AuRico Gold Announces Preliminary Second Quarter Production Results

Toronto (ots/PRNewswire) -

- Reports Eighth Consecutive Quarter of Record Production

Young-Davidson Delivers a 14% Increase in Quarterly Production

AuRico Gold Inc. , ("AuRico" or the "Company") today announces
preliminary second quarter production results. All amounts are in
U.S. dollars unless otherwise indicated. (Results for the second
quarter 2014 are estimates only and are subject to change.)

AuRico is reporting its eighth consecutive quarter of record
company-wide gold production driven by record production from the
cornerstone Young-Davidson mine. Period-over-period production growth
is expected to continue going forward, underpinned by the ongoing
ramp-up in production at the Young-Davidson mine located in northern
Ontario.

Company Wide Quarterly Production Growth
[http://files.newswire.ca/975/AUQ_Growth.pdf ]

Preliminary 2014 Second Quarter Operational Results

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14[1]
Young-Davidson
Gold ounces produced[2] 28,281 29,252 30,099 33,106 35,104 40,166
Underground cash costs per
gold ounce - - - $663 $808 $803
Open pit cash costs per
gold ounce $694 $716 $666 $983 $1,350 $974
Total cash costs per gold
ounce[3] $694 $716 $666 $850 $1,009 $871
Underground mine
Tonnes mined per day 1,130 1,611 1,417 2,590 2,611 3,595
Grades (g/t) 2.7 2.5 2.8 3.1 2.8 3.3
Development metres 1,941 2,445 2,620 2,986 3,772 3,545
Mill processing facility
Tonnes processed
per day 6,466 7,017 6,747 6,969 7,163 8,230
Grades (incl. open
pit stockpile) 1.8 1.7 1.7 2.0 1.8 2.2
El Chanate
Gold ounces produced 17,889 18,751 18,804 16,420 19,110 16,032
Total cash costs per gold
ounce[3] $563 $602 $588 $615 $586 $618
Open pit tonnes mined per day 106,319 98,928 87,336 98,487 95,402 93,808
Consolidated Results
Gold ounces produced[2] 46,170 48,003 48,903 49,526 54,214 56,198
Total cash costs per gold ounce[3]
$635 $655 $628 $771 $870 $801

[1]. Data provided for the second quarter 2014 are estimates only and subject
to change.
[2]. Includes pre-production gold ounces from the Young-Davidson underground
mine prior to the declaration of commercial production in the underground mine
on October 31, 2013.
[3]. Cash costs are prior to inventory net realizable value adjustments &
reversals. For Young-Davidson, gold ounces for cash costs purposes include
ounces produced for 2013, and ounces sold for 2014. For El Chanate and on a
consolidated basis, gold ounces for cash cost purposes include ounces sold.
Pre-production ounces produced at Young-Davidson are excluded from ounces
produced as these ounces are credited against capitalized project costs when
sold.

"We are pleased to report the Company's eighth consecutive quarter
of record gold production and another record performance at the
Young-Davidson mine where the operation continues to exceed
expectations. With production levels ahead of plan and the related
cost efficiencies being realized, we are increasingly confident that
Young-Davidson will be generating positive free cash flow by the end
of this year", stated Scott Perry, President and Chief Executive
Officer. He continued, "Company-wide, we remain firmly on track to
meet our annual 2014 production guidance and the Company remains well
positioned with a solid balance sheet, a quality asset base, and a
team that is committed to long-term shareholder value creation."

Young-Davidson Update

During the second quarter the Young-Davidson mine continued to
deliver productivity improvements throughout the operation and
reported its eighth consecutive quarter of record gold production.

- The Young-Davidson mine recently established a new safety record by
achieving 465 days of lost time incident free operations.
- Record production of 40,166 gold ounces was reported in the quarter,
representing an increase of 5,062 ounces, or 14%, over the prior quarter. The
operation is expected to deliver additional period-over-period production increases
going forward as the underground mine ramps-up to targeted levels.
- Underground cash costs for the quarter were $803 per gold ounce and are
expected to decline throughout the year, corresponding with planned
quarter-over-quarter increases in underground productivity. Total cash costs for the
quarter, which includes the open pit mine and open pit stockpile, were $871 per gold
ounce.
- During the quarter, underground mine productivity exceeded planned levels and
averaged approximately 3,595 tonnes per day at grades in-line with reserve grade
estimates. With underground productivity currently at more than 90% of the year-end
target, the operation is firmly positioned to achieve the year-end target of 4,000
tonnes per day and an ultimate productivity level of 8,000 tonnes per day at the end
of 2016.
- For the second full quarter of underground commercial production, unit mining
costs were in-line with expectations at approximately $45 per tonne. Corresponding
with the planned quarter-over-quarter increases in underground productivity, unit
costs are expected to decrease steadily throughout the year to a year-end underground
unit mining cost of approximately $40 per tonne.
- During the quarter, the operation was able to fully utilize excess paste-fill
capacity to accelerate the filling of additional mined out stopes to potentially
accelerate the planned underground ramp-up schedule through earlier access to
secondary stopes. The capacity of the paste-fill plant will fully support the
underground ramp-up to 8,000 tonnes per day at the end of 2016.
- During the quarter underground development advance continued to exceed planned
levels with approximately 3,545 metres completed, an average of 39 metres per day. The
Company will continue to focus on advancing underground development to best position
the mine for sustainable, period-over-period, productivity increases in 2014 and
beyond.
- During the quarter, the mill facility significantly exceeded targeted levels
and averaged 8,230 tonnes per day, at planned recoveries of 88%.The higher throughput
level during the quarter has firmly established a sustainable mill processing run rate
of 8,000 tonnes per day going forward that will provide considerable flexibility as
the underground mine continues to ramp up to its target of 8,000 tonnes per day at the
end of 2016.
- As planned, the short life open pit mine was fully depleted in early June. As
a result, open pit mining activities have ceased and mining costs of approximately $3
million per month have been eliminated. Currently, approximately 3.2 million tonnes of
open pit ore, at an average grade of approximately 0.80 grams per tonne, is stockpiled
ahead of the mill facility for future processing. The open pit stockpile will
supplement underground ore feed to the mill processing facility as the underground
mine ramps up to targeted levels. As the related mining costs associated with the
stockpile were expended in prior periods, processing of these ore tonnes will
favourably augment the mine's free cash flow profile going forward.

