Annual Production of 222Koz Gold
Equivalent1 at AISC of US$744/oz for 12 years
TORONTO, May 29, 2017 /CNW/ - AuRico Metals Inc. (TSX:
AMI) ("AuRico" or the "Company") is pleased to announce
the results of a Preliminary Economic Assessment ("PEA") prepared
in accordance with National Instrument 43-101 for the Kemess East
("KE") project in British Columbia,
Canada. KE is part of AuRico's wholly owned Kemess
property and is located approximately one kilometre east of the
Company's Kemess Underground ("KUG") project and 6.5 kilometres
north of the existing Kemess South ("KS") processing plant and
infrastructure.
The KE PEA presents a stand-alone scenario which does not
incorporate the economics of the KUG project. A positive
Feasibility Study for the KUG project was released on March 23, 2016. The KE PEA evaluates the
development of a low-cost panel caving operation to extract the KE
resources, with all ore being processed at the existing KS
processing plant over a 12 year mine life.
Based on the positive PEA results, the Company plans to conduct
a separate feasibility study, expected to be released in 2018,
which will evaluate KUG and KE as part of an integrated development
scenario. The combined feasibility study is expected to
reflect further in-fill and expansion drilling planned at KE this
summer and the resulting KE resource update expected in early
2018.
All amounts stated in this news release are in Canadian dollars
(C$) unless otherwise indicated.
PEA Highlights:
Commodity price and exchange rate
assumptions include a gold price of US$1,250/oz, a copper price of US$3.00/lb, a silver price of US$18.00/oz, and a C$/US$ rate of 0.75.
- Pre-tax undiscounted net cash flow of C$1,309M
- Pre-tax NPV5% of C670$M and IRR of 22.1%
- After-tax NPV5% of C$375M, and IRR of 16.7%
- Total life-of-mine ("LOM") production of 2.7Moz of gold
equivalent
- Total LOM production of 963Koz gold, 687Mlbs copper and 3.8Moz
silver
- LOM average annual production of 80Koz of gold, 57Mlbs of
copper, and 318Koz of silver over 12 years
- LOM co-product all-in sustaining costs ("AISC") of US$744/oz gold and US$1.79/lb copper
- Pre-production capital costs (including 15% to 30% contingency)
of C$327M (US$245M)
Chris Richter, President and CEO,
stated, "The release of a PEA on Kemess East represents another
important step forward in highlighting to the market the value of
the large resource base on our Kemess property. Following the
release of a feasibility study for Kemess Underground last year,
the Kemess East PEA results demonstrate the potential for a second
large, long-life gold-copper mine with attractive economics at
Kemess. Both KUG and KE benefit from approximately
C$1 billion in replacement cost
infrastructure in place. Importantly, we think the
opportunity to combine the Kemess Underground project with the
Kemess East project could unlock a number of synergies and
optimization opportunities and we look forward to an integrated
feasibility study in 2018. The integrated study will also reflect
drilling planned for this summer at Kemess East, where the deposit
remains open to the north, south, and west."
