EX-99.1 2 technical.htm TECHNICAL REPORT ON THE CASA BERARDI MINE, NORTHWESTERN QUEBEC, CANADA MD Filed by Filing Services Canada Inc.  (403) 717-3898
 

 

[cautionary001.jpg]

Suite 1120, Cathedral Place,
925 West Georgia Street,
Vancouver, British Columbia
Canada  V6C 3L2
Tel:  (604) 687-6600
Toll Free:  1-888-411-GOLD
Fax:  (604) 687-3932
Email:  info@aurizon.com
Web Site:  www.aurizon.com

    

        



CAUTIONARY NOTE TO US READERS

 

CAUTIONARY NOTE TO US READERS

 

As a Canadian reporting issuer, the Company is subject to rules, policies and regulations issued by Canadian regulatory authorities and is required to provide detailed information regarding its properties including mineralization, drilling, sampling and analysis, security of samples and mineral resource and mineral reserve estimates. In addition, as a Canadian reporting issuer, the Company is required to describe mineral resources associated with its properties utilizing Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions of "indicated" or "inferred", which categories of resources are recognized by Canadian regulations but are not recognized by the United States Securities and Exchange Commission ("SEC").

 

The SEC allows mining companies, in their filings with the SEC to disclose only those mineral deposits they can economically and legally extract or produce. Accordingly, information contained in this document regarding our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations of the Commission thereunder.

 

In particular, this document uses the term "indicated" resources. U.S. readers are cautioned that while that term is recognized and required by Canadian regulations, the SEC does not recognize it. U.S. investors are cautioned not to assume that any part or all of mineral deposits in this category will ever be converted into mineral reserves.

 

This document also uses the term "inferred" resources. U.S. readers are cautioned that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.



 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 
TECHNICAL REPORT ON THE CASA BERARDI MINE, NORTHWESTERN QUEBEC, CANADA
PREPARED FOR AURIZON MINES LTD.
 

 

 

Report for NI 43-101
 

 

 

Authors:
Bernard Salmon, ing.
Normand Lecuyer, P.Eng., ing.
Patrice Live, ing., BBA
 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 28, 2011
 
 
 

 
 
Report Control Form
 
Document Title
 
Technical Report on the Casa Berardi Mine, Northwestern Quebec, Ontario, Canada
     
Client Name & Address
 
 
 
Aurizon Mines Ltd.
Suite 3120, Park Place
666 Burrard Street
Vancouver, BC  V6C 2X8
     
Document Reference
 
 
Project # 1606
 
Status & Issue No.
 
Final
Version
 
       
Issue Date
 
March 28, 2011
 
       
Lead Author
 
Bernard Salmon
 
 
 
(Signed)
 
 
         
Peer Reviewer
 
Jason J. Cox
Richard J. Lambert
 
 
(Signed)
(Signed)
 
         
Project Manager Approval
 
Bernard Salmon
 
 
 
(Signed)
 
 
         
Project Director Approval
 
Richard J. Lambert
 
 
 
(Signed)
 
 
         
Report Distribution
 
Name
No. of Copies
       
   
Client
 
       
   
RPA Filing
1 (project box)
 
 
Roscoe Postle Associates Inc.
55 University Avenue, Suite 501
Toronto, Ontario M5J 2H7
Canada
Tel: +1 416 947 0907
Fax: +1 416 947 0395
rpacan.com
 
 
 

 
 
