Citing low gold prices, Vancouver-based Aurizon Mines (ARZ-T) is delaying the development of Vior Mining Exploration’s (VIO-M) wholly owned Douay-Ouest property.
The property is 50 km north of Aurizon’s Sleeping Giant gold mine, in the Joutel region of northwestern Quebec.
Since last autumn, Aurizon has spent $3.5 million on Douay-Ouest, completing a head frame, shaft collar, hoist, access road and power lines. The company says that, until market conditions improve, it will postpone shaft-sinking, lateral underground development and bulk test-sample extraction.
Aurizon can earn a half interest in the project by financing all expenses up to the start of commercial production.
At Sleeping Giant, Aurizon’s share of gold production during the first quarter totalled 6,239 oz. at a cash operating cost of US$257 per oz. The average grade reported for the period was 12.5 grams gold per tonne, compared with 14.4 grams in the same period of 1996. Ownership of the mine is shared equally by Aurizon and operator Cambior (CBJ-T).
At Aurizon’s Beaufor mine, northeast of Val d’Or, Que., the company’s share of gold production during the quarter totalled 3,027 oz. at a cash operating cost of US$329 per oz. The average grade of 8.2 grams gold was an improvement over the 6.8 grams recorded in the same period of the previous year.
Ownership is split equally between Aurizon, the operator, and Louvem Mines (LOV-T).
Aurizon’s total gold production over the 3-Month period was 9,266 oz., roughly equivalent to the amount produced in the comparable period of 1997.
Cash operating costs rose to US$281 from US$241 per oz.
The company reported a loss of $344,000 (or 1 cents per share) on revenue of $4.4 million, compared a profit of $1 million (3 cents per share) on $5.1 million in the previous first quarter.
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