In 2013, it is expected that $5.2 million will be invested on exploration at Casa Berardi which will include approximately 58,000 metres of surface and underground diamond drilling. Up to three surface, and five to seven underground drill rigs will be active during the course of 2013. Aurizon expects to capitalize these costs as the primary objective of the drilling will be to improve the quality of the known reserves and resources as well as exploring for extensions of these structures.

Surface exploration will include testing the South domain of Zone 123 to investigate extensions of known mineralization.

Underground rigs will primarily focus on definition drilling of Zones 113, 118, 123, and the Principal Zone. In addition, exploration drilling from underground will be performed on the Cherty Zone 159.

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Reserve and Resource Summary as of December 31, 2012

Mineral Reserve and Resource highlights include the following:

A 6% increase in the average underground mineral reserve grade to 7.1 grams/tonne and an 11% increase in mineral reserves, before mining depletion, compared to 2011. Net of mining depletion, mineral reserves at December 31, 2012 totaled 1,461,400 ounces of gold, maintaining mineral reserves on a year- over- year basis
The addition of mineral reserves in the Principal Zone underground totaling 161,200 ounces of gold in 2012, of which 156,500 ounces are in probable reserves at an average grade of 8.9 grams per tonne and the balance are in proven reserves at an average grade of 6.1 grams per tonne.
A significant increase in probable mineral reserves and in indicated mineral resources in Zone 123;an increase of 22% in probable mineral reserves, to 276,000 ounces of gold, and an increase of 170% in indicated mineral resources, to 153,700 ounces of gold, in Zone 123, due to additional infill drilling and a new geological interpretation. Zone 123 remains open down dip.
Measured and indicated mineral resources as at December 31, 2012 totaled 1,467,000 ounces of gold and inferred mineral resources totaled 589,600 ounces of gold.

Notes:

1. Open pit mineral reserves were estimated by BBA and underground mineral reserves were estimated by Aurizon personnel.

2. Mineral reserves and resources estimates have been completed in accordance with the CIM Standards with regards to mineral reserves and mineral resources estimates. Mineral resources are exclusive of mineral reserves. Mining depletion for 2012 is included in 2012 Mineral reserves.

3. Mineral Reserves are estimated at a cut-off grade of 4.12 g/t Au for underground, and 1.2 g/t Au for East Mine open pit and 0.5g/t Au for Principal open pit.

4. Mineral Reserves are estimated using an average long-term gold price of US$1,350 per ounce and a US$/C$ exchange rate of 1:1.

5. A minimum mining width of three metres was used.

6. Totals may not represent the sum of the parts due to rounding.

7. See Appendix A for additional technical parameters.

Notes:

Open pit mineral resources of Principal and East Mine were estimated by BBA. Open pit mineral resources of 160 zone and underground mineral resources of 160 and South West zones were reported in an internal report by InnovExplo -Consulting Firm to Aurizon Mines. The remaining underground mineral resources were estimated by Aurizon personnel.
CIM definitions were followed for Mineral Resources estimates.
Mineral Resources are estimated at cut-off grades of:
- 4 g/t Au for West Mine, Principal Mine and East Mine underground.
- 3 g/t Au for 104 zone in the West Mine. This zone was estimated by Aurizon in 2000 using 2D polygons on longitudinal sections and reviewed by RPA in 2005.
- 1.30 g/t Au for the East Mine – Open Pit
- 0.5g/t Au for the Principal – Open Pit Mineral Resources are estimated using an average long-term gold price of US$950 per ounce, and a US$/C$ exchange rate of 1:1
- 0.3 g/t Au for the 160 zone – Open Pit Mineral Resources are estimated using an average long-term gold price of US$1,250 per ounce, and a US$/C$ exchange rate of 1 :1.
Mineral resources of 113-5 and 113(S4) zones were merged into 113 Zone; 115-2 zone was merged into 115 Zone; Inter zone was merged into South West Zone; East Mine Cherty was merged into 160 Zone.
Minimum mining widths of two to three metres were used.
Mineral Resources are exclusive of Mineral Reserves.
Totals may not represent the sum of the parts due to rounding.
Mineral resources which are not mineral reserves do not have demonstrated economic viability.
See Appendix B for additional technical parameters.

Technical Parameters for the Mineral Reserve Estimate and the Mineral Resource Estimate can be found on our news release page under the date of February 14, 2013

Casa Berardi - Lake Shore option

Lake Shore Gold Corp. ("Lake Shore") Lake Shore has announced that it will conduct an approximate 10,700 metre diamond drill program in 2010 on both East and West blocks of the optioned property. The program will include approximately 6,000 metres in 23 holes designed to confirm the continuity and expand the mineralization of the G zone in the East Block area. Drill results from the G zone include 8.58 grams per tonne gold over 10.4 metres and 6.84 grams per tonne gold over 3.10 metres. Drilling of the G zone has identified mineralization to a vertical depth of 280 metres within a strike length of 500 metres. The G zone is located approximately 7.5 kilometres to the east of the Casa Berardi processing facility.

Future Exploration and Development

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The Casa Berardi gold deposits are located along a five kilometre east-west mineralized corridor. They include the East and West mines, and the Principal Zones. The Casa Berardi gold deposits can be classified as an Archean sedimentary-hosted lode gold deposit. The gold mineralization is superimposed on a continuous graphitic mudrock unit corresponding to the Casa Berardi Fault plane. Gold occurs mainly south of the Casa Berardi Fault, and occasionally on both sides of the fault.

The mine has produced over 1.5 million recovered gold ounces since commencing production in 1986, including 803,000 recovered ounces since Aurizon recommenced production in November 2006.

This page was last updated: April 16, 2013