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02 24-14 bmo metals and mining conference
1. Built for Success
BMO Metals & Mining Conference
February 23-26, 2014
TSX: AUQ / NYSE: AUQ
www.auricogold.com
2. FORWARD LOOKING STATEMENTS
This presentation 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 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; 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 accordingly to budgets or timelines, changes in laws in Canada, Mexico 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; risks related to aboriginal title claims; 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; continuation of
the dividend and dividend reinvestment plan; 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; 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; revenue and cash flow estimates, production levels, development schedules and the associated costs; ability to procure equipment and supplies
and 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. 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.
Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred Resources
This presentation uses the terms "measured," "indicated" and "inferred” resources. We advise investors that while those terms are recognized and required by
Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred” resources” have a great amount of
uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies.
United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral
reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally
mineable.
2
3. Positioned For Value Creation
Politically-friendly jurisdiction
High quality asset base
Organic year over year production growth
Lower end of industry cost curve
Long mine life
Strong balance sheet
Pure gold leverage
Capital return to shareholders
3
4. Strong Financial Foundation
Strong Financial Foundation
(as of September 30, 2013)
Shareholder Value Creation
(as of February 17, 2014)
Dividends
$40M
Undrawn
Debt
Facility
$150M
Cash & Eq.
$140M
Share
Buyback
$300M
Fully Funded Business Model
4
5. AuRico at a Glance
Overview
►
Operations and Projects
Quality asset base in top jurisdictions
Young-Davidson (100%)
Location: Ontario, Canada
►
Stage: Production
Young-Davidson mine (Ontario, Canada)
Kemess Underground
►
El Chanate mine (Sonora, Mexico)
Young-Davidson
Kemess Underground (100%)
Location: B.C., Canada
Stage: Development
►
2014 production per share growth of up to 25%
El Chanate
El Chanate (100%)
Location: Sonora State, Mexico
►
►
Production growth of up to 32% at the
Young-Davidson mine
Stage: Production
Primary Asset Summary
YoungDavidson
El Chanate
140 - 160
70 - 80
$700 - $800
$625 - $725
$1,100 - $1,200
$1,000 - $1,100
2012 P&P Reserves (Moz)(6)
3.8
1.2
Total Resources (Moz)(6)
5.9
1.3
Est. Remaining Mine Life
20+
9
Stable production from the El Chanate mine
2014E Production (koz)
►
Strong liquidity position
2014E Cash Costs (US$/oz)(3)(4)
2014E AISC (US$/oz)(3)
►
►
Leverage to the weakening Canadian dollar
Strong FCF growth profile underpinned by
Young-Davidson ramp-up
(3) Refer to endnote #3 (4) Refer to endnote #4 (6) Refer to endnote #6
Resources are inclusive of reserves
5
6. Disciplined Quarterly Growth Profile
►
Delivered sixth consecutive quarter of company-wide production growth
