TORONTO, October 15, 2012 /PRNewswire/ --
AuRico Gold Inc. (TSX:AUQ) (NYSE: AUQ) , ("AuRico" or "the Company") reports the preliminary operational results for the third quarter ended September 30, 2012 and provides an update on the Young- Davidson mine. All amounts are in U.S. dollars.
Company Wide Third Quarter Production
- During September, the first month of commercial production, the Young- Davidson mine produced 9,903 gold ounces at cash costs of $639 per gold ounce.
- Production at the El Chanate mine for the quarter was 19,388 ounces of gold at cash costs of $434 per gold ounce.
- Production at the Ocampo mine for the quarter was 21,916 gold equivalent ounces at cash costs of $754 per gold equivalent ounce using the realized gold equivalency ratio of 55:1.
- Commercial production was declared at Young- Davidson effective September 1, 2012. Commercial production was declared once the mine achieved previously established commissioning thresholds, which included the mill averaging a minimum throughput level of 5,100 tonnes per day, the open pit averaging 29,750 tonnes per day of ore and waste mining, both over a 30-day period, as well as the commissioning of the flotation and gravity circuits.
Q1-12 Q2-12 Jul-12 Aug-12 Sep-12 Q3-12 Open Pit (tpd) 20,622 28,575 31,039 31,479 36,667 33,023 Mill throughput (tpd) - 4,300 5,300 5,474 6,857 5,866 Mill grade (g/t) - 1.15 0.88 0.92 1.63 1.18 Recoveries (%) - 83% 81% 83% 92% 87% Production (gold ounces) - 11,950 3,766 4,156 9,903 17,825 Cash Costs per gold oz. produced - - - - $639 $639 1. Including a 3-day maintenance shutdow 2. Including a 2-day shutdown for SAG mill reline 3. Attributable to the commercial production ounces (9,903 ounces)
- Underground long-hole drilling contractors have been mobilized and stope preparation in the Upper Boundary Zone is progressing on schedule. Production from the initial two stopes is expected to average approximately 1,000 tonnes per day with grades averaging up to 3.5 grams per tonne gold.
- The raise boring set up of the second leg (450 metres) of the Northgate shaft began in September. Drilling of the pilot hole has started and will reach a vertical depth of 890 metres (9440 level). The Company anticipates hoisting waste by the end of second quarter of 2013 and hoisting ore by the third quarter of 2013 once the mid-shaft crushing circuit is commissioned.
- All the EPCM construction activities related to the infrastructure and process plant have been completed.
- On October 9, 2012 the Company announced that it had entered into a definitive agreement pursuant to which Minera Frisco, S.A.B. de C.V. (" Minera Frisco") will acquire the Ocampo mine, the adjacent exploration projects "Venus" and "Los Jarros" and a 50% interest in the Orion advanced development project located in Nayarit State, Mexico for a total cash consideration of $750 million. All properties are located in Chihuahua State, Mexico.
- On July 13, 2012 the Company closed the sale of the El Cubo mine and the Guadalupe y Clavo project to Endeavour Silver Corp. that included a cash payment of $100M, and $100M in equity shares of Endeavour to the Company.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV