GOLD PRICE:
by GoldAlert

Production
Casa Berardi
Casa Berardi Project Casa Berardi Exploration Casa Berardi People
Development
Joanna Gold Property
Exploration
Duverny Fayolle Kipawa Gold - Rare Earth's Project Marban Rex South
Photo Gallery Maps & Charts Technical Reports

Outlook

Casa Berardi enters its fourth year of commercial operations in 2010, following the re-commencement of operations in November 2006.

Aurizon intends to utilize its strong cash flow to upgrade mineral resources to mineral reserves in order to extend and optimize the current mine plan.

Aurizon also intends to complete a prefeasibility study to assess the relative risks and opportunities of mining the Principal Zone crown pillar by open pit.

Drills are active on the 810 metre level exploration drift delineating the 113(deep), 113(S4), 118 and 123 Zones. The 550 metre level exploration track drift is being extended by 600 metres to provide a drilling platform to verify the continuity between the Principal zones, and the 118, 120 and 123 Zones.

A surface exploration drilling program at both the East and West Mine is evaluating the extension of existing zones and testing new interpolated targets.

Based upon the 2010 mine plan, it is estimated that Casa Berardi will produce approximately 145,000 -- 155,000 ounces of gold at an estimated total cash cost of US$490 per ounce, using a Cad$/US$ exchange rate of 1.05. This compares to gold production of 159,261 ounces and a total cash cost of US$401per ounce in 2009 at an average Cad$/US$ exchange rate of 1.14. The slight decrease in gold production for 2010 is attributable to lower average gold grades being included in the 2010 mine plan, particularly in the first part of the year.

On-site mining, milling and administrative costs are expected to average $104 per tonne in 2010.

The average daily mine production is estimated at 2,000 tonnes per day in 2010, up from 1,887 tonnes per day in 2009. Ore grades are expected to average 6.7 grams per tonne compared to the 7.8 grams per tonne achieved in 2009.

Beginning in 2011 and through subsequent years of operations, annual gold production of 160,000 to 170,000 ounces is anticipated at total cash costs approximating US$425 per ounce, as higher grade areas are included in the mine plan. It is anticipated that the mine plan will be revised to incorporate the final results of the extensive drill programs currently in progress.


    2009 2008
  Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Operating results                
Tonnes milled 172,343 178,420 170,429 167,484 169,291 161,358 160,054 163,694
Grade - grams/tonne 7.16 8.14 7.84 7.93 7.70 8.58 7.73 8.63
Mill recoveries - % 91.9% 94.2% 92.8% 91.3% 91.5% 93.3% 92.7% 92.6%
Gold Production - ounces 36,459 43,962 39,874 38,966 38,363 41,522 36,871 42,074
Gold sold - ounces 36,183 43,650 42,042 37,400 38,348 40,228 41,217 39,611
Per ounce data - US$              
Average realized gold price 1 $946 $929 $897 $888 $793 $845 $869 $877
Total cash costs 2 $459 $392 $386 $379 $356 $405 $436 $422
Amortization 3 224 212 189 183 226 211 210 191
Total production costs 4 $683 $604 $575 $562 $582 $616 $646 $613

Table footnotes:
  1. Realized gold prices net of realized derivative gains or losses divided by ounces sold.
  2. Operating costs net of by-product silver credits, divided by ounces sold, and divided by the average Bank of Canada Cad$/US$ rate.
  3. Depreciation, depletion and accretion expenses.
  4. Total cash costs plus depreciation, depletion and accretion expenses per ounce of gold sold.
First Quarter 2010

Casa Berardi

Casa Berardi produced 35,188 ounces of gold in the first quarter of 2010, and 34,423 ounces were sold at an average price US$1,010 per ounce. Since commissioning the mill in November 2006, Casa Berardi reached the 500,000 ounces of gold produced milestone in January 2010.

Ore throughput in the mill during the first quarter of 2010 was 178,648 tonnes at an increased daily production rate of 1,985 tonnes per day from 1,860 in the fourth quarter of 2009. An average ore grade of 6.8 grams/tonne was achieved in the first quarter of 2010, in line with plan. Mill recoveries averaged 90.2% in the first quarter of 2010.



The anticipated sequencing of lower grade ore in 2010, together with lower mill recoveries and a strong Canadian dollar, resulted in total cash costs of US$538 per ounce in the first quarter of 2010, compared to US$379 in the same quarter of 2009. The higher total cash costs per ounce resulted from a combination of the Canadian dollar strengthening 16% against the US dollar and ore grades declining 14% in the first quarter of 2010 compared to the same quarter of 2009. Unit operating costs on a per tonne basis and on a Canadian dollar basis in the first quarter of 2010 were stable at $108 per tonne, matching costs in the same quarter of 2009. The operating profit margin decreased to US$472 per ounce compared to US$509 per ounce in the same quarter of 2009.

