Sleeping Giant bolsters Aurizon

Underground exploration at the Sleeping Giant gold project 40 miles north of Amos, Que., recently turned up encouraging chip samples for Aurizon Mines (TSE) and program operator Cambior (TSE).

On level 770, 140 ft. of drifting yielded samples grading 0.28 oz. gold per ton (cut), and on level 970, 244 ft. of drifting yielded samples grading 0.27 oz. (cut), over an average drift width of 9.2 ft.

The 18-20 zone (or 20 zone), 1,000 ft. north of the No. 2 shaft, has been intersected and followed by drifting on these two levels.

Drilling on level 770 cut a number of encouraging intersections, including 19.7 ft. of 0.27 oz. (uncut and cut) in hole 91-107 and 6.6 ft. of 0.95 oz. (uncut) and 0.53 oz. (cut) in hole 91-116.

Drilling on level 970 intersected 6.6 ft. of 0.48 oz. (uncut and cut) in hole 91-110, 13.8 ft. of 0.4 oz. (uncut) and 0.34 oz. (cut) in hole 91-111, and 9.8 ft. of 0.51 oz. (uncut) and 0.28 oz. (cut) in hole 91-117. Definition drilling of the 18-20 zone on 65-ft. average spacings also yielded encouraging results, including 42.6 ft. of 0.51 oz. (uncut) and 0.22 oz. (cut) in hole 418-41 on level 770, and 17 ft. of 0.51 oz. (uncut) and 0.39 oz. (cut) in hole 417-34 on level 970.

Gold producer Cambior is earning a 50% interest in the project from Aurizon under a 1990 option agreement. To earn its half ownership, Cambior must spend $12 million on exploration by July, 1993. By mid-January, Cambior had spent about $4 million.

Cambior may also earn a 50% interest in property surrounding the mine site by spending $1.5 million during a 4-year period.

The Sleeping Giant property, 268 claims in size, hosts a former producing mine which belonged to Perron Gold Mines. In 1988, Perron was amalgamated with another Hughes-Lang company, D’Or Val Mines, to form Aurizon. During the last year and a half of the mine’s life, the highest-grade sections of the Sleeping Giant deposit were mined for cash flow purposes. These monies, combined with a successful repurchase offer to Swiss bondholders, allowed Aurizon to reduce its debt to $4 million from $29 million.

The Sleeping Giant mine produced 96,597 oz. gold between 1988 and June, 1991, when it was closed. The mill, capable of processing 990 tons of material per day, was placed on care and maintenance.

A 3-compartment shaft extends to 1,600 ft. and provides access to eight working levels. The hoisting facilities are operational, and are used by Cambior to gain access to new mineralization uncovered to the north of the mined deposit.

Drilling by Cambior during the first half of 1991 uncovered four mineralized structures north of the Sleeping Giant deposit: 18-10, 18-20, 18-30 and 51-10. Most of the current work is centred on the 18-20 structure. Aurizon, recently trading above 30 in a 52-week range of 10-39, has about 26.4 million common shares outstanding. (On a fully diluted basis, the company would have about 34.9 million shares.)

Other assets of Aurizon include a smaller milling facility near Val d’Or, Que., which belonged to D’Or Val Mines, and a 50% interest in the developing Beaufor property near the Val d’Or mill.