TORONTO, March 23, 2016 /PRNewswire/ --
AuRico Metals Inc. (TSX: AMI)
("AuRico" or the "Company") is pleased to announce an updated
National Instrument (NI) 43-101 compliant resource estimate for the
Company's 100%-owned Kemess East deposit. The updated resource
includes a high grade core estimated to contain Indicated Resources
of 19.2 million tonnes grading 0.47% Cu and 0.72 g/t Au as well as
Inferred Resources of 31.7 million tonnes grading 0.45% Cu and 0.63
g/t Au; as shown in Table 1.
The high grade core is associated with a strong potassic
alteration zone and is open to the west, north and south directions
as is the overall deposit. Figure 1 on the next page provides plan
and section views of the Kemess East deposit, with resource model
blocks colour-coded by Net Smelter Return (NSR) value (the notes to
Table 1 include an explanation of NSR calculation parameters).
The overall Kemess East deposit is estimated to contain
Indicated Resources of 39.2 million tonnes grading 0.40% Cu and
0.50 g/t Au and Inferred Resources of 109.6 million tonnes grading
0.37% Cu and 0.38 g/t Au.
The Kemess East deposit is located approximately one kilometre
east of the Kemess Underground deposit and 6.5 kilometres north of
the Kemess South facilities (see Figure 2). The Kemess Property is
located in north-central British
Columbia, Canada, approximately 430 kilometres northwest of
Prince George.
Table 1: Kemess East Mineral Resource Estimate Summary (SRK,
2016)
Notes:
- NSR cut-off value of C$17.3/t was
used to define indicated and inferred resources within a solid
representing a potential block or panel cave volume; see Figure
1.
- The potential cave volume, being the resource solid in Figure
1, was derived using Geovia's Footprint Finder software, an
industry standard cave optimization software. The final resource
solid was subject to manual editing to provide a shape that meets
the "reasonable prospects" criteria given the focus on cave mining
potential. External dilution is not included.
- NSR calculation assumed US$3.20/lb copper, US$1,275/oz gold and US$21.0/oz silver prices; and C$/US$ exchange
rate of 0.76.
- NSR calculation assumed metallurgical recoveries or 91% copper,
72% gold and 65% silver; as well as a 22% copper grade for
concentrate. Molybdenum was excluded from the NSR calculation.
- A metallurgical testwork program on Kemess East core is planned
for 2016.
- Details of the Sample Preparation and Quality Assurance and
Quality Control are presented in AuRico Metals' Nov 3, 2105 press release reporting on the
results of the Company's 2015 drill program.
- Resources were generated from 71 holes drilled at Kemess East
in 2006, 2007, 2013, 2014 and 2015.
- A NI 43-101 compliant technical report is being prepared and
will be filed on SEDAR at http://www.sedar.com within 45 days.
- Exploration activities at the Kemess East deposit have been
conducted under the supervision of Wade
Barnes, PGeo, Kemess Project Geologist, for AuRico Metals.
Mr. Barnes is a "Qualified Person" as defined by NI 43-101.
- Mineral Resources were prepared under the supervision of
Chad Yuhasz, SRK Consulting
(Canada) Inc. Mr. Yuhasz is a
"Qualified Person" as defined by NI 43-101.
Figure 1: Section and Plan Views of Kemess East Deposit
Commenting on today's announcement, Chris Richter, President and CEO of AuRico
Metals stated, "We are very encouraged by the delineation of a high
grade core to the Kemess East resource as a result of last year's
drilling and the updated resource estimate. In a separate press
release issued today, we released the positive results from an
updated Feasibility Study at our Kemess Underground project and
these results from Kemess East further highlight Kemess as a unique
and valuable asset with growth potential."
Comparison to 2015 Resource Estimate
This resource estimate is lower in tonnage (by 16.6 M tonnes
Indicated and 7.5 M tonnes Inferred) and similar in grade to the
initial resource estimate (January 15,
2015, AuRico Gold press
release). Whereas the 2015 resource estimate was largely based on a
grade shell estimation model, this estimate is based on updated
lithological, structural and alteration models. The 2015 drill
program produced an improved understanding of the controlling
geological faults and a much improved understanding of the
alteration types and intensity. Statistical analysis of the gold
and copper grades associated with each alteration type indicated a
distinct grade change between each alteration type thus
constraining grade estimation boundaries. These updated
lithological, structural and alteration models were then used to
model the Kemess East deposit.