Economic Sensitivities and Key Operational Parameters
Parameter
|
Unit
|
Base
Case
|
Spot Price
|
Alternate
|
Gold Price
Copper
Price
Silver
Price
Exchange
Rate
|
US$/oz
US$/lb
US$/oz
C$/US$
|
$1,250
$3.00
$18.00
0.75
|
$1,270
$2.60
$17.00
0.74
|
$1,350
$3.25
$20.00
0.75
|
Pre-Tax Undiscounted
Net Cash Flow
|
C$M
|
$1,309
|
$1,023
|
$1,664
|
Pre-Tax NPV
(5%)
|
C$M
|
$670
|
$497
|
$885
|
Pre-Tax NPV
(6.5%)
|
C$M
|
$544
|
$395
|
$731
|
Pre-Tax NPV
(8%)
|
C$M
|
$440
|
$310
|
$603
|
Pre-Tax
IRR
|
%
|
22.1%
|
18.7%
|
26.0%
|
After-Tax
Undiscounted Net Cash Flow
|
C$M
|
$797
|
$623
|
$1,014
|
After-Tax NPV
(5%)
|
C$M
|
$375
|
$269
|
$507
|
After-Tax NPV
(6.5%)
|
C$M
|
$292
|
$201
|
$407
|
After-Tax NPV
(8%)
|
C$M
|
$224
|
$144
|
$324
|
After-Tax
IRR
|
%
|
16.7%
|
13.9%
|
19.9%
|
Payback Period
(pre-tax)
|
years
|
3
|
4
|
3
|
|
|
|
|
|
Tonnage and
Grade
|
LOM
|
|
Average
Recoveries
|
LOM
|
Tonnes milled
(M)
|
103
|
|
Gold (%)
|
70
|
Gold grade
(g/t)
|
0.42
|
|
Copper (%)
|
89
|
Copper grade
(%)
|
0.34%
|
|
Silver (%)
|
66
|
Silver grade
(g/t)
|
1.76
|
|
|
|
Production
|
Average
Annual
|
LOM
|
Gold / Gold
Equivalent (Koz)
|
80 / 222
|
963 /
2,666
|
Copper / Copper
Equivalent (Mlbs)
|
57 / 92
|
687 /
1,111
|
Silver
(Koz)
|
318
|
3,826
|
Total Cash
Costs1
|
Gold
($US/oz)
|
Copper
($US/lb)
|
Co-product
basis
|
$619
|
$1.49
|
By-product
basis
|
($415)
|
$0.61
|
All-In Sustaining
Costs2
|
Gold
($US/oz)
|
Copper
($US/lb)
|
Co-product
basis
|
$744
|
$1.79
|
By-product
basis
|
($69)
|
$1.10
|
1
Co-product basis allocates costs proportionally based on the
relative value of gold and copper revenues; Gold by-product basis
applies all copper and silver revenues as a credit to costs while
Copper by-product basis applies all gold and silver revenues as a
credit to costs.
|
2 All-in
sustaining costs defined per World Gold Council guidelines but
excludes corporate G&A allocation.
|
PEA Approach and Project Overview
The PEA for the KE project presents a stand-alone scenario that
does not factor in or modify in any way the economics of the
Feasibility stage KUG project located on the same property.
The PEA does, however, assume that the KUG project is
advanced ahead of KE, and hence a number of project components,
most notably the access corridor connecting KUG to the KS process
plant and the water treatment plants associated with KUG, are not
duplicated in the capex for KE. Potential optimization
opportunities such as economies of scale that might exist by
advancing KE prior to depletion of KUG are not reflected in the PEA
but are noted in the Project Enhancement Opportunities section of
this press release.
The location of KE in relation to the KUG project and the past
producing KS mine is shown in Appendix 1. The Kemess Property is
located in north-central British
Columbia, Canada, approximately 430 kilometres northwest of
Prince George.
As with the KUG project, the KE project benefits from the
brownfields nature of the Kemess property. Between 1998 and 2011,
the KS mine produced approximately 3.0 million ounces of gold and
750 million pounds of copper from 218
Mt of ore. The KS Mine comprised a large open pit feeding
gold-copper ore to a 52,000 (t/d) process plant. Open pit
mining and processing ceased in March
2011 on depletion of the mineral reserves. The process plant
and other facilities and equipment required to support an
underground mining operation at the KE deposit are currently under
care and maintenance (see Appendix 2). Existing on-site
infrastructure includes offices, warehouse, laydowns, maintenance
facilities, a 400-person accommodation camp footprint, crushed ore
stockpile and reclaim, access and service roads, airstrip,
explosives magazines, and electrical sub-station. A Company-owned,
380 km power line originating in Mackenzie provides power to the mine site from
the BC Hydro grid.
The PEA for KE is based on a mine plan for an underground panel
cave with initial production beginning 4 years (KE year 4)
following the start of development of the KE declines and ramping
up to a steady-state production rate of 30,000 t/d in KE year 8.
