Shares Listed: Toronto Stock Exchange - Ticker Symbol - ARZ
NYSE Amex - Ticker Symbol - AZK
U.S. Registration: (File 001-31893)
News Release Issue # 28 - 2010
VANCOUVER, Oct. 22 /PRNewswire-FirstCall/ - Aurizon Mines
Ltd. (TSX: ARZ; NYSE Amex: AZK) reports operating results for the
third quarter of 2010 and provides the production outlook for the
remainder of the year.
Aurizon plans to release its 2010 Third Quarter financial
results before market open on Thursday,
November 4, 2010 and management will host a conference call
and live webcast that same day at 8:00 a.m.
Pacific Standard Time (11:00 a.m.
Eastern Standard Time) to allow analysts and shareholders
the opportunity to hear management discuss the Company's quarterly
results.
Third Quarter Production Results
Gold production for the third quarter of 2010 totaled 29,905
ounces from the processing of 169,913 tonnes at an average grade of
6.15 grams of gold per tonne, compared to ore grades of 7.0 grams
of gold per tonne in the first half of 2010. As a result of the
lower ore grades in the third quarter of 2010, mill recoveries were
89%, compared to 90.7% in the first half of 2010.
Challenging ground conditions in a localized area of Zone 113
resulted in changes to the mining sequencing, which adversely
impacted expected ore grades. Additionally, as a result of the
reduced availability of underground mining equipment due to
mechanical issues, daily ore throughput decreased to 1,847 tonnes
per day in the third quarter, compared to 2,005 tonnes per day in
the second quarter of 2010. An independent study of maintenance
practices and an evaluation of equipment replacement has been
initiated to address this issue. Additional mining equipment was
acquired in October to improve productivity.
Total cash costs were US$604 per
ounce in the third quarter, compared to US$520 per ounce in the first half of 2010,
primarily due to lower ore grades and higher unit mining costs.
Unit operating costs on a Canadian dollar per tonne basis were
$112 per tonne compared to
$107 per tonne in the first half of
2010. Anticipated higher ore throughput for the balance of the year
should reduce costs to approximately $110 per tonne in the fourth quarter.
Fourth Quarter Production Outlook
Based upon results for the first nine months and the revised
mine plan for the balance of 2010, Casa Berardi production guidance
has been lowered to 140,000 - 145,000 ounces, compared to previous
guidance of 145,000 - 155,000 ounces of gold. Total cash costs for
the full year are now estimated at approximately US$535 per ounce, assuming a Canadian dollar
exchange rate of 1.01 against the U.S. dollar for the balance of
the year, compared to previous guidance of US$500 per ounce at an exchange rate of 1.03.
Beginning in 2011 through 2013, annual gold production of
160,000 to 170,000 ounces is anticipated at total cash costs
approximating US$450 per ounce, as
the mine plan includes more areas containing material with the
average underground reserve grade of approximately 8 grams of gold
per tonne. It is anticipated that future mine plans will
incorporate the results of the extensive drill programs currently
in progress.
Quality Control
Information of a scientific or technical nature in this news
release was prepared under the supervision of Martin Bergeron, P.Eng., Vice President,
Operations and a qualified person under National Instrument
43-101.
Non-GAAP Information
Aurizon has included non-GAAP performance measures of total cash
costs per ounce of gold and unit operating costs per tonne in this
release. Aurizon reports total cash costs on a sales basis. In the
gold mining industry, this is a common performance measure but does
not have any standardized meaning, and is a non-GAAP measure. The
Company believes that, in addition to conventional measures
prepared in accordance with GAAP, certain investors use this
information to evaluate the Company's performance and ability to
generate cash flow. Accordingly, it is intended to provide
additional information and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with GAAP. Total cash costs per gold ounce are derived from amounts
included in the statements of earnings and include mine site
operating costs such as mining, processing and administration, but
exclude amortization, reclamation costs, financing costs and
capital development costs. The costs included in the calculation of
total cash costs per ounce of gold are reduced by silver by-product
sales and then divided by gold ounces sold and the average Bank of
Canada Cad$/US$ exchange rate.
Unit operating costs per tonne is a non-GAAP measure and may not
be comparable to data prepared by other gold producers. The Company
believes that this generally accepted industry measure is a
realistic indication of operating performance and is useful in
allowing year over year comparisons. Unit operating costs per tonne
is calculated by adjusting operating costs as shown in the
Statement of Earnings for inventory adjustments and then dividing
that by the tonnes processed through the mill.
