Aurizon Mines Ltd. (TSX:ARZ)(NYSE MKT:AZK)(NYSE Amex:AZK) is
pleased to announce an updated mineral resource estimate for the
Fayolle deposit and results of preliminary metallurgical testwork
on the Fayolle property, which is located 35 kilometres north-east
of Rouyn Noranda in the Abitibi Region of Quebec, and close to
Aurizon's Joanna property.
The updated mineral resource estimate was prepared by InnovExplo
of Val-d'Or, Quebec, in collaboration with Aurizon's personnel. The
Independent and Qualified Persons for the updated mineral resource
estimate, as defined by National Instrument 43-101, are Pierre-Luc
Richard, M.Sc., P.Geo. and Alain Carrier, M.Sc., P.Geo. (InnovExplo
Inc.), and the effective date of the estimate is August 3, 2012.
Metallurgical testwork was conducted by SGS Mineral Services of
Lakefield, Ontario.
The updated mineral resource estimate integrates the results of
all the drill programs on the Fayolle deposit since the mineral
resource estimate prepared by InnovExplo Inc. on February 21, 2007.
A total of 253 surface holes and 68,826 metres are included in the
updated mineral resource estimate, of which 92 holes and 30,927
metres have been drilled since May 2010, when Aurizon and Typhoon
Exploration Inc. ("Typhoon") first entered into an exploration
joint venture on the Fayolle Project.
The updated mineral resources are estimated at 1,814,800 tonnes
at 2.7 grams of gold per tonne, or 156,000 ounces of gold at a
minimum cut-off grade of 0.8 grams of gold per tonne. All of the
updated mineral resources are in the Indicated mineral resource
category. Different capping grades have been applied, and are
referenced on the resource table on the following page.
For comparison, the previous resource estimation prepared for
Typhoon Exploration Inc., by InnovExplo Inc. dated as of February
21, 2007, included a resource sensitivity table using different cut
off grades. At a cut off grade of 0.5 grams of gold per tonne,
indicated mineral resources totalled 464,700 tonnes at 2.4 grams of
gold per tonne for 36,081 ounces of gold, and inferred mineral
resources totalled 2,191,100 tonnes at 1.6 grams of gold per tonne
for 113,021 ounces of gold. (Reference: "Mineral Resources
Evaluation of the Fayolle Gold Deposit 43-101 Technical Report"
prepared for Typhoon Exploration Inc., dated February 21, 2007
available on SEDAR).
"The updated mineral resource estimate from the Fayolle property
confirms our initial assumptions that the property contains
previously undefined high grade mineralization. A significant
change in the drilling approach helped to identify this
opportunity," said George Paspalas, Aurizon's President and CEO,
adding, "We are certainly encouraged by the good metallurgy
returned at Fayolle and, given the property's proximity to where we
are drilling at Heva, the next stage for this property is to
understand what the geological potential is at depth and what the
prospects are for additional discrete high grade deposits."
The following table represents results at additional cut-off
grades for comparison purposes (cut-off grades are a function of
the market conditions: gold price, exchange rates and mining
costs).
Table 1: Fayolle Deposit 2012 Mineral Resource Estimate
----------------------------------------------------------------------------
Indicated Mineral Resources- as at August 3, 2012 (1)
----------------------------------------------------------------------------
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Grade Cut-off Grade Gold
(gold grams/tonne) Tonnes (grams/tonne) (ounces)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
0.4 3,573,900 1.6 188,000
----------------------------------------------------------------------------
0.6 2,423,300 2.2 170,000
----------------------------------------------------------------------------
0.8 1,814,800 2.7 156,000
----------------------------------------------------------------------------
1.0 1,451,500 3.1 146,000
----------------------------------------------------------------------------
2.0 701,000 5.0 112,000
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2.5 548,500 5.8 101,000
----------------------------------------------------------------------------
3.0 438,000 6.5 92,000
----------------------------------------------------------------------------
4.0 295,500 8.0 76,000
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5.0 216,400 9.3 64,000
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(1) All of the mineral resources are in the Indicated mineral resource
category.
