Mr. Chris Richter reports
AURICO METALS SIGNIFICANTLY EXPANDS HIGH GRADE CORE OF KEMESS EAST DEPOSIT
AuRico Metals Inc. has released an updated National Instrument 43-101-compliant resource estimate for the company's 100-per-cent-owned Kemess East deposit. The overall Kemess East deposit is estimated to contain indicated resources of 113.1 million tonnes grading 0.38 per cent copper and 0.46 gram per tonne gold and inferred resources of 63.8 million tonnes grading 0.34 per cent Cu and 0.31 g/t Au. The updated resource includes a high-grade core estimated to contain indicated resources of 67.2 million tonnes grading 0.43 per cent Cu and 0.60 g/t Au as well as inferred resources of 15.2 million tonnes grading 0.41 per cent Cu and 0.51 g/t Au.
When compared with the previous Kemess East resource (March 23, 2016, press release) indicated tonnes in the high-grade core have increased by 250 per cent reflecting success both in expanding and upgrading the resource. The high-grade core at Kemess East is associated with a strong potassic alteration zone which remains open to the north and to the south as does the overall deposit.
Commenting on today's announcement, Chris Richter, president and chief executive officer of AuRico Metals, stated: "This is a very exciting outcome to the 2016 exploration program. The updated resource is a substantial improvement compared to the 2016 resource in terms of overall tonnes, the ratio of indicated to inferred resources and the number of contained ounces of gold and pounds of copper."
KEMESS EAST MINERAL RESOURCE ESTIMATE SUMMARY (SRK, 2017)
Category Mt Cu (%) Au (g/t) Ag (g/t) Cu mlb Au koz Ag koz
Indicated -- potassic strong 67.2 0.43 0.60 2.06 640 1,292 4,457
Indicated -- potassic moderate 40.0 0.32 0.27 1.81 286 352 2,336
Indicated -- potassic weak 5.1 0.22 0.19 1.45 24 31 238
Indicated -- phyllic + propylitic 0.8 0.21 0.20 1.40 4 5 36
Indicated -- total 113.1 0.38 0.46 1.94 954 1,680 7,066
Category Mt Cu (%) Au (g/t) Ag (g/t) Cu mlb Au koz Ag koz
Inferred -- potassic strong 15.2 0.41 0.51 2.05 137 249 1,003
Inferred -- potassic moderate 41.9 0.34 0.26 1.91 311 353 2,579
Inferred -- potassic weak 6.0 0.20 0.17 1.42 27 32 274
Inferred -- phyllic + propylitic 0.7 0.21 0.24 1.42 3 6 33
Inferred -- total 63.8 0.34 0.31 1.90 478 640 3,889
Notes
Net smelter return cut-off value of $17.3 per tonne was used to define indicated and inferred
resources within a reasonable prospects for economic extraction solid.
NSR calculation assumed $3.20 (U.S.) per pound copper, $1,275 (U.S.) per ounce gold and
$21.0 (U.S.) per ounce silver prices; and C$/US$ exchange rate of 0.76.
NSR calculation assumed metallurgical recoveries of 91 per cent copper, 72 per cent gold
and 65 per cent silver; as well as a 22-per-cent copper grade for concentrate. Molybdenum
was excluded from the NSR calculation.
Details of the sample preparation and quality assurance and quality control are presented
in AuRico Metals' Nov. 8, 2016, press release reporting on the results of the company's
2016 drill program.
Resources were generated from 81 holes drilled at Kemess East in 2006, 2007, 2013, 2014,
2015 and 2016.
Exploration activities at the Kemess East deposit have been conducted under the supervision
of Wade Barnes, PGeo, Kemess project geologist, for AuRico Metals. Mr. Barnes is a qualified
person as defined by National Instrument 43-101.
Mineral resources were prepared under the supervision of Marek Nowak, SRK Consulting (Canada)
Inc. Mr. Nowak is a qualified person as defined by NI 43-101.
The Kemess East deposit is located approximately one kilometre east of the Kemess underground deposit and 6.5 kilometres north of the Kemess South facilities. The Kemess property is located in north-central British Columbia, Canada, approximately 430 kilometres northwest of Prince George.
An image on the company's website provides plan and section views of the Kemess East deposit, with resource model blocks colour coded by net smelter return (NSR) value.
Comparison with 2016 resource estimate
This resource estimate is an increase in the indicated category of 73.9 million tonnes (or 188 per cent) and a decrease in the inferred category of 45.8 million tonnes (or minus 42 per cent) compared with the March 23, 2016, resource estimate. The 2016 geological model that was the basis for the 2016 resource estimate proved to be robust with respect to the major controlling geological faults, alteration types and intensities. As with the 2016 resource estimate statistical analysis of the gold and copper grades associated with each alteration type indicated a distinct grade change between each alteration type thus constraining grade estimation boundaries. The estimation methodology was similar for both the 2016 and 2017 resource estimates.
KEMESS EAST MINERAL RESOURCE COMPARISON
Jan. 13, 2017, resource Mt Cu (%) Au (g/t) Ag (g/t) Cu mlb Au koz Ag koz
Indicated -- total 113.1 0.38 0.46 1.94 954 1,680 7,066
Inferred -- total 63.8 0.34 0.31 1.90 478 640 3,889
March 23, 2016, resource Mt Cu (%) Au (g/t) Ag (g/t) Cu mlb Au koz Ag koz
Indicated -- total 39.3 0.40 0.50 1.99 348 630 2,510
Inferred -- total 109.7 0.37 0.38 1.99 891 1,340 7,010
Percentage change Mt Cu (%) Au (g/t) Ag (g/t) Cu mlb Au koz Ag koz
Indicated -- total 188% -5% -8% -3% 174% 167% 182%
Inferred -- total -42% -8% -18% -5% -46% -52% -45%
Marek Nowak of SRK Consulting (Canada) Inc. has reviewed and approved the scientific and technical information contained within this press release. Mr. Nowak is a qualified person as defined by NI 43-101.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.