AuRico Gold Reports Significant Drill Results from the El Chanate Mine
TORONTO, June 29, 2011 /PRNewswire/ --
AuRico Gold Inc. (TSX:AUQ) (NYSE: AUQ), ("AuRico") is pleased to provide an update of drilling results from the El Chanate Mine in Sonora, Mexico. Since April 2010, 213 new drill holes for 28,499 metres of drilling (23 drill holes for 5,052 metres since April 8, 2011) have been completed with the objective of converting inferred resources to measured and indicated, extending the deposit at depth to the south and southeast and to explore for extensions to the west and east of the present open pit. Results to date have delineated thick zones of continuous mineralization throughout the deposit and defined anomalous mineralization both east and south of the existing open pit (refer to Table 1 in the Appendix for selected drilling results).
"We are very pleased that since acquiring the El Chanate Mine in April, the targeted drilling program has returned composite grades substantially higher than reserve grades. The deposit is proving to be open in both directions along strike, as well as to the south and southeast at depth. The Company plans on utilizing a similar exploration approach at El Chanate that has proven to be so successful at Ocampo and plans to mobilize a core drill to the project in Q3 to test new and existing targets," stated Peter Drobeck, Senior Vice President of Exploration and Business Development.
Select results, shown in red on Diagram 1, include:
2010 Drilling Results
Hole ID From (m) To (m) Length (m) Gold g/t
CHCI-348 6.1 48.8 42.7 1.14
CHCI-376 68.6 108.2 39.6 1.79
CHCI-380 3.1 61.0 57.9 0.95
CHCI-386 0.0 21.3 21.3 2.31
CHCI-392 0.0 57.9 57.9 0.72
CHCI-392 65.5 68.6 3.0 1.43
CHCI-392 80.8 83.8 3.0 1.38
CHCI-392 96.0 112.8 16.8 0.27
CHCI-392 138.7 158.5 19.8 0.81
CHCI-393 1.5 22.9 21.3 0.29
CHCI-393 38.1 83.8 45.7 0.80
CHCI-393 96.0 132.6 36.6 0.37
CHCI-404 0.0 12.2 12.2 0.36
CHCI-404 57.9 68.6 10.7 1.46
CHCI-404 83.8 135.6 51.8 1.65
CHCI-417 1.5 47.2 45.7 0.59
CHCI-417 102.1 138.7 36.6 1.49
CHCI-422 73.2 153.9 80.8 0.79
CHCI-422 170.7 184.4 13.7 1.69
CHCI-423 0.0 91.4 91.4 0.80
CHCI-453 6.1 9.1 3.0 2.97
CHCI-453 19.8 30.5 10.7 0.32
CHCI-453 44.2 111.3 67.1 1.13
CHCI-470 123.4 211.8 88.4 0.77
2011 Drilling Results
CHCI-482 65.5 146.3 80.8 1.13
CHCI-498 86.9 134.1 47.2 1.00
CHCI-536 134.1 160.0 25.9 2.26
CHCI-539 176.8 217.9 41.2 1.30
CHCI-543 129.5 140.2 10.7 7.22
This press release sets out the gold grades found in samples from reverse circulation drilling. The El Chanate exploration information has been reviewed and verified by Qualified Person, Mr. Peter Drobeck, including review of portions of the drill logs, the original assays, and calculating the composite intercepts. Gold sample analyses for El Chanate were performed by the mine's on-site laboratory until the change in ownership to AuRico Gold Inc. in April 2011, but with a rigorous QA_QC program that used commercial standards and also had 5% of all samples checked through ALS_Chemex Laboratories, based in Vancouver, British Colombia. Since the change in ownership (and after and including drill hole CHCI-534) all assays are performed by ALS_ Chemex Laboratories, with checks by the local mine lab. The Company maintains a Quality Assurance - Quality Control program including the insertion of commercial control reference pulps and blanks in all its drill programs, along with a dedicated QA-QC engineer to monitor results. Sample lengths are not necessarily true widths.
About AuRico Gold
AuRico Gold is a leading intermediate Canadian gold and silver producer with a diversified portfolio of high quality mines and projects in Mexico. The Company's three wholly-owned operating properties include the Ocampo mine in Chihuahua State, the El Chanate mine in Sonora State and the El Cubo mine in Guanajuato State. Its strong pipeline of development and exploration stage projects includes the Guadalupe y Calvo advanced exploration property in Chihuahua State and the Orion advanced exploration property in Nayarit State, along with six exploration properties throughout Mexico. AuRico's head office is located in Toronto, Ontario, Canada.
Cautionary Statement
Cautionary Note to US Investors - The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. This press release uses certain terms, such as "measured", "indicated" and "inferred" "resources,? that the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC. US Investors are urged to consider closely the disclosure in AuRico Gold's Annual Report on Form 40-F, which may be secured from AuRico Gold, or from the SEC's website at http://www.sec.gov/edgar.shtml .
