,823 El Chanate Proven 18,255 0.80 472 Probable 8,958 0.60 174 Total El Chanate P&P 27,213 0.74 646 Kemess Underground Proven - - - Probable 100,373 0.56 1,805 Total Kemess P&P 100,373 0.56 1,805 AuRico Total P&P 172,860 1.13 6,274 Mineral Resource Estimates - Gold Category Tonnes Grade Ounces (000's) (g/t) (000's) Young-Davidson Surface Measured 496 1.13 18 Indicated 1,242 1.28 51 M&I 1,739 1.24 69 Underground Measured 7,855 3.28 829 Indicated 6,090 3.07 601 M&I 13,946 3.19 1,430 Total Young-Davidson M&I 15,684 2.97 1,499 Surface Inferred 31 0.99 1 Underground Inferred 3,608 2.76 320 Total Young-Davidson Inferred 3,639 2.75 321 El Chanate Measured 923 0.58 17 Indicated 1,842 0.87 52 Total El Chanate M&I 2,764 0.77 69 Inferred 184 0.38 2 Kemess Underground Measured - - - Indicated 65,432 0.41 854 Total Kemess Underground M&I 65,432 0.41 854 Inferred 9,969 0.39 125 Kemess East Measured - - - Indicated 55,864 0.52 939 Total Kemess East M&I 55,864 0.52 939 Inferred 117,152 0.38 1,424 Lynn Lake (25%) MacLellan Measured 3,753 1.99 240 Indicated 4,344 1.75 244 M&I 8,096 1.86 484 Inferred 475 2.01 31 Farley Lake Measured - - - Indicated 1,479 3.21 153 M&I 1,479 3.21 153 Inferred 1,091 2.87 101 Burnt Timber Measured - - - Indicated 255 1.40 11 M&I 255 1.40 11 Inferred 5,860 1.04 195 Linkwood Measured - - - Indicated 246 1.16 9 M&I 246 1.16 9 Inferred 5,251 1.16 196 Total Lynn Lake M&I 10,076 2.03 657 Inferred 12,676 1.28 522 Orion (50%) Measured - - - Indicated 554 3.66 65 Total Orion M&I 554 3.65 65 Inferred 91 3.33 10 AuRico Total M&I 150,373 0.84 4,083 Inferred 143,711 0.52 2,404
Mineral Reserve and Resource Estimates - Copper and Silver Grade Contained Metal Tonnes Cu Ag Cu Ag Category (000's) (%) (g/t) (000's) lbs (000's) oz Kemess Underground Probable Reserves 100,373 0.28 2.0 619,151 6,608 Indicated Resources 65,432 0.24 1.8 346,546 3,811 Inferred Resources 9,969 0.21 1.6 46,101 503 Kemess East Indicated Resources 55,864 0.41 2.0 503,663 3,601 Inferred Resources 117,152 0.34 1.8 871,407 6,739 Orion (50%) Indicated Resources 554 - 309 - 5,503 Inferred Resources 91 - 95 - 275
Notes to Mineral Reserve and Resource tables:
About AuRico Gold AuRico Gold is a leading Canadian gold producer with mines and projects in North America that have significant production growth and exploration potential. The Company is focused on its core operations including the cornerstone Young-Davidson gold mine in northern Ontario, and the El Chanate mine in Sonora State, Mexico. AuRico's project pipeline also includes the advanced development Kemess Property in northern British Columbia and the Lynn Lake Gold Camp in northern Manitoba. The Company also has other exploration opportunities in Canada and Mexico. AuRico's head office is located in Toronto, Ontario, Canada.
Cautionary Statement This press release contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws. All statements, other than statements of historical fact, are forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" and similar expressions identify forward-looking statements. Forward-looking statements include information as to strategy, plans or future financial or operating performance, such as the Company's expansion plans, project timelines, production plans, projected cash flows or capital expenditures, cost estimates, projected exploration results, reserve and resource estimates and other statements that express management's expectations or estimates of future performance.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, including: uncertainty of production and cost estimates; fluctuations in the price of gold and foreign exchange rates; the uncertainty of replacing depleted reserves; the risk that mining operations do not meet expectations; the risk that projects will not be developed accordingly to budgets or timelines, changes in laws in Canada, Mexico and other jurisdictions in which the Company may carry on business; risks of obtaining necessary licenses, permits or approvals for operations or projects; disputes over title to properties; the speculative nature of mineral exploration and development; risks related to aboriginal title claims; compliance risks with respect to current and future environmental regulations; disruptions affecting operations; opportunities that may be pursued by the Company; employee relations; availability and costs of mining inputs and labor; the ability to secure capital to execute business plans; volatility of the Company's share price; continuation of the dividend and dividend reinvestment plan; the effect of future financings; litigation; risk of loss due to sabotage and civil disturbances; the values of assets and liabilities based on projected future cash flows; risks arising from derivative instruments or the absence of hedging; adequacy of internal control over financial reporting; changes in credit rating; and the impact of inflation. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economic conditions; commodity prices and the price of key inputs such as labour, fuel and electricity; credit market conditions and conditions in financial markets generally; revenue and cash flow estimates, production levels, development schedules and the associated costs; ability to procure equipment and supplies and on a timely basis; the timing of the receipt of permits and other approvals for projects and operations; the ability to attract and retain skilled employees and contractors for the operations; the accuracy of reserve and resource estimates; the impact of changes in currency exchange rates on costs and results; interest rates; taxation; and ongoing relations with employees and business partners. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred Resources This press release uses the terms "measured," "indicated" and "inferred" resources. We advise investors that while those terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred" resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
For further information please visit the AuRico Gold website at http://www.auricogold.com or contact:
Scott Perry President and Chief Executive Officer AuRico Gold Inc. +1-647-260-8880
Anne Day Vice President, Investor Relations and Communications AuRico Gold Inc. +1-647-260-8880
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