Aurizon grabs TVX’s Casa Berardi stake

Aurizon Mines (ARZ-T) has acquired TVX Gold‘s (TVX-T) residual interest in the Casa Berardi project in northwestern Quebec, for $5 million.

Included was an outstanding payment of $3.9 million and a 2%-to-4% gold indexed net smelter royalty.

Under the deal, Aurizon becomes debt and gains a 100% unencumbered interest in the 120-sq.-km property situated along a 37-km-long portion of the Casa Berardi fault.

The deal also included the property’s 2,200-tonne-per-day processing facility, underground workings and an extensive fleet of mining equipment, bringing the total consideration to $7 million in cash and about 2 million Aurizon shares.

Aurizon is in the midst of an 18,000-metre drilling program on the West Mine area at Casa Berardi. Over five months, the company plans to test the down-dip extension of zone 113 and the eastern extension of zone 118 with two drill rigs.

Drilling on the western portion of zone 113 will target below the zones deepest intercept that returned 14.8 metres running an uncut 19.3 grams per tonne gold. Holes will also test to the east of a hole on zone 118 that cut 10.9 metres of 26.4 grams gold (uncut).

Both zones lie about 1,000 metres below surface and remain open laterally and at depth.

Reserves at the West Mine are pegged at 6.9 million tonnes grading 6.7 grams gold. The project also contains an undiluted mineral resource of 4.5 million tonnes of 7.7 grams gold.

In 2000, a feasibility study concluded that the reserve could support annual production of 200,000 oz. over 7.5 years. Total cash costs were projected at US$145 per oz., and capital costs at $121 million.