Guadalupe y Calvo

AuRico Gold’s Guadalupe y Calvo gold-silver exploration project is in a previously mined area in the southwest corner of Chihuahua State, Mexico. It is approximately 300 km southwest of the city of Chihuahua.

Guadalupe y Calvo is in a classic gold-silver epithermal district. In general, it is classified as a pluton low-sulfidation epithermal vein system, which contains quartz veins, quartz breccias, and stockworks hosting economically significant gold and silver mineralization.

The project’s main structural feature is the Rosario fault complex. The total width of the mineralized zone in this complex is up to 80 metres.

During 2010, we completed 18,579 metres of drilling, most of which was focused on the Northwest Rosario Extension. Drilling indicates that the vein system is wide and that very high grades are present within it. Work in 2010 discovered 15 new intercepts that are above 2.0 gold equivalent grams per tonne.

In 2011, we plan to complete a Preliminary Economic Assessment on the project. This will include a $4-$5 million exploration program that will target follow-up drilling on the Northwest Rosario Extension and some fill-in and step-out drilling on the 2008 grid pattern. We also plan on beginning to drive a 1,700 metre drift, to be used for underground exploration drilling and metallurgical sampling.