Modifications to the stope design of the Lower Inter Zone in late 2009 will result in mining a larger mineralized envelope containing lower grade ore. Approximately 43% of 2010 production will come from this Zone. Higher ore grades are anticipated in 2011 as more areas containing reserve grade material are included in the mine plan, which is expected to result in lower total cash costs per ounce.

Operating Review of the Year

In 2009, gold production totalled 159,261 ounces from the processing of 688,676 tonnes at an average grade of 7.8 grams of gold per tonne. Mill recoveries for the year averaged 92.6%. Increased daily ore throughput of 1,887 tonnes per day in 2009 compared to 1,788 tonnes per day in 2008 was partially offset by lower ore grades, resulting in a slight increase in gold production in 2009.

Total cash costs in 2009 were US$401 per ounce, in line with the US$399 per ounce costs in 2008, as a weaker Canadian dollar offset the impact on costs of mining lower ore grades. Unit operating costs(1) in 2009 were stable at $108 per tonne compared to the unit costs of $105 per tonne in 2008. The operating profit margin in 2009 increased 15% to US$514 per ounce compared to US$448 per ounce in 2008, due primarily to higher realized gold prices.

In 2008, gold production totalled 158,830 ounces from the processing of 654,397 tonnes at an average grade of 8.2 grams of gold per tonne. Mill recoveries for the year averaged 92.5%. A 20% increase in ore throughput combined with 17% lower ore grades resulted in a slight decrease in gold production in 2008.

Total cash costs in 2008 were US$399 per ounce, higher than the US$331 per ounce costs in 2007, as a result of mining lower ore grades. Higher ore throughput in 2008 allowed unit operating costs to drop from $107 per tonne in 2007 to $105 per tonne in 2008, partially mitigating the higher unit costs on a per ounce basis.

The operating profit margin in 2008 increased 23% to US$448 per ounce compared to US$365 per ounce in 2007, due primarily to higher realized gold prices.

Casa Berardi Reserves and Resources - December 31, 2009

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 Zone. 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 sometimes on both sides of the fault.

The mine has produced over 1.2 million recovered gold ounces since commencing production in 1986, including 500,000 recovered ounces since Aurizon re-commissioned production in December 2006.

Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA) were commissioned by Aurizon to prepare updated mineral reserve and mineral resource estimates on the different zones of the property, in accordance with the Standards of Disclosure for Mineral Projects as defined by N1 43-101.

CASA BERARDI MINE
MINERAL RESOURCE ESTIMATES
As at December 31,
  2009 2008
  Tonnes Grade
Grams/tonne		 Gold
Ounces		 Tonnes Grade
Grams/tonne		 Gold
Ounces
Measured Mineral Resources            
Lower Inter 98,000 5.1 16,000 - -       -
113 155,000 8.1 40,000 160,000 7.9 41,000
North West 9,000 5.0 1,000 42,000 6.5 9,000
East Mine -- Open Pit 311,000  3.1 31,000 310,000  3.1 31,000
East Mine Underground 216,000 6.6 46,000 216,000 6.6 46,000
Total Measured Resources 789,000 5.3 134,000 728,000 5.4 126,000
Indicated Mineral Resources            
Lower Inter 3,000 5.3 1,000 122,000 6.0 24,000
South West 300,000 4.7 45,000 300,000 4.7 45,000
Inter 124,000 4.4 18,000 124,000 4.4 18,000
111 52,000 5.2 9,000 52,000 5.2 9,000
113 60,000 4.9 9,000 182,000 5.2 31,000
113(S4) 245,000 5.5 43,000 - - -
115 - - - 112,000 14.7 53,000
118 265,000 6.0 51,000 230,000 7.0 52,000
Principal Crown Pillar 1,785,000 6.2 355,000 1,785,000 6.2 355,000
Principal Underground 837,000 6.4 172,000 837,000 6.4 172,000
East Mine -- Open Pit 404,000 2.7 34,000 399,000 2.6 34,000
East Mine Underground 90,000 6.3 18,000 90,000 6.3 18,000
152 125,000 5.8 23,000 - - -
Total Indicated Resources 4,289,000 5.6 778,000 4,234,000 6.0 810,000
Total Measured & Indicated Resources 5,078,000 5.6 912,000 4,962,000 5.9 936,000
Inferred Mineral Resources            
Lower Inter - - - 43,000 5.6 8,000
104 115,000 6.6 25,000 115,000 6.6 25,000
113(S4) 15,000 5.8 3,000 - - -
118 1,018,000 6.8 222,000 854,000 6.6 183,000
123S 714,000 9.4 216,000 714,000 9.4 216,000
Principal crown pillar 841,000 6.0 162,000 841,000 6.0 162,000
Principal underground 836,000 6.0 161,000 836,000 6.0 161,000
East Mine -- Open Pit 310,000 3.0 30,000 310,000 3.0 30,000
East Mine Underground 156,000 9.1 46,000 156,000 9.1 46,000
152 13,000 8.2 4,000 - - -
East Mine Cherty 225,000 6.8 49,000 225,000 6.8 49,000
East Mine Zone 160 243,000 5.4 42,000 243,000 5.4 42,000
Total Inferred Resources 4,487,000 6.6 958,000 4,339,000 6.6 920,000

