Aurizon Mines Ltd. (TSX:ARZ)(NYSE MKT:AZK)(NYSE Amex:AZK) is
pleased to report that is has received the results of a positive
Feasibility Study which has established in-pit mineral reserves of
1.66 million ounces of gold in the Hosco deposit that forms part of
its 100% owned Joanna project. The Feasibility Study was prepared
by BBA Inc. of Montreal, ("BBA") with contributions from other
engineering firms and consultants, in accordance with the Standards
of Disclosure for Mineral Projects as defined by National
Instrument 43-101 ("NI 43-101").
"The Joanna property has provided significant exploration
success for Aurizon and the results of the Feasibility Study has
realized a 67% increase in Proven and Probable In-Pit Mineral
Reserves at the Hosco deposit compared to the 2009 pre-feasibility
study," said George Paspalas, President and Chief Executive
Officer. "The Company has also encountered follow-up exploration
success at the Heva deposit and the Hosco West Extension areas,
also on the Joanna property. Whilst the Feasibility Study on the
Hosco deposit generates a positive return at three-year trailing
average gold prices, we believe that it is prudent, in terms of
capital allocation, to defer development and permitting of the
Hosco deposit and continue to pursue exploration of these areas,
which if successful, could lead to a staged and perhaps more
financially beneficial development strategy at Joanna."
"The opportunity at Heva lies in the fact that our early
drilling is indicating higher grade ore potential than at Hosco and
initial metallurgy has returned very good gold recoveries using
conventional cyanidation," continued George Paspalas. "The Hosco
West Extension area has identified refractory mineralization that
is significantly higher grade than the average grade in the
conceptual Hosco pit. The Company intends to spend an additional
$4.2 million to continue the drilling in these areas. We remain
committed to growing the Company by pursuing opportunities that
would be accretive to shareholder value."
The Feasibility Study was prepared as an open pit mining project
relating solely to the mineral reserves located on the Hosco
deposit. The Hosco deposit forms part of the Joanna Project which
is located in pro-mining north-western Quebec, 20 kilometres east
of the town of Rouyn-Noranda. The in-pit mineral reserves were
estimated at a cut-off grade of 0.5 g/t for a total diluted proven
and probable reserve estimate of 41.1 million tonnes at 1.26
grams/tonne representing 1.66 million ounces of gold. The mine plan
was designed for a 8,500 tonnes per day operation, with an average
stripping ratio of 4.49 to 1 and a life of mine of 13.4 years.
The milling circuit includes crushing, grinding, gravity,
flotation, pressure oxidation and carbon-in-pulp leaching (CIP).
Metallurgical test work indicates that the use of the pressure
oxidation technology prior to leaching improves the overall gold
recoveries to 87.5%. The study provides for the low sulphide
tailings, without cyanide, to be stored in a flotation thickened
tailings pond and the tailings from the autoclave circuit would be
stored in a specifically designed impoundment.
The pre-production capital costs and sustaining costs for the
Hosco deposit are estimated, respectively, at $422 million and $97
million. The average operating cash cost is estimated at US$716 per
ounce of gold and $25.32 per tonne milled. The financial analysis,
using a price of gold of US$1,350 per ounce, indicates a pre-tax
net present value ("NPV") (using a 5% discount rate) of $112
million with a pre-tax internal rate of return ("IRR") of 8.7% and
a payback period of 8.2 years. On an after tax basis, Aurizon
estimates that the IRR is 6.5%.
