The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Newsfile Corp

AuRico Reports the Addition of Over 1M oz of Proven & Probable Reserves at Young-Davidson and the Discovery of Over 1.4M oz of Measured & Indicated Resources Across its Operating Mines

Tuesday, March 06, 2012

AuRico Reports the Addition of Over 1M oz of Proven & Probable Reserves at Young-Davidson and the Discovery of Over 1.4M oz of Measured & Indicated Resources Across its Operating Mines18:41 EST Tuesday, March 06, 2012Toronto, Ontario--(Newsfile Corp. - March 6, 2012) - AuRico Gold Inc. (TSX:AUQ) (NYSE: AUQ), (“AuRico” or “AuRico Gold” or the “Company”) today reported its updated Reserves and Resources, as at December 31st, 2011, which includes a 217% increase to Proven and Probable reserves, and a 758% increase in Measured and Indicated resources. The significant growth in resource inventory has been driven both by the strategic acquisitions of Capital Gold Corporation (April 2011) and Northgate Minerals Corporation (October 2011) as well as additions and discoveries of new mineralization at AuRico’s North American properties.Consolidated Highlights Proven and Probable reserves of 8.63 million gold equivalent ounces(1),an increase of 5.9 million gold equivalent ounces after depletion, or an increase of 217% over 2010. Average reserve grades in the North American Division increased by 7%. Key new additions at the mine sites include: The addition of 1.55 million gold equivalent ounces prior to depletion of 549 thousand gold equivalent ounces, including: The addition of 1.01 million ounces to Proven and Probable reserves at Young- Davidson, and The addition of 456 thousand gold equivalent ounces at Ocampo prior to mining depletion of 177 thousand gold equivalent ounces Measured and Indicated resources of 6.36 million gold equivalent ounces, an increase of 5.4 million gold equivalent ounces, or an increase of 758% over 2010. Average grades in the North American Division increased by 15%. Key new additions at the mine sites include: The addition of 1.13 million gold equivalent ounces company-wide, including 407 thousand gold ounces at Young-Davidson, 264 thousand gold equivalent ounces at Guadalupe y Calvo, 259 thousand gold ounces at Fosterville, 120 thousand gold equivalent ounces at Ocampo, 81 thousand gold equivalent ounces at El Cubo Inferred Resources of 5.1 million gold equivalent ounces, an addition of 417 thousand gold equivalent ounces, or an increase of 9% over 2010 Drilling discovery cost for all reserve and resource categories at the four key North American operations was less than $8 per gold equivalent ounce “Through acquisitions and a focused exploration program in 2011, we have grown our reserves by 5.9 million gold equivalent ounces, or a 217% increase company-wide. Our cornerstone assets, the Young-Davidson and Ocampo mines, contributed the majority of the 2011 reserve increase, with Young-Davidson reporting an addition of over one million gold ounces and Ocampo also discovering over 450 thousand gold equivalent ounces, many of which are high margin, mill-feed ore.” stated René Marion, President and Chief Executive Officer. He added, “The updated reserve and resource profile we are reporting today is indicative of the value we have been able to realize through our key acquisitions in 2011 in addition to the ongoing exploration efforts at our mines. In the past twelve months, we have increased our reserve ounces per 1,000 shares from 19.6 to 30.6. Our core asset base in North America has transformed the company into a premier intermediate gold producer with one of the most attractive production growth profiles in the industry. With imminent production from Young-Davidson, we fully expect 2012 to be another transformational year.” AuRico North America Highlights At year-end 2011, AuRico North