Aurizon Mines Ltd. (TSX:ARZ; NYSE Amex:AZK) - Canadian based gold producer, exploration and development company.
Aurizon Strategy
Build an experienced team and strong foundation to become an intermediate gold producer with an attractive pipeline of exploration and development projects in mining friendly, politically stable jurisdictions.
Aurizon's Assets
In addition to Casa Berardi, Aurizon owns the Joanna Gold Project and the Kipawa Exploration Properties. Aurizon has entered into earn-in joint venture agreements on the Fayolle, Marban, Opinaca, Wildcat, Duverny and Rex South properties. Aurizon's combined property holdings cover in excess of 300 square miles of prospective geology in the Abitibi area of Quebec.
- Casa Berardi - Gold - Commenced commercial gold production in second quarter 2007. Produced 159,261 ounces of gold in 2009 and based on the 2010 mine plan, it is estimated that gold production will be approximately 140,000 - 145,000 gold ounces. The decrease in gold production for 2010 is attributable to changes to the mining sequencing, which adversely impacted ore grades. Beginning in 2011 through 2013, annual gold production of 160,000 to 170,000 ounces is anticipated, as the mine plan includes more areas containing material with the underground reserve grade of approximately 8 grams of gold per tonne. It is anticipated that future mine plans will incorporate the results of the extensive drill programs currently in progress.
- Joanna - Gold - Advanced exploration with a final feasibility study underway and expected to be completed in mid 2011.
- Kipawa - Gold/Rare Earth - Early stage exploration with a 6,500 metre drill program recently completed, and results are expected shortly.
- Duverny - Gold Mineralization - Early stage exploration with an initial exploration proogram underway.
- Fayolle Property - Gold - Early stage exploration - Joint Venture with Typhoon Exploration Inc., initial exploration program underway to test a new geological model.
- Marban Property - Gold - Joint Venture with Niogold Mining Corporation with a $5.8 million exploration program comprising 50,000 metres of drilling to test the lateral and depth extensions of the existing mineral resources commenced in the third quarter 2010.
- Rex South Property - Gold-Silver-Copper-Tungsten - Joint Venture with Azimut Exploration Inc., Early stage exploration with a recent announcement of a discovery of a major polymetallic porphyry-type mineralization.
- Opinaca Property - Letter of Intent signed with Azimut Exploration Inc. and Everton Resources Inc. - Early stage exploration
- Wildcat Property - Letter of Intent signed with Everton Resources Inc. - Early stage exploration
- Duvay - Agreement with Tres-Or Resources Ltd. - Early stage exploration
- Experienced management team
Aurizon's Projects - Description and History
Casa Berardi Mine - Quebec
The Casa Berardi mine is situated 95 kilometres north of La Sarre, Quebec and straddles a 37 kilometre section of the Casa Berardi fault. Between 1988 and 1997, approximately 690,000 ounces of gold were produced from two underground mines, approximately 5 kilometres apart, in the central portion of the property. Aurizon acquired a 100% interest in the property in 1998 and conducted deep exploration drilling in the area of the West Mine, which was successful in discovering several new gold zones. Of particular importance was the discovery of Zone 113, in the West mine area, which contains high grade gold mineralization in quartz veins and forms the core of the current mining operation.
From 2004 to 2006, Aurizon developed new underground infrastructure, constructed surface facilities, and rehabilitated the milling facility and fleet of mining equipment, resulting in the commencement of production in November, 2006. Since then to December 31, 2009, Casa Berardi has produced 495,291 ounces of gold, and cumulatively has produced 1.2 million ounces of gold.
In September 2007, Aurizon granted Lake Shore Gold Corp. ("Lake Shore"), an option to earn a 50% interest in 227 mineral claims east and west of the perimeter of the mining leases comprising the Casa Berardi Mine ("Casa Berardi Exploration Property"). Lake Shore may earn its 50% interest by spending $5 million over a five year period. As at December 31, 2009, Lake Shore had spent approximately $3.5 million towards the earn-in commitment. The optioned ground covers an area of 11,594 hectares along a 30 kilometre section of the Casa Berardi fault.
Apart from the approximate two kilometre area explored by Aurizon to a depth of 1,000 metres, the large land position has not been systematically explored to depth and, accordingly, holds significant exploration potential.
Joanna Gold Property - Quebec
The Joanna Gold Project is located along the Cadillac Break, 20 km east of Rouyn-Noranda, Quebec just off Highway 117 and two kilometers north-east of the Rouyn-Noranda airport . The Rouyn-Noranda mining district is well known for its base metal deposits associated with volcanic rocks and several gold deposits in the immediate vicinity of the Cadillac Break (fault) have been defined over the years.
The Joanna Gold Project comprises 155 claims and is divided into six sectors based on different ownership agreements. There are currently two major deposits identified to date, the Hosco deposit and the Heva deposit. Both deposits are accessible via gravel roads less than one kilometre from Highway 117.
The Hosco and Heva deposits are finely disseminated sulphide deposits with minor quartz veining located within a sedimentary basin on both sides of a branch of the Larder Lake Cadillac fault. The gold is associated with sulphides, primarily arsenopyrite. The mineralized corridor extends along a 2,200 metre east-west trend and can be followed down to a depth of 400 metres.
