Aurizon Mines.

Gold producer, exploration and development company Aurizon Mines applies a simple strategy to achieve success in all its work. The company strives to build an experienced team and strong foundation “to become an intermediate producer with an att­­rac­tive pipeline of exploration and development projects in mining-friendly, politically stable jurisdictions,” it says.

The Vancouver-based company is putting this strategy to work on production and exploration projects on its land positions in Quebec. Aurizon Mines is at work on production at the Casa Berardi mine, which has been back in operation since late 2006. Vice President of Operations Martin Bergeron notes that two previous owners tried to op­erate on the mine with mixed re­sults in part because of the area’s difficult ground conditions that de­mand a very disciplined approach to mining.

“The management of Aurizon’s Casa Berardi was able to put forward not only the development of a mining sequence and ground support that made sense when we acquired the property in early 2000, but [also] a realistic const­ruction schedule for the west mine’s for underground infrastructure,” Bergeron says. “The Aurizon man­agement was able to put into place a mining sequence that made sense and was manageable. We se­cured the mining environment and increased reserves and resources with an aggressive drilling program.”

Today, Casa Berardi produces 160,000 ounces of gold per year with a mine life of six-and-a-half years. The mine also has 1 million ounces of reserves and 1.87 million ounces of resources, and Bergeron notes that Aurizon will work to extend the mine life.

“There’s very little doubt that, as we speak, it has a mine life of 10 to 12 years, and drilling is ongoing,” he says. “We’re going to add to the re­sources and reserves by the end of this year.”

Aurizon currently is only exploring roughly 5 or 6 kilometers of Casa Ber­ar­di’s 40-kilometer property, so there’s a “good potential” for more gold. In the first half of 2010, Aurizon was op­erating two surface rigs and seven un­derground drill rigs at the mine site.

The company is operating a joint venture with Lake Shore Gold to explore the land further. In 2007, Aurizon granted Lake Shore the option to earn up to a 50 percent interest in a portion of the unexplored land by spending $5 million in drilling over five years.

In July, Lake Shore Gold announced drill results that showed the poten­tial for more gold. “We are pleased with the exploration results announced by Lake Shore Gold, which are con­sistent with our belief in the potential for additional mineralized structures along the Casa Berardi gold trend,” Aurizon President and CEO David Hall said in a statement.

In addition to extending and optimizing the current mine plan, Aurizon Mining has more plans at Casa Berardi in 2010. “[We] also intend to update the mineral resources following an aggressive diamond drilling program and to complete a prefeasibility study to assess the relative risks and opportunities of mining parts of the principal zones close to surface by open pit mining,” Aurizon explains. “Surface exploration will focus on testing the depth extension of the lower interzone, infill drilling of the principal zone, and testing the depth and lateral extensions of the east mine area.”

Joanna Project
Another promising Aurizon Mines project is Joanna Gold in the Joannes Township, Quebec. The project – which spans 8 kilometers and is 3 kilo­meters wide in some places – is lo­cated along the Cadillac Break. The property was acquired by Aurizon in 2006. As opposed to Casa

Berardi, Joanna Gold is planned to be an open-pit operation.

The feasibility stage showed Joanna Gold has 996,000 ounces of gold in reserves, and Aurizon expects to be able to recover 86.8 percent of that, or 864,000 ounces. The company will go through permitting next year – including public hearings – and Aurizon expects to start construction in early 2012 and then bring Joanna into production in the second quarter of 2013.

Aurizon might find that Joanna has more resources than initially expected.

“As we speak, Joanna has a life ex­pectancy of eight-and-a-half years, and it is going to be a mine that will pro­­duce between 105,000 and 110,000 ounces for at least that long,” Bergeron says. “We released a re­source update that adds 446,000 ounces in measured and indicated re­sources, so the total is now 1.73 million ounces.”

Bergeron explains that Joanna has two main deposits – Hosco and Heva. Aurizon is focusing on bringing Hosco into operation as soon as possible, and Heva will be looked at more in coming years. In 2009, a study by BBA Inc. of Montreal found that the proposed open-pit operation has the potential to increase Aurizon’s gold production by 60 percent to 270,000 ounces per year.

“The prefeasibility study was prepared as a standalone project, relating solely to the mineral reserves lo­cated on the Hosco deposit, and accor­dingly does not take into account any of the mineral resources contained in the Heva deposit, which forms a part of the Joanna Project,” Aurizon explains. “The prefeasibility study also does not take into account any synergies from the potential utilization of Aurizon’s milling facilities, management and infrastructure at Casa Berardi to improve the economics of the Joanna Project; nor does it con­sider the excellent exploration pot­ential within Aurizon’s large land pos­ition surrounding the Hosco deposit.”

Aurizon notes that before prefeasibility studies began on Joanna Gold, the company held 35 meetings with various stakeholders, whose views and recommendations have been in­corporated into the project. “Dis­cus­sions with stakeholders will continue in order to ensure that the final feasibility study will integrate their views with a view to providing economical, environmental and social gains for all concerned parties,” the company says.

Aurizon has completed a $3.4 million surface program there, with 28,000 meters of drilling on targets north and south of Hosco; infill drill­ing on the Heva deposit; testing a potential satellite pit roughly 700 meters west of Hosco; and testing potential extensions of Hosco. That project currently had two or three active drill rigs on the site.

Other deposits on the site include Alexandria, Henriksen, La Pause and O’Connor-Robert. Joanna Gold comprises 155 claims covering more than 4,000 hectares in three blocks.

“Aurizon owns a 100 percent interest – subject to certain underlying royalties – in all of the sectors comprising the Joanna Project, with the exception of the Alexandria sector, where Aurizon is required to make a cash payment of $1.6 million on or before Dec. 23, 2010, in order to earn its 100 percent interest,” the company explains.

Rare Earth work
Aurizon Mining also is at work on the Kipawa Gold project on a rare earth elements property in Quebec. The project – located halfway between the Elliot Lake camp and the Abitibi gold region – is in the early stages of exploration. Kipawa Gold consists of three non-contiguous claim blocks totaling 1,485 claims.

“Exploration programs performed in 2007 to 2009 included regional till sampling, prospecting, geophysics, soil geochemistry and limited diamond drilling,” the company says. “These programs led to the discovery of gold and rare earth elements mineralization. Mineralization occurs along the contact between a syenite intrusive and altered hosted rocks.”

The first drilling at Kipawa span­n­ed 681 meters in four drill holes with the objective of testing the Snake Rare Earth elements target, which is in the western part of the claim block. The drilling found a rare earth mineralized envelope with a minimum thickness of 61 to 104 meters. Going forward, Aurizon plans to com­­plete a $1.3 million exploration to test gold tar­gets at Kipawa in the second quarter of 2010. EMI