AuRico Gold Reports 26.8 Metres at 12.36 Grams Per Tonne Gold Equivalent(1) and 8.5 Metres at 25.90 Grams Per Tonne Gold Equivalent(1) at Ocampo
TORONTO, June 22 /CNW/ -- TORONTO, June 22 /CNW/ - AuRico Gold Inc. (TSX:AUQ) (NYSE: AUQ), ('AuRico') is pleased to provide an update of drill results from the Ocampo surface drill exploration program during May. The drilling results are among the best results reported to date and include 55 new ore-grade drill intercepts from a wide variety of drill projects on the property. (Refer to Table 1 in the Appendix for selected drilling results)
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Picacho (Open Pit)
- Drilling highlights include:
- Hole OG-1356, 8.5 metres at 25.90 grams per tonne gold
equivalent(1)
- Hole OG-1360, 10.1 metres at 3.37 grams per tonne gold
equivalent(1)
- Hole OG-1363, 26.8 metres at 12.36 grams per tonne gold
equivalent(1), ending in ore at 3.3 grams per tonne gold
equivalent(1)
- Including, 13.7 metres at 21.75 grams per tonne gold
equivalent(1)
Aventurero - San Martin (Underground)
- Drilling highlights include:
- Hole OG-1403, 1.6 metres at 51.68 grams per tonne gold
equivalent(1)
- Hole OG-1405, 3.2 metres at 15.23 grams per tonne gold
equivalent(1)
Dog Clavo (Underground)
- Drilling highlights include:
- Hole OG-1377, 2.2 metres at 28.00 grams per tonne gold
equivalent(1)
- Hole OG-1384, 2.3 metres at 14.17 grams per tonne gold
equivalent(1)
Maria - Molinas SW (Underground)
- Drilling highlights include:
- Hole OG-1376, 3.0 metres at 7.85 grams per tonne gold
equivalent(1)
- Hole OG-1386, 3.5 metres at 7.08 grams per tonne gold
equivalent(1)
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'Ocampo has recorded some exciting drill results at the Picacho open pit deposit which is the mine's primary open pit mining operation, representing 41% of Ocampo's open pit reserve base. The existing Picacho resource block model near holes OG-1356 and OG-1360 has values in the range of only 0.3 to 1.7 gold equivalent grams per tonne(1) while the existing resource block model near hole OG-1363 has values of 4 to 6 gold equivalent grams per tonne(1). Given that these hole intercepts are 25.3 to 61 metres apart and that they are considerably higher grade and longer length than previously modeled, these results should convert a significant tonnage of Inferred Resource to Measured and Indicated, as well as increase much of this material to mill grade. These encouraging results will be followed up during the second half of the year.' stated Peter Drobeck, Senior Vice President of Exploration and Business Development.
Some of the best intercepts reported in May include:
<<
Picacho
From To Length Gold Silver Gold Eq.
Hole (m) (m) (m) g/t g/t g/t(1)
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OG-1356 55.6 64.1 8.5 16.94 493 25.90
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OG-1360 73.5 83.6 10.1 2.38 55 3.37
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OG-1363 70.8 97.6 26.8 9.14 177 12.36
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Including 72.7 86.4 13.7 16.38 295 21.75
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Aventurero - San Martin
From To Length Gold Silver Gold Eq.
Hole (m) (m) (m) g/t g/t g/t(1)
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OG-1381 33.8 34.6 0.8 21.00 155 23.82
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OG-1403 161.7 163.4 1.6 38.36 733 51.68
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OG-1405 149.1 149.7 0.6 4.87 306 10.43
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OG-1405 161.3 164.4 3.2 9.05 340 15.23
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OG-1411 83.5 84.1 0.6 8.45 161 11.38
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OG-1411 106.5 107.1 0.6 5.39 254 10.01
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OG-1413 95.0 95.7 0.7 16.55 27 17.04
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Dog Clavo
From To Length Gold Silver Gold Eq.
Hole (m) (m) (m) g/t g/t g/t(1)
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OG-1377 82.3 84.5 2.2 22.56 299 28.00
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OG-1384 119.4 121.8 2.3 5.74 464 14.17
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Maria - Molinas SW
From To Length Gold Silver Gold Eq.
Hole (m) (m) (m) g/t g/t g/t(1)
-------------------------------------------------------------------------
OG-1376 97.6 100.7 3.0 4.00 212 7.85
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OG-1386 82.6 86.1 3.5 4.42 146 7.08
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OG-1396 63.1 64.2 1.1 9.62 112 11.67
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OG-1400 84.9 85.4 0.6 10.65 23 11.07
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Altagracia
From To Length Gold Silver Gold Eq.