America reported: Proven and Probable mineral reserves at Young-Davidson of 3.8 million gold ounces, an addition of 1.01 million gold ounces, or a 36% increase, over 2010 Proven and Probable mineral reserves at Ocampo of 2.4 million gold equivalent ounces, an addition of 456 thousand gold equivalent ounces, or a 22% increase, over 2010, before depletion of 177 thousand gold equivalent ounces. The additions to reserves include: 168 thousand gold equivalent ounces at the Ocampo underground, or an increase of 21% before depletion 288 thousand gold equivalent ounces at the Ocampo open pit operations, or an increase of 22% before depletion Proven and Probable mineral reserves at El Chanate of 1.3 million gold ounces, a decrease of 219 thousand gold ounces, or a 15% decrease, over October 1st, 2009 (the effective date of the last published reserve update), including mining depletion of 275 thousand gold ounces since October 2009. Proven and Probable mineral reserves at El Cubo of 657 thousand gold equivalent ounces, an addition of 58 thousand gold equivalent ounces, or a 9% increase, over 2010, before depletion of 19 thousand gold equivalent ounces. AuRico Gold North AmericaProven and Probable Mineral Reserves by Mine (in thousands of gold equivalent ounces) December 3120112010Change (%)Young-Davidson 3,831 2,819 36% Ocampo 2,384 2,106 13% El Chanate 1,284 1,371 (6%) El Cubo 657 620 6% Total8,1576,91618% The assumptions incorporated in the 2011 Reserve calculation, as compared with those in 2010, are as follows: Reserve Assumptions20112010Gold (US$/oz) $1,250 $1,025 Silver (US$/oz) $23.00 $16.60 Gold Equivalency Ratio 54.35 61.75   Through acquisitions and additions AuRico North America has increased Proven and Probable reserves by 5.43 million gold equivalent ounces, after mining depletion, as reflected in the chart below. Young-Davidson Given the significant increase in gold price since the Young-Davidson Feasibility Study was completed, a re-engineering of the underground mining methods was completed over the last quarter. The Feasibility Study envisaged the use of unconsolidated rock fill and bulk mining methods such as sub-level caving and long-hole shrinkage. The mine has now been re-engineered to utilize paste backfill and longhole stoping, which allows for a significantly higher mining recovery of the in-situ resource. As a result, it is expected that mining recovery will increase from approximately 72% to approximately 92% and, it is expected that dilution will decrease from approximately 15% to below 10%. This, combined with the conversion of the YD West resource into reserves and infill drilling within the Upper Boundary Zone, has resulted in approximately one million Proven and Probable ounces being added to reserves. Drilling in 2012 will focus on extending the YD West Zone and testing additional targets on the east and west flanks of the main Young-Davidson orebodies.Ocampo The 2011 underground drilling program at Ocampo was successful in identifying six new underground veins as well as increasing Proven and Probable reserves in 16 of the existing 28 veins. The underground mining cutoff grades have been reduced from 1.80 to 1.50 gold equivalent grams per tonne due to the increased gold price assumptions. The resulting average grade of the underground reserve has dropped by only 9% as significant high grade discoveries mitigated the impact of lower cut-off grades. Reserve increases at the Ocampo open pit operations were as a result of the delineation of a new open pit that will mine the Belen upper vein and the continuation of the PGR pit to the west on the Estrella structure. Drilling in 2012 will continue to focus on extensions to the existing underground vein system, and follow-up drilling on surface showings of potential new veins and on the Estrella structure.El Chanate Proven