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Project Highlights
Assumptions
Gold Price (US$/ounce) 1,350
Foreign exchange rate (C$/ US$) 1:1
Fuel price ($/litre) 0.90
Net Smelter Royalty (%) 2.0
Mineral Reserves
Proven and Probable in-pit Reserves (Million ounces) 1.66
Mine Parameters
Ore milled
Mine plan tonnage (Million tonnes) 41.1
Mine plan grade (grams/tonne) 1.26
Strip ratio (waste: ore) 4.49:1
Average daily production rate (tonnes) 8,500
Estimated gold recovery (%) 87.5
Total recovered gold (Million ounces) 1.45
Pre-production period, post permitting (years) 1.7
Mine life (years) 13.4
Average annual gold production (ounces) 110,000
Costs
Pre-production capital ($ Million) 422.2
Sustaining capital and restoration ($ Million) 97.3
Cost per tonne milled ($) 25.32
Average operating cash cost (US$/ounce) 716
Royalties (US$/ounce) 30
Average total cash cost (US$/ounce) 746
Financial Analysis
Average annual cash flow pre-tax (years 2 - 13)($ Million) 61.7
Payback period (years) 8.2
IRR pre-tax (%) 8.7
IRR after-tax (%) 6.5
NPV 5% discount pre-tax ($ Million) 111.6
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(All currency figures expressed in Canadian dollars, except where
indicated).
Conference call
Aurizon management will host a conference call and live webcast
for analysts and investors on Wednesday, June 6, 2012 at 8:00 a.m.
Pacific Daylight Time (11:00 a.m. Eastern Daylight Time).
Canada & USA Toll Free Dial In: 1-800-319-4610 or outside
Canada & USA Call: 1-604-638-5340.
The call is being webcast and can be accessed at Aurizon's
website at www.aurizon.com or enter the following URL into your web
browser:
http://services.choruscall.com/links/aurizon120606.html.
Those who wish to listen to a recording of the conference call
at a later time may do so by calling: Canada & USA Toll Free:
1-800-319-6413 or outside Canada & USA: 1-604-638-9010, (Code:
1001#). A replay of the call will be available until Wednesday,
June 13, 2012.
Additional Information
The Feasibility Study report will be posted on Aurizon's website
at www.aurizon.com and on SEDAR at www.sec.gov/, within a 45 day
period following this news release.
A sketch is attached showing the Composite Longitudinal Section
of the Joanna Project:
http://media3.marketwire.com/docs/arz-0605-map.pdf.
All other information previously released on Joanna is also
available on Aurizon's website at www.aurizon.com.
Additional Technical Information Related to the Feasibility
Study
The Joanna Property is comprised of 5 sectors and 156 claims
covering 4,294.1 hectares. The Hosco sector represents the core of
the Feasibility Study and the other sectors are Heva, Alexandria,
Henriksen and Aurizon.
-- The project is located along a prolific geological belt, the Abitibi
gold belt and, more specifically, along the Cadillac fault which hosts
several multi-million ounces deposits like Noranda, Doyon-Laronde,
Malartic and Val-d'Or camps.
-- A pool of experienced workers and suppliers are available from the city
of Rouyn-Noranda and Val-d'Or.
-- The proximity of the Casa Berardi Mine as well as the Administration and
Technical Office in Val-d'Or is anticipated to create positive synergies
with Joanna.
Geology
Mineralization at Joanna is closely related to the east-west
Cadillac fault and forms a 200 metre wide corridor composed of
different mineralized lenses parallel to the fault, dipping 55
degrees to the north. Mineralization takes the form of a few
millimetres to a 15 centimetre-wide quartz vein network inside the
altered sediment rock with finely-disseminated sulphides.
Mineralization has been defined and correlated based on altered
mineral assemblages (biotite, tremolite, carbonates, muscovite,
tourmaline, chlorite), quartz textures, deformation features and
sulphides types (pyrrhotite and arsenopyrite).
At Hosco, mineralization is located within three main lenses,
one located north of the fault and two at the southern side of the
fault. Each lens shows a thickness of between 15 and 60 metres and
a variable lateral extension of between 300 and 700 metres.
Mineral Reserves and Resources
The in-pit mineral reserves were estimated within a detailed
engineered pit design by using the measured and indicated resources
at a cut-off grade of 0.5 g/t. The optimized pit shell was
generated using the Lerchs-Grossmann pit optimizer algorithm using
the cost and economic parameters estimated by BBA.