 www.rpacan.com
 
TABLE OF CONTENTS
 
 
PAGE
1 SUMMARY
1-1
Executive Summary
1-1
Technical Summary
1-11
2 INTRODUCTION
2-1
3 RELIANCE ON OTHER EXPERTS
3-1
4 PROPERTY DESCRIPTION AND LOCATION
4-1
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
5-1
6 HISTORY
6-1
7 GEOLOGICAL SETTING
7-1
Regional Geology
7-1
Property Geology
7-3
8 DEPOSIT TYPES
8-1
9 MINERALIZATION
9-1
Deposition Model
9-1
Structural Control
9-2
Styles of Gold Mineralization
9-2
10 EXPLORATION
10-1
11 DRILLING
11-1
12 SAMPLING METHOD AND APPROACH
12-1
Drill Core
12-1
Underground Chip Samples
12-4
Conclusion on Sampling Method and Approach
12-5
13 SAMPLE PREPARATION, ANALYSES AND SECURITY
13-1
14 DATA VERIFICATION
14-1
15 ADJACENT PROPERTIES
15-1
16 MINERAL PROCESSING AND METALLURGICAL TESTING
16-1
Metallurgical Testwork
16-1
Process Description
16-4
17 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES
17-1
Mineral Resources
17-1
Mineral Reserves
17-34
18 OTHER RELEVANT DATA AND INFORMATION
18-1
19 ADDITIONAL REQUIREMENTS FOR PRODUCTION PROPERTIES
19-1
Mining Operations - Underground
19-1
Mining Operations – East Mine Open Pit (BBA)
19-23
Mining Operations – Principal Mine Open Pit (BBA)
19-26
Life Of Mine Plan
19-43
Mine Production
19-45
Environmental Considerations
19-45
Capital And Operating Cost Estimates
19-58
Economic Analysis
19-60
20 INTERPRETATION AND CONCLUSIONS
20-1
21 RECOMMENDATIONS
21-1
22 REFERENCES
22-1
23 SIGNATURE PAGE
23-1
24 CERTIFICATE OF QUALIFIED PERSON
24-1
25 APPENDIX 1
25-1
Claim List
25-1
26 APPENDIX 2
26-1
QA/QC GRAPHS
26-1
27 APPENDIX 3
27-1
Histograms
27-1
28 APPENDIX 4
28-1
Figures – Resources and Reserves
28-1
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page i
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
 www.rpacan.com
 
LIST OF TABLES
 
   
PAGE
Table 1-1
Mineral Reserves Summary
1-2
Table 1-2
Mineral Resources (Exclusive of Mineral Reserves)
1-3
Table 1-3
Pre-Tax Cash Flow Summary
1-8
Table 1-4
Sensitivity Analyses
1-11
Table 1-5
Casa Berardi Annual Production
1-13
Table 1-6
Mineral Resources Inclusive of Mineral Reserves
1-16
Table 1-7
Mineral Reserves by Zone
1-18
Table 1-8
Mine-Mill Reconciliation - Stopes
1-21
Table 1-9
LOM Capital Costs
1-26
Table 1-10
Unit Operating Costs
1-26
Table 6-1
Historical Diamond Drilling
6-1
Table 6-2
Historical Mineral Resources and Reserves 1987-1997
6-2
Table 6-3
Historical Mine Production
6-3
Table 6-4
Casa Berardi Annual Production
6-5
Table 10-1
2006 Exploration, Valuation, and Definition Diamond Drilling Programs
10-2
Table 10-2
2007 Exploration, Valuation, and Definition Diamond Drilling Programs
10-3
Table 10-3
2008 Exploration, Valuation, and Definition Diamond Drilling Programs
10-4
Table 10-4
2009 Exploration, Valuation, and Definition Diamond Drilling Programs
10-5
Table 10-5
2010 Exploration, Valuation, and Definition Diamond Drilling Programs
10-6
Table 10-6
2011 Exploration, Valuation, and Definition Diamond Drilling Programs
10-7
Table 14-1
QA/QC Program – Duplicate Assays
14-7
Table 14-2
QA/QC Program - Certified Reference Materials
14-8
Table 14-3
QA/QC Program – Check Assays – Pulp #1
14-10
Table 14-4
QA/QC Program – Check Assays – Pulp #1 vs. Pulp #2
14-11
Table 16-1
Casa Berardi Annual Production
16-1
Table 16-2
Gold Extraction Summary
16-3
Table 17-1
Mineral Resources Inclusive of Mineral Reserves
17-2
Table 17-2
Mineral Resources Exclusive of Mineral Reserves
17-4
Table 17-3
Database Structure
17-7
Table 17-4
2002-2003 Density Determinations - Zones 117-123 and Sulph-D
17-9
Table 17-5
2004 Density Determination – 113 Zone Upper Part
17-9
Table 17-6
Density Used for Mineral Resource Estimation
17-11
Table 17-7
Summary of Density Determinations by Zone
17-12
Table 17-8
Cut-off Grades for Resource Estimation
17-16
Table 17-9
Capping Factors
17-17
Table 17-10
Block Modelling and Interpolation Parameters
17-21
Table 17-11
Mineral Resource Classification – East Mine Crown Pillar
17-27
Table 17-12
Economic Inputs – East Mine Crown Pillar
17-28
Table 17-13
Whittle Input Parameters – 160 Zone Scenarios
17-30
Table 17-14
Mineral Reserves Summary
17-34
Table 17-15
Underground Mineral Reserves By Zone
17-35
Table 17-16
Dilution
17-39
Table 17-17
Mineral Reserve Comparison
17-41
Table 17-18
Mine-Mill Reconciliation - Stopes
17-42
Table 19-1
Backfill Plant Operation Parameters
19-13
Table 19-2
Backfill Requirements and Sources
19-14
Table 19-3
Mine Equipment List
19-15
Table 19-4
Equipment Availability
19-22
Table 19-5
Pit Optimization Parameters
19-28
Table 19-6
Pit Optimization Results
19-30
Table 19-7
Pit Design Parameters
19-33
Table 19-8
Mineral reserves – Input cost Parameters
19-36
Table 19-9
Mineral Reserves – Principal Open Pit
19-37
Table 19-10
Mineral Reserves By Bench – Principal Open Pit
19-38
Table 19-11
Life of Mine Plan
19-43
Table 19-12
Casa Berardi Annual Production
19-45
Table 19-13
Current Closure Costs and Obligations
19-57
Table 19-14
LOM Capital Costs
19-58
Table 19-15
Unit Operating Costs
19-59
Table 19-16
Workforce Summary
19-60
Table 19-17
Pre-Tax Cash Flow Summary
19-62
Table 19-18
Sensitivity Analyses
19-64
Table 20-1
Mineral Reserves Summary
20-1
Table 20-2
Mineral Resources (Exclusive of Mineral Reserves)
20-2
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page ii
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
 www.rpacan.com
 
