AuRico Gold on track for production targets, ramps up for more in 2013

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TORONTO - Canadian gold producer AuRico Gold says it expects to produce up to 220,000 ounces of gold this year, which would be 73 per cent above its output in 2012.

AuRico Gold (TSX:AUQ) said Friday it expects to produce 190,000 to 220,000 ounces this year, mostly from its Young-Davidson mine near Matachewan, Ont.

The remainder of this year's output will come from the El Chanate Mine in Mexico.

The company estimates 2013 cash costs will be US$540 to US$620 per ounce.

These estimates surpass last year's production of 127,284 ounces at the two mines, with a value of US$545 to US$565 per ounce.

Last October, AuRico Gold sold its troubled Ocampo mine and other assets to recoup US$750 million for debt repayment, mine development and return cash to its shareholders.

It had cut production at the Mexico mine in July due to a myriad of problems, including troubles with the ore body and water shortages.

Earlier last year, AuRico sold the El Cubo mine and the Guadalupe y Clavo project to Endeavour Silver Corp. for $100 million in cash and $100 million in shares.

It sold the Stawell and Fosterville mines in Australia last May to Crocodile Gold Corp. for $55 million in cash.

"It has been a transformational year for the company as we re-positioned our portfolio for reliable, consistent and sustainable performance, demonstrating our focus on quality ounces that will drive significant cash flow going forward, said president and CEO Scott Perry in a statement Friday.

By mid-day, share prices for AuRico showed little reaction to the outlook projections by the company. On the Toronto Stock Exchange, it was down 23 cents to C$7.84 a share compared to Thursday's market close.

Organizations: TSX, El Chanate Mine, Endeavour Silver Crocodile Gold Toronto Stock Exchange

Geographic location: Mexico, TORONTO, Matachewan Australia

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