TORONTO, March 23, 2016 /PRNewswire/ --
Average Annual Production of 238Koz
Gold Equivalent[1] over First 5
Years at AISC of US$682/oz
AuRico Metals Inc. (TSX: AMI) ("AuRico" or the "Company")
is pleased to announce the results of a Feasibility Study (FS)
update prepared in accordance with National Instrument 43-101 for
the Kemess Underground (KUG) project located on the Company's
100%-owned Kemess property in British
Columbia, Canada. The FS contemplates the development of a
low-cost panel caving operation to extract the KUG reserves over a
12 year mine life. The results indicate that the KUG project is a
robust, low-risk project benefiting from extensive infrastructure
in place. AuRico Metals has today issued a separate press release
providing a resource update for the Kemess East deposit which does
not factor into the FS.
All amounts stated in this news release are in Canadian dollars
(C$) unless otherwise indicated.
Feasibility Study Highlights:
"Base case" assumes a long term (LT) gold price of US$1,250/oz, a LT copper price of US$2.50/lb, and a C$/US$ rate of 0.75; "Consensus
case" LT gold and copper prices of US$1,250/oz and US$3.00/lb respectively.
- Pre-tax net cash flow of C$1,102M
in Base case (C$1,453M in Consensus
case)
- After tax net cash flow of C$746M
in Base case (C$969M in Consensus
case)
- After tax NPV[5%] of
C$289M in Base case (C$421M in Consensus case)
- IRR of 12.6% in Base case (15.4% in Consensus case)
- Total life-of-mine production of 1.4Moz gold, 573Mlb copper and
4.5Moz silver
- Average annual Production of 129Koz of gold and 52Mlbs of
copper over first five years
- Co-product all-in sustaining costs ("AISC") over first five
years of US$682/oz of gold and
US$1.36/lb of copper
- By-product AISC over first five years of US$201/oz of gold
- Pre-commercial production capital costs (including 12.5%
contingency) of C$450M (US$337M) plus an additional C$153M (US$115M) in
capitalized operating costs (net of revenue); Capital expenditures
are back-end weighted
- Large Indicated resource base of 246.4Mt including reserves of
107.4Mt (currently constrained by tailings storage capacity of the
mined-out Kemess South open pit)
- Further property resource potential at Kemess East (1km to the
east of KUG) as highlighted in the resource update for Kemess East
which AuRico Metals announced in a separate press release issued
today
- Testwork indicates that KUG ore will produce a concentrate that
is free of deleterious elements and readily marketable to both
smelters and traders
- AuRico submitted its Environmental Assessment Application on
March 3rd and expects to
enter the 180 day Application Review period in early April
Commenting on today's announcement, Chris Richter, President and CEO of AuRico
Metals stated, "We are very pleased with the positive results from
our Kemess Underground Feasibility Study update which confirm the
potential for a large, low-cost gold-copper mine with robust
economics. Today's release highlights the exciting opportunity to
create significant value at Kemess to the benefit of all of our
stakeholders, including AuRico shareholders, our First Nations
partners, and the Province of British
Columbia. Our wholly-owned and fully unencumbered Kemess
property stands out as a unique Canadian asset benefiting from
approximately C$1 billion in
replacement cost infrastructure already in place and located in one
of the most attractive mining jurisdictions anywhere." He
continued, "We believe that opportunities remain to optimize
project returns including around equipment leasing (pre-commercial
production capital expenditures on underground mobile equipment
totals C$86M) and project financing
and further upside exists around the large resource at Kemess
Underground and the growing resources at Kemess East."
