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.
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
|
SOURCE AuRico Metals