Aurizon's Casa Berardi produces 158,830 oz Au in 2008

2009-01-14 09:25 ET - News Release

Mr. David Hall reports

AURIZON ANNOUNCES 2008 GOLD PRODUCTION AND PLANS FOR 2009

Aurizon Mines Ltd. has released its 2008 gold production and its plans for 2009.

Gold production in 2008

Gold production from Aurizon's 100-per-cent-owned Casa Berardi mine for the year ended Dec. 31, 2008, totalled 158,830 ounces from the processing of 654,397 tonnes at an average grade of 8.2 grams of gold per tonne. Recoveries for the year averaged 92.5 per cent. Gold production was in line with the most recent guidance of 155,000 to 160,000 ounces.

Fourth quarter, 2008 gold production

Ore processed in the fourth quarter amounted to 169,291 tonnes at an average grade of 7.7 grams of gold per tonne. The average daily mine production for the quarter was 1,840 tonnes per day, up from the previous quarter's rate of 1,754 tonnes per day. Mill recoveries of 91.5 per cent resulted in gold production of 38,364 ounces for the quarter.

"Aurizon had a strong 2008," said David P. Hall, president and chief executive officer. "The significant cash flow from Casa Berardi enabled us to reduce debt and increase cash balances during the year. In 2009, we will focus on controlling costs, maintaining a strong financial position, and maximizing opportunities to develop our assets and grow our future production profile."

Forecast gold production for 2009

It is estimated that Casa Berardi will produce between 150,000 to 155,000 ounces of gold in 2009 at an average grade of 7.9 grams of gold per tonne. Average daily mine production is estimated at 1,800 tonnes per day, in line with 2008. The slight decrease in gold production from 2008 is attributable to lower average gold grades. Approximately 60 per cent of the production will come from zone 113, 30 per cent from the recently developed Lower Inter zone, and the residual 10 per cent from smaller zones and development material.

In 2009, assuming a Canadian/United States dollar exchange rate of 1.20, average total cash costs per ounce are anticipated to approximate $390 (U.S.) per ounce. On-site mining, milling and administration costs are expected to average $108 per tonne, in line with 2008 experience.

Sustaining capital expenditures at Casa Berardi are estimated to be $13-million in 2009, primarily for the development of the upper and lower portions of zone 113 and of the Lower Inter zone. An additional $6.9-million is planned for infrastructure and equipment improvements.

Casa Berardi

At Casa Berardi, exploration will focus on the completion of the exploration drift at the 810-metre level of the West mine and approximately 14,000 metres of drilling to test the depth extension of zone 113 and the continuity and extension of zones 118 and 123-South.

In addition, approximately 21,000 metres of infill drilling will be performed on the north and upper limits of the Lower Inter zone, the eastern part of zone 113, and zones 109 and 115.

A total of $8.5-million will be initially invested at Casa Berardi in 2009, including $3.5-million on underground development and infrastructure, and $5-million on approximately 35,000 metres of underground drilling.

Joanna

At Joanna, infill drilling of the Hosco deposit has been completed, and an updated mineral resource estimate is expected to be completed in February, 2009.

In 2009, approximately $1.5-million will be initially invested to perform approximately 10,000 metres of drilling focused on the following:

1. Possible eastern extension of the Hosco deposit on the recently optioned Alexandria property;
2. Testing for potential higher-grade gold mineralization in the downdip extension of the Hosco deposit below 500 metres;
3. Exploration targets north of the existing mineral resources.

In addition, BBA is currently working on a prefeasibility study that is anticipated to be completed late in the second quarter, 2009. Further work programs will be determined following receipt of this report.

Kipawa

At Kipawa, future work programs will be developed following detailed analysis and interpretation of the results of the 2008 field program.

Corporate development

Aurizon will continue to focus on its organic growth within the Abitibi area surrounding its existing properties. In addition, the company is continuing to evaluate opportunities to increase its gold production and reserve profile.

Year-end 2008 financial results

Aurizon expects to release the fourth quarter and 2008 year-end financial results on or about March 11, 2009, and will hold a conference call to discuss the results. Details of the call, including times and contact numbers, will be announced closer to the date.

Aurizon also expects to release, at approximately the same time, an updated mineral reserves estimate for the Casa Berardi mine.

Quality control

Information of a scientific or technical nature in this news release was prepared under the supervision of Michel Gilbert, PEng, vice-president of Aurizon and a qualified person under National Instrument 43-101.

Hg