Hole KH-14-04 intersects 768 metres of
0.442 g/t Au and 0.392% Cu
TORONTO, Dec. 15, 2014 /CNW/ - AuRico Gold Inc. (TSX:
AUQ) (NYSE: AUQ), ("AuRico" or the "Company") today announced
that a significant exploration drilling program completed in 2014
has delineated a new porphyry mineralized system at Kemess East,
which is located one kilometre east of the previously delineated
Kemess Underground deposit and 6.5 kilometres north of the Kemess
mill facility (See Figure 1).
Since late-2013, the Company has completed 19 diamond drill
holes (27,214 metres) in the Kemess East mineralized area with 16
of the 19 drill holes intersecting mineralization. Highlights of
the drilling include the following intercepts (Refer to Tables 1
and 2 for complete drilling results and Figure 2 for drilling
locations):
- KH14-04 intersected 768m of 0.442 g/t Au and 0.392% Cu
- Including 132m of 0.755 g/t Au and 0.500% Cu
- KH-14-09 intersected 304m of 0.557 g/t Au and 0.421% Cu
- Including 76m of 1.202 g/t Au and 0.658% Cu
- KH-13-08 intersected 601m 0.500 g/t Au and 0.391% Cu
- Including 278m of 0.712 g/t Au and 0.477% Cu
(The estimated true thickness of the mineralized intervals is
70% of the reported intercept length.)
"The Kemess East exploration program has identified a
significant new gold-copper porphyry mineralized system that is
higher grade than the Kemess Underground and is located in
immediate proximity to the existing processing facility and
associated surface infrastructure that includes a 50,000 tonne per
day mill facility, administration and camp facilities, permitted
tailings storage and full access to grid power." stated
Scott Perry, President and CEO of
AuRico Gold. He continued, "This new
discovery demonstrates the significant potential of the Kemess land
package with some of the program's drill holes ending in
mineralization. With an initial resource expected early next year,
we will look to expand our exploration drilling program and advance
our Kemess Underground permitting efforts to continue surfacing
value."
2015 Exploration Program
An initial resource estimate for Kemess East is anticipated in
early 2015. Preliminary mineralogical assessment indicates that
Kemess East has similar characteristics to the Kemess Underground
deposit and metallurgical testing is currently underway. The
expanded 2015 drilling program will focus on additional delineation
of the Kemess East mineralization and ongoing exploration drilling
(Refer to the Kemess East plan and sections in the accompanying
figures).
Kemess Underground Permitting Update
The Kemess Underground Project is currently undergoing a
Substituted Environmental Assessment led by the British Columbia
Environmental Assessment Office ("EAO") on behalf of both the
province of British Columbia and
the Canadian Environmental Assessment Agency ("CEAA"), the latter
of which is on behalf of the Federal Government of Canada. This review is currently in the
pre-Application stage (second of three phases) of the environmental
assessment process and AuRico anticipates receiving the Application
Information Requirements ("AIR") in early January 2015, a key milestone in the
environmental assessment process. The Environmental Application
("Application") is being prepared for submission in the first half
of 2015. At that time the Application will undergo Public Comment
and technical review by Aboriginal groups, and relevant
federal and provincial government agencies, following which the
Application will be referred to both levels of government for a
decision. For additional information visit
www.kemessunderground.com.
Kemess Property Overview
The Kemess Property (See Figure 4) is located in north-central
British Columbia, Canada,
approximately 430 kilometres northwest of Prince George. The Kemess Underground Project
is located approximately 5.5 kilometres north of the past producing
Kemess South open pit mine that operated from 1998 to 2011 and
produced 3 million ounces of gold and 749 million pounds of
copper.
A Feasibility Study on the Kemess Underground Project was
released on March 25, 2013 that
proposes an underground block caving operation with average annual
production of 105,000 ounces of gold and 44 million pounds of
copper over a 12 year mine life.
Kemess Underground
Reserves and Resources
|
Gold
|
Tonnes
|
Grades
(g/t)
|
Gold Ounces
(000's)
|
Proven & Probable
Reserves
|
100,373
|
0.56
|
1,805
|
Measured &
Indicated Resources
|
65,432
|
0.41
|
854
|
Inferred
Resources
|
9,969
|
0.39
|
125
|
Copper
|
Tonnes
|
Grade
(%)
|
Cu (000's)
lbs
|
Proven & Probable
Reserves
|
100,373
|
0.28
|
619,151
|
Indicated
Resources
|
65,432
|
0.24
|
346,546
|
Inferred
Resources
|
9,969
|
0.21
|
46,101
|
The Kemess East discovery is located one kilometre east of
Kemess Underground and 6.5 kilometres north of the existing Kemess
mill facility. An initial resource estimate for Kemess East is
anticipated in early 2015.
