VANCOUVER, March 10 /CNW/ -- Shares Listed: Toronto Stock Exchange
- Ticker Symbol - ARZ NYSE Amex - Ticker Symbol - AZK U.S.
Registration: (File 001-31893) News Release Issue No.5 - 2011
VANCOUVER, March 10 /CNW/ - Aurizon Mines Ltd. (TSX: ARZ; NYSE
Amex: AZK) is pleased to report a 44% increase in mineral reserves
and an updated mineral resource estimate for its Casa Berardi mine,
located in north western Quebec, Canada. Highlights include the
following: - Mine life extended from six years to ten years. - An
increase of 44% in mineral reserves to 1,457,000 ounces of gold. -
A significant open pit mineral reserve of 370,000 ounces
established in the area of the Principal zones, which are still
open laterally. - An increase of 10% in West Mine underground
mineral reserves. - An increase of 74% and an upgrade of the ounces
contained in Zone 123 between the 800 metre and 1,000 metre levels.
This zone remains open both up dip and down dip. - An increase of
40% in the ounces contained in the Principal Zones, accessible from
underground.
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CASA BERARDI MINE MINERAL RESERVES AND RESOURCES SUMMARY(1) as at
December 31, 2010 versus 2009
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2010 --------------------------------------------------------------
Tonnes Grade Gold Grams/tonne Ounces
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Mineral Reserves Proven and Probable Mineral Reserves Underground
4,057,000 7.7 1,005,000 Open pit 3,796,000 3.7 452,000
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Total Mineral Reserves 7,854,000 5.8 1,457,000
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Mineral Resources Measured Mineral Resources 1,155,000 5.7 211,900
Indicated Mineral Resources 3,327,000 5.7 612,400
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Total Measured & Indicated Resources 4,481,000 5.7 824,000
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Inferred Mineral Resources 3,981,000 5.8 748,000
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2009 2010
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Tonnes Grade Gold Gain (loss) Grams/tonne ounces ounces
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Mineral Reserves Proven and Probable Mineral Reserves Underground
3,798,000 7.6 929,000 76,000 Open pit 635,000 4.0 81,000 370,000
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Total Mineral Reserves 4,433,000 7.1 1,010,000 447,000
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Mineral Resources Measured Mineral Resources 789,000 5.3 134,500
77,400 Indicated Mineral Resources 4,289,000 5.6 778,100 (165,700)
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Total Measured & Indicated Resources 5,078,000 5.6 912,000
(88,000)
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Inferred Mineral Resources 4,487,000 6.6 958,000 (210,000)
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(1) See accompanying notes below detailed mineral reserve and
mineral resource tables for definitions, parameters, and
assumptions. Please note the mineral resources are exclusive of
mineral reserves. "For the fourth consecutive year, Casa Berardi
has renewed or increased mineral reserves." stated David P. Hall,
President and CEO, adding "Our $13.4 million exploration program
this year will continue to extend and upgrade existing mineral
resources. Casa Berardi continues to confirm our initial
expectations that it can deliver sustainable, profitable production
for many years to come." Casa Berardi Mine ----------------- The
Casa Berardi gold deposits are located along a five kilometre
east-west mineralized corridor. They include the East and West
mines, and the Principal Zones. The Casa Berardi gold deposits can
be classified as an Archean sedimentary-hosted lode gold deposit.