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Certain statements included herein, including information as to the future financial or operating performance of the Company, its subsidiaries and its projects, constitute forward-looking statements. The words ''believe'', ''expect'', ''anticipate'', ''target'', ''continue'', ''estimate'', ''may'', and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding the grades of additional underground and surface drilling programs at El Chanate, the ability to delineate additional measured and indicated resources or reserves as a result, the suitability of targets for future open pit mining at El Chanate, anticipated future financial and operational performance, the future price of gold and silver, the timing of re-commissioning and re-commencement of production at El Cubo, the de-risking of operations, future exploration results of its exploration and development program at El Chanate and the success of the Company's exploration approach, the Company's ability to delineate additional resources and reserves as a result of such program, and the company's ability to mine such targets by mid-2011, statements regarding its financial exposure to litigation, targets, estimates and assumptions in respect of gold and silver production and prices, operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades, recovery rates, future financial or operating performance, margins, operating and exploration expenditures, costs and timing of completion of the Ocampo expansion program and improvements to the heap leach pad, costs and timing of the development and commencement of production of new deposits, costs and timing of construction, costs and timing of future exploration and reclamation expenses including, anticipated 2011 results, operating performance projections for 2011, our ability to fully fund our business model internally, 2011 gold and silver production and the cash and operating costs associated therewith, the ability to achieve productivity and operational efficiencies, and the timing of each thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, known and unknown uncertainties and risks relating to additional funding requirements, reserve and resource estimates, commodity prices, hedging activities, exploration, development and operating risks, illegal miners, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs, restrictions in the Company's loan facility, dependence on key employees, possible variations of ore grade or recovery rates, failure of plant, equipment or process to operate as anticipated, accidents and labour disputes. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
Significant 2010 Drill Results
Hole From (m) To (m) Length (m) Gold g/t
CHCI-344 4.6 12.2 7.6 0.38
CHCI-344 36.6 39.6 3.0 4.01
CHCI-344 48.8 51.8 3.1 3.08
CHCI-344 91.4 99.1 7.6 2.92
CHCI-345 10.7 22.9 12.2 0.41
CHCI-345 85.3 111.3 25.9 0.74
CHCI-347 3.1 30.5 27.4 0.90
CHCI-347 47.2 86.9 39.6 0.39
CHCI-348 6.1 48.8 42.7 1.14
CHCI-348 71.6 74.7 3.1 0.91
CHCI-350 7.6 47.2 39.6 0.77
CHCI-351 0.0 22.9 22.9 0.71
CHCI-351 68.6 97.5 29.0 0.30
CHCI-354 0.0 35.1 35.1 0.59
CHCI-354 44.2 68.6 24.4 0.93
CHCI-376 68.6 108.2 39.6 1.79
CHCI-377 3.0 73.2 70.1 0.64
CHCI-378 0.0 22.9 22.9 0.95
CHCI-378 67.1 89.9 22.9 0.70
CHCI-379 1.5 27.4 25.9 1.14
CHCI-379 33.5 61.0 27.4 0.38
CHCI-380 3.1 61.0 57.9 0.95
CHCI-386 0.0 21.3 21.3 2.31
CHCI-392 0.0 57.9 57.9 0.72
CHCI-392 65.5 68.6 3.0 1.43
CHCI-392 80.8 83.8 3.0 1.38
CHCI-392 96.0 112.8 16.8 0.27
CHCI-392 138.7 158.5 19.8 0.81
CHCI-393 1.5 22.9 21.3 0.29
CHCI-393 38.1 83.8 45.7 0.80
CHCI-393 96.0 132.6 36.6 0.37
CHCI-398 29.0 138.7 109.7 0.31
CHCI-402 0.0 48.8 48.8 0.66
CHCI-402 93.0 96.0 3.1 2.42
CHCI-403 0.0 39.6 39.6 0.63
CHCI-403 96.0 152.4 56.4 0.73
CHCI-404 0.0 12.2 12.2 0.36
CHCI-404 57.9 68.6 10.7 1.46
CHCI-404 83.8 135.6 51.8 1.65
CHCI-406 4.6 30.5 25.9 0.70
CHCI-406 50.3 82.3 32.0 0.81
CHCI-406 91.4 99.1 7.6 0.34
CHCI-406 125.0 152.4 27.4 0.36
CHCI-407 0.0 54.9 54.9 0.34
CHCI-417 1.5 47.2 45.7 0.59
Significant 2010 Drill Results
Hole From (m) To (m) Length (m) Gold g/t
CHCI-417 102.1 138.7 36.6 1.49
CHCI-418 4.6 18.3 13.7 0.36
CHCI-418 30.5 59.4 29.0 0.93
CHCI-418 155.5 190.5 35.1 0.47
CHCI-419 0.0 39.6 39.6 0.66
CHCI-419 62.5 96.0 33.5 0.62
CHCI-419 108.2 125.0 16.8 0.90
CHCI-420 4.6 29.0 24.4 0.38
CHCI-420 36.6 41.2 4.6 0.32
CHCI-420 65.5 83.8 18.3 1.32
CHCI-422 73.2 153.9 80.8 0.79
CHCI-422 170.7 184.4 13.7 1.69
CHCI-423 0.0 91.4 91.4 0.80
CHCI-424 4.6 24.4 19.8 0.75
CHCI-424 39.6 54.9 15.2 1.68
CHCI-424 175.3 221.0 45.7 0.45
CHCI-427 4.6 30.5 25.9 1.52
CHCI-427 227.1 233.2 6.1 3.22
CHCI-449 9.1 54.9 45.7 0.74
CHCI-449 68.6 108.2 39.6 0.63
CHCI-453 6.1 9.1 3.0 2.97
CHCI-453 19.8 30.5 10.7 0.32
CHCI-453 44.2 111.3 67.1 1.13
CHCI-456 6.1 54.9 48.8 0.65
CHCI-461 1.5 54.9 53.3 0.52
CHCI-463 24.4 57.9 33.5 0.83
CHCI-464 45.7 71.6 25.9 0.84
CHCI-470 123.4 211.8 88.4 0.77
CHCI-474 79.3 111.3 32.0 1.12
Diagram 1: El Chanate Plan Map: http://files.newswire.ca/975/El_Chanate_Plan_Map.pdf
For further information:
please visit the AuRico Gold website at http://www.auricogold.com or contact:
René Marion
President & Chief Executive Officer
AuRico Gold Inc.
+1-647-260-8880
Anne Day
Director of Investor Relations
AuRico Gold Inc.
+1-647-260-8880
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