Hole (m) (m) (m) g/t g/t g/t(1)
-------------------------------------------------------------------------
OG-1354 64.1 80.0 15.9 0.7 48.8 1.59
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Including 68.4 71.9 3.6 1.6 125.1 3.92
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OG-1362 56.7 64.0 7.3 0.1 26.5 0.62
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Belen
From To Length Gold Silver Gold Eq.
Hole (m) (m) (m) g/t g/t g/t(1)
-------------------------------------------------------------------------
OG-1335 118.7 119.6 0.9 3.63 194 7.16
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El Rayo
From To Length Gold Silver Gold Eq.
Hole (m) (m) (m) g/t g/t g/t(1)
-------------------------------------------------------------------------
OG-1402 123.7 124.5 0.9 15.80 36 16.46
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>>
This press release sets out the gold and silver grades found in the samples taken from various targets. Not all of these targets have been categorized as a mineral resource deposit under applicable Canadian mineral resource reporting standards, and it is uncertain if further exploration will result in these targets being delineated as mineral resources. The grades encountered so far should not be taken as representative of the ore bodies in question as there has been insufficient exploration to define a mineral resource, and such grades may not prove representative of the deposits if and when the same are delineated as mineral resources.
The Ocampo surface exploration information has been reviewed by Qualified Person, Mr. Peter Drobeck. All gold sample analyses for Ocampo were performed by Chemex Laboratories, based in Vancouver, British Columbia, using standard fire assay procedures, with an AA finish. Silver is analyzed using a four-acid digestion with ICP finish, and fire assays for samples over 100 grams per tonne silver. The Company maintains a Quality Assurance - Quality Control program including the insertion of commercial control reference pulps and blanks in all its drill programs, along with a dedicated QA-QC engineer to monitor results. Sample lengths are not necessarily true widths.
About AuRico Gold
AuRico Gold is a leading intermediate Canadian gold and silver producer with a diversified portfolio of high quality mines and projects in Mexico. The Company's three wholly-owned operating properties include the Ocampo mine in Chihuahua State, the El Chanate mine in Sonora State and the El Cubo mine in Guanajuato State. Its strong pipeline of development and exploration stage projects includes the Guadalupe y Calvo advanced exploration property in Chihuahua State and the Orion Project in Nayarit State, along with six exploration properties throughout Mexico. AuRico's head office is located in Toronto, Ontario, Canada.
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Cautionary Statement
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Cautionary Note to US Investors - The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. This press release uses certain terms, such as 'measured', 'indicated' and 'inferred' 'resources', that the SEC guidelines strictly prohibit US registered companies from including in their filings with the SEC. US Investors are urged to consider closely the disclosure in Gammon Gold's Annual Report on Form 40-F, which may be secured from Gammon Gold, or from the SEC's website at http://www.sec.gov/edgar.shtml.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Certain statements included herein, including information as to the future financial or operating performance of the Company, its subsidiaries and its projects, constitute forward-looking statements. The words 'believe', 'expect', 'anticipate', 'target', 'continue', 'estimate', 'may', and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding the grades of additional underground and surface drilling programs at Ocampo, the ability to delineate additional resources or reserves as a result, the suitability of targets for future underground or open pit mining at Ocampo, anticipated future financial and operational performance, the future price of gold and silver, the timing of re-commissioning and re-commencement of production at El Cubo, the de-risking of operations, future exploration results of its exploration and development program at Ocampo, the Company's ability to delineate additional resources and reserves as a result of such program, and the company's ability to mine such targets by mid-2011, statements regarding its financial exposure to litigation, targets, estimates and assumptions in respect of gold and silver production and prices, operating costs, results and capital expenditures, mineral reserves and mineral resources and anticipated grades, recovery rates, future financial or operating performance, margins, operating and exploration expenditures, costs and timing of completion of the Ocampo expansion program and improvements to the heap leach pad, costs and timing of the development and commencement of production of new deposits, costs and timing of construction, costs and timing of future exploration and reclamation expenses including, anticipated 2011 results, operating performance projections for 2011, our ability to fully fund our business model internally, 2011 gold and silver production and the cash and operating costs associated therewith, the ability to achieve productivity and operational efficiencies, and the timing of each thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Such factors include, among others, known and unknown uncertainties and risks relating to additional funding requirements, reserve and resource estimates, commodity prices, hedging activities, exploration, development and operating risks, illegal miners, political and foreign risk, uninsurable risks, competition, limited mining operations, production risks, environmental regulation and liability, government regulation, currency fluctuations, recent losses and write-downs, restrictions in the Company's loan facility, dependence on key employees, possible variations of ore grade or recovery rates, failure of plant, equipment or process to operate as anticipated, accidents and labour disputes. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
Note: The Ocampo surface exploration information has been reviewed by Qualified Person, Mr. Peter Drobeck. All gold sample analyses for Ocampo were performed by Chemex Laboratories, based in Vancouver, British Columbia, using standard fire assay procedures, with an AA finish. Silver is analyzed using a four-acid digestion with ICP finish, and fire assays for samples over 100 grams per tonne silver. The Company maintains a Quality Assurance - Quality Control program including the insertion of commercial control reference pulps and blanks in all its drill programs, along with a dedicated QA-QC engineer to monitor results. Sample lengths are not necessarily true widths.