Quality Control – Analyses and Sample Location
Exploration activities at Kemess are being conducted by
AuRico personnel under the supervision of Wade Barnes Project
Geologist and a Qualified Person as defined by National Instrument
43-101. Wade Barnes is PGeo
registered with the Association of Professional Engineers and
Geoscientists of British Columbia
("APEGBC") and has reviewed and approved this news release.
Samples were prepared at an on-site sample preparation lab.
The majority of prepared 250 g samples, crushed to 80% passing
10-mesh and pulverized to 85% passing 150-mesh, were shipped in
security sealed pails to ALS Chemex Laboratory in North Vancouver for analysis, with some 2007
samples submitted to Assayers Canada Laboratories in
Vancouver. At both accredited laboratories, samples
were analyzed for a suite of 35 elements, including iron,
molybdenum, and silver, using 2-acid digestion and ICP atomic
emission spectroscopy on a one gram sub-sample prior to 2010 and a
4-acid digestion thereafter. Copper analyses were completed
by AA spectrometry, following a 3-acid digestion. Gold analyses
were completed by standard 1-assay-ton fire assay with an AA
finish. Samples from significantly mineralized zones were also
submitted for molybdenum assay, which included 4-acid digestion
with an AA finish.
Quality control (QC) samples (blanks, duplicates, and
certified reference materials) were inserted into the sample stream
at regular intervals such that 1 in 25 (4%) samples were submitted
for quality control purposes. QC sample performance was
monitor on a regular basis, independently of the laboratories, and
failures addressed in a timely manner. All sample batches
were also subjected to each laboratory's internal quality control
procedures, for an additional 40% QC sample volume.
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 Underground
Project 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
estimates of mineral grades, the estimated extent and timing of
anticipated future exploration activity; the results of future
interpretation of geological information; whether results thereof
will lead to estimated reserves or resources and the timing of such
estimates , 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. Such factors include without limitation: estimates of
mineral grades; the estimated extent and timing of future
exploration activity and resource estimates; the
interpretation of geological information; whether exploration
results will lead to establishing reserves or resources; the nature
and timing of permitting work; the risk that projects will not be
developed accordingly to established budgets or timelines; no
material delays in the timing for completion of exploration
activities, changes in laws or regulations in Canada, Mexico and other jurisdictions in which the
Company may carry on business; risks of obtaining necessary
licenses, permits; authorizations or approvals for operations or
projects such as Kemess; contests 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; fluctuations in
the price of gold and foreign exchange rates; the uncertainty of
replacing depleted reserves; the risk that the Young-Davidson and El Chanate mine may not perform
as planned; uncertainty of production and cost estimates;
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; any
decision to declare dividends; the implementation and continued
availability of the 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 holding derivative
instruments; risks arising from the absence of hedging; adequacy of
internal control over financial reporting; changes in our 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. There is no assurance
or certainty that an initial resource estimate for Kemess
East will be completed, or if completed, is completed in
early 2015. Such statements are based on a number of assumptions
which may prove to be incorrect, including assumptions about:
future exploration and the results of such exploration, the ability
and timing to complete a resource estimate for Kemess East, the
presence of and continuity of metals at Kemess East at
modeled grades, 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; our ability
to procure equipment and supplies in sufficient quantities and on a
timely basis; the timing of the receipt of permits and other
approvals for our projects and operations; our ability to attract
and retain skilled employees and contractors for our operations;
the accuracy of our reserve and resource estimates; the impact of
changes in currency exchange rates on our costs and results;
interest rates; taxation; and our ongoing relations with our
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.
