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Aurizon Mines Ltd.

Mining Companies - Gold Companies

User Rating: / 1

Aurizon Mines Ltd. is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western Quebec, Canada, one of the world's most favourable mining jurisdictions and prolific gold and base metal regions, and by increasing production through accretive transactions. Aurizon has 11 properties in Quebec; these properties include Casa Berardi, an operating gold mine, the Joanna property, which is in the feasibility stage, and a growing project pipeline.  The Company is listed on the Toronto Stock Exchange under (ARZ) and the NYSE Amex under (AZK).

Annual Trading Range 4.35-7.25

Trading on 26 Apr 2012 @ 5.19

Share Structure


Common Shares:


Fully diluted:




Q3, 2011

Cash and Equivalents  214M

St Liabilities 26.4M

Revenue  68M

Cost of Sales 30M

Gross Profit 38.4M



Casa Berardi

2011 Gold Production

Record gold production from Aurizon's 100% owned Casa Berardi mine for the year ended December 31, 2011, totalled 163,845 ounces from the processing of 698,123 tonnes at an average grade of 8.0 grams of gold per tonne. Recoveries for the year averaged 91.3%. Actual gold production was in line with the Company's 2011 guidance of approximately 165,000 ounces and it is anticipated that total cash costs per ounce will be below the Company's guidance of US$535 per ounce for 2011.

Fourth Quarter 2011 Gold Production

Ore processed in the fourth quarter 2011 amounted to 170,283 tonnes at an average grade of 9.1 grams of gold per tonne. Metallurgical recoveries of 92% resulted in gold production of 45,995 ounces in the quarter.

Forecast Gold Production for 2012

It is estimated that Casa Berardi will produce approximately 155,000 - 160,000 ounces of gold in 2012 at an average grade of 7.5 grams of gold per tonne. Average daily ore throughput is estimated at 2,000 tonnes per day, similar to 2011. Mine sequencing in 2012 will result in ore grades that are expected to be approximately 6% lower than those achieved in 2011. Approximately 42% of production will come from Zone 113, 41% from the Lower Inter Zone, and the residual 17% from smaller zones and development material.

Assuming a Canadian/U.S. dollar exchange rate at parity, total cash costs per ounce for the year are anticipated to approximate US$600 per ounce in 2012. Onsite mining, milling and administration costs are expected to average $134 per tonne, up approximately 12% from 2011 projected costs as a result of higher stope preparation costs and longer haulage distances.

As quarterly operating results are expected to fluctuate throughout the year, they will not necessarily be reflective of these full year averages.

Capital expenditures at Casa Berardi, funded from operating cash flow, are estimated to total $80 million in 2012, as a result of three major capital projects: shaft sinking, construction of a paste backfill plant to maximize the extraction of high grade ore from Zone 113 and to allow greater mining flexibility, and continued replacement of mobile equipment. These expenditures are comprised of the following:


Summary of Key Operational Statistics







Operating results

Tonnes milled







Grade - grams/tonne







Mill recoveries - %







Gold production - ounces







Gold sold - ounces







Per ounce data - US$

Average realized gold price (i)







Total cash costs (ii)







Amortization (iii)







Total production costs (iv)









As at December 31,













Measured Mineral Resources

Lower Inter (LI)







North West (NW)





















Principal -- Open Pit







East Mine -- Open Pit







East Mine Underground







Total Proven Reserves







Lower Inter (LI)







South West (SW)












































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 five 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, and Aurizon. The project comprises 156 claims covering 4,294 hectares in 3 separate blocks.

Aurizon owns a 100% interest, subject to certain underlying royalties, in all of the sectors comprising the Joanna Project.

A $3.7 million surface exploration program is in progress and comprises 26,000 meters of drilling utilizing two to three drill rigs.

The objective of the 2011 drill campaign is to perform step-out drilling on 50 metre spacing along the 2.5 kilometre strike length of the Heva deposit and potential satellite zones, down to 150 metres, in order to extend the mineral resources contour and to increase the quality of the existing indicated and inferred mineral resources.

