TORONTO, November 8, 2016 /PRNewswire/ --
AuRico Metals Inc. (TSX: AMI), ("AuRico" or the
"Company") is pleased to report the full assay results from the
Company's 2016 exploration program on the Kemess Property. Drilling
this season focused exclusively on step out and in-fill drilling at
Kemess East (thirteen drill holes, 18,544 metres) located
approximately one kilometre east of the Kemess Underground deposit
and 6.5 kilometres north of the Kemess mill facility and other
infrastructure.
Highlights from this year's drilling include:
- KH-16-13 intersected 628 metres of 0.53 g/t Au and 0.41% Cu
- Including 270 metres of 0.69 g/t Au and 0.48% Cu
- KH-16-12 intersected 549 metres of 0.55 g/t Au and 0.41% Cu
- Including 403 metres of 0.68 g/t Au and 0.47% Cu
- KH-16-9 intersected 504 metres of 0.52 g/t Au and 0.36% Cu
- Including 323 metres of 0.61 g/t Au and 0.37% Cu
- KH-16-11 intersected 372 metres of 0.59 g/t Au and 0.40% Cu
- Including 283 metres of 0.72 g/t Au and 0.45% Cu
(The true thickness of the mineralized intervals is estimated
at approximately 80% of the reported intercept length.)
(Refer to Table 1 for Drill Results, Table 2 for Drill Collar
Locations, Table 3 for the Kemess East Resource Estimate, and
Figures 1-5 respectively for the Kemess East Plan Map, and
Cross-Sections of Kemess East.)
This year's exploration program had three key objectives: to
test internal gaps from previous years' drilling, to expand the
limits of the currently known deposit and to more accurately
determine the location of key faults.
Commenting on today's exploration results, Chris Richter, President and CEO of AuRico
Metals, stated; "This summer's Kemess East drilling successfully
achieved our objectives, particularly with regards to intersecting
significant higher grade intervals in and around our Kemess East
deposit but falling outside of the existing resource. We look
forward to incorporating these results into an updated Kemess East
resource which we plan to release in the first quarter of
2017."
The current Kemess East resource estimate (see press release
dated March 23, 2016 and Technical
Report dated May 6, 2016) includes a
high grade core estimated to contain Indicated Resources of 19.2
million tonnes grading 0.47% Cu and 0.72 g/t Au as well as Inferred
Resources of 31.7 million tonnes grading 0.45% Cu and 0.63 g/t Au;
as shown in Table 3). The high grade core of the Kemess East
resource estimate is associated with strong potassic alteration and
the overall resource is mostly hosted in moderate potassic
alteration.
Although each hole in the 2016 program had multiple objectives,
they can generally be subdivided as follows. Holes KH-16-07,
KH-16-11, KH-16-12 and KH-16-13 tested the internal gaps in the
geological and resource model and intersected intervals that are
within the top fifteen holes ever drilled at Kemess East as
measured by combined grade for intervals greater than 350
metres.
Holes KH-16-01, KH-16-04, KH-16-08B, KH-16-09 and KH-16-10
tested areas on the east, west, north and south edges of the 2015
block model but within structural domains that host the copper and
gold mineralization. These holes targeted approximately 25 to 100m
outside the current resource model with promising results as
reflected in the assay table.
Finally holes KH-16-02, KH-16-03, KH-16-05 and KH-16-06 were
designed to pin down some of the more important structures, namely
the West Boundary, Head Wall and Kemess East Offset faults that
control the limits of the deposit as currently understood. Based on
these drill holes the Kemess East Offset Fault is better defined in
strike and dip while the West Boundary is viewed as less important
than previously believed and the Head Wall fault is further south
than previously modelled.
We are confident that the 2016 drill program will contribute to
a much better geological model that will be the basis for the Q1
2017 resource update. Following this year's drilling, the Kemess
East Deposit remains open to the west towards the Kemess Offset
Zone, to the north, and to the south.
Kemess Property Overview
The Kemess Property (See Figure 1) is located in
north-central British Columbia, Canada, approximately 430 kilometres northwest
of Prince George. The Kemess
Underground Project is located approximately 6 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 23, 2016 and proposes an underground
panel caving operation with average annual production of 238,000
gold-equivalent ounces (129,000 ounces of gold and 52 million
pounds of copper) for the first five years of a 12 year mine
life.
AuRico Metals' Environmental Assessment Application was formally
accepted by Provincial and Federal regulatory bodies on
April 25, 2016 and it is anticipated
that the regulators will submit their recommendations to their
respective Ministers early in 2017. The Ministers' decisions are
expected in February, 2017.
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 a PGeo registered with the Association
of Professional Engineers and Geoscientists
of British
Columbia (APEGBC) and he has verified the data
and he has also reviewed and approved this news
release.
Samples were prepared at an on-site sample preparation lab.
The prepared 250g 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. The 2016 samples
were analyzed for a suite of 33 elements, including iron,
molybdenum, and silver, using 4-acid digestion and ICP atomic
emission spectroscopy on a one gram sub-sample. Significantly
mineralized samples were additionally analyzed by an extra ore
grade analysis for copper and molybdenum by ICP atomic
emission spectroscopy, following a 4-acid digestion. Gold analyses
were completed by standard 30g fire assay with an atomic absorption
finish. The 2016 quality control ("QC") samples (blanks,
duplicates, and certified reference materials) were inserted into
the sample stream at regular intervals such that 2 in 25 (8%) of
samples were submitted for QC 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 QC
procedures, for an additional 40% QC sample volume.
