TORONTO, Feb. 26, 2016 /CNW/ - AuRico Metals Inc. (TSX: AMI), ("AuRico" or the "Company") is pleased to provide an update on its royalty portfolio following the release of relevant information by the operators of the underlying mines. All amounts noted are in United States dollars, unless otherwise indicated.
Young-Davidson (1.5% NSR Royalty)
On January 14, 2016 Alamos Gold provided 2016 production guidance for the Young-Davidson mine of 170,000 to 180,000 ounces of gold. Higher mining rates, ongoing productivity improvements, and a weaker Canadian dollar are expected to drive total cash costs lower to $600 per ounce of gold sold. All-in sustaining costs are expected to decrease to $825 per ounce, an 18% or $175 per ounce decline from the mid-point of 2015 guidance of $1,000 per ounce.
Underground mining rates are expected to increase from approximately 6,000 tonnes per day early in 2016 to a rate of 7,000 tonnes per day by the end of the year. This ramp-up of production is expected to continue until a mining rate of 8,000 tonnes per day has been achieved by mid-2017.
For more information, visit the Alamos Gold website at www.alamosgold.com and see the press release dated January 14, 2016.
Fosterville (2% NSR Royalty) and Stawell (1% NSR Royalty)
2015 marked the third consecutive year of record production at Fosterville driven in part by contributions from recent high grade discoveries at the mine. On January 18, 2016, Newmarket Gold announced 2016 production guidance for Fosterville of 110,000 to 120,000 ounces at operating cash costs of $500 to $575 per ounce.
At Stawell, Newmarket is guiding for 2016 production of approximately 35,000 ounces at operating cash costs of $900 to $975 per ounce.
Newmarket Gold is expected to release a resource update later in Q1 2016.
For more information, visit the Newmarket Gold website at www.newmarketgoldinc.com and see the press release dated January 18, 2016.
Hemlo (0.25% NSR Royalty on Williams Mine)
On February 17, Barrick Gold announced a 12% increase in mineral reserves at Hemlo from 820,000 ounces at the end of 2014 to 917,000 at the end of 2015, after mining depletion. Barrick Gold's 2016 production guidance for Hemlo is 200,000 to 220,000 ounces at all-in sustaining cash costs of $790-$870 per ounce.
Barrick Gold has announced plans to spend approximately $8.0 million in exploration at Hemlo in 2016.
For more information, visit Barrick Gold's website at www.barrick.com and see the press release dated February 17, 2016.
Eagle River (0.5% NSR Royalty)
On February 10, 2016, Wesdome Gold Mines announced a 13% increase in mineral reserves at the Eagle River mine to 300,000 ounces, after mining depletion, and a 112% increase in inferred mineral resources to 170,000 ounces. Mineral reserve grades also increased from 8.5 grams per tonne to 9.5 grams per tonne. Approximately 49% of the mineral reserves and 55% of the mineral resources at Eagle River are from the recently discovered 300 and 7 parallel Zones. Wesdome has further announced plans to spend C$4.5 million on an aggressive 40,000 metre exploration program at Eagle River in 2016 to better understand the full potential of these new zones.
On February 23, 2016 Wesdome announced encouraging early results from this year's exploration program tracing the No. 7 Zone approximately 150 metres up-plunge to the 900 metre level where it remains open to surface.
Production from the Eagle River underground mine is anticipated to be between 43,000 and 47,000 ounces of gold in 2016.
For more information, visit Wesdome's website at www.wesdome.com and see the press releases dated January 18, 2016, February 10, 2016 and February 23, 2016.
About AuRico Metals
AuRico Metals is a mining royalty and development company whose producing gold royalty assets include a 1.5% NSR royalty on the Young-Davidson Gold Mine, a 0.25% NSR royalty on the Williams Mine at Hemlo, and a 0.5% NSR royalty on the Eagle River Mine – all located in Ontario, Canada. AuRico Metals also has a 2% NSR royalty on the Fosterville Mine and a 1% NSR royalty on the Stawell Mine, located in Victoria, Australia. Aside from its diversified royalty portfolio, AuRico owns (100%) the advanced Kemess Gold-Copper Project in British Columbia, Canada. AuRico Metals' head office is located in Toronto, Ontario, Canada.
This press release contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws. All statements, other than statements of historical fact, are, or may be deemed to be, forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" and similar expressions identify forward-looking statements. Forward-looking statements include statements related to the Company's outlook and key deliverables on Kemess over the next 12 months. These statements are based on a number of factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such forward-looking statements and the factors and assumptions underlying them in this document include, the future price of gold, the estimation of mineral reserves and resources, realization of mineral reserve estimates, and the timing and amount of estimated future production.
Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economic conditions; commodity prices; credit market conditions and conditions in financial markets generally;; the accuracy of reserve and resource estimates; the impact of changes in currency exchange rates on costs and results; interest rates; and taxation. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
SOURCE AuRico Metals
For further information: Chris Richter, President and Chief Executive Officer, AuRico Metals Inc., 416-216-2780, email@example.com; Robert Chausse, Chief Financial Officer, AuRico Metals Inc., 416-216-2780, firstname.lastname@example.org