PRECIOUS METALS — Aurizon finds more gold at Casa Berardi

The Casa Berardi property in northwestern Quebec has yielded more gold to owner Aurizon Mines (ARZ-T).

Ongoing definition and stepout drilling hit several wide intervals in Zone 113 and west of the Lower Inter zone. Results from Zone 113 include 31 metres grading 10.5 grams per tonne, 26.1 metres grading 2.2 grams, 22 metres grading 7 grams, and 10.4 metres grading 26.4 grams. The company says “drilling continues to confirm significant dimensions and continuity of mineralization within the zone.”

Results from three holes drilled west of the Lower Inter zone include 5.8 metres grading 4.4 grams, 21 metres grading 1 gram, and 4.3 metres grading 4.9 grams. The area is dubbed Deep Extension West and is considered the possible depth extension to the Lower Inter zone.

Casa Berardi is a former producer with an existing resource of 4.2 million tonnes grading 5.3 grams gold. Of this total, 3.4 million tonnes grading 5.1 grams are contained in the Lower Inter, Southwest and 111 zones, collectively known as the West Mine area. That resource excludes results from 13,134 metres of new drilling in the area.

Aurizon has seven rigs active at Casa Berardi, and, to date, these have drilled 59,578 metres. Two of the rigs are targeting deep-lying mineralization in the West Mine area, which is the focus of a combined in-house and independent feasibility study.

Meanwhile, operations at the Sleeping Giant and Beaufor gold mines in northwestern Quebec are exceeding expectations. Both are half-owned by Aurizon.

In the three months ended March 31, Sleeping Giant cranked out 20,963 oz. gold at a total cash cost of US$182 per oz., whereas Beaufor produced 10,766 oz. at US$226 per oz. Aurizon’s share totalled 15,865 oz. and its cash costs averaged US$197 per oz.

Aurizon sold its gold for an average of US$309 per oz. during the quarter. The company sold forward or hedged all of its 1999 production — 60,000 oz. at an average total cash cost of US$195 per oz. — at a minimum of US$300 per oz. Quarterly earnings topped $1.5 million (or 4 cents per share) on revenue of $7.5 million, compared with $85,406 (2 cents per share) on $5.29 million in the first three months of 1998.

At March 31, Aurizon had $9.2 million in working capital, $8.6 million in cash and $2.9 million in bullion settlements. Interest-free long-term debt totalled $3.4 million.