AuRico Gold (AUQ-T) has added another significant mine to Kirkland Lakes’ mining heritage.
The company announced the first gold pour at the Young-Davidson mine and it expects that the mine will reach commercial production by third quarter.
Early results from the mill were stellar as the facility averaged 5,000 tonnes per day between April 19 and April 29 at the mill. This beats the budgeted throughput rate for the month and more importantly, the mill managed to reach the design capacity of 6,000 tonnes for some of those days.
For the mine to be in commercial production, the processing plant will have to average at least 5,100 tonnes per day over 30-days and the open pit will have to average 29,750 tonnes per day over 30-days.
AuRico says it has managed to stockpile 963,000 tonnes, or six months of ore supply, ahead of the mill for processing.
The company only broke ground at the site 20 months ago but all the focus on construction didn’t divert the company from better defining what is in the ground.
During the commissioning process it managed to increase reserves by 36% and it announced a 33% expansion program that will take annual production up to 250,000 oz. by 2016.
Young-Davidson now has 46.6 million tonnes grading 2.56 grams gold pre tonne for 3.8 million oz. of proven and probable reserves.
The mine is expected to produce between 65,000 and 75,000 oz. of gold this year at cash cost of between US$450 and US$550 per oz.
The commissioning of Young Davidson is part of AuRico’s shift into becoming a North American focused gold producer. The company recently sold off its Australian assets and its El Cubo project in Mexico earlier this year.
With Young-Davidson added to the fold, AuRico will have three operating mines — Ocampo and El Chanate, both of which are in Mexico.
It expects the three mines will give it total production of 450,000 to 530,000 oz. of gold production by 2014 at average cash costs of between US$480 and US$530 per oz.
In Toronto on May 1, AuRico shares were up 11¢ to $9.19 on 1.08 million shares traded.
Be the first to comment on "AuRico adds third mine to its portfolio"