TORONTO, March 15, 2017 /PRNewswire/ --
AuRico Metals Inc. (TSX: AMI),("AuRico" or the "Company")
is pleased to report that the Canadian Environmental Assessment
Agency ("CEAA") has issued a positive Decision Statement and that
the British Columbia Environmental Assessment Office ("EAO") has
granted an Environmental Assessment Certificate for the Company's
wholly-owned Kemess Underground Project ("the Project").
Chris Richter, President and CEO
of AuRico stated, "These positive decisions are the culmination of
a comprehensive process which began in 2014, and I would like to
thank the many people who worked tirelessly to achieve this
successful outcome. We would not be where we are today if it were
not for the hard work of the AuRico Metals team and our
consultants, along with the extensive efforts and close cooperation
from our First Nations partners, the EAO, and CEAA. The
Tsay Keh Dene, Kwadacha, and
Takla Lake First Nations,
collectively Tse Keh Nay, provided
letters of support to Federal and Provincial Ministers for
Environmental Assessment approval and we are proud to have their
support."
"The Kemess Underground Project presents an attractive
development opportunity given its strong economics - supported by
existing infrastructure, large scale, good jurisdiction, and
advanced stage. Today's environmental approval represents a
significant milestone for the Project, and we are excited about the
opportunity to continue to advance the Project to the benefit of
all stakeholders."
The EAO managed the Environmental Assessment for the Kemess
Underground Project in a Substituted Process on behalf of
British Columbia and CEAA, the
latter of which is on behalf of the Federal Government of
Canada. The Project will require a
number of additional normal course licenses and permits which are
expected to be received early in 2018.
About the Kemess Underground Project
The Kemess Underground Project is a large gold-copper
development project located in north-central British Columbia. The Kemess South open pit
mine operated successfully between 1998 and 2011 and produced
approximately 3 million ounces of gold and 750 million pounds of
copper. Production ceased when the open pit was depleted.
The Kemess Underground deposit is located approximately 6
kilometres north of the existing Kemess South processing plant.
Additional existing infrastructure includes a camp, powerline,
all-weather air-strip, access road, as well as other surface
facilities including an administrative building, workshop and
warehouse. In total, there is approximately C$1 billion worth of existing infrastructure in
place.
AuRico published a Feasibility Study for the Kemess Underground
Project in March 2016 that
contemplates the development of a low-cost panel caving operation
with an initial 12-year mine life. Ore would be transported by
conveyor to the existing processing facilities, with concentrate
transported to a wholly-owned concentrate load-out facility located
in Mackenzie, British
Columbia.
The Feasibility Study demonstrates that Kemess Underground is a
robust project benefiting from extensive existing infrastructure.
The Feasibility Study anticipates total life of mine production of
2.6 million gold-equivalent
ounces[1] (consisting of 1.4 million
ounces of gold, 573 million pounds of copper and 4.5 million ounces
of silver). Gold-equivalent production for the first five
years is expected to average 238koz per annum and 207koz per annum
over the life of mine, with a low All-In Sustaining Cost of
US$682/oz over the first five years
and US$718/oz over the life of
mine. Total up-front capital expenditure for the Project is
estimated at US$452 million with a
payback period estimated at 3.3 years.
The Company also has a 100% interest in the Kemess East deposit,
located 1km east of Kemess Underground. In January, 2017, the
Company released an updated resource estimate for Kemess East
outlining Indicated Resources of 113.1 million tonnes grading 0.38%
Cu and 0.46 g/t Au and Inferred Resources of 63.8 million tonnes
grading 0.34% Cu and 0.31 g/t Au. The resource includes a higher
grade core estimated to contain Indicated Resources of 67.2 million
tonnes grading 0.43% Cu and 0.60 g/t Au as well as Inferred
Resources of 15.2 million tonnes grading 0.41% Cu and 0.51 g/t Au.
The Kemess East deposit remains open to the south, north and
west.
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 Exploration 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
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 in the Feasibility Study,
contained 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 2016 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,
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 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 2016
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.
[1]
Gold Equivalent converts copper and silver production to gold equivalent
production based on revenue assuming metal prices of US$1,250/oz Au, US$2.50/lb
Cu, and US$16/oz Ag.
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