Shares Listed: Toronto Stock Exchange - Ticker Symbol - ARZ
NYSE Amex - Ticker Symbol - AZK
U.S. Registration: (File 001-31893)
News Release Issue # 9 - 2011
VANCOUVER,
April 8 /PRNewswire/ - Aurizon Mines
Ltd. (TSX: ARZ) (NYSE Amex: AZK) announces its operating results
for the first quarter of 2011. Aurizon plans to release its first
quarter 2011 financial results on or about May 12, 2011, and will hold a conference call to
discuss the results. Details of the call, including times and
contact numbers, will be announced closer to the date.
Gold production from the Casa Berardi mine in
the first quarter of 2011 totalled 31,976 ounces, 12% lower than
budget and 9% lower than the first quarter 2010 production of
35,188 ounces. Ore processed in the first quarter 2011
amounted to 161,036 tonnes at an average grade of 6.9 grams of gold
per tonne. Metallurgical recoveries were 90.2%.
Changes to the mining sequence were required in
the first quarter of 2011 due to mining conditions in the eastern
sector of Zone 113. This impacted both ore throughput and ore
grades. As the gold grade of the individual stopes at Casa
Berardi varies from 5 grams per tonne up to 12 grams per tonne or
higher, a delay in the extraction of a high grade stope can impact
quarterly results but is not expected to impact results for the
year. Additionally, underground mining equipment downtime impacted
productivities. The 2011 capital budget provided for equipment
replacements, which are scheduled to be delivered over the course
of the year.
Accordingly, the Company expects first quarter
total cash costs to be significantly higher than the forecast for
2011 of US$495 per ounce. The
mine plan for 2011 had projected that the first quarter would be
the weakest in terms of throughput, grade and ounces
produced. The 2011 plan also anticipates higher ore throughput
for the balance of the year and higher ore grades in the second
half of the year. Total cash costs per ounce should decrease
significantly as the year progresses.
Based upon first quarter results and a review of
the mine plan for the balance of the year, the Company now expects
gold production for 2011 to be approximately 165,000 ounces
compared to the previously announced guidance of 165,000 to 170,000
ounces.
During the first quarter of 2011, Aurizon sold
34,305 ounces of gold at an average price of US$1,392 per ounce for revenues of $46.9 million.
About Aurizon
Aurizon is a gold producer with a growth
strategy focused on developing its existing projects in the Abitibi
region of north-western Quebec,
one of the world's most favourable mining jurisdictions and
prolific gold and base metal regions, and by increasing its asset
base through accretive transactions. Aurizon shares trade on
the Toronto Stock Exchange under the symbol "ARZ" and on the NYSE
Amex under the symbol "AZK". Additional information on Aurizon
and its properties is available on Aurizon's website at
http://www.aurizon.com.
Non GAAP Information
Total cash costs per ounce of gold
Aurizon has included a non-GAAP performance
measure of total cash costs per ounce of gold in this
release. Aurizon reports total cash costs on a sales
basis. In the gold mining industry, this is a common
performance measure but does not have any standardized meaning, and
is a non-GAAP measure. The Company believes that, in addition
to conventional measures prepared in accordance with GAAP, certain
investors use this information to evaluate the Company's
performance and ability to generate cash flow. Accordingly,
it is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Total cash costs
per gold ounce are derived from amounts included in the statements
of earnings and include mine site operating costs such as mining,
processing and administration, but exclude amortization,
reclamation costs, financing costs and capital development
costs. The costs included in the calculation of total cash
costs per ounce of gold are reduced by silver by-product sales and
then divided by gold ounces sold and the average Bank of Canada
Cad$/US$ exchange rate.
Forward-looking Information
Estimates regarding production, costs and
expected recoveries at Casa Berardi in 2011 and the Company's
budgets and planned exploration and development programs on its
various properties for 2011 constitutes 'forward-looking
information' within the meaning of applicable Canadian securities
legislation and will be updated if required under applicable
Canadian securities laws. This information is provided as
general guidance only and is based on assumptions and subject to
risks as described below. Readers are cautioned that actual
results may vary from the forward-looking information
disclosed.
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, the Company's expected
expenditures and planned programs on its properties for
2011. In addition, forward-looking information includes
statements with respect to estimated mineral reserves and
resources, anticipated effects of drill results on the Company's
projects, 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.