Tuesday, July 06, 2010
Aurizon and Niogold Enter into Agreement to Advance the Marban Block Property, Quebec
Aurizon (TSX:ARZ;AMEX:AZK) is pleased to announce the signing of an option and joint venture agreement with Niogold Mining Corporation ("Niogold") on the Marban Block property, located in the Malartic gold camp in the Abitibi region, Quebec, pursuant to which:
- Aurizon can earn a 50% interest in the Marban Block, subject to underlying royalties, by:
- incurring expenditures of C$20 million over three years, of which C$5.0 million is a firm commitment to be spent in the first year;
- completing an updated NI 43-101 compliant mineral resource estimate;
- making a resource payment equal to the sum of C$30 (or C$40 if the price of gold is then above US$1,560) multiplied by 50% of the number of total gold ounces in the Measured and Indicated resource categories plus C$20 (or C$30 if the price of gold is then above US$1,560) multiplied by 50% of the number of total gold ounces in the Inferred resource category, based on the updated resource estimate.
- Aurizon can earn an additional 10% interest, for an aggregate of 60% interest, by delivering a feasibility study;
- Aurizon can earn an additional 5%, for an aggregate 65% interest, by arranging project financing for capital expenditures estimated by the feasibility study to place the project into commercial production;
- NioGold will be operator during the initial earn-in period and Aurizon will provide input on exploration programs and will become operator after the initial 50% interest has been earned.
"We are pleased to enter into this agreement with Niogold for the exploration of the Marban Block." said David Hall, Aurizon's CEO. "This is a continuation of our strategy to assemble a portfolio of exploration properties, at various stages of development, to complement our Casa Berardi and Joanna projects and to provide a strong pipeline for future growth."
"The Marban block covers 3 kilometres of a 500 metre wide favourable gold bearing shear zone punctuated by historic production, current mineral resources and exploration potential. Underground potential can be projected by following down dip extensions like most similar deposits in the Abitibi area. However, the first phase of Aurizon's involvement on the project will focus on additional drilling to extend resources potentially mineable by open pit." said Martin Demers P. Geo., Aurizon's Exploration Manager.
The Marban Block includes the Gold Hawk, First Canadian, Norlartic and Marban properties and consists of forty-two (42) mining claims and three (3) mining concessions covering 976 hectares in the heart of the Malartic gold mining camp, Abitibi region, Quebec. A December 1, 2009 resource estimate on the Marban Block, included in a report prepared for Niogold dated March 11, 2010 titled "Updated Mineral Resource Technical Report, Malartic Project" by Michael M. Gustin P. Geo., Mine Development Associates of Reno Nevada (the "MDA Report"), reports indicated mineral resources of 598,000 ounces gold plus inferred mineral resources of 361,000 ounces gold. According to the MDA Report, the mineral resources are defined along a three-kilometre segment of the Norbenite-Marbanite fault zone, in and around the former Marban, Norlartic and Kierens gold mines, which are reported to have collectively produced approximately 600,000 ounces gold. The mineral resources that the MDA Report indicates are potentially amenable to open pit extraction and underground extraction are summarised below:
- Estimated Open Pit Resources:
Indicated: 6.0 million tonnes @ 1.6 grams of gold per tonne (303,000 oz)
Inferred: 4.4 million tonnes @ 1.3 grams of gold per tonne (179,000 oz)
- Estimated Underground Resources:
Indicated: 2.1 million tonnes @ 4.3 grams of gold per tonne (296,000 oz)
Inferred: 1.5 millions tonnes @ 3.9 grams of gold per sonne (182,000 oz)
A 0.5 grams of gold per tonne cut-off grade was applied to tabulate diluted resources lying within 200 meters vertically from the surface. These resources can reasonably be considered available for potential open-pit extraction and conventional mill processing. A 2.5 grams of gold per tonne cut-off grade was applied to tabulate the deeper undiluted resources lying more than 200 meters vertically below the surface. The higher-grade cut-off for the deeper mineralization is chosen to capture mineralization potentially available to underground extraction and conventional mill processing.
The MDA Report is available under Niogold's profile at www.sedar.com.
Data Verification / Qualified Person
Readers are cautioned that neither Aurizon nor any qualified person on behalf of Aurizon has verified the data disclosed in the MDA Report or any of the sampling, analytical or test data underlying the opinions and estimates set forth in the MDA Report, and assume no responsibility for such information. Information of a scientific or technical nature in this news release has been reviewed by Martin Demers, P.Geo, Manager, Exploration and a "qualified person" under National Instrument 43-101 solely for the purpose of determining that it accurately reflects information reported in the MDA Report.
About Aurizon
Aurizon is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western Quebec, one of the world's most favourable mining jurisdictions and prolific gold and base metal regions, and by increasing its asset base through accretive transactions. Aurizon shares trade on the Toronto Stock Exchange under the symbol "ARZ" and on the NYSE Amex under the symbol "AZK". Additional information on Aurizon and its properties is available on Aurizon's website at https://www.aurizon.com.
For further information, contact
|