Aurizon sees strong gains in August (August 31, 2010)

Vancouver – The latest drill results from the Casa Berardi gold mine have capped off a month of sharp stock price gains for Aurizon Mines (ARZ-T, AZK-N).

The Quebec-focused, Vancouver-based company saw a 54¢ or 8.3% stock price jump to $7.04 on August 30, the day the latest results were released. The following day the company hit a trading high of $7.42 before closing up 5¢ at $7.09.

Meanwhile, the company started the month hovering around $5, and was trading as low as $3.81 in February.

The latest drill results came from the 810-metre level of the mine in northwest Quebec. Hole 160 was particularly good, intercepting a true width of 21.5 metres grading 42.1 grams gold per tonne from 267 metres.

Other results included hole 153 that hit a true width of 3.9 metres grading 15.2 grams gold, hole 191 that cut a true width of 4.3 metres averaging 13 grams gold and hole 196 that returned a true width of 7.8 metres grading 6 grams gold.

The latest drill results came from the 123 zone, located roughly 1 km east of the West mine shaft at Casa Berardi. The company has outlined a series of stacked mineralized lenses with a south-east dipping host corridor 200 metres thick by 1 km along strike.

The company has also been drilling on surface near the West and East mine shafts and at other levels below ground. Aurizon plans to incorporate the results of the current drill program at Casa Berardi into a new resource estimate sometime later this year.

The last estimate was released in March and contained measured and indicated resources of 5.1 million tonnes grading 5.6 grams gold and 4.5 million inferred tonnes grading 6.6 grams gold. Also in March the company updated its reserve estimate to 4.43 million proven and probable reserve tonnes grading 7.1 grams gold for just over a million contained oz.

Earlier in August the company released quarterly results that also gave the stock a boost. During the quarter Aurizon increased measured and indicated resources at its Joanna project by 35%, optioned three new properties and gave a positive update on production at Casa Berardi.

In 2010 the company has been mining through a lower-grade section of Casa Berardi. For next year, however, the Aurizon expects to return to higher-grade material, which will lead to both increased production and lowered costs. For 2011 the company is projecting gold production of around 167,000 oz. at US$425 per oz., compared to the estimated 150,000 oz. at US$500 per oz this year.

By the fourth quarter the company will also be free of call options that had Aurizon selling 60% of its gold at about US$907 per oz. in the second quarter.

With $124 million in cash on hand, the company is working on several significant exploration programs in Quebec.

At Joanna the company launched a $5.1 million exploration program in July, for both infill and exploration drilling. A full feasibility study on the project is expected out by the end of the year while drilling will continue into 2011.

The company also plans exploration programs on a number of optioned properties that it can earn a 65% stake. At Marban, a 976-hectare claim block in the Malartic gold camp, the company is spending $5 million on exploration. At Fayolle, a 1,373-hectare claim block in the Abitibi belt, the company plans to spend $3.5 million. At Rex South, a 555-sq.-km block in northern Quebec, the company is spending $1.5 million on exploration.