Figure 1: Existing Mill Infrastructure & Surface
Facilities
Figure 2: Kemess East Drill Hole Intercepts - Plan View
Figure 3: Kemess East Section Looking North
Figure 4: Kemess East Section Looking West
Figure 5: Mill Processing Facility and Associated Surface
Infrastructure at Kemess
Table 1: Drill Intercepts that Intersected the Kemess
East Mineralized Deposit
Hole
ID
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Au
(g/t)
|
Cu
(%)
|
Ag
(g/t)
|
Mo
(%)
|
KH-14-01
|
549.0
|
613.3
|
64.3
|
0.334
|
0.380
|
1.99
|
0.019
|
and
|
686.9
|
864.0
|
177.1
|
0.308
|
0.322
|
1.50
|
0.005
|
including
|
794.0
|
854.0
|
60.0
|
0.390
|
0.340
|
1.52
|
0.003
|
KH-14-02
|
922.0
|
1480.0
|
558.0
|
0.529
|
0.381
|
1.91
|
0.007
|
including
|
1084.0
|
1414.0
|
330.0
|
0.709
|
0.436
|
1.99
|
0.005
|
including
|
1133.0
|
1185.0
|
52.0
|
0.989
|
0.599
|
2.37
|
0.004
|
KH-14-03
|
999.0
|
1490.0
|
491.0
|
0.379
|
0.321
|
1.62
|
0.011
|
including
|
1057.0
|
1273.0
|
216.0
|
0.547
|
0.424
|
2.02
|
0.009
|
including
|
1175.0
|
1263.0
|
88.0
|
0.722
|
0.414
|
1.79
|
0.005
|
KH-14-04
|
825.0
|
1593.0
|
768.0
|
0.442
|
0.392
|
1.85
|
0.007
|
including
|
885.0
|
974.7
|
89.7
|
0.716
|
0.591
|
2.43
|
0.009
|
including
|
1018.0
|
1150.0
|
132.0
|
0.755
|
0.499
|
2.44
|
0.003
|
including
|
1338.0
|
1565.0
|
227.0
|
0.403
|
0.435
|
2.11
|
0.01
|
KH-14-08
|
875.0
|
1532.0
|
657.0
|
0.444
|
0.317
|
1.62
|
0.005
|
including
|
875.0
|
1369.0
|
494.0
|
0.565
|
0.377
|
1.90
|
0.006
|
including
|
921.6
|
1242.0
|
320.4
|
0.732
|
0.476
|
2.38
|
0.005
|
including
|
1064.0
|
1144.0
|
80.0
|
1.009
|
0.541
|
2.58
|
0.002
|
KH-14-09
|
1200.7
|
1505.0
|
304.3
|
0.557
|
0.421
|
2.21
|
0.005
|
including
|
1200.7
|
1391.8
|
191.1
|
0.801
|
0.546
|
2.48
|
0.005
|
including
|
1252.0
|
1328.0
|
76.0
|
1.202
|
0.658
|
2.87
|
0.002
|
KH-14-11
|
1263.0
|
1564.0
|
301.0
|
0.357
|
0.347
|
1.76
|
0.007
|
including
|
1279.0
|
1438.3
|
159.3
|
0.578
|
0.508
|
2.43
|
0.007
|
KH-14-12
|
899.4
|
1119.2
|
219.8
|
0.261
|
0.308
|
1.77
|
0.004
|
including
|
950.6
|
1119.2
|
168.6
|
0.325
|
0.377
|
1.94
|
0.005
|
including
|
1011.5
|
1084.0
|
72.5
|
0.431
|
0.569
|
2.71
|
0.007
|
KH-13-07
|
819.0
|
1014.0
|
195.0
|
0.466
|
0.400
|
1.78
|
0.007
|
including
|
829.0
|
944.0
|
115.0
|
0.527
|
0.461
|
1.89
|
0.008
|
KH-13-08
|
923.0
|
1524.0
|
601.0
|
0.500
|
0.391
|
1.91
|
0.007
|
including
|
1107.0
|
1385.0
|
278.0
|
0.712
|
0.477
|
2.10
|
0.006
|
including
|
1179.0
|
1231.0
|
52.0
|
0.854
|
0.626
|
2.55
|
0.003
|
KH-13-09
|
938.0
|
1380.0
|
442.0
|
0.543
|
0.448
|
2.12
|
0.010
|
including
|
1113.0
|
1380.0
|
267.0
|
0.728
|
0.526
|
2.16
|
0.008
|
including
|
1211.0
|
1380.0
|
169.0
|
0.906
|
0.559
|
2.18
|
0.005
|
KH-07-04
|
781.0
|
1330.0
|
549.0
|
0.335
|
0.361
|
2.22
|
0.009
|
including
|
1209.0
|
1291.0
|
82.0
|
0.596
|
0.395
|
2.37
|
0.004
|
KH-07-07
|
460.6
|
530.0
|
69.4
|
0.300
|
0.369
|
2.06
|
0.008
|
KH-07-10
|
838.0
|
1226.0
|
388.0
|
0.308
|
0.336
|
1.85
|
0.009
|
including
|
912.5
|
1166.0
|
253.5
|
0.354
|
0.392
|
2.10
|
0.013
|
KH-07-24
