Sunday, August 31, 2014
Text Size

Search our Site or Google

Golden Opportunity Lies in the Details

Guest Commentary - Rick Mills

User Rating: / 1

Richard (Rick) Mills
Ahead of the Herd


As a general rule, the most successful man in life is the man who has the best information

On January 14th 2013, Alamos Gold Inc. announced it had acquired 23,507,283 Aurizon shares as a result of share purchase agreements between Alamos and certain shareholders of Aurizon. The 23,507,283 shares acquired represent approximately 14.3% of the issued and outstanding Aurizon shares.


Alamos also announced it had commenced a formal offer to acquire the rest of the issued and outstanding Aurizon Shares.


Aurizon will produce 127,000 ounces of gold at cash costs of $719/oz in 2013, ramping up to 153,000 oz in 2014 at estimated cash costs of $696/oz.


Alamos is trying to buy Aurizon for Casa Berardi and Joanna.


Aurizon’s Casa Berardi mine currently hosts 1.5 million ounces of reserves at a grade of 5.3 g/t, and 1.5 million ounces in measured and indicated resources at a grade of 4.3 g/t.


The Joanna project is Aurizon's 100 percent owned primary development project located in the Cadillac Larder Lake Break, between the towns of Rouyn-Noranda and Cadillac in Quebec. The property currently hosts 1.7 million ounces in reserves at a grade of 1.3 g/t and 0.9 million ounces in measured and indicated resources at a grade of 1.3 g/t.


While Aurizon has other projects on the go one in particular stands out - the option/JV deal between Aurizon and NioGold Mining Corporation (TSX-V: NOX)


In July 2010 NioGold entered into an option and joint venture agreement with Aurizon Mines Ltd who may earn a 50 percent interest into the Marban Block property (eight percent of NioGold’s land package in the Val d’Or-Malartic area) by spending $20 million and at the conclusion of the three year current deal prepare and publish an updated resource and then proceed to make a “resource payment” for 50 percent of total estimated gold ounces as follows:

  • C$30.00/oz in the Measured and Indicated categories (C$40/oz if gold +US $1,560 oz)
  • C$20.00/oz in the Inferred category (C$30/oz if gold +US$1,560 oz)

As it presently stands that would be a $38.8m payment to NioGold with at least Phase 2 results to be added into another resource estimate. The current resource estimate stands at 2,069,000 ozs of gold with 1,559,000 of those gold ozs in the measured & indicated category and 510,000 ozs in the inferred (with over 75 percent of those ounces in the M&I category this bodes well for overall resource quality) the size of the resource is sufficient to support 150k+ oz’s of gold production over a ten year mine life.


A capping of 25 g/t was applied to the resource estimate and the effect was to reduce ounces and grade for the Marban deposit by 31 percent or 650k ounces. The capping of assays is required when high grade outliers (for example, 906 grams gold over 2.9 meters) may have a disproportionate influence on the average gold grade.


A 25 g/t top-cut may be conservative:

  • Aurizon’s Joanna project had a 15 g/t Au top-cut which reduced the resource by 5-6 percent
  • Osisko Mining 15 km to the northwest recently opened their new Canadian Malartic mine hosting a reported 10.7 million ozs of gold. Osisko used various caps reducing the resource by an estimated 2.35 percent
  • Agnico Eagle’s Goldex did not have a top-cut
  • Alexandria Minerals’ Akasaba deposit also did not have a top-cut

"Results obtained with the first phase program confirm that gold distribution indicators, such as ounces per vertical metre are comparable to other major deposits in the Abitibi belt and create a strong incentive to accelerate the exploration of the Marban deposit." Martin Demers, P.Geo., Aurizon's Manager of Exploration

Aurizon had indicated they planned another resource update to be released before the July 2013 third anniversary date incorporating Phase 2 drilling. Analysts reports have this next resource estimate between 2.5 to 3m ozs.


Aurizon has spent $11 million leaving $9 million to be spent on the Phase 3 program by the third anniversary (July 2013) to earn their initial 50 percent.


Aurizon may increase their interest to 60 percent by delivering a feasibility study and to a 65 percent interest by arranging mine financing.


As things stand right now Aurizon hasn't earned a one percent, let alone a 50 percent interest in Marban. There is still $9m yet to be spent, and the 50% resource payment to be made, to get that earn in.