The KE resources are located approximately 800 m to 1,140 m below
surface. The KUG extraction level is at elevation 1,140 m
(above sea level), while the KE extraction level is at elevation
370 m and offset 900 m laterally to the east of KUG. The KE
cave footprint is 400 m by 275 m and will be accessed and supported
by a twin decline system for access and ore conveying. This
twin decline system starts from the KUG decline (see Appendix 3),
utilizing 2.5 km of planned KUG development. A raise from
surface supplies fresh air to the KE mine levels and is exhausted
via the KE twin declines to the KUG exhaust ventilation system.
Following extraction from the KE cave and primary crushing
underground, ore will be conveyed to the existing KS process plant
where it will be processed at an average rate of 30,000 t/d (~11 Mt
per year) using existing grinding, flotation, thickening, and
concentrate handling facilities, and a grinding circuit of
increased capacity included in the PEA design. Concentrate will be
trucked to the AuRico-owned loadout facility in Mackenzie for subsequent rail transport to
market.
Mineral Resources
The Company's January 2017
resource estimate was used as the resource base for the PEA (see
Table 1 on next page). A total of 101.9 Mt mineral resource
comprises the PEA production from the total Indicated resource of
113.1 Mt and Inferred resource of 63.8 Mt; with the 101.9 Mt having
average grades of 0.34% Cu, 0.42g/t Au and 1.76g/t Ag. The
optimized KE cave production (mineral resource) comprises
approximately 85% of ore classified in the Indicated category and
15% of ore in the Inferred category.
Table 1: Kemess East Mineral Resource Estimate Summary,
January 13, 2017 (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.
|
•
|
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.
|
As previously announced, the Company is planning to conduct an
approximately 12,000 metre drill program at KE in 2017. This
program will include in-fill drilling targeting the potassic strong
zone, resource expansion around the known deposit, and exploration
holes looking for higher grade material within the Kemess Offset
Zone (located between the KUG and KE deposits). The high
grade core at KE is associated with a strong potassic alteration
zone which remains open to the north, south and west, as does the
overall deposit.
Mining and Processing
The KE panel cave design and schedule was derived using Geovia's
Footprint Finder and PCBCTM software, an industry
standard for cave optimization and scheduling, using the resource
model provided by SRK Consulting (Canada) Inc. The cave footprint will be
accessed and supported by a twin decline system providing access,
ore conveying and exhaust air routing. Mine levels within and
directly adjacent to the KE cave footprint comprise undercut,
extraction, haulage and crushing, and ventilation levels. Total LOM
development requirements are estimated to be 43,700 m lateral and
2,635 m vertical development. Appendix 3 shows the KE mine
design and the interconnection between the KUG and KE projects. The
graphic shows the elevations of the KUG and KE extraction levels
and the height of draw across the footprints for each cave.
Geotechnical assessments of caveability, fragmentation,
subsidence and ground support requirements were carried out by
Golder Associates based on geotechnical characterizations developed
from geological assessments and core logging data from the KE
exploration drilling program, and prior geomechanical studies of
the KUG deposit by others.
Electric-drive loaders will deliver ore to passes at the
mid-point of each extraction level drive which connect to truck
loading stations on the underlying haulage level. Trucks will
haul ore to a primary crusher in the south-east area of the KE cave
footprint. Following crushing, ore will be conveyed 5 km in
the KE conveyor decline where it will transfer to the KUG
underground conveyor. At surface, ore will be transferred to
the KUG surface conveyor and transported 4.9 km to the existing ore
stockpile ahead of the process plant.
Processing ore at a rate of approximately 11Mt per year will be
achieved using the remaining KS grinding circuit that was used to
process KS ore. The original flotation, thickening and
concentrate handling facilities will be used and preliminary
metallurgical testwork has resulted in estimated average recoveries
of 88.6% copper, 69.6% gold and 65.6% silver. Figure 1 shows
the resulting KE annual gold equivalent production profile.
Figure 1: KE Gold Equivalent Production (ounces)
The coarse fraction of the rougher tailings from the mining and
processing of KE ore is non-acid generating and is planned to be
stored in a dry-stack facility. Cleaner tailings and rougher fine
tailings will be combined and deposited in the existing Kemess
South tailings storage facility, which has sufficient capacity to
store this material sub-aqueously.