El Chanate Update

- At the end of the quarter, the El Chanate mine achieved 479 days of lost
time incident free operations.
- During the quarter the open pit mined an average of 93,808 tonnes per day.
- Production in the quarter reflected higher than planned sequencing of lower
grade benches primarily attributable to lower than planned mine contractor
productivity. Operations are expected to increasingly shift to higher grade benches
during the second half of the year.
- Cash costs for the quarter were $618 per ounce, in-line with guidance levels.

About AuRico Gold

AuRico Gold is a leading Canadian gold producer with mines and
projects in North America that have significant production growth and
exploration potential. The Company is focused on its core operations
including the Young-Davidson gold mine in northern Ontario, and the
El Chanate mine in Sonora State, Mexico. AuRico's project pipeline
also includes advanced development opportunities in Mexico and
Canada. AuRico's head office is located in Toronto, Ontario, Canada.

Cautionary Statement

This press release contains forward-looking statements and
forward-looking information as defined under Canadian and U.S.
securities laws. All statements, other than statements of historical
fact, are forward-looking statements. The words "expect", "believe",
"anticipate", "will", "intend", "estimate", "forecast", "budget" and
similar expressions identify forward-looking statements.
Forward-looking statements include information as to strategy, plans
or future financial or operating performance, such as the Company's
expansion plans, project timelines, production plans, projected cash
flows or capital expenditures, cost estimates, projected exploration
results, reserve and resource estimates and other statements that
express management's expectations or estimates of future performance.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by
management, are inherently subject to significant uncertainties and
contingencies. Known and unknown factors could cause actual results
to differ materially from those projected in the forward-looking
statements, including: uncertainty of production and cost estimates;
fluctuations in the price of gold and foreign exchange rates; the
uncertainty of replacing depleted reserves and the possible
recalculation or reduction of reserves and resources; the risk that
the Young-Davidson shaft will not perform as planned; the risk that
mining operations do not meet expectations; the risk that projects
will not be developed according to budgets or timelines, changes in
laws in Canada, Mexico and other jurisdictions in which the Company
may carry on business; risks of obtaining necessary licenses, permits
or approvals for operations or projects such as Kemess; disputes over
title to properties; the speculative nature of mineral exploration
and development; risks related to aboriginal or Ejido title claims;
compliance risks with respect to current and future environmental
regulations; disruptions affecting operations; opportunities that may
be pursued by the Company; employee relations; availability and costs
of mining inputs and labor; the ability to secure capital to execute
business plans; volatility of the Company's share price; continuation
of the dividend and dividend reinvestment plan; the effect of future
financings; litigation; risk of loss due to sabotage and civil
disturbances; the values of assets and liabilities based on projected
future cash flows; risks arising from derivative instruments or the
absence of hedging; adequacy of internal control over financial
reporting; changes in credit rating; and the impact of inflation.
Actual results and developments are likely to differ, and may differ
materially, from those expressed or implied by the forward-looking
statements contained herein. Such statements are based on a number of
assumptions which may prove to be incorrect, including assumptions
about: business and economic conditions; commodity prices and the
price of key inputs such as labour, fuel and electricity; credit
market conditions and conditions in financial markets generally;
revenue and cash flow estimates, production levels, development
schedules and the associated costs; ability to procure equipment and
supplies and ability to do so on a timely basis; the timing of the
receipt of permits and other approvals for projects and operations;
the ability to attract and retain skilled employees and contractors
for the operations; the accuracy of reserve and resource estimates;
the impact of changes in currency exchange rates on costs and
results; interest rates; taxation; and ongoing relations with
employees and business partners. The Company disclaims any intention
or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by applicable law.

PDF available at: http://40rhel5streamview01.newswire.ca/media/201
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f

For further information please visit the AuRico Gold website at
http://www.auricogold.com or contact:

Scott Perry
President and Chief Executive Officer
AuRico Gold Inc.
+1-647-260-8880

Anne Day
Vice President, Investor Relations and Communications
AuRico Gold Inc.
+1-647-260-8880

ots Originaltext: AuRico Gold Inc.
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