This writer thinks Alamos will like the Marban Block deal and decide to continue Aurizons option if they are successful in their bid.


If Alamos doesn’t like the deal then the door is open for Niogold’s neighbor, Osisko (TSX:OSK), or somebody else, to step in.


And that’s what I really like about Alamos’s bid for Aurizon. You see the deal with Aurizon, or maybe Alamos, is only paying NOX shareholders $40 & $30 (with gold +$1560.00) for those ozs. If the JV dies then those ozs, and all the rest, belong to NOX and they are worth considerably more in a buyout, up to $100 per.


Latest Commentary

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12

Latest Comments

Disclaimer: is not a registered investment advisor - Stock information is for educational purposes ONLY. Bullion Bulls Canada does not make "buy" or "sell" recommendations for any company. Rather, we seek to find and identify Canadian companies who we see as having good growth potential. It is up to individual investors to do their own "due diligence" or to consult with their financial advisor - to determine whether any particular company is a suitable investment for themselves.

Login Form

disulfiram antabuse effect aygestin cheap actos pas cher antibiotics for ear infection in adults what does vigilo confido mean buy lasuna in ireland what is doxycycline generic for signs of dilantin toxicity levitra professional online pharmacy cialis online express delivery voltaren supposte costo can you buy order benicar hct buy voltaren with visa what are the side effects of prednisone in cats cardura drug in canada pharmacy phenamax canada head office acheter minocin nootropil prescription only costco pharmacy atorlip-5 price generic orlistat 60 mg where to buy live chickens in manchester levlen for sale philippines where to get ephedraxin ordering diabecon prescription roxithromycin tablets uk ranbaxy generic lipitor release date geriforte with no rx buy brand viagra 10 stromectol 3mg information how to take cymbalta generic sildenafil australia how to order levaquin generic viagra 100mg reviews femara online shipping avalide medication information hypertension brand advair diskus prices at costco requip daily use reviews viagra professional 100mg price buy yasmin 40 order doxycycline on line usa trazodone for sleep apnea lowest price benfotiamine buy 120 pack price alli what is zebeta tablets cipro xr 100 mg how much does furosemide cost can cozaar cause weight gain where to buy real accutane online diarex in croatia cheapest januvia us online pharmacy no prescription lioresal cialis soft sale 20mg order probalan overnight buying menosan in manchester zithromax purchase no prescriptions lipitor patent in canada zyban price in canada scars after accutane treatment buy liverpool tickets online non prescription medrol pharmacy aceon 100 review acticin on line for sale no script amaryl maximum dosage what is mobic meloxicam 7.5 mg original noroxin online purchase doxycycline 100mg online buy viramune zofran ex valacyclovir 500 mg side effects generic imitrex india african american clomid twins cefixime trihydrate usp monograph india pharmacies online that sell clomid antibiotics online no prescription overnight hong kong buy dilantin mgo online viagra tablets 150 mg finasteride and high-grade prostate cancer in the prostate cancer prevention trial procardia medication order is generic purinethol available in usa lamisil to buy in england best place buy revatio fucidin online mexico what drug category is prograf lotrisone prescription overnight delivery what does eldepryl pharmacy evaluation board canada viramune maximum dosage i pill cipla composition canadian national health care insurance plan genuine pilex best price my mexican pharmacy shatavari mg buy lady era medicine ranbaxy lipitor generic recall lot numbers can i order maxalt no prescription in the usa gabapentin side effects in women fluconazole 200 mg for dogs evista dosage too high toradol 40mg what does doxazosin to buy hydrochlorothiazide in uk evecare suppliers overseas can 50 mg of seroquel cause weight gain depo provera with other medication generic cymbalta paypal antibiotics brand names sale cardura what is tretinoin cream 0.05 used for genuine alligator boots cozumel is confido a prescription drug capoten order by phone beconase aq pill canadian cheap yasmin birth control dipyridamole cheap us pharmacy panasonic lithium battery shelf life get proscar uk buy naprosyn online no prescription united states natural viagra alternatives men buy albendazole 15mg online is differin gel or cream better chlamydia and gonorrhea treatment online rosuvastatin generic reviews florida hyzaar canadian pharmacy professional 10mg cost levitra very cheap cleocin my benadryl coupons what is the difference between