Aurizon is currently working on a feasibility study on the Hosco deposit of the Joanna property, which will incorporate a reserve update based on the increased mineral resource estimate announced on June 13, 2011, together with results of metallurgical pilot tests, a geotechnical study, updated capital and operating cost estimates, and other relevant studies.

As reported on August 11, 2011, an initial review of the studies has indicated that the projected capital and operating costs appear to be significantly higher than previously anticipated. The increased scope of the project, as a result of the expanded mineral resource base, has increased capital costs, including those associated with an autoclave process.  Ore and waste stockpiles, tailings costs, and costs of materials and equipment have also all been trending higher, along with the gold price. Consequently, several optimization studies are underway and include a revision of the mine plan to optimize the mining fleet and productivities; additional environmental characterisations (soil/streams/residues & waste material) to ensure minimal environmental impact of the mine; and revision of the metallurgical process and surface infrastructures.  This additional work will delay the estimated completion of the feasibility study until the second quarter of 2012.

In the context of the current strong gold price environment, management is confident in the future development of the Joanna property given its measured and indicated in-pit resources of 54.1 million tonnes at an average grade of 1.29 grams of gold per tonne, or 2,245,000 ounces of contained gold in the Hosco deposit, its excellent exploration potential, its location in the heart of the Cadillac Break gold camp, and its close proximity to existing infrastructure.

Additional drill results from the drill campaign are being used to revise the block model for the western extension of the Hosco orebody.  The resource update is currently being completed and the results will be included in the feasibility study.

Although the original objective of the 2011 drill campaign was to perform step-out drilling on 50 metre spacing along the 2.5 kilometre strike length of the Heva deposit and potential satellite zones, some drill rigs were diverted to the Hosco sector in order to increase and improve resources.  Drilling is scheduled to restart on Heva in late November, 2011.  Feasibility and exploration expenditures during the third quarter totalled $1.1 million and year to date totalled $8.8 million.  Continued feasibility optimization studies and exploration activity in the fourth quarter of 2011 are expected to total approximately $2.0 million.

Mineral Resources

On June 13, 2011 Aurizon reported¬†that an updated mineral resource estimate has been completed for the Hosco deposit at its 100% owned Joanna Property, located 20 kilometres east of Rouyn-Noranda, in north-western Qu√©bec.¬† The updated mineral resource estimate was prepared by SGS Canada Inc. - Geostat (‚ÄúSGS Geostat‚ÄĚ) in collaboration with Aurizon‚Äôs personnel.

The updated mineral resource estimate integrates the results of the drilling program that took place during the last three quarters of 2010 and January 2011 in the lateral and depth extensions of the pit outline of the Hosco Deposit-Joanna Gold Project defined in the Pre-Feasibility Study of December 22, 2009, available under the Company’s profile at  It includes 230 additional new holes.

At a cut-off grade of 0.5 grams of gold per tonne, in-pit measured and indicated mineral resources have increased by 537,000 ounces, a 31% increase when compared to the last estimate released on July 5, 2010 and now total 2,245,000 ounces of gold for the Hosco deposit only.

In-pit inferred mineral resources stand at 284,000 ounces, a reduction of 97,000 ounces when compared to July, 2010.

"For the fourth consecutive year, our drilling program has substantially increased the mineral resource base in the Hosco sector of Joanna.  These resources will be incorporated into the upcoming Feasibility Study and should have a positive impact on the project," said Martin Bergeron, P. Eng., Vice-President of Operations.


