AuRico Gold Inc. (AUQ: Quote,AUQ.TO: Quote) reported the preliminary operational results for the second quarter ended June 30, 2012.
The company announced the Production results from its three core assets in North America, which included Production of 51,101 gold ounces and 894,414 million silver ounces, or 67,411 gold equivalent ounces using the actual gold equivalency ratio of 54.8:1.
During the second-quarter, the Ocampo mine reported production of 21,269 ounces of gold and 894,414 ounces of silver (or 37,579 gold equivalent ounces) at cash costs of $515 per gold equivalent ounce using the realized gold equivalency ratio of 54.8:1 for the quarter. The company said it has revised the 2012 production outlook to 155,000-170,000 gold equivalent ounces at cash costs of $540-570 per gold equivalent ounce (using the Company's long-term gold equivalency ratio of 55:1) primarily due to the additional ore development requirements during the second half of the year.
During the quarter, the El Chanate mine reported production of 17,882 ounces of gold at cash costs of $432 per gold ounce.
The company said that since the first gold pour on April 30 until June 30 , Young-Davidson mine has produced 11,950 gold ounces. In June, mill availability improved to 95% with metallurgical recoveries better than planned, averaging 88%. Capex for the full year has increased by approximately $40 million from original estimates relating to EPCM construction costs, comprised of $13 million in labour costs and $27 million in materials or scope change.
"Highlighting our quarter, the Young-Davidson mine is ramping up extremely well and during June we exceeded threshold levels required for commercial production at both the open pit and mill facility. With the flotation and gravity circuits commissioned in late June, we fully anticipate that we will declare commercial production in August. The Company reaffirms its operational guidance for 2013 and 2014," said René Marion, Chief Executive Officer.
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by RTT Staff Writer
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