<<
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TABLE 1: OCAMPO SURFACE DRILLING RESULTS JUNE 2011
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Drill Hole From To Length Gold Silver AuEq(1) Vein
(m) (m) (m) (gpt) (gpt) (gpt)
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OG-1346 66.7 67.8 1.1 0.71 49 1.60 Altagracia Bajo
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OG-1346 78.1 79.1 1.0 1.15 9 1.30 Altagracia Bajo
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OG-1346 138.0 138.8 0.8 0.01 71 1.30 Altagracia Bajo
-------------------------------------------------------------------------
OG-1346 188.3 189.5 1.1 0.47 52 1.40 Altagracia Bajo
-------------------------------------------------------------------------
OG-1350 187.4 189.1 1.7 0.41 23 0.83 Altagracia Bajo
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OG-1354 64.1 80.0 15.9 0.7 48.8 1.59 Altagracia Bajo
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Including 68.4 71.9 3.6 1.6 125.1 3.92 Altagracia Bajo
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OG-1362 56.7 64.0 7.3 0.1 26.5 0.62 Altagracia Bajo
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OG-1362 108.1 108.6 0.5 1.81 292 7.11 Altagracia Bajo
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Aventurero
OG-1327 217.6 220.4 2.8 0.82 53 1.79 Nivel 2
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Aventurero
OG-1337 88.3 89.3 1.0 0.56 94 2.27 Nivel 2
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Aventurero
OG-1337 115.1 115.6 0.5 0.43 61 1.54 Nivel 2
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Aventurero
OG-1349 69.1 69.7 0.7 1.95 2 1.98 Nivel 2
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Aventurero
OG-1364 79.7 80.3 0.6 3.66 236 7.95 Nivel 2
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OG-1381 33.8 34.6 0.8 21.00 155 23.82 Avn San Martin
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OG-1387 60.0 61.0 1.0 2.57 14 2.82 Avn San Martin
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OG-1403 155.7 156.4 0.7 2.00 76 3.38 Avn San Martin
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OG-1403 161.7 163.4 1.6 38.36 733 51.68 Avn San Martin
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OG-1403 177.6 178.1 0.5 3.49 86 5.05 Avn San Martin
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OG-1405 149.1 149.7 0.6 4.87 306 10.43 Avn San Martin
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OG-1405 161.3 164.4 3.2 9.05 340 15.23 Avn San Martin
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OG-1405 180.9 181.4 0.5 2.09 11 2.28 Avn San Martin
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OG-1409 95.7 96.2 0.5 2.71 42 3.48 Avn San Martin
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OG-1411 83.5 84.1 0.6 8.45 161 11.38 Avn San Martin
-------------------------------------------------------------------------
OG-1411 106.5 107.1 0.6 5.39 254 10.01 Avn San Martin
-------------------------------------------------------------------------
OG-1413 95.0 95.7 0.7 16.55 27 17.04 Avn San Martin
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OG-1413 145.4 145.9 0.5 2.35 37 3.03 Avn San Martin
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OG-1322 95.4 96.0 0.6 0.77 57 1.81 Belen Bajo
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OG-1335 118.7 119.6 0.9 3.63 194 7.16 Belen Bajo
-------------------------------------------------------------------------
OG-1341 72.0 72.6 0.6 0.06 176 3.26 Belen Bajo
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OG-1347 76.4 77.1 0.7 0.12 92 1.79 Belen Bajo
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OG-1347 90.0 90.8 0.8 0.04 88 1.63 Belen Bajo
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OG-1351 70.8 71.4 0.6 0.80 100 2.62 Belen Bajo
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OG-1377 19.4 20.3 0.9 3.00 55 4.00 Dog clavo
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OG-1377 82.3 84.5 2.2 22.56 299 28.00 Dog clavo
-------------------------------------------------------------------------
OG-1377 107.8 108.3 0.5 2.62 94 4.33 Dog clavo
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OG-1377 118.3 118.8 0.5 1.00 95 2.73 Dog clavo
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OG-1383 46.8 47.3 0.5 0.06 134 2.50 Dog clavo
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OG-1383 51.7 52.2 0.5 0.94 137 3.43 Dog clavo
