Aurizon ups tonnage at Joanna

For the second time in just over a month, Aurizon Mines (ARZ-T, AZK-X) has announced a revised resource figure for the Joanna gold deposit, about 20 km east of Rouyn-Noranda, Que.

The revised resource calculation moved a significant tonnage into indicated resources from inferred, and also takes in the resource on the Heva property, an enclave surrounded by the main Joanna property. Aurizon and Vantex Resources (VTX-V) have signed a letter of intent for Aurizon to take over Vantex’s 75% interest in the property; Stellar Pacific Ventures (SPX-V) holds the other 25% and Vantex will retain a 1.5% net smelter return.

Taking in Heva, the indicated resource at Joanna is now 11.3 million tonnes grading 1.7 grams gold per tonne. Heva contributes 1.4 million tonnes of that resource at 2.3 grams per tonne, and the resource on Joanna’s East Block has increased to 8.2 million tonnes grading 1.6 grams from 5.4 million tonnes at 1.8 grams.

Indicated resources on the West Block (1.7 million tonnes grading 1.9 grams per tonne) did not change significantly.

Inferred resources are also up on the East Block, now standing at 24.3 million tonnes grading 1.5 grams per tonne. The West Block has 2.7 million tonnes at 1.9 grams, and Heva adds 1.6 million tonnes at 2 grams, to give the property inferred resources of 28.6 million tonnes grading 1.6 grams per tonne.

The increase on the East and West blocks — Aurizon’s own ground — came out of infill drilling and a program of re-sampling old core. Aurizon has three drills on the Joanna project and plans to bring drill density on the inferred resource in the East Block to a 25-metre spacing. A preliminary economic assessment is underway.

Aurizon pays Vantex $600,000 over the next year to earn the 75% interest, and Vantex retains the 1.5% royalty, which Aurizon can reduce to 1% by paying $500,000. If Joanna goes into production, Vantex gets advance royalties totalling $1 million plus Aurizon shares with a total value of $450,000.

Aurizon also dealt an option on the land package surrounding its Casa Berardi mine property to Lake Shore Gold (LSG-T). The deal covers 116 sq. km east and west of the mine property (in which Aurizon keeps its 100% interest), and allows Lake Shore to earn a 50% interest by spending $5 million over the next five years, including $600,000 in the first year.

Lake Shore will operate the project and if it finds an indicated resource of at least 500,000 oz. the two companies will form a joint venture over the area immediately around the resource. In the joint venture, Aurizon can earn back 10% by funding a feasibility study, and any production will be processed at the Casa Berardi mill.