LIST OF FIGURES
 
   
PAGE
Figure 1-1
Sensitivity Analysis
1-10
Figure 4-1
Location Map
4-2
Figure 4-2
Property Location Map
4-3
Figure 4-3
Composite Longitudinal Section
4-4
Figure 5-1
Surface Infrastructure (Current and Planned)
5-3
Figure 7-1
Regional Geology
7-2
Figure 7-2
Property Geology
7-6
Figure 7-3
Surface Geology
7-7
Figure 9-1
Mineralization Corridor at the West Mine
9-2
Figure 9-2
Composite Longitudinal Section
9-5
Figure 9-3
Geology – West Mine Zones (Section 10,700 E)
9-7
Figure 9-4
Geology – 113 Zone (Section 11,375 E)
9-9
Figure 9-5
Geology – 113 Zone (Section 11250 E)
9-10
Figure 9-6
Geology – 113 Zone (550 m Level)
9-11
Figure 9-7
Geology – 118 and 123 Zones
9-14
Figure 10-1
Lake Shore Option – Casa Berardi Exploration Property
10-8
Figure 12-1
Histogram - RQD Length – 113 Zone
12-3
Figure 12-2
Probability Plot - RQD Length – 113 Zone
12-3
Figure 12-3
Histogram - RQD Length – Lower Inter Zone
12-4
Figure 12-4
Probability Plot - RQD Length – Lower Inter Zone
12-4
Figure 13-1
Mine Laboratory Flow Chart
13-2
Figure 14-1
Sample Preparation and Assaying Flow Chart
14-3
Figure 14-2
Primary and Secondary Laboratory Flow Charts
14-5
Figure 16-1
Gravity Gold Recovery
16-2
Figure 16-2
Simplified Process Flow Sheet
16-5
Figure 17-1
Downhole Variogram – 113 Zone
17-24
Figure 17-2
3D Variograms – 113 Zone – Dip 0º
17-25
Figure 17-3
3D Variograms – 113 Zone – Dip -30º
17-25
Figure 17-4
3d Variograms – 113 Zone – Dip -60º
17-26
Figure 17-5
160 Zone vs. East Mine Shaft
17-29
Figure 17-6
160 Zone – Open Pit Optimization
17-33
Figure 19-1
West Mine Longitudinal Section
19-3
Figure 19-2
Transverse Mining Method
19-6
Figure 19-3
Lower Inter Zone Mining Plan
19-7
Figure 19-4
West Mine Infrastructure
19-17
Figure 19-5
East Mine Infrastructure
19-18
Figure 19-6
Ventilation Schematic
19-20
Figure 19-7
East Mine Open Pit
19-25
Figure 19-8
Optimized Pit - Plan View
19-29
Figure 19-9
Optimized Pit – Isometric view
19-29
Figure 19-10
Geotechnical Parameters for Overburden
19-34
Figure 19-11
3D View of Pit Design
19-35
Figure 19-12
Principal Mine Site Layout
19-39
Figure 19-13
Principal Mine Site Layout
19-40
Figure 19-14
Underground Workings with Principal Zone Pit – Longitudinal View (looking north)
19-41
Figure 19-15
Surface Plan – East Mine Infrastructure and Tailings Facilities
19-47
Figure 19-16
Sensitivity Analysis
19-64
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page iii
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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LIST OF APPENDIX FIGURES & TABLES
 