_____________________________
[1] Gold Equivalent converts
copper and silver production to gold equivalent production based on
revenue assuming Base case pricing assumptions (US$1,250/oz Au, US$2.50/lb Cu, and US$16/oz Ag)
Economic Summary
Consensus
Base Case Case
Gold Price (US$/oz) $1,050 $1,150 $1,250 $1,250 $1,350 $1,450
Copper Price (US$/lb) $1.50 $2.00 $2.50 $3.00 $3.00 $3.50
Silver Price (US$/oz) $16.00 $16.00 $16.00 $18.00 $16.00 $16.00
Pre-Tax Net Cash Flow (C$M) $86 $596 $1,102 $1,453 $1,607 $2,112
After-Tax Net Cash Flow (C$M) $64 $426 $746 $969 $1,067 $1,388
After-Tax NPV (5%) (C$ M) ($128) $94 $289 $421 $479 $669
After-Tax IRR 1.6% 8.0% 12.6% 15.4% 16.5% 19.9%
Payback Period (years) 9.75 5.4 3.9 3.3 3.1 2.6
Exchange Rate (C$/US$) 0.75 0.75 0.75 0.75 0.75 0.75
Annual Production:
First 5 Years LOM
Gold 129Koz 106Koz
Copper 52Mlbs 47Mlbs
Gold Equivalent 238Koz 207Koz
Total Cash Costs[1]:
First 5 Years LOM
Gold (co-product basis) US$575/oz US$639/oz
Copper (co-product basis) US$1.15/lb US$1.28/lb
Gold (by-product basis) US$3/oz US$94/oz
All-in Sustaining Costs[2]:
First 5 Years LOM
Gold (co-product basis) US$682/oz US$718/oz
Copper (co-product basis) US$1.36/lb US$1.44/lb
Gold (by-product basis) US$201/oz US$244/oz
[1] Co-product basis allocates
costs proportionally based on the relative value of gold and copper
revenues while by-product basis applies all copper and silver
revenues as a credit to costs
[2] All-in Sustaining Costs
defined per World Gold Council guidelines but excl. corporate
G&A allocation
Project Summary
The updated KUG FS outlines a robust project with significant
production of gold and copper over a 12 year mine life at low
all-in sustaining costs. Importantly, the KUG project hosts
potentially material upside opportunities, including significant
mine life extension opportunities associated with the large
resource at KUG. In addition, AuRico Metals has today issued a
separate press release to provide an updated resource for Kemess
East (KE), which is located 1 km east of KUG and highlights the
material additional resource on the property.
Kemess is located in north-central British Columbia approximately 250 km north of
Smithers and 430 km northwest of
Prince George. The property is
host to the former Kemess South (KS) Mine, the KUG deposit and the
KE deposit. The KUG deposit is the subject of this Feasibility
Study update and lies approximately 6.5 km north of the existing KS
processing plant and other infrastructure.
The KS Mine comprised a large open pit mine feeding gold-copper
ore to a 52,000 tonnes per day (t/d) processing plant. Between 1998
and 2011, KS produced approximately 3.0 million ounces of gold and
750 million pounds of copper from 218
Mt of ore. Open pit mining and processing ceased in
March 2011 on depletion of the
mineral reserves. The processing plant and other facilities and
equipment that are required to support an underground mining
operation at the KUG deposit are currently under care and
maintenance (see Appendix 1). Existing on-site infrastructure
includes offices, warehouse, laydowns, maintenance facilities, a
300-person accommodation camp footprint, crushed ore stockpile and
reclaim, access and service roads, airstrip, explosives magazines,
and electrical sub-station. A Company-owned, 380 km power line
originating in Mackenzie, provides
power to the mine site via the BC Hydro grid.
An access corridor (see Appendix 2) will be developed from the
existing KS facilities to provide access (for personnel, equipment
and supplies/consumables), ore conveying, electricity supply and a
dewatering pipeline for the underground operation. The cave
footprint will be accessed and supported by a triple decline system
comprising access, ore conveying and intake air declines.
The 107.4Mt KUG ore reserve is located approximately 200 to 550
m below surface. The lateral extents (or footprint) of the ore
reserve, as outlined by the FS, is approximately 570 m east-west
and 90 to 300 m north-south (see Appendix 3). The planned
production rate of 25,000 t/d (9.0Mt per year) is considered well
within the capacity of a cave footprint with these dimensions and
KUG rockmass characteristics.
According to SRK, "While all mining projects have residual
technical uncertainties, the KUG Project is considered to be
relatively low risk for a caving project in terms of key
mining-related risks including production ramp-up, drawpoint
stability, subsidence and mudrush."