----------------------------------------------------------------------------
Joanna Property
In-pit Mineral Reserves - Hosco Deposit
as of June 2012
----------------------------------------------------------------------------
November 2009 - Pre- 2012 vs
June 2012 - Feasibility Study Feasibility Study 2009
----------------------------------------------------------------------------
Grade Grade Gain
Grams/ Gold Grams/ Gold (loss)
Tonnes(1) tonne Ounces Tonnes(2) tonne Ounces Ounces
----------------------------------------------------------------------------
In-pit Mineral Reserves (diluted)
----------------------------------------------------------------------------
Proven 28,250,000 1.305 1,185,000 19,100,000 1.319 809,000 376,000
----------------------------------------------------------------------------
Probable 12,850,000 1.151 476,000 4,550,000 1.271 187,000 289,000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total
Mineral
Reserves 41,100,000 1.257 1,660,000 23,650,000 1.309 996,000 665,000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Dilution of 6.9% at 0.14 g/t and (2) Dilution of 5.1% at 0.23 g/t and
Mining Recovery of 96% Mining Recovery of 97%
----------------------------------------------------------------------------
Mineral Reserves are estimated using an average long-term gold price of
US$900 and a US/Cdn$ exchange rate of 1:1 using a cut-off grade of 0.5 g/t
Mineral Reserves have been completed in accordance with the CIM standards
----------------------------------------------------------------------------
The block model was prepared by SGS Geostat using the Ordinary
Kriging method. In addition to the resources identified at the
prefeasibility stage, the database includes the results of the 2010
and 2011 drilling campaigns. A total of 866 surface holes
equivalent to 199,509 metres and 3,243 historical underground holes
were included in the calculation. A total of 123,589 assays were
available for the resource calculation.
Joanna Property - Mineral Resources(1)
----------------------------------------------------------------------------
December 31, 2011
Cut-off ------------------------------------
Mineral Resource grade Tonnage(i) Grade Gold(ii)
Resources Sectors Depth (g/t) (t) (g/t) (ounces)
----------------------------------------------------------------------------
Measured Hosco In-pit 0.5 1,887,011 1.14 69,196
-----------------------------------------------------------------
Total 1,887,011 1.14 69,196
----------------------------------------------------------------------------
Indicated Hosco In-pit 0.5 13,922,298 1.19 531,567
-----------------------------------------------------------------
Hosco Underground 2.0 50,000 2.65 5,000
-----------------------------------------------------------------
Heva 0.5 4,410,000 1.90 270,000
-----------------------------------------------------------------
Total 18,382,298 1.36 806,567
----------------------------------------------------------------------------
Measured + Hosco In-pit 0.5 15,809,309 1.18 600,763
Indicated -----------------------------------------------------------------
Hosco Underground 2.0 50,000 2.65 5,000
-----------------------------------------------------------------
Heva 0.5 4,410,000 1.90 270,000
-----------------------------------------------------------------
Total 20,269,309 1.34 875,763
----------------------------------------------------------------------------
Inferred Hosco In-pit 0.5 6,950,000 1.19 266,000
-----------------------------------------------------------------
Hosco Underground 2.0 590,000 2.54 48,000
-----------------------------------------------------------------
Heva 0.5 7,680,000 1.70 421,000
-----------------------------------------------------------------
Heva Underground 2.0 650,000 2.80 59,000
-----------------------------------------------------------------
Alexandria 0.5 980,000 1.20 37,000
-----------------------------------------------------------------
Total 16,850,000 1.53 831,000
----------------------------------------------------------------------------
----------------------------------------------------------------------------
