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TheStreet Open House

AuRico Reports 2013 Reserve & Resource Update

TORONTO, March 8, 2014 /PRNewswire/ --

- All dollar amounts are $USD

AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") today reported its updated Reserves and Resources, as at December 31, 2013. (Detailed Mineral Reserve and Resource tables can be found at the end of this press release)

Mineral Reserves and Resources

Reserve Highlights

As at December 31, 2013, the Company is reporting:

  • Proven and Probable Mineral Gold Reserves of 6.5 million gold ounces, a 0.29 million ounce decrease from 2012, primarily related to depletion in the El Chanate and Young- Davidson open pits.
  • At the Young- Davidson mine underground reserves increased by 1%, with grades remaining consistent with 2012, while overall reserves decreased by 3%, primarily due to depletion in the open pit.
  • Reserves decreased by 15% at the El Chanate mine, primarily related to depletion, while reserve grades increased by 5%.

Gold Reserves by asset are summarized in the table below:


                               Proven and Probable Mineral Reserves[1]
                                 Gold ounces (000's)                      g/t
    December 31               2013       2012    Change (%)    2013       2012   Change (%)
    Young-Davidson           3,696      3,804       (3%)       2.66       2.60        2%
               Underground   3,556      3,534        1%        2.81       2.82        0%
               Open Pit        140        271      (48%)       1.10       1.31      (16%)
    El Chanate               1,023      1,204      (15%)       0.70       0.67        5%
    Kemess Underground       1,805      1,805        0%        0.56       0.56        0%
    Total                    6,524      6,813       (4%)       1.07       1.05        2%
         [1]. Detailed mineral reserve and mineral resource tables follow at the end of
                                      this press release.

In addition to gold reserves, the Company is also reporting copper reserves of:

  • 619 million pounds at the Kemess Underground Project at a reserve grade of 0.28%, using a copper price of $3.00 per pound.

"The Company remained focused on improving the quality of our reserve base by using more conservative metal price assumptions at our operating assets to ensure our reserve base is comprised of quality, high margin ounces," stated Scott Perry, President and Chief Executive Officer. He continued, "We are particularly encouraged with reserves reported from the Young- Davidson underground mine, which remained consistent with the prior year, even when using a conservative $1,250 per ounce gold price assumption. This demonstrates the quality of the Young- Davidson underground ore body and provides further confirmation of this robust deposit for low cost, long life, ounces."

As at December 31, 2013 the Company is also reporting the following mineral resources, which are in addition to reserves:

  • Measured and Indicated gold resources of 2.5 million gold ounces,at a grade of 0.88 g/t; and
  • Inferred gold resources of 0.5 million gold ounces,at a grade of 1.02 g/t.

Gold mineral resources by asset are summarized in the table below:


                      Gold Resources (in thousands of gold ounces)[1]
    December 31, 2013                         Measured & Indicated       Inferred
    Young-Davidson                                   1,516                  324
                         Underground                 1,484                  323
                         Open Pit                       32                    1
    El Chanate                                          49                   14
    Kemess Underground                                 854                  125
    Orion (50%)                                         65                   10
    Total                                            2,484                  472
      [1]. Detailed mineral reserve and mineral resource tables follow at the end of
                                    this press release.

The Company is also reporting by-product mineral resources:

  • Indicated by-product resources including:
    • 5.5 million silver ounces from the Orion Project (50% basis) at a grade of 309 g/t; and
    • 346 million pounds of copper from the Kemess Underground Project at a grade of 0.24%; and
  • Inferred by-product resources including:
    • 275,000 ounces of silver from the Orion Project (50% basis) at a grade of 95 g/t; and
    • 46 million pounds of copper from the Kemess Underground Project at a grade of 0.21%.

Chris Bostwick, Senior Vice President, Technical Services for AuRico Gold Inc. has reviewed the scientific and technical information contained within this press release and serves as the Qualified Person as defined by National Instrument 43-101.

