TORONTO, Dec. 7, 2017 /CNW/ - AuRico Metals Inc. (TSX: AMI), ("AuRico" or the "Company") is pleased to report the full assay results from the Company's 2017 exploration program on the Kemess Property. Drilling this season focused on converting inferred resource blocks to indicated and testing the northern and southern limits of the Kemess East deposit (eight holes, 11,917 metres), which is located approximately one kilometer east of the Kemess Underground deposit and 6.5 kilometers north of the Kemess mill facility and other infrastructure. The 2017 exploration also tested the northern extension of mineralization within the Kemess Offset Zone ("KOZ") (two holes, 2,006 metres) located between Kemess Underground and Kemess East.

Figure 1 2017 Kemess East Drill Hole Intercepts (CNW Group/AuRico Metals)

Highlights from this year's drilling at Kemess East include:

  • KH-17-05 intersected 338 metres of 0.64 g/t Au and 0.45% Cu
    • Including 120 metres of 1.05 g/t Au and 0.60% Cu
  • KH-17-08B intersected 846.5 metres of 0.25 g/t Au and 0.28% Cu
    • Including 208 metres of 0.37 g/t Au and 0.41% Cu
  • KH-17-09 intersected 853.8 metres of 0.24 g/t Au and 0.25% Cu
    • Including 147.5 metres of 0.40 g/t Au and 0.42% Cu

Highlights from this year's drilling in the Kemess Offset Zone include:

  • KH-17-10 intersected 461.9 metres of 0.27 g/t Au and 0.22% Cu
    • Including 75 metres of 0.61 g/t Au and 0.41% Cu

(The true thickness of the mineralized intervals is estimated at approximately 90% of the reported intercept length.)
(Refer to Table 1 for the Kemess East Drill Results, Table 2 for the KOZ Drill Results, Table 3 for Drill Collar Locations, Table 4 for the Kemess East Resource Estimate, and Figures 1-4 respectively for the Kemess East Plan Map, Kemess East Cross-Section, KOZ Plan Map, and KOZ Cross-Section.)

This year's exploration program had three key objectives: convert inferred resource blocks to indicated, expand the limits of the currently known deposit and test the northern extension of the known mineralization within the KOZ.

Commenting on today's exploration results, Chris Richter, President and CEO of AuRico Metals, stated; "We're pleased to report the outcome of this year's drilling on the Kemess property and believe we've successfully achieved our objectives. At Kemess East we expect to convert a significant amount of inferred resources to indicated resources and a number of the holes point to good potential to grow the resource to the south. At the Kemess Offset Zone, we intersected long intervals of gold and copper mineralization and this target remains open in every direction. The results from the Kemess East drill program will be incorporated into an updated Kemess East resource expected in the first quarter of 2018."

The current Kemess East resource estimate (see press release dated January 13, 2017 and Technical Report dated July 12, 2017) includes a high grade core estimated to contain Indicated Resources of 113.1 million tonnes grading 0.38% Cu and 0.46 g/t Au as well as Inferred Resources of 63.8 million tonnes grading 0.34% Cu and 0.31 g/t Au; as shown in Table 4). The high grade core of the Kemess East resource estimate is associated with strong potassic alteration and the overall resource is mostly hosted in the strong and moderate potassic alteration.

Although each hole in the 2017 program had multiple objectives they can generally be subdivided as follows: Holes KH-17-02, KH-17-04, KH-17-06, KH-17-08B and KH-17-09 were drilled in the southern Kemess East area. These holes targeted up to 175m south of the current indicated resource blocks within the inferred resource blocks. Drill holes KH-17-04, KH-17-08B and KH-17-09 bottomed in potassic strong alteration with good gold and copper mineralization that was previously modeled as lower grade. KH-17-04 was particularly intriguing as it bottomed in mineralization that was previously thought to be in barren intrusive rock.

Holes KH-17-03, KH-17-05 and KH-17-07 were drilled to test the northern area of the Kemess East deposit and to fill gaps in the current resource. KH-17-05 intersected mineralization as expected, successfully filling in a large gap in the drilling within the resource. KH-17-03 intersected the top of mineralization deeper than expected due to faulting. KH-17-07 deviated toward the area already tested by KH-17-03 and was therefore shut down prior to hitting mineralization.

Finally, holes KH-17-01 and KH-17-10 were designed to test the northern extension of mineralization within the KOZ. Both holes intersected significant mineralized intervals which extended the KOZ mineralization further to the north by 60m to 170m. KH-17-01 was shut down early due to drilling issues, however, we now have a better understanding of the mineralization, alteration and faulting within the KOZ and it remains open in all directions.

We expect that the 2017 drill program will contribute to converting inferred resource blocks to indicated resource blocks and increase the grade of the Kemess East resource. An updated resource for Kemess East is expected in Q1 2018. Following this year's drilling, the Kemess East Deposit remains open to the west towards the KOZ, to the north, and to the south.

Kemess Property Overview

The Kemess Property 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.

A Preliminary Economic Assessment on Kemess East was released on May 29, 2017 and proposes another underground panel caving operation with average annual production of 222,000 gold-equivalent ounces (80,000 ounces of gold and 57 million pounds of copper) over a 12 year mine life.