►
Quarterly production increase is expected to continue as the YD underground mine ramps-up
Reliable and Consistent Company-Wide Production Growth*
60,000
50,000
46,170
48,003
48,903
49,523
Q2-2013
Q3-2013
Q4-2013
41,145
40,000
37,213
30,000
20,000
10,000
0
Q3-2012
Q4-2012
Q1-2013
Q1-2014
Q2-2014
Q3-2014
Q4-2014
* 2014 quarterly production indicated in the chart above is illustrative of expected production increases and should not be considered as quarterly guidance
6
7. 2014 Operational Guidance
►
Gold production increase of up to 25%, with continued annual growth over next 3 years
►
Operating costs are anticipated to decrease significantly as annual production increases
►
Up to 40% decrease in capital investment, with additional decreases going forward
2014 Operational Guidance Highlights
250
Growing Production
$250
Declining Capital Investments
$1,300
225
All-in Sustaining Costs
$1,200
200
175
US$ per ounce
$1,100
US$ (000’s)
Production Oz. (000’s)
$200
$150
$100
150
$1,000
$900
$50
125
$800
100
$700
$0
2013
2014E
2013
2014E
2013
2014E
7
8. Young-Davidson Overview
2013
2014E(5)
120.7
140 – 160
Underground Cash Costs
(US$/oz)(3)
$663
$650 - $750
Open Pit Cash Costs (US$/oz)(3)(4)
$757
$850 - $950
(US$/oz)(3)(4)
$744
$700 - $800
-
$1,100 - $1,200
Gold Production (koz)(7)
Cash Costs
AISC
(US$/oz)(3)
Capital Investment (US$M)
-
$105 - $110
Projected Mine Life (years)
+20
Underground Reserves (Moz)(6)
3.5
Au Grade (g/t)
2.82
Underground Resources
(koz)(6)
839
Au Grade (g/t)
2.74
Mine Type
Underground
Resources are inclusive of reserves
Young-Davidson is one of the largest gold mines in Canada
Underground Mine Ramp-up
Growing Production Profile
35,000
30,000
25,000
(Year-End Productivity Targets)
8,000
7,000
Ore tonnes per Day
Gold Ounces Produced
9,000
20,000
15,000
10,000
5,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
(3) Refer to endnote #3 (4) Refer to endnote #4 (5) Refer to endnote #5
(6) Refer to endnote #6 (7) Refer to endnote #7
Q4 13
Q1 14E
2013A
2014E
2015E
2016E
2017E
8
9. El Chanate Overview
2013
2014E(5)
Au Production (koz)(7)
71.9
70 – 80
Cash Costs (US$/oz)(3)(4)
$592
$625 - $725
70,000
AISC (US$/oz)(3)
-
$1,000 - $1,100
65,000
Capital Investment (US$M)
-
$20 - $25
9
Reserves (Moz)(6)
1.2
Au Grade (g/t)
0.67
Mine Type
Open Pit
Resources are inclusive of reserves
Gold Production Oz.
Projected Mine Life (years)
75,000
Stable Annual Gold Production
60,000
55,000
50,000
45,000
40,000
2011
(3) Refer to endnote #3 (4) Refer to endnote #4 (5) Refer to endnote #5
(6) Refer to endnote #6 (7) Refer to endnote #7
2012
2013
2014E
9
10. New High Grade Mineralization
Hole ID
CHCI-760
CHCI-761
CHCI-766
CHCI-821
Rono(6)
Length (m)
18.0
42.0
51.0
7.5
19.5
Grade Au g/t
0.88
0.50
0.33
0.74
0.93
Hole ID
CHCI-775
CHCI-776
CHCI-799
CHCI-836
Chanate Deeps(6)
Length (m)
54.0
48.0
6.0
24.0
Grade Au g/t
2.56
2.90
7.60
2.70
NW Extension(6)
Hole ID
CHCI-769
CHCI-800
Length (m)
37.5
28.5
Grade Au g/t
0.94
0.67
Hole ID
CHCI-815
CHCI-817
CHCI-818
CHCI-829
►
Loma Prieta(6)
Length (m)
19.5
9.0
9.0
6.0
Grade Au g/t
0.78
1.37
0.58
1.18
Fieldwork initiated on the additional 20kms of land acquired northwest and southeast along trend
(6) Refer to endnote #6
10
11. Kemess Underground Overview
Project Overview
Avg. LOM Annual Prod.
