Aurizon goes deeper at Casa Berardi

Vancouver-based Aurizon Mines (ARZ-T) has raised $8 million after issuing nearly 5.2 million flow-through shares and 740,740 common shares priced at $1.35 apiece.

The $7 million raised from the flow-through portion will be used to explore underground at the Casa Berardi gold project in Quebec, whereas the $1 million raised from the sale of the common shares will augment working capital, which now stands at $11 million.

Plans at Casa Berardi call for the West mine’s ramp to be deepened to the 500-metre level, combined with drifting about 450 metres to the east, so as to open up the 113 zone. Definition drifting and bulk sampling will follow.

Zone 113 hosts 984,000 oz. gold averaging 7.4 grams per tonne, between 400 metres and 1,000 metres below surface. The probable resource is part of an overall resource in the West mine area totalling some 6.9 million tonnes at a grade of 6.7 grams.

Pending further financing, Aurizon will carry out additional drifting, definition drilling and bulk sampling in the Lower Inter zone, which sits a few hundred metres west of Zone 113. The cost of this additional work is pegged at $9 million.

The entire development program for the West Mine area is expected to last 19 months.

The decision to proceed with development follows recent deep drilling that confirmed the grade, thickness and continuity of Zones 118-120. All six holes returned between 1.4 grams (over 6 metres of quartz veining) and 49.5 grams (over 1.5 metres of quartz veining).

Zones 118-120 are 300-500 metres east of the West mine’s known reserves, downdip of the Principal zone, which is 500-1,000 metres below surface.

Aurizon plans to complete a resource estimate in the first quarter of 2003.

In return for their brokering services a syndicate of agents, led by National Bank Financial, received 6% of the gross proceeds, as well as warrants equal to 6% of the number of shares sold. The warrants expire two years after the deal’s closing and can be exercised at $1.35 each.