Underground Mineral Reserves Increase 110%,
Grade Increases 83%
TORONTO, July 27, 2017 /CNW/ - AuRico Metals Inc.
(TSX: AMI),("AuRico" or the "Company") is pleased to provide an
update on the Company's 2% net smelter return royalty ("NSR") on
the Fosterville gold mine
("Fosterville") operated by Kirkland Lake Gold Ltd.
("Kirkland").
Commenting on today's Fosterville news, Chris Richter, President and CEO of AuRico
Metals, stated; "We're very excited to see the continued
significant growth of reserves at Fosterville and the consistent achievement of
record production results. Fosterville's ongoing success underscores the
growing value of our 2% NSR royalty and the significant upside
potential of our royalty portfolio."
Fosterville – Underground
Mineral Reserve Update
On July 27, 2017, Kirkland announced that updated underground
Mineral Reserves at Fosterville
grew 110% to 1,030,000 ounces of gold, after depletion, from the
previous estimate of 490,000 ounces of gold. The main factor
contributing to the significant growth in ounces is an 83% increase
in the underground Mineral Reserve grade, to 17.9 g/t Au (1,790,000
tonnes) from 9.8 g/t Au (1,560,000 tonnes) in the previous Mineral
Reserve and Mineral Resource estimate dated December 31, 2016 (see Kirkland's press release dated March 28, 2017).
As stated in Kirkland's press
release, the significant increase in Fosterville Mineral Reserves
is supported by down-plunge extensions of the high-grade, visible
gold-bearing Lower Phoenix Gold System. In particular, the
newly-named Swan Zone (previously known as Lower Phoenix Footwall),
contributes 532,000 ounces at an average grade of 58.8 g/t Au
(281,000 tonnes) to the updated Mineral Reserve estimate.
Measured and Indicated Mineral Resources are reported Exclusive
of the Mineral Reserves and are 1,940,000 ounces of gold at an
average grade of 4.4 g/t Au (13,700,000 tonnes). The previous
estimate at the end of 2016 was reported Inclusive of Mineral
Reserves, and included 2,790,000 ounces of gold (15,300,000 tonnes
at an average grade of 5.7 g/t Au).
Fosterville – Q2 Production
Update
On July 09, 2017, Kirkland announced that the Fosterville Mine
achieved record production in Q2 2017, totaling 77,069 ounces of
gold. Production during the quarter was more than double the 37,245
ounces produced in Q2 2016 and 67% higher than the previous record
of 46,083 ounces in Q1 2017. Record Q2 production at Fosterville was based on mill grade of 17.2
g/t Au and record recoveries of 94.7%.
The Fosterville Gold Mine is 100% owned by Kirkland. Separate from the Fosterville mine, Kirkland also holds exploration licenses
covering an area over 500 km2, encompassing the known
strike extent of the Fosterville Goldfield. AuRico's 2% net smelter
return (NSR) royalty is payable over this large land package.
For more information and complete reserve and resource details
see Kirkland's press release dated
July 27, 2017 and visit the website
at www.klgold.com.
Qualified Person Statement
Technical information in this press release has been approved by
John Fitzgerald, P. Eng., MBA, Chief
Operating Officer of AuRico Metals and "qualified person" (QP) for
the purposes of NI 43-101.
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
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, or may be deemed to be, forward-looking
statements. The words "expect", "believe", "anticipate", "will",
"intend", "estimate", "forecast", "budget" and similar expressions
identify forward-looking statements. Forward-looking statements
include statements related to the Company's royalty
portfolio. These statements are based on a number of factors
and assumptions that, while considered reasonable by management at
the time of making such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Known and unknown factors could cause actual
results to differ materially from those projected in the
forward-looking statements. Such forward-looking statements
and the factors and assumptions underlying them in this document
include, the future price of gold, the estimation of mineral
reserves and resources, realization of mineral reserve estimates,
and the timing and amount of estimated future production.
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: business and economic conditions;
commodity prices; credit market conditions and conditions in
financial markets generally; the accuracy of reserve and resource
estimates; the impact of changes in currency exchange rates on
costs and results; interest rates; and taxation.
Readers are cautioned that forward-looking statements are not
guarantees of future performance. All of the forward-looking
statements made in this press release are qualified by these
cautionary statements. 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.
SOURCE AuRico Metals