Following extraction from the KUG cave and primary crushing
underground, ore will be conveyed to the existing KS process plant
where it will be processed at an average rate of 25,000 t/d (9.0Mt
per year) using existing grinding, flotation, thickening and
concentrate handling facilities. Concentrate will be trucked to the
AuRico-owned load-out facility in Mackenzie for subsequent rail transport to
market. Testwork indicates that KUG ore will produce a concentrate
that is free of deleterious elements and readily marketable to both
smelters and traders.
Waste rock and tailings from the mining and processing of KUG
ore are planned for deposition in the KS open pit which received
tailings late in the operation of the KS mine.
The KUG FS report has been prepared by SRK Consulting
(Canada) Inc (SRK) with
contributions from AuRico, AMEC Foster Wheeler, BioteQ
Environmental Technologies, Conveyor Dynamics, ERM Consultants
Canada, Exen Consulting Services, KWM Consulting, Mine Ventilation
Services, and Struthers Technical Solutions.
Mineral Resources and Reserves
The mineral resource estimate for the KUG porphyry
gold-copper-silver deposit was redone by SRK in 2015 with a first
principles approach focused on the interpretation of the primary
lithologies and their alteration by the mineralizing process.
Statistical analysis indicated that individual grade populations
are related to both the primary lithology and alteration style and
intensity, with resource estimation parameters subsequently
constrained accordingly. Adding alteration constraints was deemed
necessary for resource model accuracy, in terms of grade
estimation, as well as applicability to mine and process design
parameters (both geotechnical and geometallurgical).
The mineral resource estimate is shown in Table 1. Note that
these resources are within the vertical projection of a KUG cave
footprint derived using metal prices noted below the table.
Table 1: Mineral Resource Estimate, KUG Gold-Copper-Silver
Deposit, BC, Canada, 31 December, 2015 (SRK)
Copper Gold Silver Contained Metal
Resource Quantity Grade Grade Grade Copper Gold Silver
Category (000's t) (% Cu) (g/t Au) (g/t Ag) (000's lbs) (000's Oz) (000's Oz)
Measured 0 0.00 0.00 0.00 0 0 0
Indicated 246,400 0.22 0.42 1.75 1,195,300 3,328 13,866
Measured +
Indicated 246,400 0.22 0.42 1.75 1,195,300 3,328 13,866
Inferred 21,600 0.22 0.40 1.70 104,700 277 1,179
Notes:
1. Mineral resources are inclusive of mineral reserves; only the
mineral reserve portion has demonstrated economic viability.
2. Resources stated are contained within a "reasonable prospects
for economic extraction solid" above C$15.00/t NSR cut-off. A
variable specific gravity value was assigned by domain for all
model blocks.
3. NSR calculation is based on assumed copper, gold and silver
prices of US$3.20/lb, US$1,275/oz and US$21.00/oz, respectively.
4. Mineral resource tonnage and contained metal have been rounded
to reflect the accuracy of the estimate, and numbers may not add
due to rounding.
5. Contained metals are in situ and undiluted, and do not include
metallurgical recovery losses.
6. SRK completed an 85% audit of the Kemess underground resource
database to verify that analytical results have been entered
correctly into the drill hole database used to prepare the 2015
mineral resource estimate. All samples were checked against
their assay certificates via sample number. The audit showed no
significant errors from the resource area regarding the
recording of tabulated analytical data.
The mineral reserve estimate shown in Table 2 is constrained by
the capacity of the tailings storage facility that can receive
tailings from the 246.4Mt Measured and Indicated resource.
Table 2: Mineral Reserve Estimate, KUG Gold-Copper-Silver
Deposit, BC, Canada, 31 December, 2015 (SRK)
Copper Gold Silver Contained Metal
Reserve Quantity Grade Grade Grade Copper Gold Silver
Category (000's t) (% Cu) (g/t Au) (g/t Ag) (000's lb) (000's Oz) (000's Oz)
Proven 0 0.00 0.00 0.00 0 0 0
Probable 107,381 0.27 0.54 1.99 629,595 1,868 6,878
Proven and
Probable 107,381 0.27 0.54 1.99 629,595 1,868 6,878
The various parameters and factors used to derive the mineral
reserve estimate are outlined in the following sections of this
press release.
