With three drills on surface and three underground, Aurizon Mines (ARZ-T) will carry out a 5,000-metre program aimed at boosting reserves and reviving the dormant Casa Berardi gold mine in northern Quebec’s Abitibi region.
The company acquired the mine for an initial payment of $2 million and must pay an additional $4 million within three years, or at the start of commercial production, whichever comes first. The vendor, TVX Gold (TVX-T), is entitled to an indexed net smelter royalty of between 2% and 4%, to a maximum of $10 million. The Casa Berardi mine has produced more than 650,000 oz. gold and still contains a resource of about 3.2 million tonnes grading 5.8 grams gold per tonne, or 590,000 contained ounces.
Aurizon intends to explore the West Mine area, which has not only the largest existing resource but also the best potential for expansion of reserves and the discovery of new resources at depth. The drill program is aimed at defining enough reserves to re-activate the mine complex, which includes a 2,200-tonne-per-day mill, hoist, headframe and underground mining equipment. In the past, the Casa Berardi mine has produced 80,000-100,000 oz. annually.
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