AuRico Gold details 3Q initial production results
NEW YORK (AP) — Shares of AuRico Gold Inc. rose 4 percent Monday after the Canadian mining company announced preliminary production results from its new mine in northern Ontario.
AuRico said the Young-Davidson mine produced 9,903 ounces of gold in September, which was its first month of commercial production. Cash costs were $639 per ounce. The mine is near the town of Matachewan.
The company said production is expected to increase in the fourth quarter as the underground mine comes into production providing additional higher grade feed for the mill.
For the third quarter, the Toronto company said production at El Chanate mine was 19,388 ounces of gold at cash costs of $434 per ounce. It is in the Sonora state of Mexico.
The Ocampo mine produced 21,916 gold equivalent ounces at cash costs of $754 per gold equivalent ounce. AuRico said last week that it is selling the Ocampo mine, adjacent exploration projects and half the Orion development project for $750 million to Mexican mining company Minera Frisco, S.A.B. de C.V.
Shares of AuRico rose 31 cents to finish at $7.49. The price has ranged from $5.25 to $11.20 per share in the past 52 week.