The gold mineralization is superimposed on a continuous graphitic
mudrock unit corresponding to the Casa Berardi Fault plane. Gold
occurs mainly south of the Casa Berardi Fault, and occasionally on
both sides of the fault. The mine has produced over 1.3 million
recovered gold ounces since commencing production in 1986,
including 636,400 recovered ounces since Aurizon recommenced
production in November 2006. BBA Inc. (BBA) was commissioned by
Aurizon to undertake a prefeasibility study on the Principal Mine
open pit. Roscoe Postle Associates Inc. ("RPA") was commissioned by
Aurizon to prepare updated mineral reserve and mineral resource
estimates on the rest of the property. Proven and Probable Mineral
Reserves have increased as a result of: - At the West Mine, the
2010 mine production in Zones 113, Lower Inter, North West and 115
have been more than replaced by gains in mineral reserves primarily
from the Principal Zone open pit and Zone 123S. Additional reserve
increases were provided from Zones 118 and 109. - As a result of
the addition of the lower grade ore from the Principal Zone open
pit, tonnage has increased by 77%, grade has decreased by 19% and
ounces of gold have been increased by 44% compared to 2009. -
Mineral reserves are estimated using an average long-term gold
price of US$950 per ounce and a US$/C$ exchange rate of 1:1,
compared to US $825 per ounce in 2009 and a US$/C$ exchange of
1:1.09. A minimum cut off grade of 4.1 grams of gold per tonne was
used for the underground zones, based on long term operating costs
and gold prices. A minimum cut off grade of 1.2 grams and 0.5 grams
of gold per tonne was used respectively for the East Mine and
Principal Zone open pits. In 2009, the minimum cut off grade was
3.9 grams of gold per tonne for the underground zones. - As the
mining industry is currently experiencing gold prices that are
higher than US$950 per ounce, the operations periodically mine ore
that is not included in mineral reserves as the grades are lower
than the long term minimum cut-off grades. Principal Zone Open Pit
----------------------- BBA was mandated by Aurizon to undertake a
prefeasibility study for the Casa Berardi Principal Zone, situated
approximately 1.0 kilometre east of the West Mine production shaft.
A pit optimization and design were carried out in order to
determine the reserves for the Principal Zone Pit. An optimization
algorithm was used in MineSight software in order to achieve the
most economic pit shell. In accordance with the guidelines of the
National Instruments NI 43-101 on Standards of Disclosure for
Mineral Projects and the Canadian Institute of Mining, Metallurgy
and Petroleum Definition Standards for Mineral Resources and
Mineral Reserves adopted on August 20, 2000, only those ore blocks
classified in the measured and indicated categories were used to
drive the pit optimizer for a Pre-Feasibility Study. The inferred
material is counted as waste. The Principal Zone open pit will be
mined using conventional open pit mining methods. The open-pit will
be a smaller scale operation, and will run for slightly over 3 full
years of production. The average amount of material being moved
every six month period will approximate 500,000 to 550,000 tonnes
of ore, with variable quantities of waste. Highlights of the BBA
prefeasibility study are summarized below:
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Assumptions Gold Price (US$/oz) $950 Canadian $ to US$ rate 1.0:1.0
Fuel price (C$/litre) $0.87 Mineral Reserves Mineral Reserves
(ounces) 370,000 Mine Parameters Ore milled Tonnage (million
tonnes) 3.2 Grade (grams/tonne) 3.65 Waste to ore ratio 14.6:1
Estimated gold recovery (%) 87.0% Total gold recovered (ounces)
322,000 Pre-production period (years) 1.5 Pit Mine life (years) 3.0
Costs Pre-production capital ($ millions) $84.3 Cost per tonne
milled ($/t) $48.46 Average total cash cost per ounce (US$/oz)
US$440 Financial Return Internal Rate of Return (before tax) 26.8%
Net present value, pre tax, 5% discount ($ millions) $33.9 (All
dollar figures expressed in Canadian dollars, except where
indicated)
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Using a gold price of US$1,200 per ounce that is more reflective of
current market prices, the financial analysis indicates a pre-tax
NPV at a 5% discount rate of $96 million, with an IRR of 54%.
Further studies that will be undertaken in 2011 include
metallurgical test work to confirm the mill recoveries, and further
hydrological studies with pumping tests to assess the ability to
lower the groundwater table. In addition, surface drilling will be
conducted during the winter to test the near surface extensions of
the Principal zones which remain open in all directions. In
addition to the Principal Zone open pit reserves are Principal Zone
measured and indicated resources that are beneath the pit shell
totalling 1,410,000 tonnes at an average grade of 7.4 grams per
tonne, for 334,000 ounces of gold, and inferred resources totalling
628,000 tonnes at an average grade of 6.6 grams per tonne, for
132,700 ounces of gold. The Company plans to drill these zones in
2011 from the 280 metre track drift to assess the potential of
establishing a mineral reserve that can be mined from underground.
