Aurizon Mines announces 2007 gold production

In its first year as a commercial gold producer, Aurizon Mines‘s (ARZ-T, AZK-X) Casa Berardi mine in Quebec churned out 159,469 oz. gold at an average grade of 9.8 grams gold per tonne.

That’s 2 grams gold per tonne higher than the present mine reserve grade. And recoveries for the year averaged 93%.

The Vancouver-based junior estimates this year Casa Berardi will produce 160,000- 170,000 oz. gold at an average grade of 8.6 grams gold per tonne.

Average daily production in 2008 at the mine, 95 km north of the town of La Sarre in the Abitibi region of northwestern Quebec, will rise to 1,800 tonnes per day, a 20% year-on-year increase.

Aurizon will spend about $10.2 million on Casa Berardi this year including $6.1 million on underground development and infrastructure, and $4.1 million on about 45,000 metres of surface and underground drilling.

This year total cash costs are forecast to rise to US$394 per oz., assuming a stronger Canadian dollar and slightly lower grades. Last year total cash costs per oz. gold sold were US$282 in the third quarter and US$298 in the second quarter.

News of Aurizon’s production results sent its shares on the Toronto Stock Exchange up 22 or 5.4% to $4.32 on a trading volume of 1.4 million shares. That performance made Aurizon the top performing gold equity on the stock exchange today.

Last year was a seminal one for Aurizon including being named Company of the Year by the Association de L’Exploration Miniere du Quebec.

Among its achievements: the start of commercial gold production at Casa Berardi in May; the discovery of a new gold zone along Casa Berardi’s south fault; the acquisition of the Joanna gold project 20 km east of Rouyn in northwestern Quebec and the discovery of gold, uranium and rare earth elements at its new Kipawa property 100 km south of Rouyn-Noranda.

But it was the Casa Berardi project that staked its claim as an emerging gold producer.

Casa Berardi covers 140 sq. km along a 37-km. section of the Casa Berardi fault.

Two former underground gold mines, the East and West mines, sit in the central part of the Casa Berardi property about 5 km apart.

Between 1988 and 1997, the East and West mines produced 3.75 million tonnes at an average grade of 6.7 grams gold per tonne, or 690,000 recovered ounces.

Casa Berardi is expected to produce 1 million oz. gold over a minimum mine life of 6 years.