generic and brand name synthroid what is clomiphene used for safe place order atorlip-20 brahmi on line for sale no script side effects of anastrozole tablets seroflo pills cardizem generic 2013 drugs discount celadrin mg nach baliye 5 2nd march 2013 desi tashan abilify no prescription canada buy actoplus met 3 mg can i get seroquel buy snovitra super power 100mg online less expensive cialis tablets can you get accutane in the uk safe prometrium no prescription ventolin online pay paypal purchase cheap online generic minocycline zenegra 100 price prednisone asthma exacerbation xenical roche precio argentina ditropan side effects vision cheap chloramphenicol usa ventolin no prescription fedex ups generic carafate usa pharmacy price increase colospa what is pamelor drugs differin pill shop discount code amoxicillin 875 mg clavulanic acid 125mg furosemide 100 review generic drug name for lipitor ivermectin for rabbits comprar crestor pela internet best price for real retin-a ge order cefixime canada duetact over the couter where to buy olanzapine ointment buy lisinopril tablets india differences between levitra and cialis mail order pharmacy tech jobs florida what drug class is paxil cr in how much does nitroglycerin cost side effects of orlistat 120 what is zestoretic tablets cipro overnight shipping cheap iui clomid success stories fast bystolic deleviery is there a generic for atacand hct buy glucophage bulk levofloxacin 500 mg cost generic motrin recall purchasing atrovent online uk erexin-v online bestellen hyaluronic acid in croatia lloyds pharmacy online online store yaz birth control all pills same buy lexapro online prescription cialis jelly suppositories buy brand cialis super active for sale where can i get zocor pills what does nolvadex do for bodybuilders what is omeprazole medication for gout colchicine order flomax without rx lopressor for daily use canada aleve d reviews buy feldene 200 how to use alligator clips in hair where to purchase acai berry in canada can you order alavert mg prescription billig mentat ds syrup online kaufen do you need a prescription for lamisil cream ayurslim mail order can get fertility drugs nhs low amitriptyline prescription strength orlistat costo del vermox plus how quickly can i get off prednisone luvox cr discounts ethionamide online pay paypal alcohol after azithromycin overnight viagra generic overseas pharmacy no prescription bupron sr coversyl max dose brand viagra canadian medications without prescription pyridium dosage instructions buy fml forte without rx acheter lipothin is zofran expensive feldene gel 60g mail order prilosec noroxin online pay paypal depo provera reviews webmd como usar differin gel chloramphenicol tablets used minipress to buy from europe erection packs 1 by mail is 100mg of zoloft a high dose billig geriforte syrup online kaufen long term side effects of trandate cost of actonel 35 mg can u overdose on anxiety pills buy pct nolva strongest over the counter antibiotic cream nolvadex reviews and dosage over the counter zovirax cream prandin lowest price viagra jelly pharmacy coupons order viagra online uk kamagra buy femara 5mg in canada order anafranil online cheap synthroid trusted online drug stores in canada original cialis jelly online kamagra now kamagranow co uk side effects of crestor 40 mg shallaki without insurance safe lipitor no precription what is secreted by parietal cells cheap generic vantin spedizione sicura ordine viagra cipralex escitalopram side effects wellbutrin sr generic weight loss should i increase my lexapro dose buy abana 1 online pharmacy acai berry pills life brand tesco stores scotland sell viagra what is abana drugs buy cialis soft with no rx claritin over the couter hyaluronic acid without insurance clomid without iui andkon 1000 free flash games breeder femara overseas side effects of pramipexole dihydrochloride can you take plavix and pletal phenamax cheap price clonidine cost comparison can i make voltaren costco drug prices what does micardis hct do singulair allergy medication for children can you get addicted to phenergan dilantin limited india where do i diovan in australia ezetimibe 10 mg chloroquine pharmacy buy feldene patch golf albenza where to buy tamoxifen online anti estrogen buy citalopram without a script vantin online uk buy robaxin mexican pharmacies sinequan generic keflex tablets used levitra vs viagra duration when is plavix generic 2012 norvasc tablet sale augmentin without prescription triamterene online australia purchase levaquin no prescription pill rx health order avodart products cialis sublingual express canada atrovent metered dose inhaler can you buy lioresal online metformin for atypical antipsychotic induced weight gain phenazopyridine hydrochloride pyridium india lozol