Estimates for surface and groundwater inflow quantities to the
KE mine workings have been made by Golder, with figures similar to
those for KUG mine workings. This water will be pumped to the
KUG tailings storage facility for subsequent treatment using the
water treatment plants planned for the KUG Project due to similar
expected water quality.
For KE ore, the process plant is expected to produce a single
concentrate with an estimated 22.3% copper content as well as
payable gold and silver. Testwork has shown the concentrate to be
free of deleterious elements, hence it is not expected to incur
penalties and it is expected to be readily marketable to both
smelters and traders.
Capital and Operating Costs
As with the KUG project, the majority of the capex at KE
pertains to the underground mine, reflecting the benefit of having
existing infrastructure and processing facilities in place, but
also the higher proportion of up-front development requirements for
cave mining. The two most significant categories of initial mine
capex are underground mine development and the purchase of mine
equipment. While the outright purchase of underground mine mobile
equipment is assumed for this study, AuRico will also be evaluating
leasing alternatives.
Pre-production capital expenditures are estimated to total
C$327M (US$245M), and are inclusive of a 15% contingency
for components previously costed in detail in the KUG FS and 30%
for other components. The development period is approximately
5 years to first production.
Sustaining capital is estimated at C$456M (US$342M)
with the major components being mine development, mine equipment,
and tailings.
Table 2: KE Pre-Production and Sustaining Capex
C$
M
|
Initial
Capex
|
Sustaining
Capex
|
Total
Capex
|
Mine
Development
|
$168
|
$215
|
$384
|
Equipment &
Infrastructure
|
$103
|
$110
|
$213
|
Tailings
|
$5
|
$104
|
$109
|
Processing
|
$6
|
$2
|
$8
|
Contingency
|
$44
|
$24
|
$68
|
Total
|
$327
|
$456
|
$783
|
The total unit operating costs after the commencement of
commercial production are estimated at C$16.82/t ore, comprising mining cost of
C$7.31/t, processing cost of
C$5.13/t, site services cost of
$0.82/t, general and administrative
(G&A) cost of C$2.11/t, tailings
cost of $1.19/t, and water treatment
cost of C$0.26/t.
Project Enhancement Opportunities
The following opportunities have been identified as a result of
carrying out the KE PEA. However, these opportunities require
technical, environmental, social, and economic evaluation and
should therefore be considered speculative until the related
evaluation work has been completed.
- Sequencing: The PEA evaluates KE as a stand-alone
operation (with production at KE assumed to ramp up as KUG
production ramps down). An alternative scenario could be considered
that evaluates overlap in production between KUG and KE.
Importantly, the processing facility at Kemess South has capacity
for approximately 50 kt/d (though the grinding circuit is currently
limited to approximately 25 kt/d – with an increase to 30 kt/d
planned as part of the KE PEA design). Funding the development of
KE with free cash flow from KUG is also a possibility.
- Integration with KUG project: Economies of scale may
exist in areas including ore processing, G&A and site services
for a scenario where KUG and KE are operating in parallel and
optimization opportunities could be considered for aspects such as
tailings management.
- Mineral Resources: Potential exists to improve the
quality and quantity of the KE mineral resource by additional
in-fill and expansion drilling respectively; the KE mineral
resource remains open to the north, south, and west.
- Development advance rate: There are potential
opportunities to increase development efficiencies and improve the
current forecast underground development rate of 4.5 m/day per
heading.
- Metallurgy: There is potential for further improvement
in metallurgical recoveries and concentrate grade based on
additional metallurgical test work.
- Tailings alternatives: Additional tailings storage
alternatives for KE could be studied, including the further use of
conventional slurry tails.
- Mining mobile equipment leasing: The PEA assumes
purchasing all mobile equipment for C$90M.
- Operating cost: It may be possible to decrease the
mining operating cost with the use of automated production
load-haul-dump (LHD) equipment.
Next Steps
- Q3 2017: Undertake additional Kemess East in-fill and
expansion drilling.
- Q1 2018: Incorporate 2017 drilling data into an updated
KE mineral resource estimate.
- 2018: Complete a feasibility-level study on an
integrated development scenario for KUG and KE.