Notes:
-- The Independent and Qualified Persons for the Mineral Resource Estimate,
as defined by National Instrument 43-101, are
Pierre-Luc Richard, M.Sc., P.Geo. and Alain Carrier, M.Sc., P.Geo.
(InnovExplo Inc), and the effective date of the estimate is August 3rd,
2012.
-- Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability
-- Results are presented undiluted and in situ. The estimate includes four
(4) gold-bearing zones
-- Resources were compiled at a range from 0.40g/t Au to 5.00 g/t Au cut-
off grades. Cut-off grades must be re-evaluated in light of prevailing
market conditions (gold price, exchange rate and mining cost). Note that
no pitshell was used.
-- A fixed density of 2.82 g/cm3 was used in ore zones.
-- A minimum true thickness of 2.0 m was applied, using the grade of the
adjacent material when assayed, or a value of zero when not assayed.
-- High grade capping was done on the raw data and established at 40g/t Au
for Zone 1, Zone 2 and the Envelope, and at 90g/t Au for Zone 3.
-- Compositing was done on drill hole sections falling within the
mineralized zone envelopes (composite = 1 metres).
-- Resources were evaluated from drill hole using an ID2 interpolation
method in a multi folders percent block model.
-- The indicated category is defined by the drillholes spacing and
established geological continuity.
-- Ounce (troy) = Metric Tons x Grade / 31.10348. Calculations used metric
units (metres, tonnes and g/t).
-- The number of metric tons was rounded to the nearest hundred; grades are
expressed at 1 decimal; ounces were rounded to the nearest 1 thousand.
Any discrepancies in the totals are due to rounding effects; rounding
followed the recommendations in National Instrument 43-101. InnovExplo
is not aware of any known environmental, permitting, legal, title-
related, taxation, soci-politcal, marketing or other relevant issue that
could materially affect the Mineral Resource Estimate.
Geology
Gold mineralization of the Fayolle Zone is mainly contained in
deformed ultramafic volcanic slivers of altered intermediate
intrusions near the contact with massive basalt and silicified
sediments. Shear zones and fault patterns observed are generally
oriented west to north-west, corresponding to a major inflexion of
the La Pause Fault.
The dense and complex dykes swarm is characterized by changing
orientation and perceived as a strong favourability indicator for
gold mineralization.
Mineralization is part of a stacking of pluri-metric zones
located inside a 50 to 100 metre wide favourable structure,
plunging moderately towards the east. Visually, this mineralized
structure corresponds to tectonic breccias mixed with deformed
intrusive material of intermediate composition. The grades can
generally be correlated with the intensity and complexity of
brecciation. Alteration is characterized by carbonates, chlorite
and fuchsite in ultramafic rocks and by albite-hematite in dykes.
Gold is mostly observed as free grains up to a millimetre in size,
as fracture-filling, and veinlets in both host rocks.
Metallurgical Testwork
As the gold can be found in two different types of rock, two
gold-bearing composite samples were examined by SGS Mineral
Services: a Komatiite composite, containing an assay grade of 7.78
grams of gold per tonne and an intrusive composite, containing an
assay grade of 4.59 grams of gold per tonne. After 48 hours, gold
recoveries ranged from 94% to 97% for both composites. Finer
grinding typically increased the gold recovery at the cost of
higher cyanide consumption.
----------------------------------------------------------------------------
Table #1 Ore cyanidation recovery results
----------------------------------------------------------------------------
Recovery 48 hours Recovery 48 hours
Average Size without gravity including gravity Calculated Head
Sample P80 (micron) (%) (%) grade (g/t Gold)
----------------------------------------------------------------------------
Komatiite 106 94 95 7.57
----------------------------------------------------------------------------
Komatiite 68 94 97 6.96
----------------------------------------------------------------------------
Intrusive 103 95 94 4.93
----------------------------------------------------------------------------
Intrusive 68 96 97 4.51
----------------------------------------------------------------------------
Gravity separation testing on the Komatiite composite showed a
27.3% Gravity Recoverable Gold ("GRG"). Gravity separation testing
on the Intrusive composite showed a 41.4% GRG. The combination of
gravity recovery and cyanidation of the gravity tail did increase
the overall gold recovery by 1-3%. This demonstrates that this
concept would be beneficial from a plant design and financial
perspective.
