AuRico Gold
Encyclopedia
AuRico Gold is an intermediate gold mining and exploration company that, until August 2011 operated only in Mexico. It reached intermediate gold producer status in August 2011 when Northgate Minerals agreed to be taken over for C$1.46 billion. Gammon Gold was an exploration company until 2004 when it started producing for the first time. Assets also include silver and copper.
Averaged over the first six months of 2011, total cash costs per gold equivalent was $486. Ocampo is the source of the lowest costs ($413/oz).
On August 9, 2006 it finalized the $451 million takeover of Mexgold Resources Inc. (which owned the Guadalupe y Calvo gold/silver project in Mexico).
April 2011 - Acquired Capital Gold for $408 million after 67% of Capital Gold's shareholders voted in favor of the deal. Assets include El Chanate and the Orion gold project in Mexico.
May 16, 2011 - Changed its name to AuRico Gold, the new name is a combination of Au ('Gold') and Rico (meaning 'rich' in Spanish).
August 29, 2011 it acquired Vancouver-based Northgate Minerals in a C$1.46 billion deal (US$1.49 billion). The new company (62% owned by AuRico shareholders with the other 38% residing with Northgate's shareholders) will have 83% more gold resources than AuRico had beforehand; Including the takeover of Capital Gold, AuRico increased gold reserves by about 70% in less than five months.
Ocampo - Has been producing since 2007. Consists of 3 mines (One open pit mine and two underground mines (Santa Eduviges and North-East; most of the gold resource is in the underground mines). The property is located in the Mexican state of Chihuahua. There's also a mill on the property that processes over 3,000 tonnes of ore per day. The mineralization formed from epithermal systems (warm water at shallow depth) with volcanic groups. Between the two main volcanic groups, the lower one (made up mostly of andesitic flows) is where most of the gold and silver is being extracted from. From January to June 2011 Ocampo produced 54,725 ounces of gold (up 16.9%) and 2.2456 million ounces of silver (up 10.7%). Ocampo is 100% owned by AuRico. Initially, it consisted of an open pit mine which was purchased from another company, Bolnisi in December 2003.
El Cubo - The producing mine was purchased outright in 2004, however the property also includes a mine complex leased from Industrias Penoles. Named after the village its in which is located about 10 km from Guanajuato, Guanajuato
in the central part of the country. The property produces both gold and silver; 2009 production of each was 27,842 ounces and 1.18 million ounces respectively; In the first 6 months of 2010 production included 4,268 ounces of gold and 213,203 of silver. Before temporarily shutting down in June 2010 due to a labor dispute, El Cubo represented 14% of AuRico's net asset value and 24% of its gold equivalent production.
The company settled its dispute with workers on February 23, 2011 (centered around better training/conditions regarding underground mining areas).
El Chanate - Northernmost property. Began production in May 2007 (40,000 ounces in the first year).
. Gold reserves are near 3 million ounces giving it a mine life of about 15 years.
Kemess South - Northern British Columbia, Canada. Was a large operation when it opened in 2000 currently however it's near the end of its mine life.
Stawell Corridor - Gold project in Victoria, Australia.
Guadalupe y Calvo - Holds both gold and silver. Located in Southwest Chihuahua, Mexico. Part of the company since the takeover of Mexgold Resources in 2006.
Orion - Formerly managed by Capital Gold
Averaged over the first six months of 2011, total cash costs per gold equivalent was $486. Ocampo is the source of the lowest costs ($413/oz).
History
Began as Golden Rock Explorations, Inc on February 23, 1986 (date of incorporation). In 1998 it renamed Gammon Lake Resources, Inc . Over the next 13 years it changed names two more times, first to Gammon Gold Inc on June 18, 2007 then to AuRico Gold in May 2011.On August 9, 2006 it finalized the $451 million takeover of Mexgold Resources Inc. (which owned the Guadalupe y Calvo gold/silver project in Mexico).
April 2011 - Acquired Capital Gold for $408 million after 67% of Capital Gold's shareholders voted in favor of the deal. Assets include El Chanate and the Orion gold project in Mexico.
May 16, 2011 - Changed its name to AuRico Gold, the new name is a combination of Au ('Gold') and Rico (meaning 'rich' in Spanish).
August 29, 2011 it acquired Vancouver-based Northgate Minerals in a C$1.46 billion deal (US$1.49 billion). The new company (62% owned by AuRico shareholders with the other 38% residing with Northgate's shareholders) will have 83% more gold resources than AuRico had beforehand; Including the takeover of Capital Gold, AuRico increased gold reserves by about 70% in less than five months.
Properties
There are five operations in Mexico (3) & Australia (2) in addition to four projects in Canada (2) and Mexico (2). Mexico is home to 55% of the company's total 2P gold reserves (out of 7.899 million ounces) and the source of 59% of 2011 production (475,000 ounces) however that's expected to decline due to large projects outside of Mexico coming on tap in 2012 (specifically the $375 million Young-Davidson mine in Ontario, Canada).Mexico
Home to three producing properties.Ocampo - Has been producing since 2007. Consists of 3 mines (One open pit mine and two underground mines (Santa Eduviges and North-East; most of the gold resource is in the underground mines). The property is located in the Mexican state of Chihuahua. There's also a mill on the property that processes over 3,000 tonnes of ore per day. The mineralization formed from epithermal systems (warm water at shallow depth) with volcanic groups. Between the two main volcanic groups, the lower one (made up mostly of andesitic flows) is where most of the gold and silver is being extracted from. From January to June 2011 Ocampo produced 54,725 ounces of gold (up 16.9%) and 2.2456 million ounces of silver (up 10.7%). Ocampo is 100% owned by AuRico. Initially, it consisted of an open pit mine which was purchased from another company, Bolnisi in December 2003.
El Cubo - The producing mine was purchased outright in 2004, however the property also includes a mine complex leased from Industrias Penoles. Named after the village its in which is located about 10 km from Guanajuato, Guanajuato
Guanajuato, Guanajuato
Guanajuato is a city and municipality in central Mexico and the capital of the state of the same name. It is located in a narrow valley, which makes the streets of the city narrow and winding. Most are alleys that cars cannot pass through, and some are long sets of stairs up the mountainsides....
in the central part of the country. The property produces both gold and silver; 2009 production of each was 27,842 ounces and 1.18 million ounces respectively; In the first 6 months of 2010 production included 4,268 ounces of gold and 213,203 of silver. Before temporarily shutting down in June 2010 due to a labor dispute, El Cubo represented 14% of AuRico's net asset value and 24% of its gold equivalent production.
The company settled its dispute with workers on February 23, 2011 (centered around better training/conditions regarding underground mining areas).
El Chanate - Northernmost property. Began production in May 2007 (40,000 ounces in the first year).
Major projects
Young-Davidson - Located in Matachewan, OntarioMatachewan, Ontario
Matachewan is a small township in Timiskaming, northeastern Ontario, Canada, located at the end of Ontario Highway 66 along the Montreal River.The town's main economy is based on mineral mining, mainly gold mining, with some tourism.-History:...
. Gold reserves are near 3 million ounces giving it a mine life of about 15 years.
Kemess South - Northern British Columbia, Canada. Was a large operation when it opened in 2000 currently however it's near the end of its mine life.
Stawell Corridor - Gold project in Victoria, Australia.
Guadalupe y Calvo - Holds both gold and silver. Located in Southwest Chihuahua, Mexico. Part of the company since the takeover of Mexgold Resources in 2006.
Orion - Formerly managed by Capital Gold