- 2018: Complete additional metallurgical test work on KE
ore.
- 2018: Continue baseline environmental data collection
for KE.
Technical Information
The KE PEA was prepared by Golder Associates Ltd. The study was
conducted under the direction of John
Fitzgerald, P.Eng, MBA, AuRico's Chief Operating
Officer.
The results of the KE PEA will be summarized in a Technical
Report prepared pursuant to Canadian Securities Administrators'
National Instrument 43-101 that will be filed on SEDAR
(www.sedar.com) within 45 days of this press release and will also
be available on the Company's website (www.auricometals.ca). For
further information with respect to the key assumptions,
parameters, risks, the mineral resource estimate, data
verification, QA/QC, and other technical information with respect
to the KE project, please refer to the Technical Report when
available.
This press release has been reviewed and approved by
John Fitzgerald, P.Eng, MBA, Chief
Operating Officer of the Company and "qualified person" (QP) for
the purposes of NI 43-101.
Appendix
Appendix 1: Kemess Property Map
Appendix 2: Kemess Site (2015) showing processing
facility (front), maintenance-administration facility, and camp
Appendix 3: Kemess Underground and Kemess East Cave
diagrams and elevations
About AuRico Metals
AuRico Metals is a mining development and royalty company with a
100% interest in the Kemess property in British Columbia, Canada. The Kemess property
hosts the feasibility-stage Kemess Underground Gold-Copper Project,
the Kemess East Project, and the infrastructure pertaining to the
past producing Kemess South mine. AuRico's royalty portfolio
includes a 1.5% NSR royalty on the Young-Davidson Gold Mine and a
2% NSR royalty on the Fosterville Mine, as well as a portfolio of
additional producing and pre-production royalty assets located in
North America and Australia.
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: our production
estimates and timing thereof; estimated production costs, estimated
all-in sustaining costs and capital expenditures; expected upside
opportunities and de-risking initiatives such as improvements and
modifications to the proposed development and operations, the
future price of gold, copper and silver, the estimation of mineral
reserves and mineral resources, the realization of mineral reserve
and mineral resource estimates, costs and timing of the development
of projects and new deposits, success of exploration, development
and mining activities, permitting timelines, currency fluctuations,
requirements for additional capital, government regulation of
mining operations, the completion of a feasibility-level study on
an integrated development scenario for KUG and KE, 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 Management's
Discussion and Analysis as well as: (1) there being no significant
disruptions affecting the operations of the Company; (2) the
exchange rate between the Canadian dollar and the U.S. dollar being
approximately consistent with assumed levels; (3) certain price
assumptions for gold, copper, silver, diesel and electricity; (4)
the results of the PEA (including but not limited to capital
estimates) will be realized within a margin of error consistent
with the Company's expectations; (5) estimated future production
and cost of sales forecasts for the KUG and KE projects meeting
expectations; (6) the accuracy of the current mineral resource
estimates of the KE project as contemplated by the PEA (including
but not limited to ore tonnage and ore grade estimates); (7)
estimated labour and materials costs increasing on a basis
consistent with AuRico' current expectations; (8) the viability of
the KUG and KE projects including, but not limited to, permitting,
development and expansion, being consistent with AuRico' current
expectations; and (9) access to capital markets, including but not
limited to identifying financing options and securing partial
project financing for the KUG and KE projects, 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: suitability and
reliability of existing infrastructure at Kemess, the results of
exploration at Kemess East and the accuracy of the mineral resource
estimates at Kemess East, effectiveness of measures to minimize
risks with respect to KUG and KE; 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
discount rates applied to calculate the present value of net future
cash flows; 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; the
security of personnel and assets; political or economic
developments in Canada,
the United States or elsewhere;
business opportunities that may be presented to, or pursued by, us;
operating or technical difficulties in connection with mining or
development activities; 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 and 2016
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.
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1 Gold Equivalent converts copper and silver production
(recovered) to gold equivalent production based on revenue assuming
a gold price of US$1,250/oz, a copper
price of US$3.00/lb, and a silver
price of US$18/oz.
SOURCE AuRico Metals