Aurizon has signed an option agreement in July 2010 with Niogold Mining Corporation ("Niogold") on the Marban Block property, located in the Malartic gold camp in the Abitibi region, Quebec, pursuant to which:
- Aurizon can earn a 50% interest in the Marban Block, subject to underlying royalties, by:
- incurring expenditures of C$20 million over three years, of which C$5.0 million is a firm commitment to be spent in the first year;
- completing an updated NI 43-101 compliant mineral resource estimate;
- making a resource payment equal to the sum of C$30 (or C$40 if the price of gold is then above US$1,560) multiplied by 50% of the number of total gold ounces in the Measured and Indicated resource categories plus C$20 (or C$30 if the price of gold is then above US$1,560) multiplied by 50% of the number of total gold ounces in the Inferred resource category, based on the updated resource estimate.
- Aurizon can earn an additional 10% interest, for an aggregate of 60% interest, by delivering a feasibility study;
- Aurizon can earn an additional 5%, for an aggregate 65% interest, by arranging project financing for capital expenditures estimated by the feasibility study to place the project into commercial production;
- NioGold will be operator during the initial earn-in period and Aurizon will provide input on exploration programs and will become operator after the initial 50% interest has been earned.
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. A December 1, 2009 resource estimate on the Marban Block, included in a report prepared for Niogold dated March 11, 2010 titled "Updated Mineral Resource Technical Report, Malartic Project" by Michael M. Gustin P. Geo., Mine Development Associates of Reno Nevada (the "MDA Report"), reports indicated mineral resources of 598,000 ounces gold plus inferred mineral resources of 361,000 ounces gold. According to the MDA Report, the mineral resources are defined along a three-kilometre segment of the Norbenite-Marbanite fault zone, in and around the former Marban, Norlartic and Kierens gold mines, which are reported to have collectively produced approximately 600,000 ounces gold. The mineral resources that the MDA Report indicates are potentially amenable to open pit extraction and underground extraction are summarized below:
Estimated Open Pit Resources:
- Indicated:6.0 million tonnes @ 1.6 grams of gold per tonne (303,000 oz)
- Inferred: 4.4 million tonnes @ 1.3 grams of gold per tonne (179,000 oz)
Estimated Underground Resources:
- Indicated:2.1 million tonnes @ 4.3 grams of gold per tonne (296,000 oz)
- Inferred: 1.5 million tonnes @ 3.9 grams of gold per tonne (182,000 oz)
A 0.5 grams of gold per tonne cut-off grade was applied to tabulate diluted resources lying within 200 meters vertically from the surface. These resources can reasonably be considered available for potential open-pit extraction and conventional mill processing. A 2.5 grams of gold per tonne cut-off grade was applied to tabulate the deeper undiluted resources lying more than 200 meters vertically below the surface. The higher-grade cut-off for the deeper mineralization is chosen to capture mineralization potentially available to underground extraction and conventional mill processing.
Two drill rigs were active in the third quarter of 2011 completing 5,449 metres of drilling focused on close spaced drilling within the first 250 vertical metres of the Marban deposit and testing the down dip eastern extension between depths of 400 to 600 metres. The drilling to date has established lateral and vertical continuity of mineralized lenses inside the shear zone system; and demonstrated the potential for both bulk tonnage open pit mining and narrower higher-grade ore shoots at depth. The drilling coverage has also assessed the transition from a more gently dipping style of mineralization close to surface, where past mining operation occurred, to a moderately dipping structure at depth. Other targets have been tested, including the surface footprint of the Norlartic deposit and fence drilling between the Marban and Norlartic deposits in an attempt to evaluate the connection between the two areas.
Expenditures during the third quarter 2011 total $788,000 and year to date total $4.4 million. The end of the third quarter marks the fulfillment of the first year firm exploration commitment of $5 million under the terms of the joint venture agreement. A second phase budget of $5 million representing a work commitment of 34,000 metres has been approved. The program, planned to commence in November, 2011, should allow the completion of 5,450 metres of drilling by the end of the year, representing expenditures of approximately $0.6 million.
Aurizon may earn up to a 65% interest in the Marban property, which comprises forty-two mining claims and three mining concessions covering 976 hectares in the heart of the Malartic gold mining camp in the Abitibi region of Quebec, subject to underlying royalties.
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The MDA Report is available under Niogold's profile at www.sedar.com.
Data Verification / Qualified Person
Readers are cautioned that neither Aurizon nor any qualified person on behalf of Aurizon has verified the data disclosed in the MDA Report or any of the sampling, analytical or test data underlying the opinions and estimates set forth in the MDA Report, and assume no responsibility for such information. Information of a scientific or technical nature contained in this web site regarding the Marban Property has been reviewed by Martin Demers, P.Geo, Manager, Exploration and a "qualified person" under National Instrument 43-101 solely for the purpose of determining that it accurately reflects information reported in the MDA Report.