TORONTO, Sept. 4, 2012 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or "the Company") is pleased to report that its Young-Davidson
mine achieved commercial production effective September 1, 2012.
Located in Matachewan, Ontario, the Young-Davidson mine is expected to
be a key, long lived, strategic asset for AuRico that has potential for
significant production and reserve growth.
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
Young-Davidson Key Performance Indicators
Open Pit (tpd)
Mill throughput (tpd)
Mill grade (g/t)
Production (gold ounces)
Mill Availability (%)
1. Including a 3-day maintenance shutdown
2. Including a 2-day shutdown for SAG mill reline
3. Estimated values only, subject to change
Recent key operating highlights include:
The mill facility continued to exceed commissioning threshold levels
with four days exceeding 7,000 tonnes per day.
Gold recoveries steadily increased to targeted levels of approximately
90% following the commissioning of the gravity and flotation circuits
and the optimization of the grinding circuit.
Commissioning of the primary crusher as well as the conveyor system and
ore bins is complete, which streamlines the introduction of mill feed
into the mill circuit.
The Company has established a separate 178,000 tonne high-grade
stockpile at grades of approximately 1.52 g/t that is in addition to
the more than one million tonne stockpile.
Underground long-hole drilling contractors have been mobilized on site
and stope preparation in the Upper Boundary Zone is progressing on
schedule. Production from the initial two stopes is expected to begin
during the fourth quarter and average approximately 1,000 tonnes per
day with grades averaging approximately 3.5 grams per tonne gold.
Raiseboring of the second leg (450 metres) of the Northgate shaft will
start in September and is targeted to reach a vertical depth of 890
metres (9440 level), with a final target of 1,500 vertical metres. The
Company anticipates hoisting waste by the second quarter of 2013 and
hoisting ore by the third quarter of 2013 once the mid-shaft crushing
circuit is commissioned.
As of August 31, 2012 the Young-Davidson mine reported over 2.3 million
hours without a lost time injury.
A Grand Opening celebration was held at the Young-Davidson mine on
August 11 with more than 850 people in attendance including employees
and their families, government officials, community leaders and local
"I want to thank all of the employees and contractors who have worked
diligently and safely over the past 2 years to achieve this major
milestone. In July and August our efforts were focused on process
commissioning of the flotation circuits and optimizing the grinding
circuit to ensure we had fully stress tested the mill facility prior to
declaring commercial production." said Peter MacPhail, Chief Operating
Officer, Canada. "During the mill commissioning phase we have
intentionally processed lower grade ore while the mill facility was
fine-tuned to maximize gold recoveries. With the mill fully
commissioned and operating above targeted levels, we have now begun to
introduce higher grade ore and expect to see production increase over
the coming months."
The production ramp-up at the Young Davidson mine continues to progress
well and the operation is expected to be a major driver of AuRico's
growth profile going forward. Production growth in 2013 and beyond will
be supported by increasing contributions of higher grade ore as the
underground mine begins production in the fourth quarter of 2012 and
ramps up to targeted levels of up to 8,000 tonnes per day by 2016.
About AuRico Gold
AuRico Gold is a leading Canadian gold producer with a diversified
portfolio of three high quality mines and projects in North America
that have significant production growth and exploration potential.
AuRico's core operations include the Ocampo mine in Chihuahua State,
the El Chanate mine in Sonora State and the Young-Davidson gold mine in
northern Ontario that achieved commercial production on September 1,
2012. AuRico's strong project pipeline also includes several advanced
development opportunities in Mexico and British Columbia. AuRico's head
office is located in Toronto, Ontario, Canada.
Certain information included in this news release constitutes
forward-looking statements, including any information as to our
projects, plans and future financial and operating performance. All
statements, other than statements of historical fact, are
forward-looking statements. The words "expect", "believe",
"anticipate", "will", "intend", "estimate", "forecast", "budget",
"schedule" and similar expressions identify forward-looking statements.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by
management, 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 factors include, but are not limited to: changes to current
estimates of mineral reserves and resources; fluctuations in the price
of gold and silver; changes in foreign exchange rates (particularly the
Canadian dollar, Mexican peso and U.S. dollar); the impact of
inflation; changes in our credit rating; employee relations;
litigation; disruptions affecting operations; availability of and
increased costs associated with mining inputs and labor; delays at the
Young-Davidson project; technical challenges associated with the
construction of capital projects; operating or technical difficulties
in connection with mining or development activities; inherent risks
associated with mining and mineral processing; the risk that the
Young-Davidson, El Chanate and Ocampo mines and may not perform as
planned; the ability to realize the perceived benefits from the
acquisition of Capital Gold and Northgate and from the divestiture of
the Stallwell, Fosterville and El Cubo mines; uncertainty with the
Company's ability to secure capital to execute its business plans; the
speculative nature of mineral exploration and development, including
the risks of obtaining necessary licenses and permits; contests over
title to properties; changes in national and local government
legislation in Canada, Mexico and other jurisdictions in which the
company does or may carry on business in the future; risk of loss due
to sabotage and civil disturbances; the impact of global liquidity and
credit availability and the values of assets and liabilities based on
projected future cash flows; risks arising from holding derivative
instruments; business opportunities that may be pursued by, the
company; and the ability of the company to successfully integrate
acquisitions. Many of these uncertainties and contingencies can affect
our actual results and could cause actual results to differ materially
from those expressed or implied in any forward-looking statements made
by, or on behalf of, us. Readers are cautioned that forward-looking
statements are not guarantees of future performance. All of the
forward-looking statements made in this second quarter report are
qualified by these cautionary statements. Specific reference is made to
the most recent Form 40-F/Annual Information Form on file with the SEC
and Canadian provincial securities regulatory authorities for a
discussion of some of the factors underlying forward-looking
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 Gold Inc.
For further information:
For further information please visit the AuRico Gold website at http://www.auricogold.com or contact:
President and Chief Executive Officer
AuRico Gold Inc.
Vice President, Investor Relations and Communications
AuRico Gold Inc.