TORONTO, Nov. 3, 2015 /PRNewswire/ - 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.
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.
SOURCE AuRico Metals