TORONTO, Nov. 3, 2015 /CNW/ - AuRico Metals Inc. (TSX:
AMI), ("AuRico" or the "Company") is pleased to announce the
assay results from the Company's 2015 Exploration Program at the
Kemess Property. Drilling this season focused primarily on Kemess
East (twelve drill holes, 17,419 metres) located approximately 1
kilometer (km) east of the Kemess Underground ("KUG") deposit and
6.5 km north of the Kemess Mill Facility. Three holes (4,365
metres) were drilled in what we are calling the Kemess Offset Zone
("KOZ") located between Kemess Underground and Kemess East ("KE")
and another nine holes (5,932 metres) were drilled elsewhere on the
property.
Kemess East ("KE")
The results from the first two drill holes at KE this year were
released in an AuRico Metals press release dated August 18, 2015. Highlights from the remainder of
this years' KE drilling include:
-
KH-15-23 intersected 458 metres of 0.640 g/t Au and 0.437%
Cu
o Including 360.6 metres of 0.749 g/t Au and
0.478% Cu
o Including 167 metres of 1.022 g/t Au and
0.574% Cu
-
KH-15-27 intersected 590 metres of 0.516 g/t Au and 0.366%
Cu
o Including 475.8 metres of 0.615 g/t Au and
0.431% Cu
o Including 325 metres of 0.743 g/t Au and
0.492% Cu
-
KH-15-30 intersected 771.7 metres of 0.465 g/t Au and 0.365%
Cu
o Including 615.2 metres of 0.569 g/t Au and
0.429% Cu
o Including 224.4 metres of 0.773 g/t Au and
0.508% Cu
(The estimated true thickness of the mineralized intervals is
80% of the reported intercept length.)
(Refer to Tables 1-3 for Drill Results, Tables 4-5 for Drill
Collar Locations, and Figures 1-6 respectively for Kemess Property
Location Map, Kemess East Plan Map, Kemess Offset Zone Plan Map and
Cross-Sections of Kemess East and Kemess Offset Zone.)
The inaugural Kemess East resource estimate containing 55.8
million Indicated resource tonnes at 0.52 g/t gold and 0.41 %
copper and a further 117.1 million Inferred tonnes at 0.38 g/t gold
and 0.34% copper was released in an AuRico
Gold (now Alamos Gold, an AuRico Metals' predecessor
company) press release dated January 21,
2015 and in a Technical Report issued to AuRico Gold on December
31, 2014 and reissued to AuRico Metals on July 2, 2015.
This summer's KE drilling has both increased the confidence in
the inaugural KE resource and raised expectations for a potential
increase in resources. Drilling has also identified a higher
grade core of mineralization estimated to be approximately 300m
long. The KE Deposit remains open to the east towards the Kemess
East Offset Fault, to the south towards the post mineral sovereign
intrusion and to the north where Kemess East Offset Fault crosses
the KE deposit.
"We're very pleased with results that came from our investment
in drilling at Kemess over the summer," commented Chris Richter, President and CEO of AuRico
Metals. "We look forward to seeing what these results mean for an
updated Kemess East resource which we plan to release in the first
quarter of 2016."
Kemess Offset Zone ("KOZ")
The KOZ is directly east of the KUG deposit and is separated by
a steeply dipping north-south fault causing the KOZ to be shifted
down elevation. The KOZ shows similar geological characteristics as
KUG. Results from the Kemess Offset drilling include:
- KH-15-06 intersected 297.7 metres of 0.347 g/t Au and 0.241%
Cu
- KH-15-12 intersected 467.25 metres of 0.222 g/t Au and
0.187% Cu
(The estimated true thickness of the mineralized intervals is
80% of the reported intercept length.)
The KOZ is open to the east, to the south (toward the post
mineral sovereign intrusion) and to the north (toward the Kemess
North Boundary Fault and Kemess North Thrust Fault as seen with the
KUG deposit). Drilling in the KOZ was designed to follow up on
encouraging results from drill results from 2005 and 2013.
The nine holes drilled elsewhere on the property did not
intersect any significant values. Geotechnical drill holes
were also completed as part of the Kemess Underground Feasibility
Study Update, to test the rock and overburden conditions around the
triple decline location, the south tunnel location and the conveyor
alignment corridor.
Kemess Property Overview
The Kemess Property (See Figure 1) is located in
north-central British Columbia, Canada, approximately 430 kilometres northwest
of Prince George. The Kemess
Underground Project is located approximately 5.5 kilometres north
of the past producing Kemess South open pit mine that operated from
1998 to 2011 and produced 3 million ounces of gold and 749 million
pounds of copper.
A Feasibility Study on the Kemess Underground Project was
released on March 25, 2013 and proposes an underground
panel caving operation with average annual production of 105,000
ounces of gold and 44 million pounds of copper over a 12 year mine
life.
AuRico Metals is currently advancing a Feasibility Study Update
which is expected to be released in Q1, 2016. Permitting is
progressing as well and the Company intends on submitting its
Environmental Assessment to Provincial and Federal regulatory
bodies before the end of Q1, 2016.
Quality Control – Analyses and Sample Location
Exploration activities at Kemess are being conducted by
AuRico personnel under the supervision of Wade Barnes Project
Geologist and a Qualified Person as defined by National Instrument
43-101. Wade Barnes is PGeo registered with the
Association of Professional Engineers and Geoscientists
of British Columbia ("APEGBC") and has verified the data,
reviewed and approved this news release.
Samples were prepared at an on-site sample preparation lab.