   
PAGE
Table 25-1
Claim List and Credits
25-3
Figure 26-1
Original vs. Duplicates – Mine Lab – 2009
26-2
Figure 26-2
Original vs. Duplicates – Swastika - 2009
26-5
Figure 26-3
Original vs. Duplicates – Als-Chemex - 2009
26-6
Figure 26-4
Original vs. Duplicates – Mine Lab - 2010
26-6
Figure 26-5
Original vs. Duplicates – Swastika - 2010
26-7
Figure 26-6
Standard 10Pb – Mine Lab – 2008-2010
26-7
Figure 26-7
Standard 10Pb – Swastika Lab – 2009-2010
26-8
Figure 26-8
Standard 15PA – Mine Lab – 2007-2010
26-8
Figure 26-9
Standard 15Pa – Swastika Lab – 2008-2010
26-9
Figure 26-10
Standard 61D – Mine Lab – 2008-2010
26-9
Figure 26-11
Standard 61D – SWastika Lab – 2009-2010
26-10
Figure 26-12
Pulps #1 - Mine vs. AlS-Chemex - 2009
26-10
Figure 26-13
Pulps #1 - Mine vs. AlS-Chemex – 2009 (0-50 g/t)
26-11
Figure 26-14
Pulps #1 – Swastika Vs. AlS-Chemex - 2009
26-11
Figure 26-15
Pulps #1 – Mine vs. ALS-Chemex – 2010
26-12
Figure 26-16
Pulps #1 – Mine vs. ALS-Chemex – 2010 (0-50 g/t)
26-12
Figure 26-17
Pulps #1 – Swastika vs. ALS-Chemex - 2010
26-13
Figure 26-18
Mine Pulp #1 vs. ALS-Chemex Pulp#2 - 2009
26-13
Figure 26-19
Swastika Pulp #1 vs. ALS-Chemex Pulp#2 - 2009
26-14
Figure 26-20
Mine Pulp #1 vs. ALS-Chemex Pulp#2 - 2010
26-14
Figure 26-21
Swastika Pulp #1 vs. ALS-Chemex Pulp#2 - 2010
26-15
Figure 27-1
Lower Inter – High Grade Core (1)
27-2
Figure 27-2
Lower Inter – High Grade Core (2)
27-2
Figure 27-3
Lower Inter – Low Grade Shell (1)
27-3
Figure 27-4
Lower Inter – Low Grade Shell (2)
27-3
Figure 27-5
109 Zone
27-4
Figure 27-6
113 Zone (1)
27-5
Figure 27-7
113 Zone (2)
27-5
Figure 27-8
115 Zone
27-6
Figure 27-9
117 Zone
27-6
Figure 27-10
118 Zone
27-7
Figure 27-11
Zone 123 (5 Lenses)
27-7
Figure 27-12
Principal Mine – 38 Lenses (1)
27-8
Figure 27-13
Principal Mine – 38 Lenses (2)
27-8
Figure 27-14
148 Zone (7 Lenses) (1)
27-9
Figure 27-15
148 Zone (7 Lenses) (2)
27-9
Figure 27-16
152 Zone
27-10
Figure 27-17
160 Zone (4 Lenses)
27-10
Figure 28-1
Lower Inter – Resource Envelopes – HG Core & LG Shell
28-2
Figure 28-2
Lower Inter – Resource – Block Model
28-2
Figure 28-3
Lower Inter – Mineral Resources Including Mined-out Stopes - Longitudinal Section (Looking North)
28-3
Figure 28-4
Lower Inter – Mineral Resources Excluding  Mined-out Stopes - Longitudinal Section (Looking North)
28-3
Figure 28-5
Lower Inter – Mineral Resources Including Mined-out Stopes - 3D View #1 (Looking Northwest)
28-4
Figure 28-6
Lower Inter – Mineral Resources Excluding  Mined-out Stopes - 3D View #1 (Looking Northwest)
28-4
Figure 28-7
Zone 113 – Mineral Resources Including Mined-out Stopes - Longitudinal Section (Looking North)
28-5
Figure 28-8
Zone 113 – Mineral Resources excluding Mined-Out Stopes - Longitudinal Section (Looking North)
28-5
Figure 28-9
Principal Mine – Resource Envelopes & BBA Pit – Plan View
28-6
Figure 28-10
Principal Mine – Resource Envelopes & BBA Pit – 3D View (looking northeast)
28-6
Figure 28-11
Principal Mine – Resource Envelopes & BBA Pit – 3D View (looking southwest)
28-7
Figure 28-12
Principal Mine – Block Model & BBA Pit – Section 12,300 E (Looking West)
28-7
Figure 28-13
Principal Mine – Block Model & BBA Pit – Section 12,375 E (Looking West)
28-8
Figure 28-14
Principal Mine – Block Model & BBA Pit – Section 12,425 E (Looking West)
28-8
Figure 28-15
Principal Mine – Block Model & BBA Pit – Section 12,500 E (Looking West)
28-9
Figure 28-16
Principal Mine – Block Model & BBA Pit – Section 12,575 E (Looking West)
28-9
Figure 28-17
East Mine (148 Zone) – Resource – Gold grade
28-10
Figure 28-18
East Mine (148 Zone) – Blocks in Resource
28-11
Figure 28-19
East Mine (148 Zone) – Resource Classification (1)
28-12
Figure 28-20
East Mine (148 Zone) – Resource & Reserve (Stopes)
28-13
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page iv
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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1 SUMMARY
 
