Project Remains on Schedule for Production by the End of Q1 2012
TORONTO, Feb. 3, 2012 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico", "AuRico Gold" or "the Company) is
pleased to provide the first monthly status update on the exciting
Young-Davidson mine located in the prolific Abitibi gold belt in
Northern Ontario. The Company remains on schedule to achieve the first
gold pour by the end of the first quarter of 2012.
Young-Davidson Project Construction Update
The Young-Davidson Project remains on schedule nearing completion of the
18-month pre-production construction phase. Mill processing
construction for commissioning is 92% complete (see figure 1). Over 900
contractors and employees are working towards achieving the first gold
pour by the end of March 2012.
"The entire operating team at Young-Davidson remains focused on
realizing production by the end of the first quarter and remains
confident that this milestone continues to be achievable. As well, the
stockpile of open pit ore will ensure there is sufficient mill feed as
we ramp up to commercial production. We will continue to provide
monthly status reports that will keep investors up to date with our
progress as we move from construction to commissioning and onward to
commercial production." stated Peter MacPhail, Chief Operating Officer,
Canada and Australia. He continued, "I would like to congratulate all
construction and operating personnel for recently achieving 1,350,000
man-hours without recording a lost time injury. This is a tremendous
achievement, particularly on a construction project of this scale."
The following major project milestones have been achieved:
Mill systems required for initial production are 92% complete.
All required equipment is on site.
Mechanical and electrical / instrumentation construction teams have
started commissioning activities on process equipment required for
initial production, while personnel prepare for operational readiness.
Open pit operations commenced in November 2011 and are ramping up to
targeted levels of 35,000 tonnes per day of ore and waste.
Approximately 160,000 ore tonnes (approximately one-month mill feed)
have already been stockpiled for processing beginning in mid-March.
Wet commissioning of the mill is on track for early March.
All senior operating personnel are in place.
Completion of the 115 kV power line and successful commissioning of the
Underground development continues to focus on ramp and shaft access to
the 9,590 level (760 meters below surface) where the mid-shaft ore and
waste handling systems will be installed. Raise boring of the second
leg of the production shaft is scheduled to begin mid-year.
About AuRico Gold
AuRico Gold is a leading intermediate Canadian gold and silver producer
with a diversified portfolio of properties in Canada, Mexico and
Australia. The Company currently has five operating properties
including the Ocampo mine in Chihuahua State, the El Chanate mine in
Sonora State, the El Cubo mine in Guanajuato State, as well as the
Fosterville and Stawell gold mines in Victoria, Australia. The first
production from the exciting Young-Davidson gold mine in northern
Ontario is targeted by the end of Q1 2012 as the mine ramps up to over
200,000 ounces of annual production by 2015. AuRico's strong pipeline
of development and exploration stage projects includes advanced
development properties in Mexico and British Columbia and several
highly prospective exploration properties in Mexico. AuRico's head
office is located in Toronto, Ontario, Canada.
Certain statements included herein, including information as to the
future financial or operating performance of the Company, its
subsidiaries and its projects, constitute forward-looking statements.
The words ''believe'', ''expect'', ''anticipate'', ''target'',
''continue'', ''estimate'', ''may'', and similar expressions identify
forward-looking statements. Forward-looking statements include, among
other things, statements regarding anticipated future financial and
operational performance, the ability to continue to fund expansion and
exploration operations through cash flows, the ability of the Company
to optimize and expand its operations and development projects through
capital expenditure, the ability of the Company to complete its
expansion studies in a timely manner and to achieve positive results
therefrom, the ability to realize the perceived benefits of the
acquisition of Northgate, the ability of Young-Davidson to commence
production by the end of Q1 2012 and to achieve over 200,000 ounces of
annual production by 2015 and to meet the timelines for the
commencement of mill processing, the ability to accelerate underground
production at Young-Davidson, the ability to increase mining rates at
Young-Davidson, the ability of the Company to achieve its targets for
the continued expansion and development of Ocampo and El Chanate, the
ability to improve infrastructure and productivity at El Cubo, Stawell
and Fosterville, the future price of gold and silver and the ratio of
their prices, the de-risking of operations, future exploration results
of the Company's exploration and development programs and the success
of the Company's exploration approaches, the Company's ability to
delineate additional resources and reserves as a result of such
programs, statements regarding the Company's financial exposure to
litigation, targets, estimates and assumptions in respect of gold and
silver production and prices, operating costs, results and capital
expenditures, mineral reserves and mineral resources and anticipated
grades, recovery rates, future financial or operating performance,
margins, operating and exploration expenditures, costs and timing of
completion of the Ocampo expansion program and improvements to the heap
leach pad, costs and timing of the development and commencement of
production of new deposits, costs and timing of construction, costs and
timing of future exploration and reclamation expenses including,
anticipated 2011 and 2012 results, operating performance projections
for 2011 and 2012, the Company's ability to fully fund its business
model internally, 2011 and 2012 gold and silver production and the cash
and operating costs associated therewith, the ability to achieve
productivity and operational efficiencies, and the timing of each
thereof. Forward-looking statements are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by the
Company, are inherently subject to significant business, economic,
competitive, political and social uncertainties and contingencies. The
operating and financial performance of the Company will be affected by
changes in the actual gold equivalency ratio realized in 2011 and 2012.
Many factors could cause the Company's actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, the Company. Such factors include,
among others, known and unknown uncertainties and risks relating to
additional funding requirements, reserve and resource estimates,
commodity prices, hedging activities, exploration, development and
operating risks, illegal miners, political and foreign risk,
uninsurable risks, competition, limited mining operations, production
risks, environmental regulation and liability, government regulation,
currency fluctuations, recent losses and write-downs, restrictions in
the Company's loan facility, dependence on key employees, possible
variations of ore grade or recovery rates, failure of plant, equipment
or process to operate as anticipated, accidents and labour disputes.
Investors are cautioned that forward-looking statements are not
guarantees of future performance and, accordingly, investors are
cautioned not to put undue reliance on forward-looking statements due
to the inherent uncertainty therein.
Image with caption: "Figure 1: Initial Production Model of mill facility. (Items in green have been installed. Installation of items in yellow are in progress.(CNW Group/AuRico Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20120203_C9134_PHOTO_EN_9600.jpg
Image with caption: "Figure 2: Mill exterior. (CNW Group/AuRico Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20120203_C9134_PHOTO_EN_9605.jpg
Image with caption: "Figure 3: Mill interior. (CNW Group/AuRico Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20120203_C9134_PHOTO_EN_9603.jpg
Image with caption: "Figure 4: Open pit operations. (CNW Group/AuRico Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20120203_C9134_PHOTO_EN_9601.jpg
Image with caption: "Figure 5: Open pit production drill. (CNW Group/AuRico Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20120203_C9134_PHOTO_EN_9604.jpg
Image with caption: "Figure 6: Headframe construction for Northgate shaft. (CNW Group/AuRico Gold Inc.)". Image available at: http://photos.newswire.ca/images/download/20120203_C9134_PHOTO_EN_9602.jpg
SOURCE AuRico Gold Inc.
For further information:
please visit the AuRico Gold website at http://www.auricogold.com or contact:
| René Marion |
President & Chief Executive Officer
AuRico Gold Inc.
| || Anne Day |
Director of Investor Relations
AuRico Gold Inc.