Reserves and Resources of 10.6 Million Gold Equivalent
Ounces at Kemess Property
TORONTO, Jan. 21, 2015 /PRNewswire/ - AuRico Gold Inc.
(TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") today
announced an initial National Instrument 43-101 compliant indicated
resource of 2.1 million gold equivalent ounces and an inferred
resource of 3.4 million gold equivalent ounces at the Kemess East
deposit, located one kilometre east of the previously delineated
Kemess Underground deposit and 6.5 kilometres north of the Kemess
mill facility (see Figure 1). The Kemess Property is located in
north-central British Columbia,
Canada, approximately 430 kilometres northwest of
Prince George.
Kemess East Resource Highlights
- Indicated Resources of 55.9 million tonnes at 0.52 g/t gold and
0.41% copper, or 1.17 g/t gold equivalent, representing 0.9 million
ounces of gold and 504 million pounds of copper, or 2.1 million
ounces gold equivalent.
- Inferred Resources of 117.2 million tonnes at 0.38 g/t gold and
0.34% copper, or 0.91 g/t gold equivalent, representing 1.4 million
ounces of gold and 871 million pounds of copper, or 3.4 million
ounces gold equivalent.
- There is considerable potential to increase and convert
resources at Kemess East as a number of holes from the recent
drilling program ended in mineralization and the deposit remains
open.
- The reported gold equivalent grade from Kemess East is 10%
higher than the nearby Kemess Underground deposit.
- The Kemess East deposit is located in close proximity to
existing infrastructure on the Kemess land package, which includes
a 50,000 tonne per day mill facility, administration and camp
facilities, permitted tailings storage and full access to grid
power (see Figure 2).
- An expanded 2015 drilling program of up to 30,000 metres will
focus on additional delineation of the Kemess East mineralization
as well as ongoing exploration drilling.
Kemess East Mineral
Resource Estimates(1) |
Category |
Tonnes
(000's) |
Au
(g/t) |
Ag
(g/t) |
Cu
(%) |
Au
(000's) oz. |
Ag
(000's) oz. |
Cu
(000's) lbs. |
Au eq.
(000's) oz. |
Indicated Resources |
55,864 |
0.52 |
2.00 |
0.41 |
939 |
3,601 |
503,663 |
2,101 |
Inferred Resources |
117,152 |
0.38 |
1.79 |
0.34 |
1,424 |
6,739 |
871,407 |
3,435 |
|
Kemess Underground
Mineral Reserve and Resource Estimates(2) |
Category |
Tonnes
(000's) |
Au
(g/t) |
Ag
(g/t) |
Cu
(%) |
Au
(000's) oz. |
Ag
(000's) oz. |
Cu
(000's) lbs. |
Au eq.
(000's) oz. |
Probable Reserves |
100,373 |
0.56 |
2.05 |
0.28 |
1,805 |
6,608 |
619,151 |
3,234 |
Indicated Resources |
65,432 |
0.41 |
1.81 |
0.24 |
854 |
3,811 |
346,546 |
1,653 |
Inferred Resources |
9,969 |
0.39 |
1.57 |
0.21 |
125 |
503 |
46,101 |
231 |
|
Total Kemess
Property Mineral Reserve and Resource
Estimates(1),(2) |
Category |
Tonnes
(000's) |
Au
(g/t) |
Ag
(g/t) |
Cu
(%) |
Au
(000's) oz. |
Ag
(000's) oz. |
Cu
(000's) lbs. |
Au eq.
(000's) oz. |
Probable Reserves |
100,373 |
0.56 |
2.05 |
0.28 |
1,805 |
6,608 |
619,151 |
3,234 |
Indicated Resources |
121,296 |
0.46 |
1.90 |
0.32 |
1,793 |
7,412 |
850,209 |
3,754 |
Inferred Resources |
127,121 |
0.38 |
1.77 |
0.33 |
1,549 |
7,242 |
917,508 |
3,666 |
(1) See the notes relating to the Kemess
East mineral resource estimates provided at the end of this press
release
(2) Refer to the press release dated March
3, 2014 for additional details on Kemess Underground mineral
reserve and resource estimates |
"We are very encouraged with the initial
resource estimate from Kemess East as the total indicated resource
base of the Kemess property has doubled and still has the potential
to grow further." stated Scott
Perry, President and CEO of AuRico
Gold. He continued, "The Kemess East deposit is a
significant new gold-copper porphyry mineralized system that has
similar characteristics to the nearby Kemess Underground deposit,
has higher grades than Kemess Underground and is in immediate
proximity to existing infrastructure. The delineation of these
additional high-quality resources is consistent with our strategy
to surface the long-term value of this asset."
Notes to Kemess East Resources
- Gold equivalent grade and ounces were calculated using
assumed metal prices of US$1,300 per
ounce for gold, US$23.00 per ounce
for silver, and US$ 3.00 per pound
for copper. No metallurgical recoveries were applied. The currency
assumption used was 1:1 US dollar to
the Canadian dollar.
- 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 monitored
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.
- Initial testwork for Kemess East has yielded similar
metallurgical recoveries and concentrate grades to those exhibited
for Kemess Underground. Metallurgical recoveries assumed for the
calculations of NSR's are 91% for copper, 72% for gold and 65% for
silver. Metallurgical testwork is ongoing.
- Resources were generated from 27 holes drilled at Kemess
East in 2006, 2007, 2013 and 2014.
- The block model was constrained within a US$15 NSR grade shape. The resources reported
herein were further constrained within block caving shapes of
varying potential footprint geometries and potential cave
heights.
- Potential caving blocks were generated using the floating
stope optimizer within Vulcan.
Operating cost assumptions were similar to those determined within
the Kemess Underground Feasibility Study, with additional costs
applied to mining to account for additional depth below
surface.
- Resources reported herein are reported at a zero NSR cutoff,
and as such includes internal dilution within the potential caving
blocks. External dilution has not been included or
calculated.
- A National Instrument 43-101 compliant technical report is
being prepared and will be filed on SEDAR at www.sedar.com within
45 days.
- Exploration activities by AuRico at the Kemess East Project
have been conducted under the supervision of Wade Barnes, PGeo, Kemess Project Geologist, for
AuRico Gold Inc. Mr. Barnes is a "Qualified Person" as defined by
National Instrument 43-101.
- Mineral Resources were prepared under the supervision of
Jeffrey Volk, CPG, FAusIMM, the
Director of Reserves and Resources, for AuRico Gold Inc. Mr. Volk is a "Qualified
Person" as defined by National Instrument 43-101.
Chris Bostwick,
FAusIMM, Senior Vice President, Technical Services for AuRico Gold
Inc. has reviewed and approved the scientific and technical
information contained within this press release. Mr. Bostwick is a
"Qualified Person" as defined by National Instrument 43-101.
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. 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 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: Kemess Property: Existing Mill Infrastructure &
Surface Facilities
Figure 2: Kemess Property: Mill Processing Facility &
Associated Surface Infrastructure
SOURCE AuRico Gold Inc.