and Probable reserves at El Chanate were depleted by 219 thousand ounces, or 27 months of production, since the last reported reserve by Capital Gold Corporation (October 1st, 2009). Since AuRico acquired the property in April 2011, mining depletion has totaled 113 thousand ounces. The 2011 drilling program successfully identified mineralization below and to the south of the existing reserve pit and in 2012 drilling will focus on infilling these areas in anticipation of expanding the reserve pit towards these areas. El Cubo A re-evaluation of dilution assumptions against historical production resulted in increasing cut-and-fill dilution assumptions by 25%, with a resulting corresponding decrease in average grade. Dilution assumptions will be re-visited once the mine has sufficient operating experience with the new long-hole mining method. As a result of the surface drilling program, the Dolores/Capulin structures have grown significantly. 47 thousand gold equivalent ounces were added to underground reserves, and additionally 81 thousand gold equivalent ounces were added to Indicated resources and 381 thousand ounces were added to Inferred resources at the Dolores deposit. The Dolores production ramp has currently advanced to the top of the underground ore horizon. Surface drilling in 2012 will focus on converting additional Inferred material to Measured and Indicated resources, while underground drilling will focus on down dip extensions of existing veins. AuRico Australia Fosterville Proven and Probable mineral reserves of 364 thousand gold ounces, an increase of 12 thousand gold ounces, or 3% greater than 2010, before depletion of 123 thousand gold ounces. Measured and Indicated resources of 924 thousand gold ounces, an increase of 259 thousand gold ounces, or 39% greater than 2010. Inferred resources of 477 thousand gold ounces, a decrease of 120 thousand gold ounces, or 20% less than 2010. Stawell Proven and Probable mineral reserves of 107 thousand gold ounces, a decrease of 41 thousand gold ounces, or 18% less than 2010, before depletion of 85 thousand gold ounces. Measured and Indicated resources of 292 thousand gold ounces, an increase of 16 thousand gold ounces, or 6% greater than 2010. Inferred resources of 145 thousand gold ounces, an increase of 34 thousand gold ounces, or 31% greater than 2010. Guadalupe y Calvo Preliminary Economic Assessment Micon International has completed the Preliminary Economic Assessment (PEA) of AuRico’s 100%-owned Guadalupe y Calvo (GyC) project located in Chihuahua, Mexico. The updated resource (calculated using assumed gold and silver prices of $1,023 per ounce and $16.61 per ounce respectively) stands at 264 thousand gold equivalent ounces in the Measured and Indicated categories and another 146 thousand gold equivalent ounces in the Inferred category. The PEA envisions a 9 year mine life of combined open pit and underground operations with higher grade ore feeding a mill and lower grade ore being stacked on a heap leach facility. The results of the PEA have confirmed that GyC has the potential to produce a meaningful amount of gold and silver averaging 36,000 gold equivalent ounces per year for the first 8 years at a competitive cash cost of $467 per gold equivalent ounce. Upfront capital requirements are estimated at $86 million. The PEA economics highlight GyC’s excellent leverage to gold and silver prices with the pre-tax 5% NPV of $126 million at AuRico’s resource metal price assumptions of $1,450/oz Au and $26/oz Ag increasing to $211 million at spot prices. GyC PEA Results - 4 Case Comparison   Case 1 Case 2 Case 3 Case 4 GyC PEA Resource Price Assumptions AuRico Reserve Price Assumptions AuRico Resource Price Assumptions Spot Price Assumptions Gold Price ($/oz) $1,023 $1,250 $1,450 $1,770 Silver Price ($/oz) $16.61 $23.00 $26.35 $35.00 Au/Ag Ratio 61.6 54.3 55.0 50.6           LOM Production (Koz)        Gold 156.7       Silver 8,490.4       Gold Equivalent 294.5 306.1 311.0 331.5           Mine Life (years) 10                 Average Annual Production (Koz)1        Gold 17.6       Silver 968.1       Gold Equivalent 34.4 35.8 36.4 38.9           Costs (US$ million)        Up-Front Capex $85.9       Sustaining Capital $22.4       LOM Cash Costs (US$/Gold-Equivalent oz) $493 $474 $467 $438           Returns        Pre-Tax Net Free Cash Flow (US$ M) $40.4 $120.6 $188.0 $298.9 Pre-Tax 5% NPV (US$ M) $13.2 $74.7 $126.3 $211.4 Pre-Tax IRR 8.4% 22.2% 32.4% 47.7%           Post-Tax Net Free Cash Flow (US$ M) $34.4 $93.5 $142.1 $222.5 Post-Tax 5% NPV (US$ M) $9.3 $55.8 $93.4 $155.4 Post-Tax IRR 7.5% 19.3% 27.9% 40.9% _____________________________1 First 8 yearsChris Bostwick, Senior Vice President Technical Services, AuRico Gold Inc., a Qualified Person under NI 43-101, has reviewed the technical information in this press release. (1) Gold equivalent calculations for reserves metal prices of $1,250/oz for gold and $23.00/oz for silver, for a gold to silver ratio of 54.35:1. Gold equivalent calculations for resources use metal prices of $1,450/oz for gold and $26.35/oz for silver for a gold to silver ratio of 55.03:1.   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 Canada, Mexico and Australia. The Company currently has five operating properties including the Ocampo mine in Chihuahua State, the El Chanate mine in Sonora State, the El Cubo mine in Guanajuato State, as well as the Fosterville and Stawell gold mines in Victoria, Australia. The first production from the exciting Young-Davidson gold mine in northern Ontario is expected by the end of Q1 2012 as the mine ramps up to over 200,000 ounces of annual production by 2015. AuRico’s strong pipeline of development and exploration stage projects includes advanced development properties in Mexico and British Columbia and several highly prospective exploration properties in Mexico. AuRico’s head office is located in Toronto, Ontario, Canada. For further information please visit the AuRico Goldwebsite at http://www.auricogold.com or contact: René Marion Anne Day President & Chief Executive Officer Director of Investor Relations AuRico Gold Inc.AuRico Gold Inc.+1.647.260.8880 +1.647.260.8880 Cautionary Statement 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 anticipated future financial and operational performance, the ability to continue to fund expansion and exploration operations through cash flows, the ability of the Company to optimize and expand its operations and development projects through capital expenditure, the ability of the Company to complete its expansion studies in a timely manner and to achieve positive results therefrom, the ability to realize the perceived benefits of the acquisition of Northgate, the ability of Young-Davidson to commence production by the end of Q1 2012 and to achieve over 200,000 ounces of annual production by 2015 and to meet the timelines for the commencement of mill processing, the ability to accelerate underground production at Young-Davidson, the ability to increase mining rates at Young-Davidson, the ability of the Company to achieve its targets for the continued expansion and development of Ocampo and El Chanate, the ability to improve infrastructure and productivity at El Cubo, Stawell and Fosterville, the future price of gold and silver and the ratio of their prices, the de-risking of operations, future exploration results of the Company’s exploration and development programs and the success of the Company’s exploration approaches, the Company’s ability to delineate additional resources and reserves as a result of such programs, statements regarding the Company’s 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 and 2012 results, operating performance projections for 2011 and 2012, the Company’s ability to fully fund its business model internally, 2011 and 2012 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. The operating and financial performance of the Company will be affected by changes in the actual gold equivalency ratio realized in 2011 and 2012. 