AuRico Gold

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AuRico Gold Inc.
Public
Traded as TSXAUQ
NYSEAUQ
Industry Mining Exploration
Founded 1986
Headquarters Halifax, NS, Canada
Key people
Scott Perry (President & CEO)
Products Gold Silver
Website www.auricogold.com

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.[1] Gammon Gold was an exploration company until 2004 when it started producing for the first time. Assets also include silver and copper.

History[edit]

The company 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.[2][3]

On August 9, 2006, AuRico finalized the $451 million takeover of Mexgold Resources Inc., which owned the Guadalupe y Calvo gold and silver project in Mexico.[4]

In April 2011, the company acquired Capital Gold for $408 million after 67% of Capital Gold's shareholders voted in favor of the deal. Assets included El Chanate and the Orion gold project in Mexico.[5]

On May 16, 2011, it changed its name to AuRico Gold, the new name is a combination of Au ('Gold') and Rico (meaning 'rich' in Spanish).[3]

On 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;[6] Including the takeover of Capital Gold, AuRico increased gold reserves by about 70% in less than five months.

Properties[edit]

There are two operations in Mexico and one operation in Canada in addition to several advanced development properties in Mexico and British Columbia.[7]

  • Young-Davidson — Located in Matachewan, Ontario. Gold reserves are near 3 million ounces giving it a mine life of about 15 years.[8]

Mexico[edit]

Home to two 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%).[9] 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 Chanate — Owned by Santa Rita, S de RL de CV, a Mexican subsidiary of AuRico Gold Inc operating in the Mexican state of Sonora since 1997, it is the northernmost property and works for the exploration, extraction, benefit and commercialization of gold and silver minerals.[10] Began production in May 2007 (40000 ounces in the first year).

Operations[edit]

In 2002, the company announced strategic alliance with Bolnisi Gold NL, to take its Ocampo Project in Mexico into production.[11]

Exploration projects[edit]

References[edit]

  1. ^ Bouw, Brenda (August 29, 2011). "AuRico scoops up Northgate Minerals". The Globe and Mail. Toronto. 
  2. ^ "Name Change Gammon Lake Resources Inc." (PDF). June 18, 2007. 
  3. ^ a b "Gammon Gold to become Aurico Gold". May 16, 2011. 
  4. ^ "Gammon Lake Resources and Mexgold Resources complete $1.6 billion business combination". 2006. 
  5. ^ "Kirkland & Ellis LLP". Retrieved August 31, 2011. 
  6. ^ "AuRico acquires Northgate". The Chronicle Herald. August 30, 2011. 
  7. ^ Map of operations Archived April 1, 2013, at the Wayback Machine.
  8. ^ "Northgate Minerals starts $375 million Young-Davidson project". March 24, 2012. 
  9. ^ "AuRico Gold Reports Second Quarter". August 11, 2011. 
  10. ^ Gómez Lima, C. (2016, May 3). Derrama minera 400 mil litros de solución de cianuro en Sonora: Trabajadores señalan que la compañía no reparó un dictó a pesar de que le informaron: Ejecutivos esperaron casi dos días para reportar el accidente a Profepa y ordenaron arrojar tierra sobre la zona contaminada, afirman. En una semana la dependencia decidirá si sanciona. Mexican newspaper La Jornada, Estados section, p. 26. (Retrieved May 03, 2016)
  11. ^ "Gammon Lake enters strategic alliance to take Ocampo Project into production". Jan 28, 2002. 
  12. ^ Kemess Underground