----------------------------------------------------------------------------
Table #2 Gravity recovery
----------------------------------------------------------------------------
GRG (Gravity Calculated Head
Recoverable Gold) Gravity concentrate grade
Samples (%) grade (g/t) (g/t Gold)
----------------------------------------------------------------------------
Comp. 1 27.3 4,281 6.62
----------------------------------------------------------------------------
Comp. 2 41.4 3,793 4.93
----------------------------------------------------------------------------
Bond ball mill testing indicated that the two composites fell in
the medium range of hardness compared to the SGS database
(12.0-14.1 kWh/t).
"While this test work is preliminary in nature and has only been
performed on two composite samples, we are encouraged by these
initial results, which suggest high gold recoveries utilizing
conventional processes. On the environmental side, acid generation
is highly unlikely to occur from these samples considering the high
carbonate/low sulphur content profile of both types of mineralized
rocks," said Martin Demers, P.Geo, and Aurizon's General Manager of
Exploration.
Outlook
The drill program completed to date has focused on obtaining
information inside the Fayolle Zone down to a depth of about 250
metres, and laterally along 200 metres. The new updated mineral
resource estimate indicates the potential to delineate
mineralization at a grade above 5 grams of gold per tonne using a
tight drilling pattern, using two different orientations.
Efforts have been made during the last two years to test the
mineralized system influence outside the Fayolle Zone with 41 holes
drilled at a 100 to 150 metre-wide spacing along a 2 kilometre long
trend. Mineralized intersections, in the range of 1 to 8 grams per
tonne over thickness between 3 to 10 metres, have identified
different parallel gold bearing structures located a few hundred
metres south of the Fayolle Zone (See Aurizon's August 9, 2011
press release).
Prior to continuing further exploration activity, the
exploration potential at the Fayolle property will be re-evaluated
within the context of the new mineral resource estimate.
Aurizon Option
The Fayolle property is 100% owned by Typhoon and Aurizon may
earn a 50% interest, subject to an underlying 2% net smelter
royalty, by incurring expenditures of $10 million, and subscribing
for $2 million in common shares of Typhoon, over four years. To
date, the Company has incurred approximately $8.8 million of
exploration expenditures and has subscribed for $1.5 million in
common shares of Typhoon under the terms of the option agreement.
Aurizon may earn an additional 15% interest for a total interest of
65% by either delivering a feasibility study or by spending an
additional $15 million on the project.
Qualified Person and Quality Control
Information of a scientific or technical nature in this news
release has been prepared by or under the supervision of Ghislain
Fournier P. Eng., Technical Services General Manager and Martin
Demers P.Geo, Exploration General Manager, both of Aurizon Mines
Ltd. The current mineral resource estimate was completed by
Pierre-Luc Richard M.Sc., P.Geo and Alain Carrier, M.Sc., P.Geo,
from InnovExplo Inc, an independent Qualified Persons under NI
43-101 guidelines using the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Standards on Mineral Resources and
Reserves, Definitions and Guidelines prepared by the CIM Standing
Committee on Reserve Definitions and adopted by the CIM Council on
December 11, 2005.
Additional information
There is one sketch attached to this news release showing the
surface geology of the Fayolle Project.
To view the sketch, please visit the following link:
http://media3.marketwire.com/docs/arz-0906-map.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 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 resources, ore grades, estimated gold recoveries, the
possible effects of exploration success, if achieved, on
exploration of other areas of the Fayolle property, planned
exploration on the Fayolle property, 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 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 Company's 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.
U.S. Registration (File 001-31893)
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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