) on its Marban Blockproperty in the Malartic gold camp in
Quebec’s Abitibi region.
The Joanna property, which is about
20 km east of Rouyn-Noranda, now has
measured and indicated resources at a 0.5
gram gold per tonne cutoff grade of
40.44 million tonnes averaging 1.33
grams gold per tonne for 1.73 million oz.
gold, up from a November 2009 estimate
of 30.08 million tonnes at 1.33 grams gold
for 1.29 million oz. gold.
The increase comes from outside the
pit outline used in the December 2009
prefeasibility study and the lateral extensions
between surface and a depth of 100
metres.
Inferred resources gained 11% or
91,000 oz., and now stand at 23.17 million
tonnes of 1.19 grams gold for contained
gold of 887,000 oz., up from the previous
estimate of 20.81 million tonnes of 1.19
grams gold for 796,000 oz. contained
gold.
Separately, Aurizon’s agreement
with NioGold allows it to earn a 50%
interest in the Marban Block, subject
to underlying royalties, by spending
$20 million over three years, of which
$5 million must be spent in the first
year. Aurizon also has to complete an
updated resource estimate and based
on that, make resource payments equal
to $30 (or $40 if the price of gold is
above US$1,560 per oz.) multiplied by
half the number of gold oz. in the measured
and indicated category, and a
further $20 (or $30 if the price of gold
is above US$1,560 per oz.) multiplied
by half the number of gold oz. in the
inferred category, based on the updated
resource estimate.
Aurizon can then earn an additional
10% interest by completing a feasibility
study and a further 5% for a total of 65%
by arranging financing to bring the project
into production.
NioGold will be the operator during
the initial earn-in period and Aurizon
will weigh in on the exploration program.
Aurizon will become the operator after it
earns its half in the project.
David Hall, Aurizon’s chief executive,
noted the arrangement with NioGold
was part of its strategy to put together
a portfolio of properties at various stages
of development to complement the company’s
gold projects: Casa Berardi and
Joanna.
Aurizon’s priority at Marban will be
extending resources that can potentially
be mined by open pit.
A December 2009 resource estimate
on the Marban Block included in a report
prepared for NioGold in March by Michael
Gustin of Mine Development Associates
in Reno, Nev., outlined indicated
resourc–es of 598,000 oz. gold and
inferred resources of 361,000 oz. gold.
According to Gustin’s report, resources
have been defined along a 3-km portion
of the Norbenite-Marbanite fault zone,
in and around the former Marban, Norlartic
and Kierens gold mines, which collectively
produced about 600,000 oz.
gold.
The report divided Marban’s resources
between open pit and underground.
At a 0.5 gram gold cutoff grade,
Gustin estimated open-pit indicated resources
of 6 million tonnes grading 1.6
grams gold for 303,000 oz. contained
gold, and inferred resources of 4.4 million
tonnes at 1.3 grams gold for 179,000 oz.
contained gold.
Underground resources were calculated
using a 2.5-gram gold cutoff grade
and reached 2.1 million tonnes at 4.3
grams gold for 296,000 oz. contained gold
in the indicated category, and an additional
1.5 million tonnes grading 3.9
grams gold or 182,000 oz. gold in the inferred
category.
At presstime, Aurizon was trading at $5
per share. The company has a 52-week
trading range of $3.63-$5.98 and 159.56
million shares outstanding.
NioGold shares were 28¢, trading
within a 52-week band of 17¢-42.5¢. The
junior has 72.87 shares outstanding.