Project Map
105 koz Au / 44 Mlbs Cu
Avg. LOM Cash Costs (US$/oz)(3)
$213
Avg. LOM AISC (US$/oz)(3)
$352
Development Capex (US$M)
$452
Projected Mine Life (years)
12
Au.Eq. Reserves (Moz)(6)
Kemess
Underground
3.3
Au.Eq. Resources (Moz)(6)
Au.Eq. Grade (g/t)(6)
Mine Type
Prince George
1.01
5.2
Vancouver
0.92
Underground
Production Profile(5)
350,000
Gold Production (ounces)
60
250,000
50
200,000
40
150,000
30
100,000
20
50,000
Permitting application process underway
70
300,000
Existing infrastructure: Mill facilities and previously permitted tailings storage
10
0
0
1
(3) Refer to endnote #3
(6) Refer to endnote #6
Copper Production (millions of pounds)
Au.Eq. Grade (g/t)
Prince Rupert
Gold (ounces)
2
3
4
5
6
7
8
9
10
Copper (as Au equivalent ounces)
11
12
13
14
Copper (millions of lbs)
11
12. Production and Cash Flow Growth
Gold Ounces Produced
Growing Production Profile(12)
300,000
250,000
200,000
150,000
100,000
50,000
0
2012A
2013A
2014E
2015E
Decreasing Capital Expenditures and Growing Free Cash Flow Stream(9)
US$ (millions)
$200
$100
$0
2012A
2013E
2014E
2015E
($100)
($200)
($300)
($400)
(9) Refer to endnote #9
(12) Refer to endnote #12
Capex
FCF $1,600 Au
FCF $1,500 Au
FCF $1,400 Au
FCF $1,300 Au
FCF $1,200 Au
Source: FactSet consensus data
12
13. Cash Flow Linked Dividend Policy
►
20% of Operating Cash Flow beginning in 2014
►
►
Linked to changes in business profitability
►
►
Encourages financial discipline
Leveraged to gold price
Includes a Dividend Reinvestment Plan (“DRIP”)
Illustrative Yield per Street Consensus Operating Cash Flow per Share
(8),(10)
2.9%
2.5%
1.8%
2014E
(8) Refer to endnote #8
(10) Refer to endnote #10
2015E
2016E
Source: FactSet consensus data
13
14. Positioned For Value Creation
Politically-friendly jurisdiction
High quality asset base
Organic year over year production growth
Lower end of industry cost curve
Long mine life
Strong balance sheet
Pure gold leverage
Capital return to shareholders
14
15. Built for Success
BMO Metals & Mining Conference
February 23-26, 2014
TSX: AUQ / NYSE: AUQ
www.auricogold.com
17. Endnotes
1.
The Company announced proceeds on sale of over $1 billion dollars during 2012, which is comprised of $55 million cash on the sale of Fosterville and Stawell to Crocodile Gold
Corporation, $100 million cash and $100 million in common shares on the sale of the El Cubo mine and Guadalupe y Calvo project to Endeavour Silver Corporation, and $750 million in
cash on the sale of the Ocampo mine and a 50% interest in the Orion advanced development project to Minera Frisco.
2.
Data as of September 30, 2013.
3.
Cash Costs per Gold Ounce and All-In Sustaining Costs Per Gold Ounce are Non-GAAP measures that do not have any standardized meaning prescribed by International Financial
Reporting Standards (“IFRS” or “GAAP”), and that should not be considered in isolation from or as a substitute for performance measures prepared in accordance with GAAP. See the
Non-GAAP Measures section on page 20 of the Management's Discussion and Analysis for the nine months ended September 30, 2013 available on the Company website at
www.auricogold.com. 2013 cash costs are prior to inventory net realizable value adjustments & reversals, and are estimates only and subject to change.
4.
Cash costs for the Young-Davidson and El Chanate mines are calculated on a per gold ounce basis, net of by-product revenues and net realizable value adjustments. Prior to 2014, gold
ounces include ounces sold at the El Chanate mine and ounces produced at the Young-Davidson mine. Commencing in 2014 cash costs for both the Young-Davidson and El Chanate
mines will be calculated based on ounces sold. Prior to commissioning the underground mine at Young-Davidson, cash costs are calculated on ounces produced from the open pit only.
All underground costs were capitalized, and any revenue related to underground ounces sold was credited against capital expenditures. Subsequent to the declaration of commercial
production in the underground mine, cash costs are calculated on ounces produced from both the open pit and underground mines, and revenue related to the sale of underground
ounces is recognized in the Company’s Statement of Operations as revenue. 2013 cash costs are prior to inventory net realizable value adjustments & reversals, and are estimates only
and subject to change.
5.
For more information regarding AuRico Gold’s 2014 operational estimates, including production, costs, and capital investments, please refer to the press release dated February 6, 2014
titled AuRico Gold Announces 2014 Operational Outlook available on the Company website at www.auricogold.com.
6.
Reserves and resources for Young-Davidson and El Chanate mines, Kemess Underground Project, and Orion represent gold grade as per technical reports and Company disclosure.