Changes in Casa Berardi Mineral Reserves
---------------------------------------- The following table shows
the main components of the change in mineral reserves during 2010:
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Tonnes Gold ounces
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Mineral Reserves - December 31, 2009 4,433,000 1,010,000 Resources
conversion(1) 4,160,000 606,000 Mining depletion(2) (695,000)
(153,000) Mining Cost(3) (45,000) (6,000)
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Mineral Reserves - December 31, 2010 7,854,000 1,457,000
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(1) Resource conversion resulted in the addition of 606,000 ounces
to mineral reserves, representing a 60% increase. (2) Mining
depletion represents mineral reserves mined and processed in 2010
before milling recoveries and exclude 4,000 ounces mined outside of
the reserves established at the beginning of the year and,
therefore, does not correspond to the actual 2010 gold production
of 141,116 ounces. (3) Despite a higher three year moving average
gold price, the cut off grade was increased primarily as a result
of higher operating costs. Mine Plan for Mineral Reserves
------------------------------ - The mine plan for the current
mineral reserves totals 7.9 million tonnes of ore, grading 5.8
grams of gold per tonne to be mined over 10 years (2011 to 2020).
Underground production will come from Zones 113, Lower Inter, 118,
123S, six smaller West Mine zones and the East Mine at an average
production rate of 165,000 ounces per year. Open pit production
will originate from the Principal Zone and the East Mine in the
latter years of the production cycle at an average production rate
of 100,000 ounces per year. - Development was compiled by zone,
measured from mine plans, and scheduled monthly for 2011, and
quarterly thereafter. - Production was compiled by stope, and
scheduled monthly for 2011 and yearly thereafter. The majority of
the production tonnage will come from Zones 113, Lower Inter, 118,
123S and Principal. - The mine plan will be continually modified as
new mineral resources are discovered and upgraded to reserves.
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CASA BERARDI MINE MINERAL RESERVE ESTIMATE As at December 31,
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2010 2009 Grade Grade Grams/ Gold Grams/ Gold Tonnes tonne Ounces
Tonnes tonne Ounces
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Lower Inter (LI) 910,000 8.0 233,200 965,000 8.6 266,100 North West
(NW) 42,000 5.8 7,900 62,000 5.6 11,200 113 587,000 8.8 167,000
893,000 7.7 222,000 115 147,000 11.4 54,100 156,000 11.3 56,400
Principal - Open Pit 89,000 6.3 18,000 - - - East mine - Open Pit
407,000 4.2 54,400 407,000 4.2 54,400 East mine - Underground
88,000 6.3 17,800 88,000 6.3 17,800
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Total Proven Reserves 2,271,000 7.6 552,400 2,571,000 7.6 627,800
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Lower Inter (LI) 30,000 8.2 7,900 32,000 10.2 10,500 South West
(SW) 72,000 4.6 10,700 72,000 4.6 10,700 109 114,000 5.7 21,000
68,000 5.4 11,700 111 37,000 5.4 6,400 37,000 5.4 6,400 113 402,000
9.9 127,800 535,000 8.2 141,200 115 0 0.0 0 2,000 4.1 300 117S
19,000 7.0 4,300 19,000 7.0 4,300 118 1,021,000 6.4 208,600 767,000
6.0 148,400 123S 493,000 7.4 117,700 - - - Principal - Open Pit
3,072,000 3.6 352,400 - - - East Mine - Open Pit 228,000 3.7 26,800
228,000 3.7 26,800 East Mine - Underground 63,000 8.2 16,500 63,000
8.2 16,500
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Low-Grade Development 31,000 3.9 3,900 40,000 3.9 5,000
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Total Probable Reserves 5,583,000 5.0 904,100 1,862,000 6.4 382,000
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Total Proven and Probable Reserves 7,854,000 5.8 1,457,000
4,433,000 7.1 1,010,000
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Notes: 1. Open pit mineral reserves were estimated by BBA and
underground mineral reserves were audited by RPA. 2. Mineral
reserves and resources estimates have been completed in accordance
with the Standards of Disclosure for Mineral Projects as defined by
National Instrument 43-101. Mineral resources are exclusive of
mineral reserves. Mining depletion for 2010 is included in 2010
Mineral reserves. 3. Mineral Reserves are estimated at a cut-off
grade of 4.15 g/t Au for underground, and 1.2 g/t Au for East Mine
open pit and 0.5g/t Au for Principal open pit. 4. Mineral Reserves
are estimated using an average long-term gold price of US$950 per
ounce and a US$/C$ exchange rate of 1:1. 5. A minimum mining width
of three metres was used. 6. Totals may not represent the sum of
the parts due to rounding. 7. See Appendix A for additional
technical parameters.
