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Young-Davidson in full underground mode

Posted by: Admin | Posted on: July 21st, 2014 | 0 Comments

AuRico Gold Inc has announced an eighth consecutive quarter of record gold production at its Young-Davidson mine in Ontario as it made a full transition to underground mining.

As planned the short-life openpit mine was fully depleted in early June, it said, bringing openpit mining activities to a halt and eliminating mining costs of about US$3 million/month.

“Approximately 3.2Mt of openpit ore, at an average grade of approximately 0.8g/t, is stockpiled ahead of the mill facility for future processing. The openpit stockpile will supplement underground ore feed to the mill processing facility as the underground mine ramps up to targeted levels,” AuRico said.

Young-Davidson produced 40,166oz of gold in the June quarter, a 14% improvement on the previous quarter. Underground cash costs for the quarter were US$804/oz of gold and are “expected to decline throughout the year, corresponding with planned quarter-over-quarter increases in underground productivity”, the company said.

Total cash costs for the quarter, which includes the openpit mine and open pit stockpile, were US$871/oz.

Scott Perry, AuRico president and chief executive officer, said: “With production levels ahead of plan and the related cost efficiencies being realised, we are increasingly confident that Young-Davidson will be generating positive free cash flow by the end of this year.”

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