Grade Cut-off

(Au g/t)


May 31, 2011

July, 2010














(Base Case)



29 490 000

25 840 000



1 283 000

977 000

27 710 000

13 460 000



1 198 000

528 000

M + l


55 330 000

7 730 000



2 260 000

285 000

41 170 000

9 300 000



1 725 000

383 000




28 840 000

25 300 000



1 275 000

970 000

26 750 000

13 050 000



1 186 000

523 000

M + l


54 140 000

7 670 000



2 245 000

284 000

39 810 000

9 200 000



1 708 000

381 000




20 460 000

14 710 000



1 054 000

697 000

19 640 000

7 990 000



995 000

392 000

M + l


35 170 000

210 000



1 750 000

210 000

27 630 000

6 560 000



1 387 000

310 000


Pipeline Exploration




George Paspalas

President and Chief Executive Officer

Mr. Paspalas joined Aurizon as President and Chief Executive Officer as of August 15, 2011. Mr. Paspalas has been involved in the mining industry for 26 years, including fourteen years in senior management positions, most recently as the Chief Operating Officer at Silver Standard Resources Inc. Before joining Silver Standard, Mr. Paspalas held senior management positions with Placer Dome Inc., including Executive Vice-President and Senior Vice President Projects - Technical Development and as President and Chief Executive Officer of Placer Dome Africa. During his career, Mr. Paspalas has been responsible for constructing and operating complex open pit and underground mines in South Africa, Tanzania, Australia, South America and Canada; evaluating and negotiating project acquisitions; communicating operational performance and development plans and progress to the investment community; mitigating mining project risk and improving safety and site environmental performance; developing strategic community partnerships; managing government affairs relating to permitting or operating activities; negotiating commercial concentrate contracts; and improving operational performance. Mr. Paspalas earned a Bachelor of Engineering (Chemical) degree with Honours from the University of New South Wales in 1984.

Ian S. Walton

Executive Vice-President and Chief Financial Officer

Mr. Walton is a Chartered Accountant and has been involved with public companies in the mining industry for more than 25 years. Mr. Walton is fully experienced with all aspects of mining finance, taxation and treasury functions. Mr. Walton has been involved with Aurizon since its inception in 1988.




Chairman of the Board

Mr. Hall, a Chartered Accountant, has been involved with Vancouver based Aurizon Mines Ltd. since its creation in 1988 and has, as of August 15, 2011 retired from his positions as President and Chief Executive Officer, however, will continue to serve the Company as Chairman of the Board. Mr. Hall has been involved with the management of mineral exploration, development and operating companies, including Aurizon's predecessor companies, since 1981. Mr. Hall has been instrumental in securing significant project debt and equity financings for a number of mining projects, including the Golden Giant Mine, in Hemlo, Ontario; and the Sleeping Giant, Beaufor and Casa Berardi mines in Quebec. From 1970 to 1981, Mr. Hall worked for PricewaterhouseCoopers in Scotland, Bermuda and Vancouver, B.C., and is a member of the Institutes of Chartered Accountants of British Columbia and Scotland.






April 19, 2012

European Gold Forum 2012 | Zurich

Speaker(s): George Paspalas , President and CEO

View this Presentation (PDF 4.33 MB)

March 15, 2012

Aurizon's Fourth Quarter and Year End 2011 Webcast Presentation

Speaker(s): George Paspalas, President & CEO

View this Presentation (PDF 3.29 MB)

March 4, 2012

PDAC 2012

Speaker(s): George Paspalas , President and CEO

View this Presentation (PDF 3.44 MB)




February - March, 2011

Aurizon was featured in the Globe & Mail for a 3 part series, below you will find the links to the articles:

Part 1 - "In Quebec, Vancouver-based miner turning smart strategy into solid gold future"


Part 2 - "In Quebec, Vancouver-based miner unearthing value in partnership approach"


Part 3 - "Quebec Miner's belief in giving to local communities proves valuable for all"


News Releases




April 26, 2012

Aurizon Mines Ltd.: New Results at Marban Highlight Potential to Define High Grade Ore Shoots

April 24, 2012

Aurizon Mines Ltd.: Preliminary Metallurgical Testwork at Marban Indicates Favourable Gold Recoveries

April 16, 2012

Aurizon Mines Ltd.: Higher Grade Mineralization Discovered on the Heva and Hosco Zones at the Joanna Property

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