Aurizon Mines Ltd. - New Results from Infill Drilling at the Hosco Zone of the Joanna Project
Shares Listed: Toronto Stock Exchange - Ticker Symbol - ARZ
NYSE Amex - Ticker Symbol - AZK
U.S. Registration: (File 001-31893)
VANCOUVER, Feb. 10 /PRNewswire-FirstCall/ - Aurizon Mines Ltd. (TSX: ARZ; NYSE Amex: AZK) is pleased to announce results from its infill drilling program in the area of the Hosco zone at its Joanna project, located 20 kilometres from Rouyn-Noranda, in north-western, Quebec.
The objective of the infill drill program is to increase the in-pit mineral reserves defined in the Pre-Feasibility Study for the Hosco Deposit - Joanna Gold Project, dated December 22, 2009 the "Hosco Pre-Feasibility Study" (available under the Company's profile at www.sedar.com.) (see Aurizon news release dated November 11, 2009).
Twenty-seven (27) holes of the current drill program are included in this release. Four (4) new holes totalling 1,498 metres, and the deepening of twenty-three (23) previous holes, totalling 2,643 metres, have been completed with an objective to increase the level of confidence of mineral resources to the indicated category using a drill spacing of 25 meters. The area tested covers 400 metres along strike, 150 to 300 metres below surface, at the western edge of the deposit where the stacking of different mineralized lenses reaches a combined thickness of over 100 metres.
Of the twenty-seven (27) holes, fifteen (15) holes returned at least one interval above 1.0 grams of gold per tonne over 20 metres (true thickness). Best results have been encountered in hole JA-09-382P with 1.8 grams of gold per tonne over 25.8 metres (true width) in the North Zone and in hole JA-09-439 with 2.2 grams of gold per tonne over 15.8 metres (true width) in the South Zone. These two results are located within 40 meters of the planned pit bottom.
In addition, an exceptionally high grade result of 100.9 grams of gold per tonne over 1 metre (true thickness) was obtained in hole JA-09-443P, 275 metres below the surface. Mineralization corresponds to finely disseminated visible gold spread along the drilled interval. To avoid any bias, this intersection has not been included within the larger reported interval.
"These encouraging drill results from the Hosco zone will be incorporated into the final feasibility study which is currently in progress and forms part of our strategy to improve the project economics and optimize the potential of the entire Joanna project", said David Hall, President and Chief Executive Officer.
The attached sketch shows the location of the holes which returned the best results, being those with a metal factor of 30 or greater (calculated as the true width in metres x the gold grade in grams per tonne).
The results of twenty five (25) holes representing one or more individual mineralized intersections with grades over 1.0 grams of gold per tonne, a metal factor (grade x width) of 10 or greater and a minimum width of 5 metres are indicated in detailed tables attached to this new release. An additional table indicates distinct intersections of more than 10 grams of gold per tonne with a metal factor of 20 or greater. The details of two (2) holes returning mineralized intersections below these limits are not included in the table.
Results are currently pending for twenty (20) holes drilled in the western and eastern extensions of the Hosco deposit.
Hosco Zone
In the Hosco zone area, gold mineralization is located within two lenses located on both sides of the Cadillac break both dipping 55 degrees to the North. The South zone extends for more than 1,100 metres along the entire length of the deposit. The North zone is restricted to an extension of 500 metres. All of the infill drilling was successful in intersecting mineralization above the cut-off grade of 0.5 grams of gold per tonne as defined in the Hosco Pre-Feasibility Study.
The Hosco Pre-Feasibility Study was prepared by BBA Inc., Montreal, Quebec with contributions from other leading engineering firms and consultants, in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects. The Hosco Pre-Feasibility Study established diluted mineral reserves of 23.6 million tonnes at 1.3 grams of gold per tonne for 995,600 ounces.
In addition, the Joanna Project hosts indicated mineral resources of 4.4 million tonnes at 1.9 grams of gold per tonne for 270,000 ounces and inferred mineral resources of 30.9 million tonnes at 1.4 grams of gold per tonne for 1,350,000 ounces.
Based on the assumptions and parameters and subject to the qualifications described in the Hosco Pre-Feasibility study, an initial open pit mining operation is expected to produce approximately 100,000 ounces of gold annually.
Outlook
Results of the infill drilling program will be integrated into a new resource estimate prepared by SGS Geostat Ltd. Three rigs are currently active on the property to test (on 50 metres spacing) the western and eastern extensions of the Hosco zones. Additional follow up drilling on a 25 metre spacing may be conducted depending on results.
Concurrently, several shallow exploration holes will test targets indicated by grab samples and/or soil geochemistry anomalies in other areas of the property.
