Aurizon boosts resource at Casa Berardi

Wrapping up a major exploration campaign, junior gold miner Aurizon Mines (ARZ-T) has delineated a 1.65-million oz. gold resource at its Casa Berardi project, in northwestern Quebec.

Total measured and indicated resources in the West and East mine portions of the deposit now stand at 6.9 million tonnes grading 7.41 grams gold per tonne. Inferred resources are pegged at 2.25 million tonnes of 9.18 grams gold.

Measured and indicated resources in the West mine total 6.5 million tonnes of 7.46 grams gold and 463,473 tonnes of 6.67 grams gold in the East mine. The areas are 5 km apart and linked by a single drift.

Less than a year ago, resources at Casa Berardi were estimated at 3.2 million tonnes of 5.8 grams gold. Between 1988 and Casa Berardi’s closure in 1997, production from the East and West zones totaled 3.75 million tonnes averaging 6.7 grams gold.

Aurizon plans to complete an internal feasibility study of Casa Berardi by early next year. The company hopes to resume commercial production at an annual rate of 80,000-100,000 oz.

The company also reports that earnings over the first nine months of 1999 rose to $2.6 million (or 7 cents per share) on revenue of $20.6 million. This compares with earnings of $2.1 million (6 cents per share) on revenue of $17.9 million during the same period last year.

During the recent 9-month period, the company’s attributable gold production rose slightly. It mined 43,911 oz. at a total cash cost of US$213, compared with 41,119 oz. gold mined at US$203 per oz. a year earlier.

Under its hedging program, Aurizon sold its gold for US$304 per oz. during the 9-month period, compared with an average spot price of US$274 per oz.

Aurizon operates the Beaufor mine, which it owns equally with Louvem Mines (LOV-M). It is also half owner of the Sleeping Giant mine, operated and half-owned by Cambior (CBJ-T). Both gold mines are in Quebec’s Abitibi region.