Mining
The KUG panel cave design and schedule was derived using
Geovia's Footprint Finder and
PCBC[TM] software, an industry
standard for cave optimization and scheduling, using the resource
model provided by SRK. Figure 1 shows the resulting annual gold
equivalent production profile.
Figure 1: KUG Gold Equivalent Production (ounces)
Given local topography, the cave footprint will be accessed and
supported by a triple decline system comprising access, ore
conveying and intake air declines. Mine levels within and directly
adjacent to the cave footprint comprise undercut, extraction,
conveying and ventilation levels. Total life of mine development
requirements are estimated to be 47,750m lateral and 2,200m
vertical development, with all lateral development assumed to be
carried out by owner crews. Lateral development peaks at 8,500m in
the 4th year of mine development, and averages 5,300m
over the nine year period during which underground development
takes place. A total 2,250t of ore per metre of lateral development
results from this mine design, representing a very high
"development efficiency" compared to other underground mining
methods. Note, that panel caving differs from block caving in that
panel caving does not require all cave footprint development to be
completed ahead of cave initiation.
Cave ore is fed from the undercut level to the extraction level
via a total of 582 drawpoints (291 drawbells), facilitating average
steady-state production of 25,000 t/d or 9.0Mt per year. Caving
will be initiated in the highest value ore at the east end of the
KUG deposit. Ore will be delivered to one of four primary jaw
crushers located on the south side of the extraction level.
Following crushing, ore will be conveyed by one of two transfer
conveyors to a 3.2km long underground conveyor (in the conveyor
decline) and then transferred to a 4.9km surface conveyor that will
deliver ore to the existing stockpile ahead of the process
plant.
Geotechnical assessment for caveability, fragmentation,
subsidence and ground support was carried out by SRK and Itasca
Consulting Group Inc. using both empirical and numerical modeling
methods, with this work carried out as part of the 2013 KUG FS
(SRK, 2013).
Processing
Processing ore at a rate of 9.0Mt per year will be achieved
using one of the two KS grinding circuits that was used to process
KS ore. The original flotation, thickening and concentrate handling
facilities will be used for processing KUG ore. Tailings will be
pumped to and stored in the KS open pit, with sufficient capacity
for a minimum 107.4Mt ore treated in the process plant. The KS open
pit was used for waste rock and tailings storage towards the end of
the KS operation.
Testwork has resulted in estimated metallurgical recoveries of
91% copper, 72% gold and 65% silver.
For the KUG ore, the process plant is expected to produce a
single concentrate with an estimated 22% copper content as well as
payable gold and silver. Testwork has shown the KUG concentrate to
be free of deleterious elements, hence it is not expected to incur
penalties and it is expected to be readily marketable to both
smelters and traders.
Due to minor mineralogical differences between the KUG and KS
ores, a finer grind is required for KUG ore, resulting in the
requirement to install stirred regrinding mills to achieve the
targeted P80 20 microns. Testwork carried out to
determine fine grinding mill energy requirements included batch
Eliasaon, Levin and Signature Plot tests.
Capital Expenditures
The majority of the capital expenditures at KUG pertain to
underground mine capital, reflecting the benefit of having existing
infrastructure and processing facilities in place, but also the
higher proportion of up-front development requirements for cave
mining. The two most significant categories of mine capital
expenditures are underground mine development and the purchase of
underground mobile equipment. While the outright purchase of
underground mining equipment is assumed for this study, AuRico will
also be evaluating leasing alternatives. Pre-commercial production
expenditures on underground mobile equipment totals C$86M or 19% of initial capital.
Pre-production capital expenditures are estimated at
C$524M comprising C$380M in initial capital expenditures and
$144M in capitalized operating
expenses. A further C$70M in capital
expenditures and C$9M in capitalized
operating expenses (net of pre-commercial production revenue and
after adjustments for working capital and taxes) will be spent
before commercial production is declared (refer to Table 3). The
total pre-production capital expenditure equates to C$603M or US$452M.