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. ####    Proven Reserves  Probable Reserves    Tonnes   Gold  Silver  Gold  Gold  Silver  Gold  Tonnes  Gold   Silver  Gold  Gold  Silver  Gold    (000's) (g/t)  (g/t)  Equiv    Ounces  Ounces  Equiv.  (000's) (g/t)  (g/t)  Equiv.    Ounces  Ounces  Equiv.        (g/t)  (000's) (000's) (000's)       (g/t)  (000's) (000's) (000's)Ocampo - Open Pit  23,647   0.45   18   0.78   339   13,613   590   45,242   0.37   15   0.64   543   21,410   937  Ocampo - Underground  3,473   2.78   128   5.15   311   14,347   575   2,425   1.91   93   3.63   149   7,268   283  Total Ocampo 27,120  0.75  32   1.34  650  27,960  1,164  47,666  0.45  19   0.80  692  28,678  1,220 Total El Cubo 2,238  1.84  114  3.89  132  8,199  280  3,152  1.88  102  3.72  190  10,313  377 Total - El Chanate 41,783  0.63  -  -  851  -  851  19,745  0.68  -  -  433  -  433 Young-Davidson - Surface  4,173   1.40   -   -   188   -   186   3,394   1.27   -   -   139   -   139  Young-Davidson - Underground  5,799   3.05   -   -   568   -   568   33,259   2.75   -   -   2,936   -   2,936  Total Young-Davidson 9,972  2.36  -  -  756  0  754  36,653  2.61  -  -  3,075  -  3,075 AuRico - North America 81,113  0.92  14  1.17  2,389  36,159  3,050  107,217  1.27  11  1.48  4,391  38,991  5,105 Fosterville 560  7.02  -  -  126  -  126  1,851  4.00  -  -  238  -  238 Stawell - Surface  -   -   -   -   -   -   -   120   0.80   -   -   3   -   3  Stawell - Underground  95   3.75   -   -   11   -   11   756   3.81   -   -   93   -   93  Total - Stawell 95  3.60  -  -  11  -  11  876  3.41  -  -  96  -  96 AuRico - Australia 655  6.52  -  6.52  137  -  137  2,727  3.81  -  3.81  334  -  334 AuRico - Total 81,769  0.96  14  1.21  2,527  36,159  3,187  109,944  1.34  11  1.54  4,725  38,991  5,439     Total Proven and Probable Reserves    Tonnes  Gold  Silver  Gold  Gold  Silver  Gold    (000's) (g/t)  (g/t)  Equiv.  Ounce   Ounce  Equiv. Oz                (g/t)  (000's)  (000's) (000's)Ocampo - Open Pit  68,889   0.40   16   0.69   882   35,023   1,527  Ocampo - Underground  5,897   2.42   114   4.52   460   21,615   857  Total Ocampo 74,786  0.56  24   0.99  1,342  56,638  2,384 Total El Cubo 5,390  1.86  107  3.79  322  18,512  657 Total - El Chanate 61,528  0.65  -  -  1,285  -  1,285 Young-Davidson - Surface  7,567   1.34   -   -   327   -   327  Young-Davidson - Underground  39,058   2.79   -   -   3,504   -   3,504  Total Young-Davidson 46,625  2.56  -  -  3,831  -  3,831 AuRico - North America 188,330  1.12  12  1.35  6,780  75,150  8,157 Fosterville 2,411  4.70  -  -  364  -  364 Stawell - Surface  120   0.80   -   -   3   -   3  Stawell - Underground  851   3.80   -   -   104   -   104  Total - Stawell 971  3.43  -  -  107  -  107 AuRico - Australia 3,382  4.33  -  4.33  471  -  471 AuRico - Total 191,712  1.18  12  1.40  7,251  75,150  8,628     Measured Resources  Indicated Resources    Tonnes  Gold   Silver  Gold  Gold  Silver  Gold  Tonnes  Gold  Silver  Gold  Gold  Silver  Gold    (000's) (g/t)  (g/t)    Equivalent  Ounces  Ounces  Equiv. Oz  (000's) (g/t)  (g/t)  Equivalent   Ounces  Ounces   Equiv. Oz                (g/t)  (000's) (000's) (000's)             (g/t)  (000's) (000's) (000's)Ocampo - Open Pit  9,552   0.33   20   0.69   101   6,121   212   20,555   0.20   8   0.35   130   5,430   229  Ocampo - Underground  607   1.37   64   2.53   27   1,255   49   495   1.07   50   1.98   17   801   32  Total Ocampo 10,158  