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OG-1384 107.3 109.9 2.6 1.64 47 2.49 Dog clavo
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OG-1384 119.4 121.8 2.3 5.74 464 14.17 Dog clavo
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OG-1394 47.8 48.3 0.5 1.23 67 2.45 El Rayo
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OG-1394 93.8 95.5 1.7 1.23 5 1.32 El Rayo
-------------------------------------------------------------------------
OG-1398 46.4 48.9 2.5 0.09 177 3.31 El Rayo
-------------------------------------------------------------------------
OG-1402 123.7 124.5 0.9 15.80 36 16.46 El Rayo
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Maria -
OG-1355 74.1 74.6 0.5 1.84 22 2.24 Molinas SW
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Maria -
OG-1372 51.8 54.5 2.7 3.43 128 5.76 Molinas SW
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Maria -
OG-1376 97.6 100.7 3.0 4.00 212 7.85 Molinas SW
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Maria -
OG-1386 82.6 86.1 3.5 4.42 146 7.08 Molinas SW
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Maria -
OG-1389 163.0 163.6 0.7 2.68 52 3.62 Molinas SW
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Maria -
OG-1391 54.8 57.9 3.1 1.75 57 2.78 Molinas SW
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Maria -
OG-1393 65.0 67.1 2.1 2.14 73 3.47 Molinas SW
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Maria -
OG-1396 63.1 64.2 1.1 9.62 112 11.67 Molinas SW
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Maria -
OG-1397 50.5 52.3 1.8 2.55 56 3.56 Molinas SW
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Maria -
OG-1400 84.9 85.4 0.6 10.65 23 11.07 Molinas SW
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Maria -
OG-1400 130.7 131.7 1.0 0.77 54 1.76 Molinas SW
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Maria -
OG-1400 150.9 151.9 1.0 0.71 71 2.01 Molinas SW
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Maria -
OG-1401 69.1 70.3 1.2 1.91 49 2.80 Molinas SW
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Maria -
OG-1401 132.8 133.3 0.5 0.07 248 4.58 Molinas SW
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Maria -
OG-1406 55.4 57.5 2.1 2.94 58 3.99 Molinas SW
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Maria -
OG-1410 73.2 73.8 0.6 1.25 89 2.87 Molinas SW
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Maria -
OG-1334 58.2 58.8 0.6 1.13 60 2.21 Molinas SW
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OG-1332 12.2 13.7 1.5 0.65 72 1.96 Picacho
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OG-1338 14.3 15.0 0.8 1.92 170 5.01 Picacho
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OG-1352 48.3 48.8 0.5 4.48 258 9.17 Picacho
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OG-1356 55.6 64.1 8.5 16.94 493 25.90 Picacho
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OG-1360 73.5 83.6 10.1 2.38 55 3.37 Picacho
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Including 74.7 75.2 0.5 9.55 233 13.79 Picacho
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OG-1363 70.8 97.6 26.8 9.14 177 12.36 Picacho
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Including 72.7 86.4 13.7 16.38 295 21.75 Picacho
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OG-1407 29.9 31.7 1.8 0.51 11 0.70 Picacho SE
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OG-1407 41.5 42.7 1.2 0.41 42 1.18 Picacho SE
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OG-1407 61.0 65.9 4.9 0.23 20 0.59 Picacho SE
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OG-1415 116.1 116.7 0.5 0.28 29 0.81 Picacho SE
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OG-1415 145.7 146.7 1.0 1.89 188 5.31 Picacho SE
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OG-1385 41.6 42.2 0.6 0.62 32 1.20 Polvorin
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OG-1385 42.2 43.7 1.5 2.28 158 5.15 Polvorin
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Diagram 1: Ocampo Plan Map: http://files.newswire.ca/975/Diagram1.pdf
1. Using the Company's long-term gold equivalency ratio of 55:1
please visit the AuRico Gold website at http://www.auricogold.com or contact: René Marion, President & Chief Executive Officer, AuRico Gold Inc., 1-647-260-8880; Anne Day, Director of Investor Relations, AuRico Gold Inc., 1-647-260-8880