tablets 40mg cipla products usa best generic seroquel review colchicine australia mail order generic finax abilify cost in canada studies mechanism of action of amantadine evecare tablets 150 mg is generic wellbutrin sr effective what does calcium carbonate and hydrochloric acid make order coumadin tablets retin-a ge usa cvs prices paroxetine noprescrition needed canada online pharmacy use of endep for pain buy periactin pills in the us boots pharmacy uk head office very cheap silagra buy pet prescriptions online canada generic olanzapine vs zyprexa where purchase calan casodex 50 mg price wholesale ed medicine coreg heart medicine order accutane online pharmacy generic where can you buy domperidone over the counter where to buy prograf online canada lynoral without a prescription buy accutane online no prescription uk cheap baclofen prescription drug pramipexole dose where can i get stromectol artane castle shopping centre penneys opening hours tofranil daily use reviews purchase ventolin 2mg orlistat pas cher italie order floxin ear drops online discount what is lotrisone prescribed for buying lopid for dogs buy cipla finpecia generic cialis online mastercard reviews on indocin what is azithromycin 500mg online rogaine 5 purchase order plavix online no prescription with a mastercard cheap alli diet pills where to buy abilify online uk buy kamagra pills in the canada generic trial packs india buy alligators in florida pharmacy that sells zovirax cheap generic skelaxin buy zetia hong kong best place to buy beconase aq keppra price without insurance india propranolol price what is the retail cost of cymbalta serpina tablets online brand names anti anxiety drugs best mascara for dramatic lashes drugstore anxiety medication side effects yahoo best avodart prices levothyroxine order synthroid buy cheap overnight view topic buy lotrisone effexor xr generic antidepressants extended release where can i buy feldene p gel paroxetine prescription assistance depression mexican pharmacy no prescription kamagra soft do i need a prescription for aciphex what is the drug compazine used for glyset shop net zithromax dosage chlamydia 2 pills vasotec online pay paypal amendment to prohibit coverage of viagra for sex offenders best place buy micronase tadapox medicine children cheapest place to buy betapace where to buy levitra in qatar acheter celebrex baytril for dogs no prescription champix forum sheffield best place to buy viagra sublingual zyban 100 what does tamoxifen do buy benzaclin gel online no prescription plendil medicine Purchase actos 30mg pioglitazone lloyds pharmacy jobs uk atacand 8 mg price american botanical pharmacy store hours brafix usa buy synthroid canada skelaxin now co uk doryx coupon 2011 prednisone dosage for dogs with kennel cough clomid pregnancy bentyl ibs discount code for doxycycline allegra drugs com overnight valtrex us pharmacy how long does decadron take to work trimix course red sea nexium side effects dry mouth lotensin drugstore low price speman uk buy dog medicine online doxycycline capsules open united review tamoxifen without insurance lloyds pharmacy allergy reliever instructions purchase brand viagra mg buy over the counter levitra online pill rx health propecia products azithromycin tablets 250 mg alcohol seroquel supplier in uk best pharmacy to order vasotec proventil canada mifepristone and misoprostol over the counter nhs repeat prescriptions online doncaster no prescription generics alphagan shoppers drug mart allopurinol online usa no prescription keflex overnight no prescription mobic prices at costco sertralina y alcohol yahoo yasmin lawsuit 2012 mebendazole amoxicillin interactions online meds without prescriptions diclofenac tablets used for what drugstore advair diskus allergic buy cordarone online in usa maximum daily dose of requip premarin for sale philippines where can i buy vytorin mg etodolac looking for order avodart online canada order cordarone 120 mg purchase motrin lowest price florida hospital east coumadin clinic canadian online pharmacy for lady era erythromycin ethylsuccinate 400 mg tablets liposafe to buy from europe where can i purchase elavil buy brand aygestin how to use zanaflex glycomet pas cher italie where to buy leukeran in canada safely clomid and nolvadex pct cialis prix pharmacie staxyn canada i pill epivir-hbv website disulfiram reaction alcohol xeloda cost toprol generic problem mirtazapine 45mg tab buy depakote er 250 mg how to get trazodone on line better than ephedraxin where do i buy revia generic cymbalta 60 mg free shipping buy terramycin singapore how much is valtrex tablets irbesartan and alcohol cheap liposafe mg micronase tablet sale buy kamagra oral jelly online australia buy online terramycin generic my alli shopping list bentyl pill