UPDATE 1-AuRico cuts production outlook at Ocampo mine
TORONTO, July 16
TORONTO, July 16 (Reuters) - AuRico Gold Inc cut its 2012 production outlook on Monday as a high turnover of skilled laborers at its Ocampo mine in northern Mexico weighed on gold and silver output.
Development of the northeast underground mine at Ocampo, located in Chihuahua state, was significantly delayed by the labor problems, reducing production in the second quarter, the company said.
AuRico now expects to produce 155,000-170,000 gold equivalent ounces at the mine in 2012, down from earlier estimates of 180,000-200,000 ounces.
Shares of AuRico closed down 2.17 percent at C$7.67 on Monday on the Toronto Stock Exchange.
The company said it has launched an aggressive recruitment campaign and has filled the majority of open positions.
AuRico's other mines, the Young-Davidson project in Ontario and the El Chanate mine in Mexico, are both on track to achieve their 2012 production targets, the company said.
The lower production forecast at Ocampo will reduce AuRico's overall 2012 output forecast to 298,000-333,000 ounces from a previous estimate of 323,000-363,000 ounces.
The Toronto-based miner produced 51,101 gold ounces and 894,414 million silver ounces in the second quarter of 2012.
AuRico expects to launch commercial production at its Young-Davidson mine, located some 60 kilometers west of Kirkland Lake in Northern Ontario, in August of this year.