Quality Control
Core assays are performed on core sawed in half, with standard fire assay procedures and atomic absorption finition. Certified reference material, duplicate and blanks are inserted in the sample sequence for quality control. Assay checking on pulp and coarse rejects are carried out on approximately 10% of samples. For additional information on Quality Assurance and Quality control, refer to the previously mentioned pre-feasibility study. Primary assaying is performed by ALS Chemex and check assays were carried out by Laboratoire d'Analyse Bourlamaque of Val d'Or.
Drill hole planning, implementation and the quality control program is supervised by Martin Demers P.Geo., Exploration manager, a qualified person as defined by National Instrument 43-101. Mr. Demers is also responsible for the scientific and technical information in this news release.
Additional Information
One sketch is attached showing the Hosco area of the Joanna property. Detailed results from the additional holes are reported in the tables attached. All other information previously released on the Joanna Project is also available on the Aurizon website.
Forward Looking Information
This news release contains forward looking statements and information. Readers are referred to the section titled "Forward Looking Statements and Information" at the end of this news release for additional information on the nature of such information and associated assumptions and risks.
About Aurizon
Aurizon is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western Quebec, one of the world's most favourable mining jurisdictions and prolific gold and base metal regions, and by increasing its asset base through accretive transactions. Aurizon shares trade on the Toronto Stock Exchange under the symbol "ARZ" and on the NYSE Amex under the symbol "AZK". Additional information on Aurizon and its properties is available on Aurizon's website at http://www.aurizon.com.
Forward Looking Statements and Information
This news release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, "forward-looking information"). The forward-looking information contained in this news release is made as of the date of this news release.
Specifically, this news release contains forward-looking information regarding the results and projections contained in the prefeasibility study, including estimated mineral resources and reserves, the expected mine life, recovery, capital costs, cash operating costs and other costs and anticipated production of the described open pit mine, the achievement of synergies with Aurizon's Casa Berardi operation and associated reductions in costs and optimization of management, the proposed inclusion, incorporation or integration of the results of certain studies and exploration activities in a feasibility study, the purchase of used major equipment, the projected internal rate of return, commercial production of the property, pit design, pit operation design and production, the projected payback period, the availability and source of capital for development of the project, sensitivity to metal prices, ore grade, the resource estimates on the project, the financial analysis, anticipated completion of a feasibility study on the Joanna gold project, and the timing of commencement and completion of such a study, timing of discussions with stakeholders and expected drilling activities, and the business and operations of Aurizon generally, including the success of Aurizon's planned growth strategy and increased annual gold production profile, Aurizon's future cash flow and timing and expectations of future work programs. The forward-looking information contained in this news release is made as of the date of this news release and, except as required under applicable securities legislation, the Company does not intend, and does not assume any obligation, to update this forward-looking information.
Such forward-looking information contained in this news release is based on certain assumptions that the Company believes are reasonable, including, with respect to mineral reserves and mineral resource estimates and the projections included in the Hosco Pre Feasibility Study, the key assumptions and parameters on which such estimates and projections are based, as set out in the Hosco Pre Feasibility Study, that the current price of and demand for gold will be sustained or will improve, the supply of gold will remain stable, that the general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms and that the Company will not experience any material accident, labor dispute, or failure of plant or equipment.
However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, conclusions of economic evaluations, the risk that actual results of exploration activities will be different than anticipated, that cost of labour, equipment or materials will increase more than expected, that the future price of gold will decline, that the Canadian dollar will strengthen against the U.S. dollar, that actual mineral resources and mineral reserves are not as estimated, that actual costs or actual results of exploration, construction and operation are materially different than expected; that changes in project parameters as plans continue to be refined results in increased costs, of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labour disputes and other risks generally associated with mining, unanticipated delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors and other risks more fully described in Aurizon's Annual Information Form filed with the securities commission of all of the provinces and territories of Canada and in Aurizon's Annual Report on Form 40-F filed with the United States Securities and Exchange Commission, which are available on Sedar at www.sedar.com and on Edgar at www.sec.gov/. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.
CAUTIONARY NOTE TO US READERS AND INVESTORS
As a British Columbia corporation, the Company is subject to certain rules and regulations issued by the British Columbia Securities Commission ("BC Securities Commission"). The Company is required to provide detailed information regarding its properties including mineralization, drilling, sampling and analysis, security of samples and mineral resource and mineral reserve estimates. Further, the Company describes mineral resources associated with its properties utilizing terminology such as "measured"; "indicated" or "inferred" which terms are recognized by Canadian regulations but are not recognized by the United States Securities and Exchange Commission ("SEC").