November 2009- Pre- 2011 vs
Feasibility Study 2009
-------------------------------------
Cut-off Gain/
Mineral Resource grade Tonnage(i) Grade Gold(ii) (Loss)
Resources Sectors Depth (g/t) (t) (g/t) (ounces) (ounces)
----------------------------------------------------------------------------
Measured Hosco In-pit 0.5 816,632 1.22 32,095 37,102
-----------------------------------------------------------------
Total 816,632 1.22 32,095 37,102
----------------------------------------------------------------------------
Indicated Hosco In-pit 0.5 6,066,738 1.21 236,086 295,481
-----------------------------------------------------------------
Hosco Underground 2.0 5,000
-----------------------------------------------------------------
Heva 0.5 4,410,000 1.90 270,000 0
-----------------------------------------------------------------
Total 10,476,738 1.50 506,080 300,481
----------------------------------------------------------------------------
Measured + Hosco In-pit 0.5 6,883,370 1.21 268,181 332,582
Indicated -----------------------------------------------------------------
Hosco Underground 2.0 5,000
-----------------------------------------------------------------
Heva 0.5 4,410,000 1.90 270,000 0
-----------------------------------------------------------------
Total 11,293,370 1.48 538,181 337,582
----------------------------------------------------------------------------
Inferred Hosco In-pit 0.5 20,810,000 1.19 796,000 (530,000)
-----------------------------------------------------------------
Hosco Underground 2.0 48,000
-----------------------------------------------------------------
Heva 0.5 9,000,000 1.80 511,000 (90,000)
-----------------------------------------------------------------
Heva Underground 2.0 59,000
-----------------------------------------------------------------
Alexandria 0.5 1,100,000 1.20 42,000 (5,000)
-----------------------------------------------------------------
Total 30,910,000 1.36 1,349,000 (518,000)
----------------------------------------------------------------------------
(1) Mineral resources in this table are exclusive of mineral reserves and
have been estimated by BBA using SGS Geostat's estimate of mineral
resources before conversion of mineral resources to mineral reserves.
(i) Rounded to the nearest 10,000 tonnes
(ii) Rounded to the nearest 1,000 ounces
CIM definition were followed for mineral resources
Mineral resources which are not mineral reserves do not have demonstrated
economic viability
Historical production of 9,794 ounces (Hosco) and 10,700 ounces (Heva) have
not been removed from mineral resources
Mining and Production
The mine plan completed by BBA includes 41.1 million tonnes of
ore at 1.26 grams of gold per tonne and requires the removal of
22.3 million tonnes of overburden and 162.3 million tonnes of waste
rock resulting in a life-of-mine strip ratio of 4.49 to 1. The
overburden consists of silt and clay and varies in thickness
between 6 and 15 metres. It is planned that the overburden will be
removed during winter seasons.
It is anticipated that permitting and construction of the Mine
would take approximately 3 years.
Total gold production over a 13.4 year mine life is estimated at
1.45 million ounces averaging 110,000 ounces per year.
Conventional open pit mining methods will be used requiring a
fleet of 100 ton class and smaller haul trucks, hydraulic
excavators (10 m3), production drills and various ancillary
equipment. Mine operations were designed to support an average
daily production rate of 8,500 tonnes. Initial production will
start from a smaller pit and will be extended in two additional
pushbacks; mining of the West Hosco pit is expected to begin in
year 4.
The pits were designed with a triple benching arrangement and
include a 15 metre geotechnical safety berm at every 120 metre
vertical height. Based on the results of rock mechanic studies by
Golder Associates, the recommended inter-ramp pit slope will be 53
degrees for the hanging wall (north), 49 degrees for the footwall
(south) as well as both east and west sectors.