Chad Yuhasz of SRK Consulting
(Canada) Inc has reviewed and
approved the scientific and technical information contained within
this press release. Chad Yuhasz is a
"Qualified Person" as defined by NI 43-101.
Figure 2: Kemess Property Map
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.
Cautionary Statement on
Forward-Looking Information
All statements, other than statements of historical fact,
contained or incorporated by reference in this news release
including, but not limited to, any information as to the future
financial or operating performance of AuRico, constitute
''forward-looking information'' or ''forward-looking statements''
within the meaning of certain securities laws, including the
provisions of the Securities Act (Ontario) and are based on expectations,
estimates and projections as of the date of this news release.
Forward-looking statements contained in this news release include,
without limitation, statements with respect to: the future price of
gold, copper and silver, the estimation of mineral resources, costs
and timing of the development of projects and new deposits, success
of exploration, currency fluctuations, requirements for additional
capital, government regulation of mining operations, and
environmental risks. The words "anticipates", ''estimates'',
''expects'', "focus", ''forecast", "indicate", "initiative",
"intend", "model", "opportunity", "option", "plans'', "potential",
"projected", "prospective", "pursue", "strategy", "study"
(including, without limitation, as may be qualified by
"feasibility" and the results thereof), "target", "timeline" or
variations of or similar such words and phrases or statements that
certain actions, events or results ''may'', ''could'' or ''would'',
and similar expressions identify forward-looking statements.
Forward-looking statements are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by
AuRico as of the date of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. The estimates, models and assumptions of AuRico
referenced, contained or incorporated by reference in this news
release, which may prove to be incorrect, include, but are not
limited to, the various assumptions set forth herein and in our
most recently filed Annual Information Form and our 2015
Management's Discussion and Analysis as well as: (1) the exchange
rate between the Canadian dollar and the U.S. dollar being
approximately consistent with assumed levels; (2) certain price
assumptions for gold, copper, silver, diesel and electricity; (3)
the results of the Kemess Underground Feasibility Study will be
realized within a margin of error consistent with the Company's
expectations;(4) the accuracy of the current mineral resource
estimates of the Kemess East project; and (5) access to capital
markets, including but not limited to identifying financing options
and securing partial project financing for the Kemess project,
being consistent with the Company's current expectations.
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:,the results of
exploration at Kemess East and the accuracy of the mineral resource
estimates at Kemess East; relations with First Nations partners and
the Province of British Columbia;
exploration for additional mineral resource potential; fluctuations
in the currency markets; changes in the market valuations of peer
group companies and the Company, and the resulting impact on market
price to net asset value multiples; changes in various market
variables, such as interest rates, foreign exchange rates, gold,
copper or silver prices; changes in national and local government
legislation, taxation, controls, policies and regulations;
political or economic developments in Canada, the United
States or elsewhere; business opportunities that may be
presented to, or pursued by, us; employee relations; litigation
against the Company; the speculative nature of mineral exploration
and development including, but not limited to, the risks of
obtaining necessary licenses and permits; diminishing quantities or
grades of reserves; and contests over title to properties. In
addition, there are risks and hazards associated with the business
of mineral exploration, development and mining. Many of these
uncertainties and contingencies can directly or indirectly affect,
and could cause, AuRico' actual results to differ materially from
those expressed or implied in any forward-looking statements made
by, or on behalf of, AuRico.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Forward-looking statements are provided for the purpose of
providing information about management's expectations and plans
relating to the future. All of the forward-looking statements made
in this news release are qualified by these cautionary statements
and those made in our other filings with the securities regulators
of Canada including, but not
limited to, the cautionary statements made in the ''Risk Factors''
section of our most recently filed Annual Information Form and 2015
Management Discussion and Analysis. These factors are not intended
to represent a complete list of the factors that could affect
AuRico. AuRico disclaims any intention or obligation to update or
revise any forward-looking statements or to explain any material
difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
Chris Richter, President and
Chief Executive Officer, AuRico Metals Inc., +1-416-216-2780,
chris.richter@auricometals.ca; John
Fitzgerald, Chief Operating Officer, AuRico Metals Inc.,
+1-416-216-2780, john.fitzgerald@auricometals.ca