Reserves and Resources (as of December 31, 2013)


                  Mineral Reserve Estimates - Gold
                                            Tonnes  Grade Ounces
                                   Category (000's) (g/t) (000's)
    Young-Davidson     Surface     Proven    3,298  1.01    107
                                   Probable   686   1.52    33
                                   P&P       3,984  1.10    140
                       Underground Proven   10,626  2.90    990
                                   Probable 28,669  2.78   2,566
                                   P&P      39,296  2.81   3,556
                       Total       P&P      43,280  2.66   3,696
    El Chanate                     Proven   29,223  0.72    676
                                   Probable 16,115  0.67    346
                       Total       P&P      45,337  0.70   1,023
    Kemess Underground             Proven      -      -      -
                                   Probable 100,373 0.56   1,805
                       Total       P&P      100,373 0.56   1,805
    AuRico Total                   P&P      188,990 1.07   6,524


                  Mineral Resource Estimates - Gold
                                             Tonnes  Grade  Ounces
                                   Category  (000's) (g/t)  (000's)
    Young-Davidson     Surface     Measured     233   0.96      7
                                   Indicated    535   1.41     24
                                   M&I          769   1.28     32
                       Underground Measured   5,300   2.95    504
                                   Indicated 11,659   2.62    981
                                   M&I       16,960   2.72  1,484
                       Total       M&I       17,729   2.66  1,516
                       Surface     Inferred      31   0.99      1
                       Underground Inferred   3,689   2.72    323
                       Total       Inferred   3,720   2.71    324
    El Chanate                     Measured   2,158   0.31     22
                                   Indicated  2,129   0.40     27
                       Total       M&I        4,287   0.36     49
                                   Inferred     579   0.75     14
    Kemess Underground             Measured       -      -      -
                                   Indicated 65,432   0.41    854
                       Total       M&I       65,432   0.41    854
                                   Inferred   9,969   0.39    125
    Orion (50%)                    Measured       -      -      -
                                   Indicated    554   3.66     65
                       Total       M&I          554   3.66     65
                                   Inferred      91   3.33     10
    AuRico Total                   M&I       88,001   0.88  2,484
                                   Inferred  14,357   1.02    472

          Mineral Reserve and Resource Estimates - Copper and Silver
                                              Grade        Contained Metal
                                   Tonnes   Ag    Cu       Ag        Cu
                                                                  (000's)
                       Category   (000's)  (g/t)  (%)  (000's) oz   lbs
                       Probable
    Kemess Underground Reserves   100,373   2.0  0.28    6,608    619,151
                       Indicated
                       Resources   65,432   1.8  0.24    3,811    346,546
                       Inferred
                       Resources    9,969   1.6  0.21      503     46,101
                       Indicated
    Orion (50%)        Resources      554   309     -    5,503          -
                       Inferred
                       Resources       91    95     -      275          -

Notes  to  Mineral Reserve and Resource tables:

  • Mineral Reserves and Resources have been stated as at December 31, 2013.
  • Mineral Resources are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  • El Chanate and Young- Davidson assumed a gold price of $1,250 per ounce for reserves and $1,450 per ounce for resources.
  • Kemess Underground assumed a gold price of $1,300 per ounce, a silver price of $23.00 per ounce for silver, and a copper price of $3.00 per pound for reserves. Kemess assumed a $13.00 NSR cutoff for resources.
  • Orion assumed a gold price of $850 per ounce and a silver price of $13.00 per ounce for resources.
  • Mineral Reserves assume the following cutoff grades and process recoveries:
    • Young- Davidson - Surface: 0.50 gpt cutoff, 91% mill recovery
    • Young- Davidson - Underground: 2.05 gpt cutoff, 91% mill recovery
    • El Chanate: 0.15 gpt cutoff, 30%-65% leach recovery
    • Kemess Underground: $15 NSR cutoff, mill recovery of 72% for gold and 91% for copper
  • Reserves have been reported in accordance with NI 43-101, as required by Canadian securities regulatory authorities. In addition, while the terms "Measured", "Indicated and "Inferred" Mineral Resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the SEC. Investors should understand that "Inferred" Mineral Resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of AuRico's Mineral Resources constitute or will be converted into Reserves.
  • Orion Mineral Resources are reflected on a 50% basis. Following the completion of a joint venture agreement, Minera Frisco, S.A.B. de C.V. will have a 50% interest in the Orion project.
  • Mineral Reserve and Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
  • Mineral Resources were prepared under the supervision of Jeffrey Volk, CPG, FAusIMM, the Director of Reserves and Resources, for AuRico Gold Inc. Mineral Reserves were prepared under the supervision of Chris Bostwick, FAusIMM, the Senior Vice President Technical Services, for AuRico Gold Inc. Both Messrs Volk and Bostwick are "Qualified Persons" as defined by National Instrument 43-101.

About AuRico Gold AuRico Gold is a leading Canadian gold producer with mines and projects in North America that have solid production growth and exploration potential. The Company is focused on its core operations including the Young- Davidson gold mine in northern Ontario and the El Chanate mine in Sonora State, Mexico. AuRico's project pipeline also includes advanced development opportunities in Canada and Mexico. AuRico's head office is located in Toronto, Ontario, Canada.

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