Aurizon posts first revenues

Junior gold producer Aurizon Mines (TSE) reported revenues for the first time in its history.

In 1993, total revenue was more than $5.7 million, representing six months of operations from the company’s 50% interest in the Sleeping Giant mine, jointly owned and operated by Cambior (TSE).

The average selling price realized from gold sales was US$377 per oz., compared with an average total unit operating cost of US$323. The mine started production last July and produced just under 23,000 oz. of gold in 1993. The Sleeping Giant is expected to produce about 33,000 oz. in the coming year.

Despite the revenues, Aurizon still reported a net loss of about $2.4 million, or 7 cents a share, for the year ending Dec. 31, 1993, compared with a net loss of about $5.4 million, or 20 cents a share, in the previous year. Results for 1993 were negatively affected by a write-down of more than $2.5 million in the carrying value of the company’s mining assets. In other news, Aurizon purchased, by way of a private placement, 200,000 common shares of privately owned La Esperanza Gold Explorations for 50 cents a share.

This block represents about 28% of the issued and outstanding shares. La Esperanza intends to complete an initial public offering later this year. La Esperanza is directing programs on three gold and silver properties in the state of Sonora, from its base in Mazatlan, Mexico.

The company holds options to purchase 100% of the 8-sq.-km Tacotes property for US$335,000 over a 3-year period. The concession hosts a former gold and silver-producing mine with remaining reserves estimated at 550,000 tonnes averaging 4.7 grams gold and 155 grams silver per tonne.

In addition, the company holds options to purchase the 2-sq.-km Sonia and the 6-sq.-km El Caprio concessions for a 3-year period. Costs for the two concessions totalled US$175,000.

The company will search for epithermal-style mineralization along the 2.5-km. strike length of the Sonia hydrothermal system, as well as other structurally controlled mineralization in the El Caprio concession.