VANCOUVER, Oct. 22 /CNW/ -- Shares Listed: Toronto Stock Exchange -
Ticker Symbol - ARZ NYSE Amex - Ticker Symbol - AZK U.S.
Registration: (File 001-31893) News Release Issue No. 28 - 2010
VANCOUVER, Oct. 22 /CNW/ - 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 No. at 1-877-407-8031 or the
International No. 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 No. at 1-877-660-6853 or
International No. at 1-201-612-7415 (Replay Passcodes: Account No.
286 and Conference ID No. 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. AURIZON MINES LTD, David P. Hall, President and C.E.O.,
Ian S. Walton, Executive Vice President and C.F.O., Telephone:
(604)687-6600, Toll Free: 1-800-411-GOLD (4653), Fax: (604)
687-3932, Email: info@aurizon.com, Website: www.aurizon.com; or
Renmark Financial Communications Inc., 1550 Metcalfe, Suite 502,
Montreal, QC, H3A 1X6, Barry Mire: bmire@renmarkfinancial.com;
Maurice Dagenais: mdagenais@renmarkfinancial.com; Media: Lynn
Butler: lbutler@renmarkfinancial.com, Tel: (514) 939-3989, Fax:
(514) 939-3717
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