Casa Berardi hits Aurizon’s top line (August 20, 2007)

Revenues were up drastically at Aurizon Mines (ARZ-T, AZK-X)in the second quarter of 2007, thanks to the resumption of production at the Casa Berardi gold mine in northwestern Quebec.

Aurizon made $7 million (5 per share) on revenues of $19.1 million in the quarter, up from a loss of $11.9 million on no revenues in the second quarter of 2006. For the first half of the year — with Casa Berardi coming into commercial production at the beginning of May — Aurizon is showing $7.6 million in net earnings on revenue of $19.6 million.

Casa Berardi produced 27,175 oz. gold in the last two months of the quarter, with 26,000 oz. sold. Its total cash costs — cash operating cost plus royalties — was US$298 per oz. Including development ore from Casa Berardi, Aurizon produced about 74,000 oz. in the first half of the year.

The operation milled 134,569 tonnes in the second quarter at a head grade of 10.4 grams gold per tonne, slightly better than expected from the mine plan. The mill recovered 93.8% of the gold.

Aurizon also announced a mineral resource estimate at the Joanna property on the Cadillac break, about 20 km east of Rouyn-Noranda, Que., where it is earning a 100% interest from a private company. Indicated resources on two blocks total 7.1 million tonnes at a grade of 1.8 grams gold per tonne, and inferred resources total 24.5 million tonnes at 1.6 grams gold per tonne.

The Joanna zone is believed to be about 1.8 km long and 100 to 190 metres wide, with a 55 dip to the north and a westward plunge. The estimate used a cutoff grade of 0.5 gram gold per tonne, except at depth in the western part of the zone, where the cutoff was increased to 1.5 grams per tonne.

The new resource calculation incorporates some Aurizon results and some from earlier operators. Aurizon has further drill holes and a re-assaying program under way.

At Casa Berardi, a resource estimate put the size of the property’s Lower Inter Zone at 973,000 tonnes indicated, at 11.6 grams gold per tonne. Another 43,000 tonnes grading 5.6 grams per tonne is in an inferred resource. The cutoff grade for both resources is 4 grams per tonne.

The whole Casa Berardi project had a reserve at year-end of 4.7 million tonnes grading 7.7 grams gold per tonne, plus measured and indicated resources of 3.1 million tonnes at 5.3 grams per tonne. Inferred resources totalled 5 million tonnes grading 6.6 grams gold per tonne.