0.39  23  0.80  128  7,376  262  21,050  0.22  9  0.39  147  6,231  261 Total El Cubo 337  1.10  65  2.27  12  701  25  3,874  2.07  61  3.17  257  7,600  395 El Chanate 1,162  0.38  -  -  14  -  14  1,652  0.44  -  -  23  -  23 Young-Davidson - Surface  739   2.02   -   -   48   -   48   3,499   1.26   -   -   142   -   142  Young-Davidson - Underground  1,527   3.01   -   -   148   -   148   8,864   2.17   -   -   619   -   619  Total Young-Davidson 2,266  2.69  -  -  196  -  196  12,363  1.91  -  -  761  -  761 Orion -  -  -  -  -  -  0  1,107  3.36  309  9.27  130  11,006  330 Kemess Underground -  -  -  -  -  -  0  136,500  0.56  -  -  2,610  -  2,610 Guadalupe y Calvo -  -  -  -  -  -  0  2,523   1.55   93   3.25   126   7,585   264  AuRico - North America 13,924  0.78  18  1.11  349  8,076  496  179,069  0.70  6  0.81  4,055  32,421  4,644 Fosterville - Surface  2,294   2.19   -   -   162   -   162   6,468   1.41   -   -   293   -   293  Fosterville - Underground  41   6.12   -   -   8   -   8   2,728   5.26   -   -   461   -   461  Fosterville - Total 2,335  2.26  -  -  170  -  170  9,195  2.55  -  -  754  -  754 Stawell - Surface  -   -   -   -   -   -   0   3,134   2.16   -   -   218   -   218  Stawell - Underground  -   -   -   -   -   -   0   598   3.86   -   -   74   -   74  Total - Stawell -  -  -  -  -  -  0  3,732  2.43  -  -  292  -  292 AuRico - Australia 2,335  2.26  -  2.26  170  -  170  12,927  2.52  -  2.52  1,046  -  1,046 AuRico - Total 16,259  0.99  15  1.27  519  8,076  666  191,996  0.83  5  0.92  5,101  32,421  5,690    Total Measured and Indicated Resources    Tonnes   Gold  Silver  Gold  Gold  Silver  Gold    (000's) (g/t)  (g/t)    Equivalent  Ounces  Ounces  Equiv. Oz                (g/t)  (000's) (000's) (000's)Ocampo - Open Pit  30,106   0.24   12   0.46   231   11,551   441  Ocampo - Underground  1,102   1.23   58   2.29   44   2,056   81  Total Ocampo 31,208  0.27  14  0.52  275  13,607  522 Total El Cubo 4,211  1.99  61  3.10  269  8,300  420 El Chanate 2,814  0.42  -  -  38  -  38 Young-Davidson - Surface  4,238   1.39   -   -   190   -   190  Young-Davidson - Underground  10,391   2.30   -   -   767   -   767  Total Young-Davidson 14,629  2.03  -  -  956  -  956 Orion 1,107  3.36  309  9.27  130  11,006  330 Kemess Underground 136,500  0.56  -  -  2,610  -  2,610 Guadalupe y Calvo 2,523  1.55  93  3.25  126  7,585  264 AuRico - North America 192,993  0.71  7  0.83  4,405  40,498  5,140 Fosterville - Surface  8,761   1.41   -   -   454   -   454  Fosterville - Underground  2,769   5.26   -   -   469   -   469  Fosterville - Total 11,530  2.49  -  -  924  -  924 Stawell - Surface  3,134   2.16   -   -   218   -   218  Stawell - Underground  598   3.86   -   -   74   -   74  Total - Stawell 3,732  2.43  -  -  292  -  292 AuRico - Australia 15,262  2.48  -  2.48  1,216  -  1,216 AuRico - Total 208,255  0.84  6  0.95  5,620  40,498  6,356     Copper Resources     Tonnes  Copper   Copper    (000’s) (%)  Pounds Kemess Underground          (000's)              Indicated  136,500   0.29   861,000               Inferred  6,000   0.22    30,000    Inferred Resources    Tonnes  Gold   Silver  Gold  Gold  Silver  Gold    (000's) (g/t)  (g/t)  Equivalent   Ounces  Ounces  Equiv. Oz                (g/t)  (000's) (000's) (000's)Ocampo - Surface  27,068   0.40   20   0.77   347   17,822   671  Ocampo - Underground  4,041   3.75   232   7.97   488   30,116   1,035  Total Ocampo 31,109  0.83  48  1.71  835  47,938  1,706 Total El Cubo 7,198  2.37  115  4.46  548  26,682  1,031 El Chanate 549  0.46  -  -  8  -  8 Young-Davidson - Surface  3,515   1.26   -   -   142   -   142  Young-Davidson - Underground  14,784   2.71   -   -   1,289   -   1,289  Total Young-Davidson 18,299  2.43  -  -  1,431  -  1,431 Orion 181  3.33  95  4.98  19  550  29 Kemess Underground 6,000   