Aurora Gold Mine

Mine Overview

The Aurora Gold Mine is the Company’s flagship mine which reached commercial production January 1, 2016 and has an estimated average annual recovered gold production of 215,000 ounces over the next five years at average AISC1 of $890/oz.

       

2019 Guidance

The Company expects full year gold production to come in toward the low end of its previously stated guidance range of 145,000 – 160,000 ounces of gold. During the third quarter, the plan calls for approximately half of the mill feed to be sourced from stockpiles due to sequencing of the pit phases at Rory’s Knoll. As a result, production in the second half of the year will be back-end weighted with the fourth quarter accounting for approximately 60% of the forecast ounces.

Costs forecasts for the remainder of the year are provided below. Details have also been provided on the higher expected costs on a per ounce basis in the third quarter of 2019 due to the lower level of gold production expected.

•  Cash cost per ounce¹ (before royalty) for the second half of the year are expected to be within the previously stated guidance range of $800 to $850/oz while third quarter cash costs per ounce¹ are expected to be approximately 20% higher than the year-to-date average.
•  Cost of sales per ounce for the second half of the year are expected to increase by approximately 10% when compared to the year-to-date average, while cost of sales per ounce in the third quarter are expected to be 20% higher than the first half 2019 average.
•  AISC¹ for the second half of the year is expected to be roughly in-line with the year-to-date average while AISC¹ for the third quarter is expected to be approximately 5% higher than the first half 2019 average.

Open pit mining rates are expected to be in line with the rate of 64,000 tpd as presented in the optimized mine plan on May 1, 2019. While the Company continues to implement a number of operational efficiency initiatives aimed at reducing costs, the benefit of these initiatives, for the most part, have not been incorporated into the current cost forecast, potentially allowing for additional unrealized savings.

Key Statistics 2019 Guidance Q1 2019 Q2 2019
Gold Produced
ounces
145,000-160,000 36,600 37,300
Cash costs per ounce – before royalty¹ ($/ounce)
US$/ounce
800 - 850 839 746
All-in sustaining¹ (“AISC”)
US$/ounce
1,378 1,323
Cost of sales (prod, royalty and dep)
US$/ounce
1,302 1,186
Gold Sold
ounces
38,200 38,300
Average Realized Gold Price
US$/ounce
1,301 1,325
Gross Revenue
US$ mlns
49.7 50.7
Ore Mined
t (‘000s)
502 547
Waste Mined
t (‘000s)
5,037 4,705
Total Mined
t (‘000s)
5,539 5,251
Strip Ratio
waste:ore
10.0 8.6
Tonnes Mined per Day
tpd
61,542 57,710
Ore Processed
t (‘000s)
649 711
Tonnes Processed per Day
tpd
7,213 7,800
Head Grade
g/t Au
1.94 1.81
Recovery
%
90.5 90.2

The board has approved an exploration program budget of $6.8 million covering additional surface brownfield drilling, initial underground drilling and the resumption of greenfield exploration for a combined total of approximately 30,000. The underground exploration decline is planned to advance over 2,000 meters through the remainder of 2019.

1. This is a non-IFRS measure. Refer to ”Non-IFRS Performance Measures” section in the December 31,2018 MD&A
2. Includes US$11.3M in contingencies
3. Includes US$6M in reclamation