identifier lamisil australia pharmacy ceftin without a prescription from mexico generic celexa withdrawal proscar prescription uk dostinex side effects uk best price for real seroflo best place to buy generic drugs tetracycline medication for fish advair diskus side effects levaquin without insurance men taking clomid fertility low cost birth control pills online very cheap cefadroxil what is lopid 600 mg betnovate for acne suppliers of ginette-35 in us ginseng in indiana price what are the side effects of cymbalta medication diamox online uk revia for men sale in uk delivery plendil without pharmacy we bought a zoo putlocker buy color contact lenses no prescription order liposafe cheap sildenafil citrate tablets ip 50mg over the counter drugs similar to aldactone generic furosemide uk paypal cost of finax advair side effects in kids can you get high off promethazine pills natural antibiotics in food where to get cheap accutane flagyl suspension for pigeons aspirin uses medication medicine cephalexin used astelin shopping buy epivir-hbv online pharmacy actonel online bestellen wheres the best place to buy viagra online insurance times awards synthroid online coupon code prescription drugs online buy atorlip-10 visa how much does metformin cost at cvs coversyl 10mg buy indian pharmacy altace is it legal to buy pills from canada prazosin with no rx vpxl australia companies only renova spa jamaica no prescription pravachol geriforte syrup price india citalopram tablets 10mg 20mg 40mg meclizine 40mg ftc acai berry lawsuit buy capoten mg buy cheap tamoxifen using pay pal can we trust aciclovir online carafate online in us can you buy vasotec pick 10mg can you buy diovan online canadian can i get addicted to unisom cheap diabecon uk compare flovent prices nootropil mist canada bystolic comments order valtrex from canada zyprexa on line in the canada buy cheap flagyl no prescription needed pharmacy buy rumalaya without a prescription from canadian pharmacy cheap motrin no prescription tadacip new zealand side effects of differin lotion buy cheap acticin healthy chicken with mango salsa recipe lynoral perth australia pharmacies allison iowa purchase ortho tri-cyclen buy brand levitra online no prescription united states how long does it take to get off celexa what is aleve d used for digoxin pills sweat buy actos 25 mg purchase strattera in uk what types of gyne-lotrimin are there promethazine online coupon code abilify without a script generic prescription trazodone generic release date common side effects of femara acheter pas cher trimox how much will generic seroquel cost antabuse women buy zetia lawsuit settlements prednisolone where can i buy it where to order valtrex buy tadapox perth australia online pharmacy uk ophthacare online sale of cephalexin sale cafergot purchasing cabgolin online uk lamisil no prescription overnight delivery brand eulexin buy buy abana without prescription reviews on estrace jobs in cipla pharmaceutical company premarin costco pharmacy online pharmacy uk isoptin cheapest pletal to buy bystolic in the uk legal buy leukeran online canada propecia shop net buy bactroban ointment online sports direct football boots bactrim reviews uti where to bupropion where to buy cytoxan ointment beat way to order trimox the purple pharmacy yuma az motilium 10mg how many orlistat 120 mg online secure pill box order fincar online uk how to buy synthroid online online lasix with no prescription buy cheap synthroid online ventolin discount no prescription generic prilosec in usa ginseng for sale online buy biaxin 500 mg clomid online from india cheapest paroxetine drugs paxil bupron sr tablets side effects levitra plus sold over counter decadron iv max dose how to take chloroquine trimox delivery uk what does benadryl and alcohol do order amitriptyline on line uk daily cialis canada ramtirth brahmi oil reviews claritin online forum finasteride generico colombia amoxil lowest price online prednisone cost no insurance topamax australia pharmacy calan direct pharmacy buy retin a micro uk protonix 40 mg tablet purchase cheap generic famvir canadian there generic betoptic s buy zyloprim with e check ventolin inhaler canada pharmacy ceftin alcohol side effects buy differin gel cheap cleocin usa justin bieber we heart it order abilify 200 mg generic doxycycline 50mg nexium non-prescription alternative motilium online ordering buy valtrex pills in the australia post cycle therapy supplements reviews periostat user reviews is there a generic lexapro 2011 where to get morning after pill accutane dosage by weight chart requip pills emsam medication online lotrisone online click here next day minocycline dose uti what is colospa drugs zofran melt 4mg dosage nexium long term all types bactroban pills serpina online pharmacy uk