EXPLORATION — Aurizon extends gold zones

The first results from Aurizon Mines‘ (ARZ-T) ambitious drilling program at the Casa Berardi mine in northwestern Quebec have extended the gold-mineralized zones both laterally and at depth below the 300-metre drift level.

The 50,000-metre, $7-million program is targeting areas within a 1-km radius of the known deposits, with a special emphasis on the West Mine area. Five rigs are operating underground and three on surface.

Highlights from the underground work, which is focused on a footwall zone below a depth of 400 metres, include: 15.4 grams gold per tonne over 7.8 metres in hole W2; 4 grams gold over 6 metres in hole W4; 5.5 grams gold over 4 metres in hole W9; and 30.2 grams gold over 11.4 metres in hole W27.

The surface drilling is focused on areas farther east of the aforementioned holes. Highlights include 5.8 grams gold over 12.1 metres in hole S3, and 26.5 grams over 11.9 metres in hole S4. The gold mineralization tends to occur in quartz-carbonate veining associated with disseminated and fracture-filling pyrite and arsenopyrite.

The resource at Casa Berardi is estimated at 3.2 million tonnes grading 5.8 grams gold per tonne, and more than half the contained ounces are in the West Mine area. Aurizon hopes to expand the resource sufficiently to resume commercial production at the annual rate of 80,000-100,000 oz.

For the third quarter ended Sept. 30, Aurizon posted earnings of $1.5 million (or 4 cents per share) on revenue of $6.9 million, compared with a loss of $393,000 (1 cents per share) on $5 million in the corresponding period last year. Cash flow between the two periods rose to $2.1 million (6 cents per share) from $334,000 (1 cents per share).

Thanks to improved ore grades, third-quarter gold production from Aurizon’s half interests in the Beaufor and Sleeping Giant mines increased by a total of 47% to a record 16,007 oz., compared with 10,856 oz. a year ago.

Total production costs in the third quarter were US$190 per oz., down dramatically from the US$319 recorded a year ago.

As of Sept. 30, 1998, Aurizon had $9.8 million in cash and $2.1 million in bullion settlements. The Casa Berardi acquisition saddled Aurizon with a non-interest-bearing, long-term debt of $4 million in the third quarter.