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| | |  Joanna Gold Project, Quebec The Joanna Gold Project is located along the Cadillac Break, in Joannes Township, two kilometres northeast of the Rouyn-Noranda airport and 20 kilometres east of Rouyn-Noranda. The property extends east-west for more than eight kilometres and, in places, is three kilometres in width. The project is comprised of six sectors based on different ownership agreements. The Hosco sector currently represents the core of the mineral resources located on the property. The other sectors include Heva, Alexandria, Henriksen, La Pause, and O'Connor-Robert. The project comprises 155 claims covering 4,252 hectares in 3 separate blocks. Aurizon owns a 100% interest, subject to certain underlying royalties, in all of the sectors comprising the Joanna Project, with the exception of the Alexandria sector, where Aurizon is required to make a cash payment of $1.6 million on or before December 23, 2010 in order to earn its 100% interest. At Joanna, a $3.4 million surface exploration program, comprising 28,000 metres of drilling, is testing targets to the north and south of the Hosco deposit; performing infill drilling on the Heva deposit; testing a potential satellite pit, approximately 700 metres west of the proposed Hosco pit; and testing potential extensions of the Hosco pit. Two (2) drill rigs are currently active on the Project. Outlook During the first quarter of 2010, drilling focussed on the lateral and depth extension of the Hosco deposit. This drilling resulted in an increase in measured and indicated mineral resources of 35% or 446,000 ounces. It is planned that two or three drill rigs will be active on the property to complete the $3.4 million exploration program. These rigs will perform exploration and infill drilling on surface targets covering various extensions to the Hosco deposit, the Alexandria property and the Heva deposit. Detailed metallurgical test work, environmental baseline work and geotechnical studies are in progress. The results from this work will be incorporated into a final feasibility study, which is anticipated to be completed by the end of the fourth quarter of 2010. In November 2009, the Company received a positive Pre-feasibility study on the Hosco deposit and is now proceeding to final feasibility. The Pre-feasibility study was prepared by BBA Inc., Montreal, Quebec ("BBA") with contributions from other leading engineering firms and consultants, in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects as defined by ("NI 43-101"). The Pre-feasibility study was prepared as a stand-alone project, relating solely to the mineral reserves located on the Hosco deposit, and accordingly does not take into account any of the mineral resources contained in the Heva deposit, which forms a part of the Joanna Project. The Pre-feasibility Study also does not take into account any synergies from the potential utilization of Aurizon's milling facilities, management and infrastructure at Casa Berardi to improve the economics of the Joanna Project; nor does it consider the excellent exploration potential within Aurizon's large land position surrounding the Hosco deposit. The proposed open pit operation, outlined in the Pre-feasibility study, has the potential in itself to increase Aurizon's gold production by 60% to approximately 270,000 ounces per year. The Pre-feasibility Study highlights are summarized below:
At the prevailing gold price as of November 6, 2009, of US$1,090 per ounce and a Canadian to U.S dollar exchange rate of 1.07, Aurizon has determined that the pre-tax NPV increases to $249 million at a 5% discount rate and the pre-tax IRR increases to 31.8%. The delivery of the Pre-feasibility Study completed the first stage of Aurizon's Continuous Development Program at Joanna, aimed at advancing the Joanna Project to commercial production, by demonstrating an economic, environmental and social gain, while mitigating the technical, financial, and environmental risks of the Project. As mineral reserves could be affected by permitting and social acceptance issues, Aurizon held 35 meetings prior to the completion of the Pre-feasibility Study with various stakeholder groups and has incorporated most of their views and recommendations into the current study or as recommendations to be addressed in the final Feasibility Study. Discussions with stakeholders will continue in order to ensure that the final Feasibility Study will integrate their views with a view to providing economical, environmental and social gains for all concerned parties.  Please go to our news release page to view the entire news release on the Joanna Pre-feasibility study dated November 11, 2009. Mineral Resources An updated mineral resource estimate has been completed for the Hosco deposit. The updated mineral resource estimate was prepared by SGS Canada Inc. - Geostat ("SGS Geostat") in collaboration with Aurizon's personnel. The updated mineral resource estimate integrates results of the Fall 2009 and Winter 2010 infill drill program completed in the Hosco deposit area, and updates the mineral resource estimate used in the Pre-Feasibility Study for the Hosco Deposit-Joanna Gold Project, dated December 22, 2009 (the "Pre-Feasibility Study") available under the Company's profile at www.sedar.com.
Notes:
The other mineral resources on the Joanna property outside of the Hosco sector have not been updated and the mineral resource estimate figures remain the same as reported in the Pre-Feasibility Study. The following table provides the details of the total mineral resources for the Joanna Project, including the June 2010 updated Hosco mineral resources:
Qualified Person and Quality Control Information of a scientific or technical nature regarding Joanna has been prepared by or under the supervision of Ghislain Fournier P. Eng., Technical Services General Manager and Martin Demers, P.Geo., Exploration Manager of the Company. Mineral resource estimates were prepared by André Laferrière, M.Sc. P.Geo., Senior Geologist for SGS Geostat, a "qualified person" as defined by National Instrument 43-101. Additional Information Additional information required by part 3 of NI 43-101 can be found in the Pre-Feasibility Study and in the Mineral Resource Estimation -- Joanna Gold Deposit, November 2009 Update, dated November 9, 2009, both of which are available under the company's profile at www.sedar.com. | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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