----------------------------------------------------------------------------
Waste Rock (Million tonnes) 162.3
Overburden (Million tonnes) 22.3
Waste to ore Ratio 4.49:1.0
Annual Tonnage (Million tonnes) Between 7.3 (year 13) and 21.2 (year 7)
Average daily production rate
(tonnes) 8,500
Inter-ramp Pit Slope 49 degrees - 53 degrees
Geotechnical Safety Berm 15 metres every 120 metre vertical
height
Pit Dimensions -Main Pit 2,190 metres x 660 metres and depth of
280 metres
-West Pit 660 metres x 450 metres and depth of 120
metres
----------------------------------------------------------------------------
Metallurgy and Processing
Gold mineralization in the Hosco Deposit is associated with
disseminated sulphides, mostly arsenopyrite and pyrohotite. As the
material is partially refractory, the selection of an oxidation
method before the cyanidation of a flotation concentrate became
necessary to improve and optimize the level of gold recovery. The
consistency of the results obtained at the pilot-plant level,
combined with higher recoveries, led to the selection of the
conventional pressure oxidation technology utilizing an autoclave
as the preferred method of oxidation for the Hosco ore.
This process uses sulphide oxidation at high pressure and
temperatures, thereby speeding up the kinetics and allowing the
reaction to be self-sustaining. The processing facilities will be
located at Joanna and include: crushing, grinding, gravity,
flotation, pressure oxidation and carbon-in-pulp leaching (CIP).
Metallurgical test work performed by Sherritt Technologies
indicates that the use of the pressure oxidation circuit prior to
leaching improves the projected overall gold recoveries to
87.5%.
----------------------------------------------------------------------------
Milling Process Crushing, grinding, gravity, flotation, pressure
oxidation and leaching
Milling rate 8,500 tonnes per day
Average recoveries (life
of mine) 87.5%
Tailings ponds Neutral (no cyanide - low sulphide): 95% of
tonnage
Pressure Oxidation (POX) (high arsenic (As) - acid
drainage potential): 5% of tonnage
----------------------------------------------------------------------------
Tailings Ponds
The Feasibility Study includes two distinct tailings
impoundments which cover 290 hectares. Ninety-five percent (95%) of
the tailings containing low sulphide, low arsenic and no cyanide
will be stored in a flotation thickened tailings pond. The
remaining 5%, coming from the autoclave circuit, and containing a
high concentration of arsenic and sulphides, will be stored in a
specifically designed impoundment.
Proposed Surface Infrastructure
The proposed mine infrastructure incorporates the following:
-- A crusher and a mill complex, including a grinding, gravity, flotation,
pressure oxidation, leaching circuit (CIP) and a refinery;
-- A garage complex and associated services building and administration
offices;
-- Electrical distribution installations;
-- Pit dewatering system, surface water management and treatment;
-- Access road to the site from Highway 117;
-- The waste dumps will cover 192 hectares and reach a maximum height of 70
metres. Most of the waste rock (85 - 88%) that is not considered to be
acid-generating will be stockpiled in the main waste rock pile. The
remaining 12 - 15% of the waste rock, which has a higher percentage of
arsenic and nickel but is not acid generating, will be stored in a
separate, fully-lined waste rock pile. Both stockpiles will be
surrounded by collection ditches to recover run-off water;
-- Top soil will be stockpiled and used for reclamation during operation
and at the end of the life of the mine.
Mine Closure and Restoration
Mine closure and restoration costs are estimated at $27.1
million. Wherever practical, a progressive restoration approach
will be followed.
At Joanna, the overburden disposal area will be reclaimed and
used as capping material to re-vegetate waste rock and tailings
disposal sites. The concentrate tailings pond will be restored
using a multi-layer approach, which will isolate the contaminants
from the environment.
Capital and Sustaining Capital Costs Estimates
The Feasibility Study is based on capital pricing as of the
first quarter 2012. The level of accuracy of the capital cost
estimates is within +/- 15% for feasibility studies.
The pre-production capital costs are estimated at $422 million
and include $87 million for contingencies and indirect costs.
Indirect costs (owner's costs, Engineering, Procurement and
Construction Management ("EPCM") and detailed engineering) of 20%
have been applied on the process plant and the other surface
infrastructures. Contingencies of 10% have been applied on the mill
and infrastructures, and 20% have been applied on the waste rock
and tailings impoundments. Sustaining capital expenditures over the
life of the mine are estimated at $97 million, including $27
million for the closure and restoration of the site.
