TORONTO, January 13, 2017 /PRNewswire/ --
Total Indicated Resources at Kemess East of 1.7M oz Gold and
1B lbs Copper
AuRico Metals Inc. (TSX: AMI) ("AuRico" or the
"Company") is pleased to announce an updated National Instrument
(NI) 43-101 compliant resource estimate for the Company's
100%-owned Kemess East deposit. The overall Kemess East deposit is
estimated to contain Indicated Resources of 113.1 million tonnes
grading 0.38% Cu and 0.46 g/t Au and Inferred Resources of 63.8
million tonnes grading 0.34% Cu and 0.31 g/t Au. The updated
resource includes a high grade core estimated to contain Indicated
Resources of 67.2 million tonnes grading 0.43% Cu and 0.60 g/t Au
as well as Inferred Resources of 15.2 million tonnes grading 0.41%
Cu and 0.51 g/t Au; as shown in Table 1.
When compared with the previous Kemess East resource
(March 23, 2016 press release)
Indicated tonnes in the high grade core have increased by 250%
reflecting success both in expanding and upgrading the resource.
The high grade core at Kemess East is associated with a strong
potassic alteration zone which remains open to the north and to the
south as does the overall deposit.
Commenting on today's announcement, Chris Richter, President and CEO of AuRico
Metals stated, "This is a very exciting outcome to the 2016
exploration program. The updated resource is a substantial
improvement compared to the 2016 resource in terms of overall
tonnes, the ratio of Indicated to Inferred Resources and the number
of contained ounces of gold and pounds of copper."
Table 1: Kemess East Mineral Resource Estimate
Summary (SRK, 2017)
Category Mt Cu (%) Au (g/t) Ag (g/t) Cu Mlb Au Koz Ag Koz
Indicated - potassic strong 67.2 0.43 0.60 2.06 640 1,292 4,457
Indicated - potassic moderate 40.0 0.32 0.27 1.81 286 352 2,336
Indicated - potassic weak 5.1 0.22 0.19 1.45 24 31 238
Indicated - phyllic + propylitic 0.8 0.21 0.20 1.40 4 5 36
Indicated - total 113.1 0.38 0.46 1.94 954 1,680 7,066
Category Mt Cu (%) Au (g/t) Ag (g/t) Cu Mlb Au Koz Ag Koz
Inferred - potassic strong 15.2 0.41 0.51 2.05 137 249 1,003
Inferred - potassic moderate 41.9 0.34 0.26 1.91 311 353 2,579
Inferred - potassic weak 6.0 0.20 0.17 1.42 27 32 274
Inferred - phyllic + propylitic 0.7 0.21 0.24 1.42 3 6 33
Inferred - total 63.8 0.34 0.31 1.90 478 640 3,889
Notes
- NSR cut-off value of C$17.3/t was
used to define indicated and inferred resources within a reasonable
prospects for economic extraction solid; see Figure 1.
- NSR calculation assumed US$3.20/lb copper, US$1,275/oz gold and US$21.0/oz silver prices; and C$/US$ exchange
rate of 0.76.
- NSR calculation assumed metallurgical recoveries of 91% copper,
72% gold and 65% silver; as well as a 22% copper grade for
concentrate. Molybdenum was excluded from the NSR calculation.
- Details of the Sample Preparation and Quality Assurance and
Quality Control are presented in AuRico Metals' November 8, 2016 press release reporting on the
results of the Company's 2016 drill program.
- Resources were generated from 81 holes drilled at Kemess East
in 2006, 2007, 2013, 2014, 2015 and 2016.
- Exploration activities at the Kemess East deposit have been
conducted under the supervision of Wade
Barnes, PGeo, Kemess Project Geologist, for AuRico Metals.
Mr. Barnes is a "Qualified Person" as defined by NI 43-101.
- Mineral Resources were prepared under the supervision of
Marek Nowak, SRK Consulting
(Canada) Inc. Mr. Nowak is a
"Qualified Person" as defined by NI 43-101.
The Kemess East deposit is located approximately one kilometre
east of the Kemess Underground deposit and 6.5 kilometres north of
the Kemess South facilities (see Figure 2). The Kemess Property is
located in north-central British
Columbia, Canada, approximately 430 kilometres northwest of
Prince George.
Figure 1, below, provides plan and section views of the Kemess
East deposit, with resource model blocks colour-coded by Net
Smelter Return (NSR) value (the notes to Table 1 include an
explanation of NSR calculation parameters).
Comparison to 2016 Resource Estimate
This resource estimate is an increase in the Indicated category
of 73.9 million tonnes (or 188%) and a decrease in the Inferred
category of 45.8 million tonnes (or -42%) compared to the
March 23, 2016 resource estimate. The
2016 geological model that was the basis for the 2016 resource
estimate proved to be robust with respect to the major controlling
geological faults, alteration types and intensities. As with the
2016 resource estimate statistical analysis of the gold and copper
grades associated with each alteration type indicated a distinct
grade change between each alteration type thus constraining grade
estimation boundaries. The Estimation Methodology was similar for
both the 2016 and 2017 resource estimates.
Table 2: Kemess East Mineral Resource Comparison
January 13, 2017 Resource Mt Cu (%) Au (g/t) Ag (g/t) Cu Mlb Au Koz Ag Koz
Indicated - total 113.1 0.38 0.46 1.94 954 1,680 7,066
Inferred - total 63.8 0.34 0.31 1.90 478 640 3,889
March 23, 2016 Resource Mt Cu (%) Au (g/t) Ag (g/t) Cu Mlb Au Koz Ag Koz
Indicated - total 39.3 0.40 0.50 1.99 348 630 2,510
Inferred - total 109.7 0.37 0.38 1.99 891 1,340 7,010
Percentage Change Mt Cu (%) Au (g/t) Ag (g/t) Cu Mlb Au Koz Ag Koz
Indicated - total 188% -5% -8% -3% 174% 167% 182%
Inferred - total -42% -8% -18% -5% -46% -52% -45%
Marek Nowak of SRK Consulting
(Canada) Inc. has reviewed and
approved the scientific and technical information contained within
this press release. Marek Nowak is a
"Qualified Person" as defined by NI 43-101.
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 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: 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 our 2015
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 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 resources; 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' 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 and 2015
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.
Chris Richter, President and
Chief Executive Officer, AuRico Metals Inc., 416-216-2780,
chris.richter@auricometals.ca; John
Fitzgerald, Chief Operating Officer, AuRico Metals Inc.,
416-216-2780, john.fitzgerald@auricometals.ca