TORONTO, January 17, 2017 /PRNewswire/ --
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 and projects. Based on
production results released to date, AuRico expects 2016 royalty
revenue to be at the high end of the Company's guidance range of
$7.7 - $8.1 million. All amounts are
in United States dollars, unless
otherwise indicated.
Young-Davidson (1.5% NSR Royalty)
On January 6, 2017 Alamos Gold
announced 2016 production of 170,000 ounces of gold at Young-Davidson, including 44,662 ounces in the
fourth quarter. Underground mining rates increased to average a
record of over 6,600 tonnes per day ("tpd") in the fourth quarter,
and averaged over 7,000 tpd in December, consistent with the
year-end target.
Gold production at Young-Davidson is forecast to be between 200,000 and
210,000 ounces in 2017, which would result in an increase of 18% to
24% relative to 2016. Underground mining rates are expected to
increase from an average rate of approximately 6,000 tpd in 2016,
to a range of between 6,500 and 7,500 tpd in 2017. Total cash costs
are expected to average $625 per
ounce of gold sold and mine-site all-in sustaining costs are
expected to average $775 per ounce,
more than a 10% decrease from 2016 levels.
For more information, visit the Alamos Gold website
at http://www.alamosgold.com and see the press release
dated January 6, 2017.
Fosterville (2% NSR Royalty)
and Stawell (1% NSR Royalty)
On November 30, 2016 Kirkland Lake
Gold ("Kirkland") announced the completion of the business
combination with Newmarket Gold, forming a new mid-tier gold
company. On January 9, 2017 Kirkland
announced record annual gold production at Fosterville of 151,755 ounces for 2016 based
on a record average grade of 7.55 g/t and a record recovery of
90.1%. The company also achieved a quarterly record performance in
Q4 2016 with production of 44,406 ounces of gold, based on a record
average grade of 8.48 g/t Au and record recovery of 92.4% at
Fosterville.
Fosterville's strong Q4 2016
performance resulted in quarterly production rates increasing by
20% over Q3 2016 levels, and 42% over Q4 2015 production levels.
For 2017, Kirkland has reported production guidance at Fosterville of 140,000 - 145,000 ounces
gold.
At year end, there were nine rigs in operation at Fosterville drilling a combination of
exploration and resource definition programs. On January 17, 2017 Kirkland announced high grade
mineralization at depth on the Lower Phoenix Footwall system,
including the highest result ever returned from the Fosterville
Mine, with the return of the following drill intercepts:
- 1,429 g/t Au over 15.15m, including 21,490 g/t Au over
0.6m
- 356 g/t Au over 7.2m, including 1,339 g/t Au over 1.85m
- 83.9 g/t Au over 3.5m, including 234 g/t Au over 0.65m
Also, the high grade Eagle fault system has been extended down
plunge with a recent drill intercept returning:
- 15.97 g/t Au over 11.35m, including 195 g/t Au over 0.45m
Kirkland is expected to provide an update on Mineral Reserves
and Resources in Q1 2017.
At Stawell, 2016 gold production totaled 32,204 ounces. The
operation commenced transitioning to care and maintenance on
December 13, 2016 with the mine to be
maintained in a state of operational readiness to possibly
recommence operations pending exploration success.
For more information, visit the Kirkland website
at http://www.klgold.com and see the press releases dated
January 17, 2017 and January 9, 2017.
Hemlo (0.25% NSR Royalty on
Williams Mine, and 0.5% NSR on David Bell Property)
Barrick Gold is expected to
announce fourth quarter results on February
15, 2017. Barrick Gold's 2016
production guidance for Hemlo is
215,000 to 230,000 ounces at all-in sustaining cash costs of
$830-$880 per ounce.
Barrick Gold has previously
announced plans to spend approximately $8.0
million in exploration at Hemlo in 2016.
For more information, visit Barrick
Gold's website at http://www.barrick.com
Eagle River (0.5% NSR
Royalty)
On January 17, 2017 Wesdome Gold
Mines ("Wesdome") provided 2016 production results of 40,252 ounces
of gold from the Eagle River Underground Mine. For 2017, gold
production at the Eagle River Underground Mine is expected to
increase by approximately 12% - 22% to between 45,000 and 49,000
ounces at grades of 8.8 - 9.2 g/t gold.
Exploration spending for 2017 is expected to be approximately
C$3.0 million resulting in a total of
40,000 meters drilled.
For more information, visit Wesdome's website
at http://www.wesdome.com and see the press release dated
January 17, 2017.
GJ Property (0.98% NSR Royalty)
On November 10, 2016 AuRico
completed an acquisition from NGEx Resources Inc. of a 0.98% NSR
royalty and 0.49% NSR royalty on Skeena Resources Limited's
("Skeena") GJ Block property and GJ Northern Block property
respectively.
On December 12, 2016 Skeena
reported the commencement of a NI 43-101 Preliminary Economic
Assessment ("PEA") on the Spectrum-GJ Project which is expected to
be released in Q2 2017 and which will include an updated NI 43-101
mineral resource estimate that incorporates results from Skeena's
2016 definition drilling program.
In 2016, 2,872 metres were drilled in 8 holes at the GJ Donnelly
Deposit with several holes successfully extending the mineralized
zone to depth, with gold and copper values higher than the current
average mineral resource grades.
For more information, visit Skeena's website
at http://www.skeenaresources.com and see the press
release dated December 12, 2016.
Red Lake and Madsen Area
Properties (1% NSR Royalty)
On November 29, 2016 AuRico
partnered with Abitibi Royalties Inc and acquired a 1% NSR on
several early stage exploration projects in the Red Lake district.
Kiska Metals Acquisition Update
As previously announced on December 22,
2016 AuRico entered into a definitive arrangement agreement
to acquire all of the issued and outstanding securities of Kiska
Metals Corporation ("Kiska"). The acquisition would provide AuRico
with a further six existing royalties including royalties on the
East Timmins and Boulevard
properties operated by Kirkland Lake
Gold and Independence Gold, respectively. In addition,
Kiska's six wholly-owned exploration projects would present organic
royalty creation opportunities and are expected to further enhance
AuRico's existing high quality royalty pipeline.
The transaction is subject to customary closing conditions and
approvals and is expected to close later in the first quarter.
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 Metals 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
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.
Please visit the AuRico Metals website at
http://www.auricometals.ca or contact: Chris Richter, President and Chief Executive
Officer, AuRico Metals Inc., +1-416-216-2780,
chris.richter@auricometals.ca; John
Miniotis, Vice President, Corporate Development, AuRico
Metals Inc., +1-416-216-2780, john.miniotis@auricometals.ca