Aurizon Mines Ltd. (TSX:T.ARZ, Stock Forum) said that the completed phase two exploration program on NioGold Mining Corp.'s (TSX:V.NOX, Stock Forum) Marban Block property in Quebec has led to the discovery of a new mineralization zone.
The Marban Block, located in the Malartic gold camp, Abitibi region, has an indicated resource estimate of 445,000 ounces of gold and an inferred resource estimate of 429,000 ounces of gold.
According to the press release, results from the new gold zone include 19.40 grams per tonne gold at 92 metres and 19.21 grams per tonne gold at 215 metres. The new gold zone was discovered at about 500 metres north of the Marban deposit.
Furthermore, the Marban system also continues down to a vertical depth of 780 metres with one hole containing a grading of 1.77 grams per tonne gold for over 6.5 metres, which is approximately 450 metres from the deepest information on that section of the deposit.
The Phase Two program was completed on May 31, 2012, with a total of 34,658 metres distributed in 90 holes and 9 extensions of previous holes.
Currently, Aurizon can earn up to a 65% interest the Marban Block property under the terms of an option and joint venture agreement dated July 5, 2010, between NioGold and Aurizon.
The initial 50% interest can be earned by incurring expenditures of $20 million over three years, completing an updated NI 43-101 compliant mineral resource estimate, and by making a resource payment for 50% of the total gold ounces defined by the mineral resource estimate. NioGold remains the project operator during the initial earn-in period.
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.
On Wednesday, Aurizon was trading at $3.92 a share. The company has a market cap of $644.5 million, based on 164 million shares outstanding. The 52-week high and low was $7.25 and $3.80 respectively.