For more information regarding AuRico Gold’s Mineral Reserves and Resources as at December 31, 2012 and the Kemess Feasibility Study, please refer to the press release dated
March 25, 2013 titled AuRico Reports 2012 Reserve & Resource Update and Kemess Feasibility Study Results, available on the Company website at www.auricogold.com. Measured
and indicated resources excludes inferred resources. Core lengths in El Chanate drilling highlights are not necessarily true widths.
7.
Production figures include gold ounces only. Production at the Young-Davidson mine includes pre-production ounces, which include ounces produced prior to the declaration of
commercial production on September 1, 2012, and the declaration of commercial production in the underground mine on October 31, 2013.
8.
The illustrative yield assumes the share price as of January 10, 2014. Figures for operating cash flow apply consensus data for cash costs, production estimates, and capex figures and
a $1,300/oz gold price assumption. Consensus data is as of January 13, 2014. For more information regarding AuRico Gold’s dividend policy, please refer to the press release dated
February 21, 2013, available on the Company website at www.auricogold.com.
9.
Figures for 2012 include continuing operations only. Figures for 2013 are based on 2013 preliminary operational results released January 14, 2014, and consensus data. The calculation
of 2014 and 2015 operating cash flow and free cash flow apply consensus data for cash costs, production estimates, and capex figures, and are based on a $1,300/oz gold price
assumption unless noted otherwise. Operating cash flow and free cash flow are before changes in working capital. Consensus data is as of January 13, 2014.
10. 2014 to 2016 per share numbers are based on the number of shares outstanding as of January 2014.
11. Production per 1,000 shares and reserves and resources per 1,000 shares includes the production, and reserves and resources of the Young-Davidson mine, El Chanate mine, Kemess
Underground Project and Orion for each period presented.
12. Figures for 2012 include continuing operations only. Figures for 2013 are based on 2013 preliminary operational results released January 14, 2014 and consensus data as of January
13, 2014. Figures for 2014-2015 are based on consensus data as of January 13, 2014.
17
18. Executive Management
Industry
Experience
Background
►
Scott Perry
President and CEO
►
17 years
►
►
►
Robert Chausse
Executive Vice President
and CFO
►
20 years
►
►
Peter MacPhail
Executive Vice President
and COO
►
30 years
►
►
Trent Mell
Executive Vice President,
Corporate Affairs
►
13 years
►
Appointed President and Chief Executive Officer in July 2012
Joined AuRico in February 2008 as Chief Financial Officer
Former Chief Financial Officer at Highland Gold Mining
Held senior roles with Barrick in the United States, Australia,
Russia and Central Asia
Appointed Chief Financial Officer in January 2013
Former Vice President of Finance, Operations and Projects for
Kinross Gold since 2009
Former Chief Financial Officer for Baffinland Iron Mines from 2006
to 2009
Held increasingly senior positions with Barrick from 1998 to 2006
Joined the AuRico team through the Northgate transaction, where
he was Chief Operating Officer for eight years
Prior to joining Northgate, Mr. MacPhail held increasingly senior
roles at Noranda, Teck, Homestake and Barrick
Joined the AuRico team in 2012
Prior to AuRico, held senior roles at the corporate head offices of
Barrick, Sherritt, and North American Palladium
Previously worked as a securities and M&A lawyer at Stikeman
Elliott LLP
18
19. AuRico Institutional Shareholders
AuRico Gold Inc.
Institutional Ownership
Institution Name
Shares (AUQ_TSE)
% S/O (AUQ_TSE)
Dominant Style
City
Donald Smith & Company, Inc.
23,470,517
9.50
Value
New York
Van Eck Associates Corporation
22,768,061
9.21
Growth
New York
Wellington Management Company, LLP
19,920,374
8.06
Value
Boston
River Road Asset Management, LLC
10,746,474
4.35
Value
Louisville
USAA Asset Management Company
7,297,057
2.95
Specialty
San Antonio
Geologic Resource Partners, LLC
5,704,548
2.31
Alternative
Boston
Fiera Capital Corporation (Asset Management)
4,504,730
1.82
Value
Montreal
Artisan Partners, L.P.