----------------------------------------------------------------------------
Capital Costs Pre-production Sustaining
Surface Infrastructures ($ Million) ($ Million)
Joanna process plant (Crushing, grinding,
gravity, flotation, pressure oxidation,
leaching, refinery) and infrastructures $ 228 $ 1
Tailings ponds 67 37
Mine equipment 16 25
Pre-stripping 23
Restoration 27
----------------------------------------------------------------------------
Total Costs $ 334 $ 90
----------------------------------------------------------------------------
Indirect costs (Owner's costs, EPCM, detailed
engineering) 46
Contingency 41 7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total capital costs $ 422 $ 97
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Operating costs
The life-of-mine average operating cash cost (excluding
royalties) is estimated at US$716 per ounce of gold and $25.32 per
tonne milled.
$/ t milled
Mining 11.92
Processing 12.37
Environmental 0.45
G&A 0.59
---------------
Total 25.32
---------------
---------------
Financial Analysis
The financial analysis for the Base Case (gold at US$1,350)
indicates a pre-tax NPV at a 5% discount rate of $112 million with
an IRR of 8.7% and a payback period of 8.2 years. On an after-tax
basis, the NPV at a 5% discount rate is estimated at $52 million
with an IRR of 6.5%.
SENSITIVITY ANALYSIS
----------------------------------------------------------------------------
% Change in
Value Variation Before-tax IRR After-tax IRR(1)
----------------------------------------------------------------------------
+ 10% US$1,485 12.6% 9.6%
------------------------------------------------------------
Gold Price - - US$1,350 8.7% 6.5%
Base Case ------------------------------------------------------------
- 10% US$1,215 4.3% 3.1%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
+ 10% US$788 6.4% 4.7%
Average ------------------------------------------------------------
Operating Cash - US$716 8.7% 6.5%
Costs per Ounce ------------------------------------------------------------
- Base Case - 10% US$644 10.8% 8.3%
----------------------------------------------------------------------------
----------------------------------------------------------------------------
+ 10% $464 7.2% 5.3%
Initial Capital ------------------------------------------------------------
Costs - Base - $422 8.7% 6.5%
Case($ Million) ------------------------------------------------------------
- 10% $380 10.4% 7.9%
----------------------------------------------------------------------------
(1) After-tax IRR estimated by management
Quality Control and Data Verification
Information of a scientific or technical nature of the
Feasibility Study has been prepared by and under the supervision of
Angelo Grandillo, Eng., Project Manager of BBA, Patrice Live, Eng.,
Mining Manager of BBA, Ghislain Fournier, Eng., General Manager
Technical Services of Aurizon and Jean-Pierre Landry, Eng., General
Manager Projects and Construction of Aurizon, qualified persons as
defined by National Instrument 43-101. The technical and scientific
information contained in this news release has been reviewed and
approved by Mr. Grandillo, Eng, Mr. Live, Eng, Ghislain Fournier,
Eng., and Jean-Pierre Landry, Eng., also qualified persons as
defined by National Instrument 43-101.
The data disclosed including sampling, analytical and test data
as well as the current mineral resource estimate was completed by
Maxime Dupere, P.Geo., from SGS Canada Inc. (Geostat) an
independent qualified person under NI 43-101 guidelines using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Standards on Mineral Resources and Reserves Definition and
Guidelines.
Additional technical information and details regarding
verification of data, including sampling, analytical and test data
underlying the information herein, is contained in the "Technical
Report - Mineral Resource Estimation, Joanna Gold Project,
Rouyn-Noranda, Quebec, Aurizon Mines Ltd. - September 2011 Update,
Effective date December 31, 2011", prepared by BBA, which can be
found under Aurizon's profile on www.sedar.com.
Qualified Persons
The Feasibility Study was prepared by leading independent
industry engineering firms and consultants, all Qualified Persons
under National Instruments 43-101, with the collaboration of the
Aurizon Technical Group.