About AuRico Metals
AuRico Metals is a mining royalty and development company whose
producing gold royalty assets include a 1.5% NSR royalty on the
Young-Davidson Gold Mine, a 0.25% NSR royalty on the Williams Mine
at Hemlo, and a 0.5% NSR royalty
on the Eagle River Mine - all located in Ontario, Canada. AuRico Metals also has a 2%
NSR royalty on the Fosterville Mine and a 1% NSR royalty on the
Stawell Mine, located in Victoria,
Australia. Aside from its diversified royalty portfolio,
AuRico Metals owns (100%) the advanced Kemess Gold-Copper Project
in British Columbia,
Canada. AuRico Metals' head office is located in Toronto, Ontario, Canada.
Cautionary Statement on Forward-Looking
Information
All statements, other than statements of historical fact,
contained or incorporated by reference in this news release
including, but not limited to, any information as to the future
financial or operating performance of AuRico, constitute
''forward-looking information'' or ''forward-looking statements''
within the meaning of certain securities laws, including the
provisions of the Securities Act (Ontario) and are based on expectations,
estimates and projections as of the date of this news release.
Forward-looking statements contained in this news release include,
without limitation, statements with respect to: an updated Kemess
East resource to be released in the first quarter of 2017, the 2016
drill program will contribute to a much better geological model
that will be the basis for the Q1 2017 resource update, AuRico
Metals' Environmental Assessment Application and the timing of the
regulatory recommendations and the Ministers' decisions, the future
price of gold, copper and silver, the estimation of mineral
resources, costs and timing of the development of projects and new
deposits, success of exploration, currency fluctuations,
requirements for additional capital, government regulation of
mining operations, and environmental risks. The words
"anticipates", ''estimates'', ''expects'', "focus", ''forecast",
"indicate", "initiative", "intend", "model", "opportunity",
"option", "plans'', "potential", "projected", "prospective",
"pursue", "strategy", "study" (including, without limitation, as
may be qualified by "feasibility" and the results thereof),
"target", "timeline" or variations of or similar such words and
phrases or statements that certain actions, events or results
''may'', ''could'' or ''would'', and similar expressions identify
forward-looking statements.
Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable by AuRico as of the date of such statements, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. The estimates, models
and assumptions of AuRico referenced, contained or incorporated by
reference in this news release, which may prove to be incorrect,
include, but are not limited to, the various assumptions set forth
herein and in our most recently filed Annual Information Form and
Management's Discussion and Analysis as well as: (1) the exchange
rate between the Canadian dollar and the U.S. dollar being
approximately consistent with assumed levels; (2) certain price
assumptions for gold, copper and silver; (3) the results of the
Kemess Underground Feasibility Study will be realized within a
margin of error consistent with the Company's expectations; (4) the
accuracy of the current mineral resource estimates of the Kemess
East project; and (5) access to capital markets, including but not
limited to identifying financing options and securing partial
project financing for the Kemess project, being consistent with the
Company's current expectations.
Known and unknown factors could cause actual results to
differ materially from those projected in the forward-looking
statements. Such factors include, but are not limited to: the
results of exploration at Kemess East and the accuracy of the
mineral resource estimates at Kemess East; relations with First
Nations partners and the Province of British Columbia; exploration for additional
mineral resource potential; fluctuations in the currency markets;
changes in the market valuations of peer group companies and the
Company, and the resulting impact on market price to net asset
value multiples; changes in various market variables, such as
interest rates, foreign exchange rates, gold, copper or silver
prices; changes in national and local government legislation,
taxation, controls, policies and regulations; political or economic
developments in Canada,
the United States or elsewhere;
business opportunities that may be presented to, or pursued by, us;
employee relations; litigation against the Company; the speculative
nature of mineral exploration and development including, but not
limited to, the risks of obtaining necessary licenses and permits;
diminishing quantities or grades of reserves; and contests over
title to properties. In addition, there are risks and hazards
associated with the business of mineral exploration, development
and mining. Many of these uncertainties and
contingencies can directly or indirectly affect, and could cause,
AuRico's actual results to differ materially from those expressed
or implied in any forward-looking statements made by, or on behalf
of, AuRico.
There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Forward-looking statements are provided for the purpose of
providing information about management's expectations and plans
relating to the future. All of the forward-looking statements made
in this news release are qualified by these cautionary statements
and those made in our other filings with the securities regulators
of Canada including, but not
limited to, the cautionary statements made in the ''Risk Factors''
section of our most recently filed Annual Information Form,
Short-Form Prospectus and Management Discussion and Analysis. These
factors are not intended to represent a complete list of the
factors that could affect AuRico. AuRico disclaims any intention or
obligation to update or revise any forward-looking statements or to
explain any material difference between subsequent actual events
and such forward-looking statements, except to the extent required
by applicable law.
Table 1 - Drill Intercepts Kemess East Deposit
Table 2 - 2016 Drill Collar Locations
Table 3 - Kemess East Resource Estimate
Figure 1 - Kemess East Plan Map
Figures 2-5 - Kemess East Cross-Sections
please visit the AuRico Metals website at
http://www.auricometals.ca or contact:
Chris Richter
President and Chief Executive Officer
AuRico Metals Inc.
416-216-2780
chris.richter@auricometals.ca
Chris Rockingham
Vice President, Development
AuRico Metals Inc.
416-216-2780
chris.rockingham@auricometals.ca