The prepared 250 g samples, crushed to 80% passing 10-mesh and
pulverized to 85% passing 150-mesh, were shipped in security sealed
pails to ALS Chemex Laboratory in North Vancouver for
analysis. The 2015 samples were analyzed for a suite of 33
elements, including iron, molybdenum, and silver, using 4-acid
digestion and ICP atomic emission spectroscopy on a one gram
sub-sample. Significantly mineralized samples were additionally
analyzed by an extra ore grade analysis for copper and
molybdenum by ICP atomic emission spectroscopy, following a 4-acid
digestion. Gold analyses were completed by standard 30g fire assay
with an AA finish. The 2005 samples were analyzed for a suite
of 35 elements, including iron, molybdenum, and silver, using
2-acid digestion and ICP atomic emission spectroscopy on a one gram
sub-sample prior and the 2013 samples were analyzed for a suite of
33 elements using a 4-acid digestion and ICP atomic emission
spectroscopy. 2005 and 2013 copper analyses were completed by AA
spectrometry, following a 3-acid digestion and gold analyses were
completed by standard 30g fire assay with an AA finish.
Copper analyses were completed by AA spectrometry, following a
3-acid digestion. Gold analyses were completed by standard
1-assay-ton fire assay with an AA finish. The 2015 quality control
(QC) samples (blanks, duplicates, and certified reference
materials) were inserted into the sample stream at regular
intervals such that 2 in 25 (8%) samples were submitted for quality
control purposes. The 2005 and 2013 quality control (QC) samples
(blanks, duplicates, and certified reference materials) were
inserted into the sample stream at regular intervals such that 1 in
25 (4%) samples were submitted for quality control purposes. QC
sample performance was monitored on a regular basis, independently
of the laboratories, and failures addressed in a timely
manner. All sample batches were also subjected to each
laboratory's internal quality control procedures, for an additional
40% QC sample volume.
About AuRico Metals
AuRico Metals is a mining royalty and development company whose
royalty assets include a 1.5% NSR on the Young-Davidson Gold Mine,
a 0.25% NSR on the Williams mine at Hemlo, and a 0.5% NSR on the Eagle River mine
– all located in Ontario, Canada.
AuRico Metals also has a 2% NSR on the Fosterville Mine, located in
Victoria, Australia, and 100%
ownership of the advanced Kemess Project in British Columbia, Canada. AuRico Metals'
head office is located in Toronto,
Ontario, Canada.
Cautionary Statement
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 forward-looking statements. The words
"expect", "believe", "anticipate", "will", "intend", "estimate",
"forecast", "budget" and similar expressions identify
forward-looking statements. Forward-looking statements include
those relating to expectations for a potential increase in
resources, estimates of grade core mineralization, timing and
content of any updated Kemess East resource, timing and extent of
any proposed operations, timing of any environmental assessment, as
well as other information as to strategy, plans or future financial
or operating performance, such as the Company's expansion plans,
project timelines, production plans, projected cash flows or
capital expenditures, cost estimates, projected exploration
results, reserve and resource estimates and other statements that
express management's expectations or estimates of future
performance. Forward-looking statements are necessarily based upon
a number of factors and assumptions that, while considered
reasonable by management, are inherently subject to significant
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements, including: uncertainty of
production and cost estimates; fluctuations in the price of gold
and foreign exchange rates; the uncertainty of replacing depleted
reserves and the possible recalculation or reduction of reserves
and resources; the risk that the Young-Davidson shaft will not perform as planned;
the risk that mining operations do not meet expectations; the risk
that projects will not be developed according to budgets or
timelines, changes in laws in Canada, Australia and other jurisdictions in which the
Company may carry on business; risks of obtaining necessary
licenses, permits or approvals for operations or projects such as
Kemess; disputes over title to properties; the speculative nature
of mineral exploration and development; compliance risks with
respect to current and future environmental regulations;
disruptions affecting operations; opportunities that may be pursued
by the Company; employee relations; availability and costs of
mining inputs and labor; the ability to secure capital to execute
business plans; volatility of the Company's share price; the effect
of future financings; litigation; risk of loss due to sabotage and
civil disturbances; the values of assets and liabilities based on
projected future cash flows; risks arising from derivative
instruments or the absence of hedging; adequacy of internal control
over financial reporting; changes in credit rating; risks related
to the operation of the properties in which AuRico Metals holds a
royalty; and the impact of inflation. 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 and the
price of key inputs such as labour, fuel and electricity; credit
market conditions and conditions in financial markets generally;
the ongoing operation of the properties in which AuRico Metals
holds a royalty by the operators of such underlying properties;
revenue and cash flow estimates, production levels, development
schedules and the associated costs; ability to procure equipment
and supplies and ability to do so on a timely basis; the timing of
the receipt of permits and other approvals for projects and
operations; the ability to attract and retain skilled employees and
contractors for the operations; the accuracy of reserve and
resource estimates; the impact of changes in currency exchange
rates on costs and results; interest rates; taxation; and ongoing
relations with employees and business partners. However, 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 and investors
are cautioned that forward looking statements are not guarantees of
future performance. AuRico Metals cannot assure investors that
actual results will be consistent with these forward looking
statements. Accordingly, investors should not place undue reliance
on forward looking statements due to the inherent uncertainty
therein. 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.
Table 1: Drill Intercepts that Intersected the Kemess East
Mineralized Deposit
Table 2: Drill Intercepts that Intersected the Kemess Offset
Mineralized Zone
Table 3: Historic Drill Intercepts that Intersected the
Kemess Offset Mineralized Zone
Table 4: 2015 Drill Collar Locations
Table 5: Historical Drill Collar Locations
Figure 1 - Kemess Property Location Map
Figure 2 - Kemess East Plan Map
Figure 3 - Kemess Offset Zone Plan Map
Figures 4 & 5 - Kemess East Cross Sections
Figure 6 - KOZ Cross Sections
SOURCE AuRico Metals