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CASA BERARDI MINE MINERAL RESOURCE ESTIMATES As at December 31,
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2010 2009 --------------------------------------------------------
Grade Grade Grams/ Gold Grams/ Gold Tonnes tonne Ounces Tonnes
tonne Ounces
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Measured Mineral Resources Lower Inter 122,000 5.1 19,800 98,000
5.1 16,200 113 290,000 6.6 61,300 155,000 8.1 40,100 113-5 10,000
5.7 1,900 - - - 115 9,000 4.9 1,500 - - - 115-2 34,000 12.2 13,200
- - - North West 9,000 5.0 1,400 9,000 5.0 1,400 Principal -
Underground 153,000 7.3 36,000 - - - East Mine - Open Pit 311,000
3.1 31,300 311,000 3.1 31,300 East Mine Underground 216,000 6.5
45,500 216,000 6.5 45,500
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Total Measured Resources 1,155,000 5.7 211,900 789,000 5.3 134,500
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Indicated Mineral Resources Lower Inter 3,000 8.8 900 3,000 5.3 600
South West 300,000 4.7 45,000 300,000 4.7 45,000 Inter 124,000 4.4
17,700 124,000 4.4 17,700 109 21,000 4.3 2,900 - - - 111 52,000 5.2
8,800 52,000 5.2 8,800 113 46,000 5.1 7,600 60,000 4.9 9,500 113-5
2,000 6.0 400 - - - 113(S4) 245,000 5.5 43,000 245,000 5.5 43,000
115 - - - - - - 115-2 4,000 10.3 1,300 - - - 118 518,000 5.2 86,900
265,000 6.0 51,80 123S 136,000 5.4 23,700 - - - Principal - Open
Pit 0 0.0 0 1,785,000 6.2 355,300 Principal Underground 1,257,000
7.4 298,500 837,000 6.4 171,700 East Mine - Open Pit 404,000 2.7
34,500 404,000 2.7 34,500 East Mine Underground 90,000 6.3 18,100
90,000 6.3 18,100 152 125,000 5.8 23,200 125,000 5.8 23,200
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Total Indicated Resources 3,327,000 5.7 612,400 4,289,000 5.6
778,100
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Total Measured & Indicated Resources 4,481,000 5.7 824,300
5,078,000 5.6 912,600
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CASA BERARDI MINE MINERAL RESOURCE ESTIMATES As at December 31,
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2010 2009 --------------------------------------------------------
Grade Grade Grams/ Gold Grams/ Gold Tonnes tonne Ounces Tonnes
tonne Ounces
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Inferred Mineral Resources 104 115,000 6.6 24,500 115,000 6.6
24,500 113(S4) 15,000 5.8 2,700 15,000 5.8 2,700 118 369,000 7.9
94,200 1,018,000 6.8 222,100 123S 909,000 8.0 234,100 714,000 9.4
216,300 Principal - Open Pit 655,000 2.5 53,200 841,000 6.0 161,500
Principal underground 628,000 6.6 132,700 836,000 6.0 160,500 East
Mine - Open Pit 310,000 3.0 30,200 310,000 3.0 30,200 East Mine
Underground 156,000 9.1 45,600 156,000 9.1 45,600 152 13,000 8.2
3,500 13,000 8.2 3,500 East Mine Cherty 225,000 6.8 49,300 225,000
6.8 49,300 160 In Pit Resources 131,000 1.7 7,100 - - - 160
Underground 455,000 4.8 70,800 243,000 5.4 42,200
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Total Inferred Resources 3,981,000 5.8 747,900 4,487,000 6.6
958,500
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Notes: 1. Open pit mineral resources were estimated by BBA and
underground mineral resources were estimated by RPA. 2. CIM
definitions were followed for Mineral Resources. 3. Mineral
Resources are estimated at cut-off grades of: - 4 g/t Au for West
Mine, Principal Mine and East Mine. - 3 g/t Au for South West,
Inter and 104 zones in the West Mine. Those zones were estimated by
Aurizon in 2000 using 2D polygons on longitudinal sections and
reviewed by RPA in 2005. - 1.30 g/t Au for the East Mine - Open Pit
- 0.5g/t Au for the Principal - Open Pit Mineral Resources are
estimated using an average long-term gold price of US$950 per
ounce, and a US$/C$ exchange rate of 1:1. 4. Minimum mining widths
of two to three metres were used. 5. Mineral Resources are
exclusive of Mineral Reserves. 6. Totals may not represent the sum
of the parts due to rounding. 7. Mineral resources which are not
mineral reserves do not have demonstrated economic viability 8. See
Appendix B for additional technical parameters. Comparison with
2009 Mineral Resources -------------------------------------- The
main variance in the mineral resource estimates between 2010 and
2009 are as follows: - Geological re-interpretation of mineralized
