Aurizon boosts reserves at Quebec mines

For the fifth consecutive year, exploration has enabled Aurizon Mines (ARZ-T) to increase proven and probable reserves at its Quebec mines.

After replacing record production of 56,291 oz. in 1998, Aurizon reported a 21% increase in reserves at year-end.

At the 50%-owned Sleeping Giant mine, near Amos, proven and probable reserves stood at 365,000 tonnes grading 12 grams gold per tonne (140,500 contained ounces) at the end of 1998, compared with 287,000 tonnes of 11.9 grams (110,000 contained ounces) at the end of 1997. The average grade improved for the fifth consecutive year, to 12 grams, which represents a 50% increase over the past five years.

At the 50%-owned Beaufor mine, near Val d’Or, proven and probable reserves stood at 449,000 tonnes of 8 grams (115,000 contained ounces) at year-end, compared with 379,000 tonnes of 8.3 grams (101,000 oz.) a year earlier.

Both underground mines have additional resources, which, at the end of 1998, were estimated to be 232,000 tonnes of 8.7 grams at Sleeping Giant, and 260,000 tonnes of 6 grams at Beaufor.

Aurizon and operating partner Cambior (CBJ-T) plan to conduct more than 30,000 metres of exploration drilling at Sleeping Giant this year in an attempt to extend ore structures, while, at Beaufor, partners Aurizon and Louvem Mines (LOV-M) intend to drill more than 9,000 metres in the lateral extensions of the main ore zones.

Elsewhere in Quebec’s prolific Abitibi district, Aurizon has nine drills active at its wholly owned Casa Berardi project. This program is aimed at boosting mineral resources to about 1 million oz. contained gold within a 1-km radius of the West Mine area.

Casa Berardi is a former producer with an existing mineral resource of 4.2 million tonnes averaging 5.3 grams gold (or 725,000 contained ounces, of which 562,000 oz. are in the West Mine area). This figure does not include resources identified to date from the ongoing 50,000-metre drill program that began last fall.

Aurizon expects to produce 60,000 oz. gold this year at cash operating costs of US$195 per oz., down slightly from $204 per oz. in 1998.