Quality Control – Analyses and Sample Location

Exploration activities at Kemess are 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 Minerals in North Vancouver for analysis. The 2017 samples were analyzed for a suite of 48 elements, including iron, molybdenum, and silver, using 4-acid digestion with ICP mass spectrometry and ICP atomic emission spectroscopy finish on a 0.25 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 on a 0.5 gram sub-sample. Gold analyses were completed by standard 30g fire assay with an atomic absorption finish. The 2017 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 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 Gold 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: an updated Kemess East resource to be released in the first quarter of 2018, the 2017 drill program will contribute to a much better geological model that will be the basis for the Q1 2018 resource update, 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 and Kemess East Preliminary Economic Assessment 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 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 Kemess Offset Zone 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' 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

Hole ID

From (m)

To (m)

Interval
(m)

Au (g/t)

Cu (%)

Ag (g/t)

Mo (%)

KH-17-02

761.3

1238

476.7

0.24

0.28

1.72

0.010

including

899.8

1182

282.2

0.32

0.36

1.91

0.011

including

1022

1168

146

0.40

0.37

1.68

0.005

including

1106

1156

50

0.61

0.46

2.20

0.002

KH-17-03

1379

1658.3

279.3

0.29

0.32

1.78

0.013

including

1379

1504.5

125.5

0.37

0.37

1.96

0.012

including

1382

1445.5

63.5

0.51

0.41

2.03

0.008

including

1584.1

1658.3

74.2

0.29

0.35

1.93

0.016

KH-17-04

615

1424.7

809.7

0.22

0.22

1.72

0.008

including

801

981

180

0.29

0.39

2.42

0.022

including

1016.6

1075

58.4

0.42

0.37

2.23

0.005

including

1293

1424.7

131.7

0.33

0.24

1.83

0.006

including

1363.8

1424.7

60.9

0.50

0.38

2.85

0.011

including

1387

1424.7

37.7

0.63

0.40

2.79

0.007

KH-17-05

1109

1447

338

0.64

0.45

2.13

0.008

including

1162

1398

236

0.80

0.52

2.27

0.008

including

1258

1378

120

1.05

0.60

2.58

0.010

KH-17-06

689

1309

620

0.26

0.27

1.62

0.009

including

885

1309

424

0.35

0.34

1.97

0.009

including

970

1214.5

244.5

0.42

0.41

2.23

0.009

including

1070

1194

124

0.51

0.39

2.39

0.003

including

1102

1170.5

68.5

0.61

0.46

2.17

0.003

KH-17-07

Shut down before target depth

KH-17-08B

748

1594.5

846.5

0.25

0.28

2.03

0.011

including

903

1431

538

0.33

0.33

1.95

0.013

including

941

1149

208

0.37

0.41

1.99

0.012

including

1248.5

1429

180.5

0.37

0.34

2.38

0.019

including

1360

1429

69

0.26

0.44

3.26

0.037

including

1512.7

1594.5

81.8

0.26

0.41

4.35

0.013

KH-17-09

655.9

1509.7

853.8

0.24

0.25

1.89

0.007

including

853

1214.8

361.8

0.32

0.34

2.00

0.009

including

995

1142.5

147.5

0.40

0.42

2.58

0.004

including

1081

1136

55

0.51

0.47

3.44

0.004

including

1393

1509.7

116.7

0.31

0.43

4.17

0.016

including

1407.7

1456

48.3

0.37

0.63

5.91

0.024

 

Table 2: Drill Intercepts the KOZ

Hole ID

From (m)

To (m)

Interval
(m)

Au (g/t)

Cu (%)

Ag (g/t)

Mo (%)

KH-17-01

419

859

440

0.19

0.20

1.54

0.007

including

567.8

736.2

168.4

0.24

0.26

1.94

0.006

including

603

634.5

31.5

0.26

0.31

2.47

0.006

including

670

734.2

64.2

0.28

0.29

2.14

0.007

KH-17-10

385.5

1080

694.5

0.23

0.19

1.18

0.010

including

475

936.9

461.9

0.27

0.22

1.38

0.013

including

552

876

324

0.30

0.24

1.49

0.014

including

620

779

159

0.41

0.29

1.89

0.008

including

625

700

75

0.61

0.41

2.72

0.006

including

645.3

676.3

31

0.99

0.62

3.98

0.004

including

1016.7

1080

63.3

0.33

0.32

1.04

0.015

 

Table 3: 2017 Drill Collar Locations

Hole ID

Zone

Depth (m)

Easting
 (NAD83 UTM Z09)

Northing
(NAD83 UTM Z09)

Elevation (m)

Azimuth

Dip

KH-17-01

Kemess Offset

860.8

636905

6326305

1699

9.8

-78.3

KH-17-02

Kemess East

1460.3

637835

6326774

1719

164.4

-75.5

KH-17-03

Kemess East

1661.1

637680

6326995

1694

165.6

-78.4

KH-17-04

Kemess East

1424.7

637708

6326806

1712

166.0

-68.0

KH-17-05

Kemess East

1447

637709

6326847

1707

117.1

-83.3

KH-17-06

Kemess East

1460.5

637766

6326872

1705

168.5

-72.3

KH-17-07

Kemess East

1362.5

637810

6326810

1713

245.3

-82.8

KH-17-08

Kemess East

10

637704

6326805

1712

165.0

-73.0

KH-17-08B

Kemess East

1594.5

637703

6326805

1712

165.0

-72.6

KH-17-09

Kemess East

1509.7

637834

6326777

1719

174.3

-72.5

KH-17-10

Kemess Offset

1149

636602

6326248

1713

40.0

-72.5

 

Table 4: 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

641

3,889

 

Figure 2 2017 Kemess East Drill Holes Section A (+/- 150m) Looking West (CNW Group/AuRico Metals)

Figure 3 2017 Kemess Offset Drill Hole Intercepts (CNW Group/AuRico Metals)

Figure 4 2017 Kemess Offset Drill Holes Section B (+/- 125m) Looking NW (CNW Group/AuRico Metals)

AuRico Metals (CNW Group/AuRico Metals)

SOURCE AuRico Metals

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