zones after drilling programs (Zone 109, 113, 115, Lower Inter and
mainly 118, 123S, Principal open pit and underground). - Geological
interpretation and 3D block model of three mineralized new zones
(Zones 113-5, 115-2 and 160 (East Mine)). - Conversion of inferred
into indicated; or of indicated into measured. - Conversion of
mineral resources (-299,000 oz) into mineral reserves (+606,000
oz). - Conversion of mineral resources to mineral reserves after
completion of economic mining plan for Zones 118, 123S; and after
completion of prefeasibility study of Principal Open pit. - Mining
depletion (Zones 113, North West, Lower Inter and 115). Outlook
------- Aurizon intends to utilize its strong cash flow to upgrade
mineral resources to mineral reserves in order to extend and
optimize the current mine plan. In 2011, Aurizon also intends to
update mineral resources at Casa Berardi following an aggressive
diamond drilling program totalling 115,000 metres and to complete a
scoping study to assess the relative risks and opportunities of
mining Zone 160 by open pit. The recently extended 550 level
exploration track drift will be utilized as a drilling platform to
verify the continuity between the Principal Zone and Zones 118 and
123. Deepening of the West Mine production shaft from the 760 metre
level down to the 1,080 metre level will eventually provide a new
drilling platform at the 1,010 metre level to allow testing the
depth extensions of Zones 113, 118 and 123S. Shaft deepening is
expected to start in the second quarter of 2011 and be completed at
the end of the third quarter of 2012. Quality control Mineral
resource estimates, implementation and the quality control program
are supervised by Sylvain Picard P. Eng., Principal Mine Geologist
for Casa Berardi, and a "qualified person" as defined by the
National Instrument 43-101. Underground mineral reserve and
resource estimates were prepared by RPA. The "qualified persons"
for RPA as defined by National Instrument 43-101 are Bernard
Salmon, Eng., and Normand Lecuyer, P.Eng. Mineral reserve and
resource estimates for the Principal Mine open pit were prepared by
BBA. The "qualified person" for BBA as defined by National
Instrument 43-101 is Patrice Live, Eng. Information of a technical
and scientific nature in the press release has been prepared under
the supervision of Christian Bourcier, P. Eng., Mine Manager for
Casa Berardi, and a "qualified person" as defined by the National
Instrument 43-101. Additional Information One sketch is attached
showing the updated mineral reserve and resource outlines at the
Casa Berardi Gold Mine. Two appendices attached to this release
detail the technical parameters used for the mineral reserve
estimates (Appendix A) and the mineral resource estimates (Appendix
B). All other information previously released on Casa Berardi is
also available on the Aurizon website at www.aurizon.com. The
sketch can be viewed here:
http://files.newswire.ca/734/Sketch_NR031011.pdf 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 AND INFORMATION 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 with respect to mineral reserve and mineral resource
estimates, the 2011 Casa Berardi mine plan and estimates of gold
production, grade and long-term average gold prices, anticipated
effect of completed drill results on the Casa Berardi project,
planned work programs, feasibility studies, strategic plans and
expected outcomes. 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 contained in this news release is based
on certain assumptions that the Company believes are reasonable,
including, with respect to mineral reserve and resource estimates,
the key assumptions and parameters on which such estimates are
based, as set out in the technical report for the property, that
the current price of and demand for 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 or
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 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 resources and
reserves 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 resources and
reserves, grade or recovery 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. CAUTIONARY
NOTE TO US READERS As a Canadian reporting issuer, the Company is
subject to rules, policies and regulations issued by Canadian
regulatory authorities and is required to provide detailed
