Underground Mineral Reserves Increase 110%, Grade Increases 83%
TORONTO, July 27, 2017 /CNW/ - AuRico Metals Inc. (TSX: AMI),("AuRico" or the "Company") is pleased to provide an update on the Company's 2% net smelter return royalty ("NSR") on the Fosterville gold mine ("Fosterville") operated by Kirkland Lake Gold Ltd. ("Kirkland").
Commenting on today's Fosterville news, Chris Richter, President and CEO of AuRico Metals, stated; "We're very excited to see the continued significant growth of reserves at Fosterville and the consistent achievement of record production results. Fosterville's ongoing success underscores the growing value of our 2% NSR royalty and the significant upside potential of our royalty portfolio."
Fosterville – Underground Mineral Reserve Update
On July 27, 2017, Kirkland announced that updated underground Mineral Reserves at Fosterville grew 110% to 1,030,000 ounces of gold, after depletion, from the previous estimate of 490,000 ounces of gold. The main factor contributing to the significant growth in ounces is an 83% increase in the underground Mineral Reserve grade, to 17.9 g/t Au (1,790,000 tonnes) from 9.8 g/t Au (1,560,000 tonnes) in the previous Mineral Reserve and Mineral Resource estimate dated December 31, 2016 (see Kirkland's press release dated March 28, 2017).
As stated in Kirkland's press release, the significant increase in Fosterville Mineral Reserves is supported by down-plunge extensions of the high-grade, visible gold-bearing Lower Phoenix Gold System. In particular, the newly-named Swan Zone (previously known as Lower Phoenix Footwall), contributes 532,000 ounces at an average grade of 58.8 g/t Au (281,000 tonnes) to the updated Mineral Reserve estimate.
Measured and Indicated Mineral Resources are reported Exclusive of the Mineral Reserves and are 1,940,000 ounces of gold at an average grade of 4.4 g/t Au (13,700,000 tonnes). The previous estimate at the end of 2016 was reported Inclusive of Mineral Reserves, and included 2,790,000 ounces of gold (15,300,000 tonnes at an average grade of 5.7 g/t Au).
Fosterville – Q2 Production Update
On July 09, 2017, Kirkland announced that the Fosterville Mine achieved record production in Q2 2017, totaling 77,069 ounces of gold. Production during the quarter was more than double the 37,245 ounces produced in Q2 2016 and 67% higher than the previous record of 46,083 ounces in Q1 2017. Record Q2 production at Fosterville was based on mill grade of 17.2 g/t Au and record recoveries of 94.7%.
The Fosterville Gold Mine is 100% owned by Kirkland. Separate from the Fosterville mine, Kirkland also holds exploration licenses covering an area over 500 km2, encompassing the known strike extent of the Fosterville Goldfield. AuRico's 2% net smelter return (NSR) royalty is payable over this large land package.
For more information and complete reserve and resource details see Kirkland's press release dated July 27, 2017 and visit the website at www.klgold.com.
Qualified Person Statement
Technical information in this press release has been approved by John Fitzgerald, P. Eng., MBA, Chief Operating Officer of AuRico Metals and "qualified person" (QP) for the purposes of NI 43-101.
About AuRico Metals
AuRico Metals is a mining development and royalty company with a 100% interest in the Kemess property in British Columbia, Canada. The Kemess property hosts the feasibility-stage Kemess Underground Gold-Copper Project, the Kemess East Project, and the infrastructure pertaining to the past producing Kemess South mine. AuRico's royalty portfolio includes a 1.5% NSR royalty on the Young-Davidson Gold Mine and a 2% NSR royalty on the Fosterville Mine, as well as a portfolio of additional producing and pre-production royalty assets located in North America and Australia.
Cautionary Statement on Forward-Looking Information
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 royalty portfolio. 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.
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: please visit the AuRico Metals website at www.auricometals.ca or contact: Chris Richter, President and Chief Executive Officer, AuRico Metals Inc., 416-216-2780, [email protected]; John Miniotis, Vice President, Corporate Development, AuRico Metals Inc., 416-216-2780, [email protected]