0.42   -   -   90   -   90  Guadalupe y Calvo 1,832   1.13   74   2.48   67   4,357   146  AuRico - North America 65,168  1.43  38  2.12  2,998  79,528  4,441 Fosterville - Surface  2,554   1.51   -   -   124   -   124  Fosterville - Underground  2,490   4.41   -   -   353   -   353  Fosterville - Total 5,045  2.94  -  -  477  -  477 Stawell – Surface  39   1.57   -   -   2   -   2  Stawell - Underground  916   4.85   -   -   143   -   143  Total – Stawell 955  4.72  -  -  145  -  145 AuRico - Australia 6,000  3.22  -  3.22  622  -  622 AuRico – Total 71,168  1.58  35  2.21  3,620  79,528  5,063 Notes to Reserves and Resources: Mineral Reserves and Resources have been stated as at December 31, 2011. AuRico acquired Capital Gold Corporation, including the El Chanate and Orion properties, in April 2011. AuRico acquired Northgate Minerals Corporation, including the Young-Davidson, Fosterville, Stawell and Kemess properties, in October 2011. Gold equivalent calculations for Ocampo and El Cubo use the reserve metal prices of $1,250/oz for gold and $23.00/oz for silver, for a gold to silver ratio of 54.35:1. Individual process recoveries are not factored into the gold to silver ratio calculation. Gold equivalent calculations for Ocampo, El Cubo, Orion and Guadalupe y Calvo, use the resource metal prices of $1,450/oz for gold and $26.35/oz for silver for a gold to silver ratio of 55.03:1. Individual process recoveries are not factored into the gold to silver ratio calculation. 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 calculated 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 Resources 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 Gold’s Mineral Resources constitute or will be converted into Reserves. The following metal prices were used for the calculation of Reserves and Resources:   Reserves Resources   Au $/oz Ag $/oz Au $/oz Ag $/oz Cu $/lb Ocampo $1250 USD $23.00 USD $1450 USD $26.35 USD - El Cubo $1250 USD $23.00 USD $1450 USD $26.35 USD - El Chanate $1250 USD - $1450 USD - - Young-Davidson $1250 USD - $1450 USD - - Fosterville $1300 AUD - $1450 AUD - - Stawell $1300 AUD - $1450 AUD - - GyC - - $1023 USD $16.61 USD - Orion - - $850 USD $13.00 USD - Kemess Underground - - $1100 USD $20.00 USD $2.80 USD Reserves and Resources were prepared under the supervision of the following Qualified Persons:  ResourcesReservesOcampoRamon Luna, P.Geo, Director, Servicios y Proyectos Mineros De Mexico S.A. de C.V Ramon Luna, P.Geo, Director, Servicios y Proyectos Mineros De Mexico S.A. de C.V El Cubo - Excluding DoloresGlenn R. Clark, P.Eng, Principal, Glenn R. Clark & Associates Glenn R. Clark, P.Eng, Principal, Glenn R. Clark & Associates El Cubo - DoloresJeff Volk, CPG, FAusIMM, Principal Resource Geologist, SRK Consulting (US) Inc Paul Arscott, P.Geo, Technical Service Manager, Minera El Cubo El ChanateJeff Volk, CPG, FAusIMM, Principal Resource Geologist, SRK Consulting (US) Inc Joanna Peck, MMSA, Senior Consultant (Mining), SRK Consulting (US) Inc Young DavidsonCarl Edmunds, P.Geo, Exploration Manager, AuRico Gold Inc. Chris Bostwick, FAusIMM, SVP Technical Services, AuRico Gold Inc. FostervilleSimon Hitchman, AIG, Troy Fuller AIG, both of Fosterville Gold Mine Pty Ltd. Chris Bostwick, FAusIMM, SVP Technical Services, AuRico Gold Inc. StawellMark Haydon, AIG, Geology Manager, Stawell Gold Mines Austin Hemphill, MAusIMM (CP), Chief Engineer, AuRico Gold Inc. GyCChris Bostwick, FAusIMM, SVP Technical Services, AuRico Gold Inc. OrionJeffrey Volk, CPG, FAusIMM, Peter Clarke, P.Eng., Paul Riley, C.Eng, FIMMM, G. Dante Ramírez- Rodríguez, MMSA, all of SRK Consulting (US) Inc. Kemess UndergroundCarl Edmunds P.Geo., Exploration Manager, AuRico Gold Inc., Michael Thomas, MAusIMM (CP), Principal Mining Consultant, AMC Consultants Pty Ltd, Ken Major, P.Eng, KWM Consulting Inc.