BBA Inc.
Patrice Live, Eng. Mining Manager (mineral reserves, pit design,
mine planning, financial analysis, mining operating and capital
costs).
Angelo Grandillo, Eng. (metallurgical test work, ore processing,
milling operating and capital costs).
Roche
Yves Thomassin, M. ScA., (environment, restoration, operating
and capital cost estimates).
SGS-Geostat Ltd.
Maxime Dupere. Geologist (mineral resources)
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 MKT 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 is based on information available to the Company 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 in this news release includes estimates
of minerals reserves and mineral resources, estimates of capital
and operating costs, anticipated internal rates of return, ore
grades and estimated strip ratio, average daily mine production,
estimated gold recoveries, mine life, estimated payback period,
average annual cash flow and net present values, project
sensitivity analysis, the possible effects on project economics of
exploration success, if achieved, on exploration of other areas of
the Joanna property, planned expenditures on such exploration, the
expected timing of filing the Feasibility Study, potential for
synergies with the Company's Casa Berardi Mine as well as the
Company's administration and technical office in Val d'Or, and the
business and operations of Aurizon generally. 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", "has the potential" 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.
Such forward-looking information is based on a number of
assumptions, including but not limited to those set out in this
news release, the 2011 Technical Report and the Company's annual
information form ("AIF") for its most recent year end filed on
SEDAR. Such assumptions include those relating to US : Canadian
dollar exchange rates, gold price per ounce, anticipated fuel
prices, that the mine plan and gold recoveries will be achieved,
that pre-production capital costs, operating costs and sustaining
and restoration costs will be as estimated, the availability of an
experienced workforce and suppliers for the project, that equipment
will be available when required and at estimated costs, that the
assumptions underlying mineral resource estimates are valid and
that no unforeseen accident, fire, ground instability, flooding,
labor disruption, equipment failure, metallurgical, environmental
or other events that could delay or increase the cost of
development will occur, that the results of exploration activities
will be consistent with the Company's expectations, 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, political and economic conditions as well as those
specific to the Company's operations will not change in a material
adverse manner, and that financing will be available if and when
needed on reasonable terms.
Forward-looking information is by its nature uncertain and
involves foreseeable and unforeseeable risks and other factors
which may cause the actual outcomes, costs, timing and performance
to be materially different from those anticipated by such
information. Such risks and factors include, among others, the risk
that any of the assumptions on which the forward looking
information is based prove to be incorrect or invalid, the risk 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, labor disputes, of
unanticipated delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities, risk that estimated costs, including costs of labor,
equipment and materials, including power, are not as anticipated,
of an undiscovered defect in title or other adverse claim, that
results of exploration activities will be different than
anticipated, 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 of restoration activities are greater than expected and that
changes in project parameters as plans continue to be refined
result in increased costs There are a number of other risks and
uncertainties associated with exploration, development and mining
activities that may affect the reliability of the forward looking
information herein, including those described in Aurizon's AIF and
in Aurizon's Annual Report on Form 40-F ("40-F") filed with the
United States Securities and Exchange Commission. The AIF and 40-F
are available respectively on SEDAR at www.sedar.com and on EDGAR
at www.sec.gov/. There may be factors in addition to those
described herein or in the AIF or 40F that cause actions, events or
results not to be as anticipated, estimated or intended. 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. readers are cautioned not to
assume that part or all of an inferred resource exists, or is
economically or legally mineable.
Contacts: Aurizon Mines Ltd. George Paspalas President & CEO
604-687-6600 Aurizon Mines Ltd. Martin Bergeron Vice President
Operations 819-874-4511 Aurizon Mines Ltd. Investor
Relationsjennifer.north@aurizon.com Aurizon Mines Ltd. 604-687-6600
or Toll Free: 1-800-411-GOLD (4653) 604-687-3932
(FAX)info@aurizon.com www.aurizon.com
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