The development period is 4 years to first production and 5 years
to commercial production.
Pre-production capital is inclusive of 12.5% contingency. It is
estimated that 87% of capital expenditure will be C$ denominated,
with the 13% non-C$ denominated costs relating to equipment
(including spares), consumables and fuel purchases.
Sustaining capital expenditure is approximately C$262M, including C$207M of ongoing underground development and
underground mobile equipment refurbishments and replacements,
C$31M relating to the tailings
storage facility, and C$13M for the
addition of a third fine re-grind mill in the processing
facility.
Table 3: Initial Capital Cost Estimate (C$ millions)
Additional
Capital to
To First Commercial
Item Production Production
Mining 205 61
Processing 31 7
Site Services G&A 13 0
Conveyor 40 0
Electrical 18 1
Underground Ventilation 10 0
Access Corridor and Other 43 0
Water Treatment 13 0
Tailings Storage Facility and Pipeline 7 1
Total Capital 380 70
Capitalised Pre-production Opex 144 94
Capitalized Pre-production Revenue - (85)
Total Capital 524 79
Total Capital (US$) US$393 US$59
Operating Expenses
The total unit operating costs after the commencement of
commercial production are estimated at C$14.27/t ore, comprising a mining cost of
C$5.39/t, a processing cost of
C$5.69/t, a G&A cost of
C$2.93/t and a water treatment cost
of C$0.26/t. A summary of the KUG
life-of-mine (commercial production period) unit operating cost
estimates are shown in Table 4.
Labour is a significant component of operating costs, comprising
53% of mining, 17% of processing, and 26% of G&A costs.
Other significant operating costs include consumables (37% of
processing cost), electricity (32% of processing cost), and flights
and camp (28% of G&A cost).
It is estimated that 85% of operating costs will be C$
denominated, with the 15% non-C$ denominated costs due to equipment
spares, consumables and fuel purchases.
Table 4: Operating Expenditure Estimate - Summary of Unit Costs
(C$/t ore)
Item Commercial Production
Mining $5.39
Processing plant $5.69
Water Treatment $0.26
G & A $2.93
Total $14.27
Marketing Expenses
Marketing expenses include treatment and refining costs, smelter
deductions and transportation costs. Various alternate destinations
were studied and compared for the most favourable combination of
freight costs and economic terms. For the KUG FS, it was assumed
that concentrate would be exported to a smelter in Japan, Korea or Northern China.
Total life-of-mine concentrate transport costs are estimated at
C$208M, or C$176 per dry metric tonne, with approximately
75% being Canadian dollar denominated expenditures.
Total life-of-mine treatment and refining costs are estimated at
C$196M, comprised primarily of
treatment charges of US$80 per dry
metric tonne of concentrate, and refining costs of US$0.08 per payable pound copper and US$6.00 per payable ounce of gold; these costs
are entirely US dollar denominated.
Total life-of-mine effective payable rates are 95.5% copper,
97.0% gold and 90.0% silver, for total smelter deductions of
C$161M.
No penalties have been applied as testwork has shown the KUG
concentrate to be free of deleterious elements.
Upside Opportunities
The following opportunities have been identified as a result of
carrying out the KUG FS. However, these opportunities require
technical, environmental, social and economic evaluation and should
therefore be considered speculative until this evaluation work has
been completed.
- Mining mobile equipment leasing; KUG FS assumed purchasing all
mobile equipment for C$86M
pre-commercial production and C$147M
life-of-mine
- Operating cost decrease associated with use of automated
production load-haul-dump (LHD) equipment, and use of electric
drive LHDs
- Increase KUG mining and processing rate by addition of a
secondary crusher ahead of grinding
- Improved draw cone interaction, compared to the KUG FS
assumption, resulting in reduced lateral development
requirements
- Increase in KUG mine life (from large KUG M&I resource
base) by identifying additional tailings storage capacity
- Conversion of resources to reserves at Kemess East deposit
Technical Information
The results of the KUG FS will be summarized in a Technical
Report prepared pursuant to Canadian Securities Administrators'
National Instrument 43-101 that will be filed on SEDAR
(http://www.sedar.com) within 45 days and will also be available on
the Company's website (http://www.auricometals.ca). For further
information with respect to the key assumptions, parameters, risks,
the mineral reserve estimate, data verification, QA/QC and other
technical information with respect to the KUG project, please refer
to the Technical Report when available.