4,446,621
1.80
Growth
Milwaukee
Columbia Management Investment Advisers, LLC
4,084,707
1.65
Value
Boston
Opus Capital Management, Inc.
3,670,407
1.49
Value
Cincinnati
Sun Valley Gold, LLC (U.S.)
3,493,185
1.41
Alternative
Ketchum
OppenheimerFunds, Inc.
3,103,360
1.26
Growth
New York
Wells Capital Management, Inc.
2,606,129
1.05
Aggressive Growth
San Francisco
Global X Management Company, LLC
2,486,407
1.01
Index
New York
Heartland Advisors, Inc.
2,432,763
0.98
Value
Milwaukee
CPP Investment Board
2,266,612
0.92
Index
Toronto
PSP Investments
2,258,741
0.91
Value
Montreal
Eagle Boston Investment Management, Inc.
1,858,804
0.75
Value
Boston
BlackRock Asset Management Canada, LTD
1,665,903
0.67
Index
Toronto
Absolute Return Capital, LLC
1,578,205
0.64
Alternative
Boston
Norges Bank Investment Management (Norway)
1,564,167
0.63
Value
Oslo
TD Asset Management, Inc.
1,520,533
0.62
Growth
Toronto
Deutsche Bank Trust Company Americas
1,489,341
0.60
Value
New York
Aegis Financial Corporation
1,413,395
0.57
Deep Value
McLean
UOB Asset Management, LTD (Singapore)
1,386,800
0.56
Growth
Singapore
19
20. Young-Davidson Outlook
2014 Young-Davidson Operational Estimates(5)
140,000 – 160,000
Underground Mine Cash Costs(3)(4)
$650 - $750
Open Pit (incl. stockpile)(3)(4)
Production increase of up to 32%
►
Decreasing AISC will be driven by growing
production profile
►
2014 mine plan is 75% laterally accessed
& 100% vertically accessed
►
Gold Production (ounces)
►
Lower mine vertical development will
provide access to 20 years of strategic
mine life
►
Disciplined underground ramp-up
$850 - $950
Cash Costs per Ounce(3)(4)
$700 - $800
All-in Sustaining Costs per ounce(3)
$1,100 - $1,200
►
Productivity ramping from 2,500tpd in Q1
to a year-end exit rate of 4,000tpd
►
Target of 8,000tpd by end of 2016
2014 Young-Davidson Capital Investment (US$000’s)(5)
Lower Mine Vertical Development
$25,000
►
Non-Recurring Capital
In-line underground unit mining costs
$25,000
►
Sustaining Capital
Total Capital Investment
$55,000 - $60,000
$105,000 - $110,000
(3) Refer to endnote #3 (4) Refer to endnote #4 (5) Refer to endnote #5
$39/t in November and December, 2013
►
$45/t in Q1/14 with inclusion of pastefill
►
Decreasing unit costs throughout the year
with increased productivity
20
21. El Chanate Outlook
2014 El Chanate Operational Estimates(5)
Gold Production (ounces)
70,000 - 80,000
Cash Costs per Ounce(3)(4)
$625 - $725
All-in Sustaining Costs per Ounce(3)
$1,000 - $1,100
2014 El Chanate Capital Investment (US$000’s)(5)
$17,500 - $22,500
Surface Capital Projects
Total Capital Investment
►
►
$2,500
75,000
$20,000 - $25,000
Consistent year-over-year production
Consistently operating at targeted levels
Stable Annual Gold Production
70,000
Gold Production Oz.
