Aurizon Mines (ARZ.TSX, AMEX: AZK) announced new drill results from the Phase Two program conducted under the terms of the Company’s earn-in option on the Marban property, located in the Malartic gold camp in the Abitibi region of Quebec, Canada. The Phase Two program will include 34,000 meters of diamond drilling, an updated mineral resource estimate and basic technical studies, including metallurgical testwork. To date, 75 holes and nine extensions of previous holes have been completed for a total of 26,380 meters. The Phase Two program and updated resource estimate are expected to be completed by the end of the second quarter of 2012.
Aurizon can earn up to a 65% interest in the Marban Block property under the terms of an option agreement dated July 5, 2010 with NioGold Mining. The initial 50% interest can be earned by incurring expenditures of C$20 million over three years, completing an updated NI 43-101 compliant mineral resource estimate, and by making a resource payment for 50% of the total gold ounces defined by the mineral resource estimate. NioGold is the project operator during the initial earn-in period.
* Hole MB-07-024 returned 196.5 grams per tonne (g/t) of gold over 1.2 metres (m) at a vertical depth of 415m
* Shallow in-fill drilling between sections 4300E and 4400E returned 20.5 g/t over 2.0m at a vertical depth of 180m
* Hole MB-12-295 intersected 51.4 g/t over 1.1m at a vertical depth of 95m
George Paspalas, President and CEO of Aurizon:
“These remaining results from the first phase of the program on the Marban Block are encouraging, and overall there is a high degree of consistency throughout the first phase drilling data. Our original assumptions going into this joint venture are being realized, and we look forward to a successful second phase of the program.”
Ovais Habib, Scotia Capital:
“With ~$213 million in cash, trading at 5.3x 2012E P/CF, and low geographic risk, we believe Aurizon is an attractive acquisition target to a mid-tier producer looking to add cheap producing ounces and use Aurizon’s cash balance to fund existing development projects.”