Notes:
  1. CIM definitions were followed for Mineral Resources.
  2. Mineral Resources are estimated at cut-off grades of:
    • 4 g/t Au for West Mine, Principal Mine and East Mine.
    • 3 g/t Au for South West, Inter and 104 zones in the West Mine. Those zones were 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 (Geostat, 2008).
  3. Mineral Resources are estimated using an average long-term gold price of US$825 per ounce, and a US$/C$ exchange rate of 1:1.09.
  4. Minimum mining widths of two to three metres were used.
  5. Mineral Resources are exclusive of Mineral Reserves.
  6. Totals may not represent the sum of the parts due to rounding.
  7. Mineral resources which are not mineral reserves do not have demonstrated economic viability
  8. See Appendix B for additional technical parameters.


Proven and Probable Mineral Reserves have been renewed as a result of:
  • At the West Mine, the 2009 mine production in Zones 113, Lower Inter and North West have been offset by the gain in mineral reserves from Zones 115, 118 and Lower Inter.
  • A 9% decrease in grade is a result of the addition of lower grade ore from the Zone 113, 118 and Lower Inter and a decrease in the cut-off grade, due to higher gold prices.
  • Mineral reserves are estimated using an average long-term gold price of US$825 per ounce, compared to US$750 per ounce in 2008, and a US$/C$ exchange of 1:1.09. A minimum cut off grade of 3.9 grams of gold per tonne was used, based on long term operating costs and gold prices, for the underground zones; and 1.2 grams of gold per tonne for the open pit. In 2008, the minimum cut off grade was 4.4 grams of gold per tonne.
  • As the mining industry is currently experiencing gold prices that are higher than US$825 per ounce, the operations periodically mine ore that is not included in mineral reserves as the grades are lower than the minimum cut-off grades.
  • As the mining industry is currently experiencing gold prices that are higher than US$750 per ounce, the operations periodically mine ore that is not included in mineral reserves as the grades are lower than the minimum cut-off grades.


    • Reconciliation of Casa Berardi Mineral Reserves

    Reconciliations of the mineral reserve estimates to the 2009 mill production return 105% for the tonnage, 97% for the grade and 101% for the ounces.

    Changes of Casa Berardi Mineral Reserves

    Gain (Loss) in Mineral Reserves in 2009:

      Tonnes Gold ounces
    Mineral Reserves - December 31, 2008 3,836,000  956,000 
    Resources conversion (1) 1,078,000  200,000 
    Mining depletion (2) (633,000) (165,000)
    Mining Cost (3) 152,000  19,000 
    Mineral Reserves - December 31, 2008 4,433,000  1,010,000 

    Notes to the reconciliation of mineral reserves:
    • Resource conversion resulted in the addition of 200,000 ounces to mineral reserves.
    • Mining depletion represents mineral reserves mined and processed in 2009 before milling recoveries and excludes 7,000 ounces mined outside of the reserves established at the beginning of the year and, therefore, does not correspond to the actual 2009 gold production of 159,261 ounces.
    • Mining costs represent an adjustment to the cut off grade as a result of changes in the three year moving average gold price and forecast operating costs.
    Mine Plan for Mineral Reserves
    • The mine plan for the current mineral reserves totals 4.4 million tonnes of ore, grading 7.09 grams of gold per tonne, to be mined over six years (2010 to 2016) from the 113 Zone, Lower Inter Zone, 118 Zone and six smaller West Mine zones, as well as the open pit and underground production from the East Mine.
    • Development was compiled by zone, measured from mine plans, and scheduled monthly for 2010, and quarterly thereafter. Development requirements average 25 metres per day for the next three years, and then decline rapidly, as most accesses and infrastructure will be completed.
    • Production was compiled by stope, and scheduled quarterly by zone. The majority of the production tonnage will come from the 113, Lower Inter and the 118 Zones, together making up 72% of underground reserves.


    Comparison with 2008 Mineral Reserves
      The main variance in the mineral resource estimates between 2009 and 2008 are as follows:
    • Geological re-interpretation of mineralized zones after drilling programs (Zone 113,115, 118 and Lower Inter).
    • Geological interpretation and 3D block model of two new minerlized zones (Zones 113 (S4) and 152 (East Mine)).
    • Conversion of inferred into indicated; or of indicated into measured.
    • Conversion of mineral resources into mineral reserves.
    • Conversion of mineral resources to mineral reserves after completion of economic mining plan for Zones 115 and 118.
    • Mining depletion (Zones 113, North West, Lower Inter).
     

    Corporate | Operations | News | Investors | QwikReport | Contact Us | Home
    © 2007 Aurizon Mines Ltd. All Rights Reserved. | Disclaimer