Capitalized Stripping
65,000
60,000
55,000
►
Cash costs at the lower end of the industry cost curve
►
Significant opportunity to extend mine life
45,000
►
Access to an additional 15-20 km of the El Chanate Fault
40,000
50,000
2011
(3) Refer to endnote #3 (4) Refer to endnote #4 (5) Refer to endnote #5
2012
2013
2014E
21
22. 2014 Operational Estimates
2014 Operational Estimates 1,5
Gold Production (ounces)
Young-Davidson
El Chanate
Total Production
140,000 – 160,000
70,000 - 80,000
210,000 – 240,000
Cash Costs per Ounce
Young-Davidson
Underground Mine
$650 - $750
Open Pit (incl. stockpile)
$850 - $950
Young-Davidson Total
$700 - $800
El Chanate
$625 - $725
Total Cash Costs per Ounce
$675 - $775
All-in Sustaining Costs
Young-Davidson
$1,100 - $1,200
El Chanate
$1,000 - $1,100
Total All-in Sustaining Costs per Ounce2,3
$1,100 - $1,200
22
23. 2014 Operational Estimates
Capital Investment Program (US$000’s)
Young-Davidson
Non-Recurring Capital
Lower Mine Vertical Development
MCM Shaft Deepening
$15,000
Lower Mine Ramp Advance
$10,000
Fixed Assets
Underground Mobile Equipment
$10,000
Underground Ventilation Infrastructure
$5,000
Surface Capital Projects
$10,000
Sustaining Capital
Underground Development – Production Ramp-up
Total Capital Investment – Young Davidson
$55,000 - $60,000
$105,000 - $110,000
El Chanate
Capitalized Stripping
Surface Capital Projects
Total Capital Investment – El Chanate
Total Capital Investment
$17,500 - $22,500
$2,500
$20,000 - $25,000
$125,000 - $135,000
Exploration (US$000’s)
Company-wide Exploration
$10,000
General and Administrative (US$000’s)4
Corporate G&A
$20,000
1.
2.
3.
4.
5.
The following currency assumptions were used to forecast 2014 estimates: 0.95:1 US dollar to the Canadian dollar and 13.0:1 Mexican pesos to the US dollar
All-in sustaining costs are defined as cash costs, sustaining capital, corporate general and administrative expense and sustaining exploration.
Sustaining capital is defined as capital expenditures required to maintain current levels of production.
Does not include share-based compensation or corporate restructuring costs
For more information regarding AuRico Gold’s 2014 operational estimates, including production, costs, and capital investments, please refer to the press release dated February
6, 2014 titled AuRico Gold Announces 2014 Operational Outlook available on the Company website at www.auricogold.com.
23
27. Notes to Reserves and Resources
Notes:
•
Mineral Reserves and Resources have been stated as at December 31, 2012.
•
Mineral Resources are in addition to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability when calculated using Mineral
Reserve assumptions. Reserves have been reported in accordance with NI 43-101, as 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.
•
Following the completion of a joint venture agreement, Minera Frisco has a 50% interest in the Orion Project.
•
Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
The following metal prices were used for the calculation of Reserves and Resources:
Reserves
Resources
USD
Au $/oz
Ag $/oz
Cu $/lb
Au $/oz
Ag $/oz
Cu $/lb
El Chanate
$1,400
-
-
$1,600
-
-
Young-Davidson
$1,400
-
-
$1,600
-
-
Kemess Underground
$1,300
$23.00
$3.00
-
-
-
Orion
$13.00 NSR
$850
$13.00
-
Reserves and Resources were prepared under the supervision of the following Qualified Persons:
Resources
Reserves
El Chanate
Jeffrey Volk, CPG, FAusIMM, Director Reserves
and Resources, AuRico Gold Inc.
Chris Sharpe, P.Eng, Manager Mining, AuRico Gold Inc.
Young-Davidson - Open Pit
Jeffrey Volk, CPG, FAusIMM, Director Reserves
and Resources, AuRico Gold Inc.
Chris Sharpe, P.Eng, Manager Mining, AuRico Gold Inc.
Young-Davidson - Underground
Jeffrey Volk, CPG, FAusIMM, Director Reserves
and Resources, AuRico Gold Inc.
Chris Bostwick, FAusIMM, SVP Technical Services,
AuRico Gold Inc.
Kemess Underground
Jeffrey Volk, CPG, FAusIMM, Director Reserves
and Resources, AuRico Gold Inc.
Chris Bostwick, FAusIMM, SVP Technical Services,
AuRico Gold Inc.
Orion
Jeffrey Volk, CPG, FAusIMM, Director Reserves
and Resources, AuRico Gold Inc.
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