AuRico Metals Announces Extension of Higher Grade Mineralization at Kemess East

TORONTO, Aug. 18, 2015 /CNW/ - AuRico Metals Inc. (TSX: AMI), ("AuRico" or the "Company") is pleased to announce the results of the first two holes drilled as part of the 2015 Exploration Program at the Kemess Project. The drill holes targeted the Kemess East Deposit, which is located one kilometer east of the previously delineated Kemess Underground deposit and 6.5 kilometres north of the Kemess Mill Facility.

Results of the Kemess East drilling include:

• Hole KH-15-01 intersected 305 metres of 0.625 g/t Au and 0.433% Cu
• Hole KH-15-02 intersected 301 metres of 0.466 g/t Au and 0.394% Cu

(The estimated true thickness of the mineralized intervals is 70% of the reported intercept length.)

(Refer to Table 1 for complete drilling results, Table 2 for Drill Collar Location and Figures 1-3 for Kemess Property Location Map, Plan Map and Cross-Section.)

Both holes have extended the higher grade core mineralization beyond what was identified in the 2013 and 2014 drill programs. Hole KH-15-01 extended mineralization 50m east of KH-13-08 and 80m east of KH-13-09 and 140m west of KH-14-08. Hole KH-15-02 extended mineralization 115m east of KH-14-03 and 110m south of KH-13-08. In both cases this higher grade mineralization is at the same elevation as that identified in the earlier drilling.

The Kemess East deposit remains open to the east towards the Kemess East Offset Fault and to the south towards the post mineralization Sovereign intrusion. "We're pleased with the early results from this year's Kemess drill campaign which is not only adding confidence to the inaugural Kemess East resource announced earlier this year but is also expanding the area of known mineralization. The results of the drilling are particularly encouraging given the immediate proximity to the existing processing facility and associated surface infrastructure that includes a 50,000 tonne per day mill, administration and camp facilities, permitted tailings storage and full access to grid power," stated Chris Richter, President and CEO of AuRico Metals.

Table 1: Drill Intercepts that Intersected the Kemess East Mineralized Deposit

2015 Exploration Program

The Company's 2015 exploration and geotechnical drilling program will continue to focus on the Kemess East delineation with four diamond drills, and is expected to continue to the end of September.

Kemess Underground Permitting Update

The Kemess Underground Project is currently undergoing a Substituted Environmental Assessment led by the British Columbia Environmental Assessment Office on behalf of both the province of British Columbia and the Canadian Environmental Assessment Agency (on behalf of the Federal Government of Canada). This review is currently in the pre-Application stage (the second of three phases) of the environmental assessment process and AuRico anticipates receiving the Application Information Requirements ("AIR") in September 2015, a key milestone in the environmental assessment process.  The Environmental Application ("EA") will then be finalized in accordance with the AIR. Based on the current timeline it is expected that the EA will be submitted in early 2016. Once submitted, the EA undergoes a 30 day screening (in order to ascertain that the EA complies with certain information requirements) and if the EA is compliant with the AIR there is a 180 day review period during which time comments are received, addressed and incorporated into the Final Assessment Report. This is then delivered to both the provincial and federal ministers for their respective decisions. These decisions must be announced within 45 days.

Kemess Property Overview

The Kemess Property (See Figure 1) is located in north-central British Columbia, Canada, approximately 430 kilometres northwest of Prince George. The Kemess Underground Project is located approximately 5.5 kilometres north of the past producing Kemess South open pit mine that operated from 1998 to 2011 and produced 3 million ounces of gold and 749 million pounds of copper.

A Feasibility Study on the Kemess Underground Project was released on March 25, 2013 and proposes an underground block caving operation with average annual production of 105,000 ounces of gold and 44 million pounds of copper over a 12 year mine life.

Quality Control – Analyses and Sample Location

Exploration activities at Kemess are being conducted by AuRico personnel under the supervision of Wade Barnes Project Geologist and a Qualified Person as defined by National Instrument 43-101. Wade Barnes is PGeo registered with the Association of Professional Engineers and Geoscientists of British Columbia ("APEGBC") and has reviewed and approved this news release.

Samples were prepared at an on-site sample preparation lab. The prepared 250 g samples, crushed to 80% passing 10-mesh and pulverized to 85% passing 150-mesh, were shipped in security sealed pails to ALS Chemex Laboratory in North Vancouver for analysis. Samples were analyzed for a suite of 33 elements, including iron, molybdenum, and silver, using 4-acid digestion and ICP atomic emission spectroscopy on a one gram sub-sample. Significantly mineralized samples were additionally analyzed by an extra ore grade analysis for copper and molybdenum by ICP atomic emission spectroscopy, following a 4-acid digestion. Gold analyses were completed by standard 30g fire assay with an AA finish.

Quality control (QC) samples (blanks, duplicates, and certified reference materials) were inserted into the sample stream at regular intervals such that 2 in 25 (8%) samples were submitted for quality control purposes. QC sample performance was monitored on a regular basis, independently of the laboratories, and failures addressed in a timely manner. All sample batches were also subjected to each laboratory's internal quality control procedures, for an additional 40% QC sample volume.

About AuRico Metals

AuRico Metals is a mining royalty and development company whose cornerstone assets include a 1.5% NSR on the Young-Davidson Gold Mine, located in Ontario, Canada, a 2% NSR on the Fosterville Mine, located in Victoria, Australia, and 100% ownership of the advanced Kemess Project in British Columbia, Canada. AuRico Metals' goal is to deliver sustained value creation for the company's many stakeholders. AuRico Metals' head office is located in Toronto, Ontario, Canada.

Cautionary Statement

This press release 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 and the possible recalculation or reduction of reserves and resources; 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 according to budgets or timelines, changes in laws in Canada, Australia 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; 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; 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 ability to do so 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.

Table 2: Drill Collar Locations

Figure 1 - Kemess Property

Figure 2 - Kemess East Drill Hole Intercepts

Figure 3 - Kemess East Section Looking West

SOURCE AuRico Metals