Forward-looking Information
Estimates regarding production, costs and expected recoveries at
Casa Berardi in 2010 constitutes 'forward-looking information'
within the meaning of applicable securities regulations in
Canada and the United States and will be updated if
required under applicable securities legislation. This information
is provided as general guidance only and is based on assumptions
and subject to risks as described below under Forward-Looking
Statements. Readers are cautioned that actual results may vary from
the forward-looking information disclosed.
Details of Third Quarter Conference Call and Webcast
Aurizon management has scheduled a conference call and live
webcast on Thursday, November 4, 2010
at 8:00 a.m. Pacific Standard Time
(11:00 a.m. Eastern Standard Time) to
allow analysts and shareholders the opportunity to hear management
discuss the Company's quarterly results. You may access the call by
dialing into the Toll Free # at 1-877-407-8031 or the International
# at 1-201-689-8031.
The call is being webcast by Vcall and can be accessed on
Aurizon's website at www.aurizon.com. or enter the following URL
into your browser:
www.investorcalendar.com/IC/CEPage.asp?ID=162119. Investors can
also access the webcast at www.InvestorCalendar.com. Those who wish
to listen to a recording of the conference call at a later time may
do so by calling the Toll Free # at 1-877-660-6853 or International
# at 1-201-612-7415 (Replay Passcodes: Account # 286 and Conference
ID # 358998). A replay of the call will be available until
Thursday, November 11, 2010.
About Aurizon
Aurizon is a gold producer with a growth strategy focused on
developing its existing projects in the Abitibi region of
north-western Quebec, one of the
world's most favourable mining jurisdictions and prolific gold and
base metal regions, and by increasing its asset base through
accretive transactions. Aurizon shares trade on the Toronto Stock
Exchange under the symbol "ARZ" and on the NYSE Amex under the
symbol "AZK". Additional information on Aurizon and its properties
is available on Aurizon's website at www.aurizon.com.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking statements" and
"forward-looking information" within the meaning of applicable
securities regulations in Canada
and the United States
(collectively, "forward-looking information"). The forward-looking
information contained in this news release is made as of the date
of this news release. Except as required under applicable
securities legislation, the Company does not intend, and does not
assume any obligation to update this forward-looking information.
Forward-looking information includes, but is not limited to,
statements regarding the Company's expectations and estimates as to
future gold production, total cash costs per ounce, onsite mining,
milling and administration costs and sustaining capital
expenditures at Casa Berardi, and the Company's planned programs on
its Casa Berardi project for 2010 and beyond. In addition,
forward-looking information includes statements with respect to
anticipated effects of drill results, timing and expectations of
future development, exploration, and work programs. Often, but not
always, forward-looking information can be identified by the use of
words such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"believes", or the negatives thereof or variations of such words
and phrases or statements that certain actions, events, or results
"may", "could", "would", "might", or "will", be taken, occur or be
achieved. The forward-looking information expresses, as at the date
of this news release, the Company's plans, estimates, forecasts,
and expectations, as to future events or results and are based on
certain assumptions that the Company believes are reasonable, and
the further assumptions that past operational performance will
continue, there will be no material disruption in operations,
demand for and the price of gold will be sustained or will improve,
the supply of gold will remain stable, that the general business
and economic conditions will not change in a material adverse
manner, that financing will be available if and when needed on
reasonable terms and that the Company will not experience any
material accident, labour dispute, or failure of plant and
equipment.
However, forward-looking information involves known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
information. Such factors include, among others, conclusions of
economic evaluations, the risk that actual results of development
and exploration activities will be different than anticipated, that
cost of labour, equipment or materials will increase more than
expected, that the future price of gold will decline, that the
Canadian dollar will strengthen against the U.S. dollar, that
mineral reserves and resources are not as estimated, that actual
costs or actual results of reclamation activities are greater than
expected; that changes in project parameters as plans continue to
be refined may result in increased costs, of unexpected variations
in mineral reserves and resources, grade or recover rates, of
failure of plant, equipment or processes to operate as anticipated,
of accidents, labour disputes and other risks generally associated
with mining, unanticipated delays in obtaining governmental
approvals or financing or in the completion of development or
construction activities, as well as those factors and other risks
more fully described in Aurizon's Annual Information Form filed
with the securities commission of all of the provinces and
territories of Canada and in
Aurizon's Annual Report on Form 40-F filed with the United States
Securities and Exchange Commission, which are available on Sedar at
www.sedar.com and on Edgar at www.sec.gov/. Although the Company
has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking information, there may be other
factors that cause actions, events or results to not be as
anticipated, estimated or intended. There can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Readers are cautioned not to place
undue reliance on forward-looking information due to the inherent
uncertainty thereof.
SOURCE Aurizon Mines Ltd.
Copyright . 22 PR Newswire