|
1195.1
|
1348.0
|
152.9
|
0.617
|
0.532
|
2.75
|
0.009
|
KH-07-25
|
728.0
|
796.3
|
68.3
|
0.320
|
0.360
|
1.74
|
0.006
|
Table 2: Drill Collar Locations
Hole
ID
|
Nad83E
(m)
|
Nad83N
(m)
|
Elevation
(m)
|
Azimuth
|
Dip
|
Depth
(m)
|
KH-14-01
|
637955
|
6326879
|
1705
|
162.4
|
-80.4
|
1395.4
|
KH-14-02
|
637766
|
6326849
|
1701
|
162.0
|
-80.91
|
1508
|
KH-14-03
|
637699
|
6326862
|
1703
|
164.1
|
-80.23
|
1538.8
|
KH-14-04
|
637788
|
6327138
|
1651
|
178.5
|
-76
|
1593
|
KH-14-05
|
637618
|
6326948
|
1697
|
171.7
|
-80.72
|
1425
|
KH-14-06
|
637722
|
6327181
|
1645
|
188.1
|
-77.29
|
1312.3
|
KH-14-07
|
637618
|
6326950
|
1697
|
272.3
|
-88.47
|
855
|
KH-14-08
|
637878
|
6326948
|
1692
|
169.9
|
-79.43
|
1566
|
KH-14-09
|
637597
|
6326901
|
1701
|
155.0
|
-79.55
|
1605
|
KH-14-10
|
637791
|
6327233
|
1627
|
174.7
|
-78.73
|
861
|
KH-14-11
|
637689
|
6326997
|
1689
|
155.3
|
-81.15
|
1590
|
KH-14-12
|
637788
|
6327138
|
1651
|
186.9
|
-79.92
|
1623
|
KH-13-01
|
637425
|
6326108
|
1807
|
358.0
|
-75
|
1533
|
KH-13-03
|
637552
|
6326154
|
1798
|
358.0
|
-75
|
1281
|
KH-13-05
|
637604
|
6327143
|
1687
|
173.6
|
-75
|
1593
|
KH-13-06
|
637628
|
6326716
|
1756
|
251.0
|
-74
|
1703
|
KH-13-07
|
637932
|
6327047
|
1684
|
192.0
|
-80
|
1327
|
KH-13-08
|
637820
|
6326657
|
1752
|
178.1
|
-90
|
1524
|
KH-13-09
|
637931
|
6327047
|
1681
|
190.2
|
-70
|
1380
|
KH-07-01
|
637914
|
6326383
|
1820
|
358.1
|
-90
|
351
|
KH-07-01A
|
637914
|
6326383
|
1820
|
358.1
|
-90
|
980
|
KH-07-02
|
637706
|
6326244
|
1819
|
358.1
|
-90
|
1120.5
|
KH-07-03
|
638113
|
6326430
|
1831
|
338.1
|
-65
|
726
|
KH-07-04
|
637706
|
6326244
|
1819
|
338.1
|
-70
|
1344
|
KH-07-05
|
638113
|
6326430
|
1831
|
358.1
|
-90
|
417
|
KH-07-06
|
638078
|
6326807
|
1767
|
358.1
|
-90
|
770
|
KH-07-07
|
638078
|
6326807
|
1767
|
178.1
|
-70
|
663.2
|
KH-07-08
|
638044
|
6326244
|
1744
|
358.1
|
-90
|
135
|
KH-07-09
|
637853
|
6326163
|
1734
|
358.1
|
-90
|
366
|
KH-07-10
|
637852
|
6326164
|
1734
|
338.1
|
-70
|
1314
|
KH-07-11
|
638079
|
6326811
|
1767
|
358.1
|
-65
|
798.5
|
KN-07-12
|
637401
|
6326562
|
1881
|
158.1
|
-90
|
859
|
KN-07-13
|
637401
|
6326562
|
1881
|
158.1
|
-70
|
447
|
KH-07-14
|
638039
|
6326388
|
1831
|
338.1
|
-90
|
297
|
KH-07-15
|
637960
|
6327220
|
1650
|
178.1
|
-90
|
447
|
KH-07-16
|
638039
|
6326388
|
1831
|
308.1
|
-55
|
365
|
KH-07-17
|
637960
|
6327220
|
1650
|
178.1
|
-65
|
723
|
KH-07-18
|
638110
|
6326428
|
1830
|
308.1
|
-60
|
732.4
|
KH-07-19
|
638214
|
6326612
|
1826
|
178.1
|
-90
|
318
|
KN-07-20
|
637565
|
6326359
|
1914
|
338.1
|
-75
|
810
|
KH-07-21
|
638214
|
6326611
|
1825
|
178.1
|
-55
|
435
|
KH-07-22
|
638188
|
6326485
|
1821
|
78.1
|
-90
|
342
|
KH-07-23
|
638189
|
6326485
|
1821
|
43.1
|
-55
|
345
|
KH-07-24
|
637630
|
6326721
|
1747
|
338.1
|
-90
|
1348
|
KH-07-25
|
637935
|
6326880
|
1705
|
358.1
|
-80
|
857
|
KH-07-26
|
637820
|
6326660
|
1752
|
338.1
|
-85
|
402
|
Not all drill holes
reached target depth or intersected significant
mineralization
|
SOURCE AuRico Gold Inc.