information regarding its properties including mineralization,
drilling, sampling and analysis, security of samples and mineral
resource and mineral reserve estimates. In addition, as a Canadian
reporting issuer, the Company is required to describe mineral
resources associated with its properties utilizing Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM") definitions
of "indicated" or "inferred", which categories of resources are
recognized by Canadian regulations but are not recognized by the
United States Securities and Exchange Commission ("SEC"). The SEC
allows mining companies, in their filings with the SEC to disclose
only those mineral deposits they can economically and legally
extract or produce. Accordingly, information contained in this News
Release regarding our mineral deposits may not be comparable to
similar information made public by U.S. companies subject to the
reporting and disclosure requirements under the United States
federal securities laws and the rules and regulations of the
Commission thereunder. In particular, this News Release uses the
term "indicated" resources. U.S. readers are cautioned that while
that term is recognized and required by Canadian regulations, the
SEC does not recognize it. U.S. investors are cautioned not to
assume that any part or all of mineral deposits in this category
will ever be converted into mineral reserves. This News Release
also uses the term "inferred" resources. U.S. readers are cautioned
that while this term is recognized and required by Canadian
regulations, the SEC does not recognize it. "Inferred resources"
have a great amount of uncertainty as to their existence, and great
uncertainty as to their economic and legal feasibility. It cannot
be assumed that all or any part of an Inferred Mineral Resource
will ever be upgraded to a higher category. Under Canadian rules,
estimates of Inferred Mineral Resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases. U.S.
investors are cautioned not to assume that part or all of an
inferred resource exists, or is economically or legally mineable.
APPENDIX A ---------- Technical Parameters - Mineral Reserve
Estimate ----------------------------------------------- The
technical parameters for the mineral reserve estimate are as
follows: - Mineral reserve estimations were based on 3D block
models for all zones except the South West Zone; the few remaining
zones that were estimated using 2D polygonal methods are not
included in mineral reserves. - For the underground operation, the
selected mining method is usually Sequential Transversal and
Longitudinal Long Hole when the vein is larger than 10 metres and
Longitudinal Long Hole Retreat when the vein is less than 10
metres. The stoping sequence includes cemented rockfill of the
primary stoping sequence, cemented and unconsolidated rockfill for
the longitudinal retreat and unconsolidated rockfill for secondary
stoping sequence. - Stope dilution has been calculated from
numerical modeling on the basis of the stability of the stope
openings, ore deposit geometry and mining method. The amount of
dilution was reduced for stopes of smaller dimensions on the
fringes of the zone, and increased for stopes with unfavourable
geometry. In addition, each stope was assigned a backfill dilution
percentage based on number of walls of fill and type of mucking
floor. Dilution quantities were estimated for each stope, including
hanging wall/footwall sloughage, and backfill dilution, where
applicable. As a result, the dilution averages 21%. - Extraction
was estimated at 90% for primary stopes, and 95% for secondary
stopes. - A minimum cut off grade of 4.1 grams of gold per tonne
was used based on long term operating costs and gold prices for
most of the underground zones in the West Mine; except for zones
118 and 123S, where cut off grades of 4.8 and 5.4 grams of gold per
tonne, respectively, were applied based on long term operating
costs. For the East Mine crown pillar and for Principal open pit, a
minimum cut off grade of 1.2 and 0.5 grams of gold per tonne was
respectively used based on long term operating costs and gold
prices. - Bulk density is different for each zone and is based on
density determinations. Bulk density varies from 2.70 tonnes per
cubic metre (e.g. Zone 113) to 2.90 tonnes per cubic metre (e.g.
