Aurizon options claims adjacent to Joanna Project
Aurizon Mines Ltd. announce that it has entered into a letter agreement with Alexandria Minerals Corporation (“Alexandria”) whereby Alexandria has granted the Company an option to earn an undivided 100% interest in nineteen (19) mineral claims, subject to an existing 2% net smelter return and a 2% gross overriding receipts royalty on any diamonds extracted from the claims. One half of the net smelter return royalty (i.e. 1%), may be purchased at any time for total cash payments of $2,000,000. The Alexandria Claims are located adjacent to the Company’s Joanna Project, located along the Cadillac Break, in the Joannes Township, two kilometres northeast of the Rouyn-Noranda airport and 20 kilometers east of Rouyn-Noranda. A sketch is attached showing the outline of the properties. The transaction is subject to all necessary corporate and regulatory approvals, and the execution of a definitive agreement.
The option will require Aurizon to: make a cash payment of $200,000 and issue shares of Aurizon having an aggregate market value of $200,000 within thirty days of a definitive agreement; incur exploration expenditures of $650,000 over a 24 month period; and make a final payment of Aurizon shares having an aggregate market value of $1,600,000, by the 2nd anniversary of the signed formal agreement.
The Alexandria Claims adjoin the eastern boundary of Aurizon’s Joanna Gold Project and straddle approximately four kilometres of the Cadillac Break. Aurizon will initiate a 5,000 metre exploration diamond drilling program in the fourth quarter, 2008, upon receipt of the necessary permits. The drilling will be performed on the east extension of the Joanna deposit along the Cadillac break.
Joanna Gold Project
Two rigs are currently active on the property, conducting infill drilling within the East block’s existing mineral resource contour and along its lateral extension.
Aurizon expects to receive an updated resource estimate on the Joanna Gold Project by the end of the fourth quarter of 2008, and has appointed BBA Inc. to prepare the pre-feasibility study, which is expected to be completed in the second quarter 2009.
A preliminary assessment report prepared by BBA Inc. concluded that the Company’s Joanna Project is potentially feasible as a stand alone open-pit mine operation and that additional work should be undertaken to advance the project to the pre-feasibility stage. The preliminary assessment report entitled “Technical Report NI43-101 Preliminary Assessment for the Joanna Gold Project”, dated May 22, 2008, is available under the Company’s profile at www.sedar.com.
All other information previously released on the Joanna Gold Project is available on the Aurizon website.
To view the sketch accompanying this release please click on the following link: http://files.newswire.ca/734/Aurizon_Joanna_Project.pdf.
Aurizon is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of north-western Quebec, one of the world’s most favourable mining jurisdictions and prolific gold and base metal regions, and by increasing its asset base through accretive transactions. Aurizon shares trade on the Toronto Stock Exchange under the symbol “ARZ” and on the American Stock Exchange under the symbol “AZK”. Additional information on Aurizon and its properties is available on Aurizon’s website at www.aurizon.com.