Following the optioning of the Joanna project in 2006, Aurizon carried out surface diamond drilling which resulted in the identification of large mineralized zones. Aurizon then evaluated the potential to mine lower grade and higher tonnage material with different mining methods including by open pit. This study was followed by infill drilling with the objective of confirming the grade and continuity of the new mineral resources.
The Hosco mineralization follows multiple distinct zones dipping between 50 and 60 degrees to the north with a western plunge. Mineralization is restricted to a 100 to 190 metre wide lower grade halo of 0.5 to 2.0 grams of gold per tonne. Mineralized zones along this corridor plunge to the west, and are usually narrower and less continuous in the western block and wider and more continuous in the eastern block.
Kipawa Gold Property - Quebec
The Kipawa gold project is an early stage exploration project located approximately 100 kilometres south of Rouyn-Noranda, halfway between the Elliot Lake camp and the Abitibi gold belt camp, and was initially acquired on the basis of a Government regional stream sediment survey. The project consists of three non-contiguous claim blocks totalling 1,485 claims.
Exploration programs performed in 2007 to 2009 included regional till sampling, prospecting, geophysics, soil geochemistry, and limited diamond drilling. These programs lead to the discovery of gold and rare earth elements (REE) mineralization. Mineralization occurs along the contact between a syenite intrusive and altered hosted rocks.
An initial drill program intersected a broad rare earth mineralized envelope within a minimum true thickness averaging 61 to 104 metres.
Duverny Property - Quebec
The Duverny property is centered on a mafic volcanic belt associated with the Chicobi fault corridor. In the targeted sector, the indicators of gold mineralization proximity present similarities with the Timmins context, such as carbonate saturation and the presence of extensive quartz vein systems associated with folded structures.
Fayolle Property - Quebec
Aurizon has entered an exploration joint venture with Typhoon Exploration Inc., ("Typhoon") on the Fayolle Project located 10 kilometres north of Aurizon's Joanna Project in Quebec. The property comprises 39 mining claims 100% owned by Typhoon covering 1,373 hectares across the Porcupine-Destor Break, one of the most productive gold bearing structures of the Abitibi Belt.
Marban Property – Quebec
Aurizon has signed an option and joint venture agreement with Niogold Mining Corporation ("Niogold") on the Marban Block property, located in the Malartic gold camp in the Abitibi region, Quebec. The Marban Block includes the Gold Hawk, First Canadian, Norlartic and Marban properties and consists of forty-two (42) mining claims and three (3) mining concessions covering 976 hectares in the heart of the Malartic gold mining camp, Abitibi region, Quebec.
Rex South Property – Quebec
Aurizon has signed a letter of intent with Azimut Exploration Inc. ("Azimut"), regarding Azimut's Rex South property, in Nunavik, Quebec.
The Rex South property comprises 1,274 claims covering a surface area of 555 square kilometres, about 145 kilometres southeast of the community of Puvirnituq. The Rex South property is 42 km long by 15 to 20 km wide and hosts strong exploration potential
Opinaca Property - Quebec
Aurizon has signed a letter of intent with Azimut Exploration Inc. ("Azimut") and Everton Resources Inc. ("Everton"), whereby Aurizon can acquire up to an undivided 60 % ownership interest in the Opinaca property located in the James Bay area, 350 kilometres north of Matagami, Quebec. The Opinaca property is owned by Azimut and Everton as to an undivided 50% interest each and comprises 649 mining claims, covering 33,849 hectares, and is located in the area of Goldcorp's Eleonore project.
Wildcat Property – Quebec
Aurizon has signed of a letter of intent with Everton Resources Inc., ("Everton"), whereby Aurizon can acquire up to a 65 % interest in Everton's Wildcat property located in the James Bay region, 350 kilometres north of Matagami, Quebec. The Wildcat property is 100% owned by Everton and comprises 411 mining claims, covering 21,476 hectares, and is located near the area of Goldcorp's Eleonore deposit.
Duvay Property – Quebec
In September 2011, the Company entered into an agreement with Tres-Or Resources Ltd. (“Tres-Or”), under which the Company may earn an initial 50% interest in Tres-Or’s Duvay property situated in the Abitibi region of Quebec. The Duvay property is situated adjacent to the Duverny property and comprises different claims blocks totalling 132 mineral claims and covering 4,999 hectares.
The 50% interest in the Duvay property may be earned by making cash payments of $1.5 million and incurring work expenditures totalling $6.5 million, over the next four years, of which firm commitments totalling $2.5 million must be incurred in the first 18 months of the agreement. An additional 15% interest, bringing the total interest to 65% in the property, may be earned by either delivering a pre-feasibility study on the property or by incurring $13 million of additional exploration expenditures within a three year period of achieving the 50% participation.
During the third quarter of 2011, the Company made an initial cash payment of $0.5 million and advanced $0.5 million in respect of exploration expenditures to Tres-Or in accordance with the provisions of the agreement. Work planned for the fourth quarter, 2011, representing expenditures of approximately $0.7 million, include soil and till sampling together with bulk sampling of several surface pits to assess mineral continuity in a context where strong nugget effects are suspected and to define optimal sampling parameters for future drilling activity.
Company History
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The head office and registered and records office address of Aurizon
is located at Suite 1120, Cathedral Place, 925 W. Georgia Street, Vancouver,
British Columbia, V6C 3L2, Canada.