Principal Zones). A bulk density of 2.77 tonnes per cubic metre was
used for zones that have no density determinations (e.g. East Mine)
and is based on historical data. - Mineral reserves are estimated
using an average long-term gold price of US$950 per ounce and a
US$/C$ exchange rate of 1:1. - Minimum underground mining widths of
three metres were used. - West Mine mineral reserves are based on
new information acquired from the definition drilling completed in
2010. Information from the definition drilling is being used to
outline the precise ore stope dimensions. Footwall drifts, which
are set 20 metres apart vertically, are being used as the collar
locations of the current drill program. - East Mine open pit
reserves are contained in the crown pillar left behind by previous
mining. Open pit optimization and detailed design were updated in
2008. A dilution factor of 20% was applied to open pit
mineralization within the pit design, and above the 1.2 grams of
gold per tonne cut-off grade. It is anticipated that the East mine
crown pillar open pit will have a depth of 80 metres. The zone is
covered by 18 metres of silt and clay overburden. Stripping ratio
is estimated at 17:1. - The East Mine underground reserves are
based on a plan to re- establish access to old workings, and mine
pillars and levels left behind during previous operations. Stope
sizes are not standardized. Mining methods include longhole stoping
where access can be attained for both top and bottom cuts and cut
and fill methods where only undercuts are accessible. - Principal
open pit reserves are contained in a 150 metre crown pillar. Open
pit optimization and detailed design were generated in 2010. A
dilution factor of 10% was applied to open pit mineralization
within the pit design, and above the 0.5 gram of gold per tonne
cut- off grade. The zone is covered by an average of 45 metres of
silt and clay overburden. Stripping ratio is estimated at 14.6:1.
APPENDIX B ---------- Technical Parameters - Mineral Resource
Estimate ------------------------------------------------ The
technical parameters for the mineral resource estimate are as
follows: - Except for the Inter and South West zones, which are 2D
polygonal estimates, and for the East Mine Crown Pillar, the
resource estimates of the different mineralized zones at Casa
Berardi since October 2005 have been calculated by the use of block
modeling grade interpolation by RPA, assisted by mine staff. -
Mineral resources are estimated using an average long-term gold
price of US950 per ounce, and a US$/C$ exchange of 1:1. - Grade
estimation was usually carried out from 3D block solids. Drill
holes as well as development samples were used for grade
interpolation. Smaller zones were estimated previously by Aurizon,
using 2D polygonal on longitudinal sections and have been reviewed
by RPA. - Different minimum cut off grades were used as follows: -
4.0 grams of gold per tonne was used based on long term operating
costs and gold prices for most of the underground zones in the West
Mine, for the underground Principal Zone and the underground East
Mine. - 4.3 grams of gold per tonne was historically used for the
Cherty Zone. - 3.0 grams of gold per tonne was used for small zones
previously estimated by 2D polygons on longitudinal sections. - 1.3
grams of gold per tonne was used based on long term operating costs
and gold prices for most of the open pit crown pillar at the East
Mine. - 0.5 grams of gold per tonne was used based on long term
operating costs and gold prices for the crown pillar at the
Principal Mine and at the 160 Zone for in-pit inferred mineral
resources. - A total of 38 mineralized zones have been modeled at
the Principal Zone. As the mineralized system extends close to
surface bedrock and the mineralized zones are close enough to each
other to envisage open pit mining, the zones were modeled by using
0.5 gram of gold per tonne threshold. The current block size is
1.25 metres north-south by 2.5 metres east-west by 5.0 metres
vertical. The host rock is of volcanic and sedimentary origin. -
Bulk density is different for each zone and is based on density
determinations. Bulk density varies from 2.70 tonne per cubic metre
(e.g. Zone 113) to 2.90 tonne per cubic metre (e.g. Principal
Zones). A bulk density of 2.77 tonne per cubic metre was used for
zones that have no density determinations (e.g. East Mine) and is
based on historical data. - Minimum underground mining widths of
two to three metres. AURIZON MINES LTD., David Hall, President and
C.E.O., Telephone: (604) 687-6600, Toll Free: 1-888-411-GOLD, Fax:
(604) 687-3932; Martin Bergeron, Vice President, Operations,
Telephone: (819) 874-4511, Fax: (819) 874-3391, Web Site:
www.aurizon.com; Email: info@aurizon.com Or Renmark Financial
Communications Inc., 1050 - 3400 De Maisonneuve Blvd., West
Montreal, QC, H3Z 3B8, Barry Mire: bmire@renmarkfinancial.com;
Maurice Dagenais: mdagenais@renmarkfinancial.com, Media: Guy Hurd:
ghurd@renmarkfinancial.com, Tel: (514) 939-3989, Fax: (514)
939-3717
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