Cautionary Note to U.S. Readers and Investors Regarding Mineral Resources
The SEC allows mining companies, in their filings with the SEC, to disclose only those mineral deposits they can economically and legally extract or produce. The Company may use certain terms in this document, such as "mineral resources", "indicated mineral resources" and "inferred mineral resources" that are recognized and mandated by Canadian securities regulators but are not recognized by the SEC.
This News Release uses the term "measured" and "indicated" mineral resources. U.S. readers are cautioned that while that term is recognized and required by Canadian regulations, the SEC does not recognize it. U.S. readers and investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into mineral reserves.
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High Grade
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Length along
Hole E From To the hole True width Gold grade
(m) (m) (m) (m) (m) (g/t)
-------------------------------------------------------------------------
JA-09-399P 8623 333.0 334.5 1.5 1.5 13.0
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JA-09-443P 8394 297.8 299.0 1.2 1.0 100.9
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JA-09-445P 8399 371.3 373.5 2.2 2.1 18.4
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JA-09-494 8350 258.9 260.1 1.2 1.0 13.5
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Infill South Zone
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Length along
Hole E From To the hole True width Gold grade
(m) (m) (m) (m) (m) (g/t)
-------------------------------------------------------------------------
JA-09-382P 8699 259.5 267.0 7.5 7.1 4.9
inc. 3.0 2.9 9.7
297.0 324.0 27.0 25.8 1.8
-------------------------------------------------------------------------
JA-09-383P 8688 266.9 276.3 9.4 8.7 2.6
332.3 342.2 9.9 9.3 1.5
-------------------------------------------------------------------------
JA-09-399P 8623 287.4 294.0 6.6 6.4 2.5
-------------------------------------------------------------------------
JA-09-412P 8434 259.0 266.0 7.0 6.6 1.5
271.7 286.2 14.5 13.7 1.8
313.0 327.3 14.3 13.5 2.8
-------------------------------------------------------------------------
JA-09-413P 8424 274.5 305.0 30.5 27.5 1.2
345.9 354.0 8.1 7.4 1.3
-------------------------------------------------------------------------
JA-09-419P 8561 327.0 341.5 14.5 14.2 1.0
-------------------------------------------------------------------------
JA-09-425P 8560 301.8 332.5 30.7 29.0 1.2
346.5 372.0 25.5 24.1 1.3
-------------------------------------------------------------------------
JA-09-428P 8320 277.5 301.0 23.5 22.9 2.0
inc. 1.4 1.3 18.2
-------------------------------------------------------------------------
JA-09-430P 8379 243.0 272.0 29.0 25.2 1.2
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JA-09-431P 8375 225.5 245.1 19.6 18.3 1.2
252.9 265.5 12.6 12.0 1.2
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JA-09-432P 8374 242.0 264.6 22.6 20.5 1.8
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JA-09-436P 8515 349.0 364.4 15.4 14.4 1.4
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JA-09-438P 8480 243.0 261.0 18.0 17.3 1.3
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JA-09-439P 8472 259.5 276.5 17.0 15.8 2.2
290.1 312.0 21.9 20.5 1.4
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JA-09-442P 8402 229.3 253.5 24.2 21.1 1.0
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JA-09-443P 8394 238 268.4 30.4 24.8 1.4
274.5 297.8 23.3 19.5 1.1
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JA-09-445P 8399 326.5 349.5 23.0 22.0 1.0
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JA-09-447P 8498 294.0 315.0 21.0 20.1 1.4
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JA-09-448P 8503 307.5 327.0 19.5 18.0 1.0
345.0 363.0 18.0 16.7 1.8
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JA-09-454P 8444 319.9 359.5 39.6 38.8 1.1
365.7 380.0 14.3 14.1 1.7
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JA-09-455P 8440 329.5 351.0 21.5 20.6 1.4
375.0 399.4 24.4 23.4 1.1
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JA-09-497 8475 360.2 390.0 29.8 29.0 1.4
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Infill North Zone
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Length along
Hole E From To the hole True width Gold grade
(m) (m) (m) (m) (m) (g/t)
-------------------------------------------------------------------------
JA-09-494 8350 102.0 112.5 10.5 8.9 2.3
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JA-09-495 8325 154.5 172.5 18.0 16.8 2.8
187.5 205.5 18.0 16.8 1.0
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JA-09-496 8350 182.5 199.5 17.0 16.1 2.4
208.5 229.5 21.0 20.0 1.7
-------------------------------------------------------------------------
JA-09-497 8475 282.0 327.0 45.0 43.8 1.8
inc. 1.5 1.5 13.1
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Holes with a metal factor (grade x width) lower than 10 are: JA-09 423P
and JA-09-457P
SOURCE Aurizon Mines Ltd.
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