AuRico gold announces preliminary first quarter production results
Reports Seventh Consecutive Quarter of Record Production
TORONTO, April 1, 2014 /CNW/ – AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), (“AuRico” or the “Company”) today announces preliminary first quarter production results. All amounts are in U.S. dollars unless otherwise indicated.(Results for the first quarter 2014 are estimates only and are subject to change.)
AuRico is reporting its seventh consecutive quarter of record production, representing a 10% increase over the prior quarter and a 17% increase over the first quarter of 2013. The solid quarter-over-quarter production growth was driven by increased production from both our cornerstone Young-Davidson mine and the El Chanate mine. Period-over-period production growth is expected to continue going forward, underpinned by the ongoing ramp-up in production at theYoung-Davidson mine located in northern Ontario.
Preliminary 2014 First Quarter Operational Results
- During the quarter, the underground mine averaged approximately 2,600 tonnes per day at grades in-line with reserve grade estimates. Underground productivity is expected to increase steadily throughout the remainder of the year to reach a productivity target of 4,000 tonnes per day by the end of the year and an ultimate productivity level of 8,000 tonnes per day at the end of 2016.
- The shaft & hoisting infrastructure was commissioned in October 2013 and will facilitate significant increases in underground productivities and corresponding cost efficiency improvements as the underground mine continues to ramp up to its ultimate productivity levels.
- For the first full quarter of commercial production, underground unit mining costs are in-line with expectations at approximately $45 per tonne, including costs associated with the recently commissioned paste backfill operation. Unit mining costs are expected to decrease steadily throughout the year, corresponding with planned quarter-over-quarter increases in underground productivity. Underground cash costs per ounce in the quarter are expected to be in-line with guidance levels.
- During the quarter underground development advance exceeded planned levels with approximately 3,400 metres completed, an average of 38 metres per day. The Company continues to advance underground development to position the mine for sustainable, period-over-period, productivity increases in 2014 and beyond.
- The mill facility continues to operate at, or above, planned levels and averaged approximately 7,150 tonnes per day during the first quarter. Mill productivity increased in March to average approximately 8,200 tonnes per day following the receipt of an amended permit that increased the daily processing limit to 10,000 tonnes per calendar day. While the mill facility is expected to average between 7,000 and 7,500 tonnes per day in 2014, this increase in throughput will provide considerable flexibility as the underground mine continues ramping up to its target of 8,000 tonnes per day at the end of 2016.
El Chanate Update
- The El Chanate open pit mined an average of approximately 95,800 tonnes per day during the quarter in-line with planned levels.
- Crushing and stacking rates remained in-line with targeted levels.
- Cash costs for the quarter are expected to be at the lower end of guidance.
Upcoming News Flow
The Company expects to issue the following updates during the first half of 2014:
- Q1 2014 Financial Results (May 8)
- Annual General Meeting (May 9)
- Company-Wide Exploration Update (late-May)
Annual General Meeting
AuRico Gold’s 2014 Annual General and Special Meeting for shareholders will be held on Friday, May 9, 2014 at 10:00 a.m. Eastern Time, at the TMX Broadcast Centre, 130 King Street West, Toronto, Ontario.
About AuRico Gold
AuRico Gold is a leading Canadian gold producer with mines and projects in North America that have solid production growth and exploration potential. The Company is focused on its core operations including the Young-Davidson gold mine in northern Ontario and the El Chanate mine in Sonora State, Mexico. AuRico’s project pipeline also includes advanced development opportunities in Canada and Mexico. AuRico’s head office is located in Toronto, Ontario, Canada.