This press release has been reviewed and approved by
John Fitzgerald, P.Eng, MBA, Chief
Operating Officer of the Company and "qualified person" (QP) for
the purposes of NI 43-101.
Contributors and QPs to the FS are listed in Table 5 below.
Table 5: List of Feasibility Study Authors and
Responsibilities
Author Company Area of Responsibility
Chad Yuhasz, P.Geo SRK Mineral Resource Estimation, Quality
Assurance/Quality Control (QA/QC),
Geology
Jarek Jakubec, C.Eng, MIMMM SRK Geotechnical Engineering, Mineral
Reserve Estimate, Mine Design and
Schedule
Iouri Iakovlev, P.Eng SRK Underground Infrastructure,
Construction and Development, Mining
costs, G&A costs, Project Economics,
Project Execution Plan
Dan Stinnette, P.Eng Mine Ventilation Mine Ventilation
Services
Andrew Jennings, P.Eng Conveyor Dynamics Conveyor Design - Surface &
Underground
Ken Major, P.Eng KWM Consulting Metallurgy And Mineral Processing
Andrew Witte, P.Eng AMEC Foster Water Storage, Surface Infrastructure
Wheeler and Waste Management Engineering
David Kratochvil, P.Eng. BioteQ Waste water treatment
Environmental
Technologies
Rolf Schmitt, P.Geo. ERM Consultants Environmental and Permitting
Canada
Andrew Falls Exen Consulting Concentrate marketing and logistics
Services
Chris Struthers Struthers Technical Electrical reticulation
Solutions
Appendix
Appendix 1: Kemess Site (2015) showing processing facility
(front), maintenance-administration facility and camp
Appendix 2: KUG project infrastructure
Appendix 3: Isometric view of KUG mine workings and cave
(red)
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-stage 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: our production
estimates and timing thereof; estimated production costs, estimated
all-in sustaining costs and capital expenditures; expected upside
opportunities and de-risking initiatives such as improvements and
modifications to the proposed development and operations, the
future price of gold, copper and silver, the estimation of mineral
reserves and mineral resources, the realization of mineral reserve
and mineral resource estimates, costs and timing of the development
of projects and new deposits, success of exploration, development
and mining activities, permitting timelines, 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) there being no
significant disruptions affecting the operations of the Company;
(2) the exchange rate between the Canadian dollar and the U.S.
dollar being approximately consistent with assumed levels; (3)
certain price assumptions for gold, copper, silver, diesel and
electricity; (4) the results of the FS (including but not limited
to capital estimates) will be realized within a margin of error
consistent with the Company's expectations; (5) estimated future
production and cost of sales forecasts for the KUG project meeting
expectations; (6) the accuracy of the current mineral reserve and
mineral resource estimates of the KUG project as contemplated by
the FS (including but not limited to ore tonnage and ore grade
estimates); (7) estimated labour and materials costs increasing on
a basis consistent with AuRico' current expectations; (8) the
viability of the KUG including, but not limited to, permitting,
development and expansion, being consistent with AuRico' current
expectations; and (9) access to capital markets, including but not
limited to identifying financing options and securing partial
project financing for the KUG 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: suitability and
reliability of existing infrastructure at Kemess, approval of the
Environmental Assesment submitted by the Company in a timely manner
and on terms acceptable to AuRico, the results of exploration at
Kemess East and the accuracy of the mineral resource estimates at
Kemess East, effectiveness of measures to minimize risks with
respect to KUG; 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 discount rates applied to
calculate the present value of net future cash flows; 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; the security of personnel and assets;
political or economic developments in Canada, the United
States or elsewhere; business opportunities that may be
presented to, or pursued by, us; operating or technical
difficulties in connection with mining or development activities;
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