AuRico Gold (AUQ) Updates on Reserves at Young-Davidson, El Chanate

AuRico Gold (NYSE: AUQ) reported its updated Reserves and Resources, as at December 31, 2014. (Detailed Mineral Reserve and Resource tables can be found at the end of this press release).

Mineral Reserves and Resources

Reserve Highlights

As at December 31, 2014, the Company is reporting:

• Reserves at the Young-Davidson underground mine increased by 207,000 ounces, or 6%, over 2013, as the Company was successful in replacing production and increasing reserves.
• Reserves decreased by 37% at the El Chanate mine, due to both mining depletion and a reduction in overall slope angles, while reserve grades increased by 5%. The reduction in planned slope angles came after a thorough external geotechnical review of geotechnical drilling, mapping and slope performance.

Gold Reserves by asset are summarized in the table below:

In addition to gold reserves, the Company is also reporting copper reserves of:

• 619 million pounds at the Kemess Underground Project at a reserve grade of 0.28%, using a copper price of $3.00 per pound.

"We remain encouraged with the quality of the underground reserve base reported from our cornerstone Young-Davidson mine, which has increased over the prior year with a consistent grade profile. This robust ore body is comprised of low cost, long life, high margin ounces and this asset is positioned for a long and profitable mine life." stated Scott Perry, President and Chief Executive Officer. He continued, "Company-wide, we are also reporting a significant increase in our resource base in Canada as a result of our successful drilling program at Kemess East, as well as through our strategic joint venture on the promising Lynn Lake Project."

Resource Highlights

As at December 31, 2014 the Company is also reporting the following Mineral Resources, which are in addition to reserves:

• Measured and Indicated gold resources of 4.1 million gold ounces at a grade of 0.84 g/t, an increase of 1.6 million ounces, or 64%, primarily related to additional resources from the Kemess East and Lynn Lake Projects; and
• Inferred gold resources of 2.4 million gold ouncesat a grade of 0.52 g/t, an increase of 1.9 million ounces, or 409%, primarily related to additional inferred resources from the Kemess East and Lynn Lake Projects.

Gold mineral resources as at December 31, 2014 by asset are summarized in the table below:

The Company is also reporting by-product mineral resources:

• Indicated by-product resources including:
  • 346 million pounds of copper from the Kemess Underground Project at a grade of 0.24%; and
  • 504 million pounds of copper from the Kemess East Project at a grade of 0.41%.

• Inferred by-product resources including:
  • 46 million pounds of copper from the Kemess Underground Project at a grade of 0.21%; and
  • 871 million pounds of copper from the Kemess East Project at a grade of 0.34%.

Chris Bostwick, Senior Vice President, Technical Services for AuRico Gold Inc. has reviewed the scientific and technical information contained within this press release and serves as the Qualified Person as defined by National Instrument 43-101.

Reserves and Resources (as of December 31, 2014)

Notes to Mineral Reserve and Resource tables:

• Mineral Reserves and Resources have been stated as at December 31, 2014.
• Mineral Resources are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
• El Chanate and Young-Davidson assumed a gold price of $1,250 per ounce for reserves and $1,450 per ounce for resources.
• Kemess Underground assumed a gold price of $1,300 per ounce, a silver price of $23.00 per ounce, and a copper price of $3.00 per pound for reserves. Kemess Underground assumed a $13.00 NSR cutoff for resources. Kemess East assumed a $15.00 NSR cutoff for resources.
• Lynn Lake assumed a gold price of $1,555 per ounce for resources.
• Orion assumed a gold price of $850 per ounce and a silver price of $13.00 per ounce for resources.
• Mineral Reserves assume the following cutoff grades and process recoveries:
  • Young-Davidson - Surface: 0.50 gpt cutoff, 91% mill recovery
  • Young-Davidson - Underground: 1.90 gpt cutoff, 91% mill recovery
  • El Chanate: 0.15 gpt cutoff, 30%-65% leach recovery
  • Kemess Underground: $15 NSR cutoff, mill recovery of 72% for gold and 91% for copper
• Mineral Resources and Mineral Reserves have been classified in accordance with Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") "CIM Definition Standards - For Mineral Resources and Mineral Reserves" adopted by the CIM Council in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), as is required by Canadian securities regulatory authorities. In addition, while the terms "Measured", "Indicated and "Inferred" Mineral Resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the SEC. Investors should understand that "Inferred" Mineral Resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of AuRico's Mineral Resources constitute or will be converted into Reserves.
• Orion Mineral Resources are reflected on a 50% basis.� Following the completion of a joint venture agreement, Minera Frisco, S.A.B. de C.V. has a 50% interest in the Orion project.
• Lynn Lake Mineral Resources are reflected on a 25% basis. AuRico acquired a 25% interest in the Lynn Lake properties in November 2014.
• Mineral Reserve and Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
• The Company's normal data verification procedures have been used in collecting, compiling, interpreting and processing the data used to estimate mineral reserves and mineral resources and data underlying the information, opinion and outlook contained herein. Independent data verification has not been performed.
• Mineral Resources were prepared under the supervision and review of Jeffrey Volk, CPG, FAusIMM, the Director of Reserves and Resources, for AuRico Gold Inc. Mineral Reserves were prepared under the supervision and review of Chris Bostwick, FAusIMM, the Senior Vice President Technical Services, for AuRico Gold Inc. Both Messrs Volk and Bostwick are "Qualified Persons" as defined by National Instrument 43-101.�

You May Also Be Interested In

• Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
• SunPower (SPWR) determined prior financial statements should no longer be relied upon
• Greenlane Holdings Inc. (GNLN) Receives Nasdaq Non-compliance Notice