EXECUTIVE SUMMARY
 
Roscoe Postle Associates Inc. (RPA) and BBA Inc. (BBA) were retained by Aurizon Mines Ltd. (Aurizon) to prepare an independent Technical Report on the Casa Berardi Mine (the Mine), in the Abitibi region of Quebec.  The purpose of this report is to support public disclosure of Mineral Resource and Mineral Reserve estimates, as of December 31, 2010.  This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects.
 
Aurizon is a Canadian gold mining company based in Vancouver, British Columbia, with an administrative office in Val d’Or, Quebec.  Aurizon owns 100% of the Casa Berardi Property.
 
Prior to Aurizon’s acquisition of the mine, production had spanned ten years, from 1988 to 1997.  In September 1998, Aurizon acquired the property.  Aurizon reopened the mine in November 2006, achieving commercial production on May 1, 2007.
 
The Casa Berardi gold deposits are located along a five-kilometre east-west mineralized corridor.  They include the East, West and Principal Mines.  Currently, the major assets and facilities associated with the Mine are:
 
West Mine underground Mineral Reserves, including Lower Inter, South West, North West, 109, 111, 113, 115, 117S, 118, and 123 zones.
 
Principal Mine Reserves in the Principal open pit.
 
East Mine Mineral Reserves in the East Mine open pit and underground.
 
Additional Mineral Resources associated with the West Mine (Inter, 104, 113, 115, 118, 123S), Principal Mine (Underground), and East Mine (148, 152).
 
West Mine infrastructure, including surface maintenance facilities, backfill plant, mine dry, a decline for underground access, and a shaft down to a vertical depth of 760 m.
 
East Mine infrastructure, including a crushing plant, an ore processing plant, a building complex with warehouse, maintenance facilities, a mine dry and offices; an underground decline, a shaft down to a vertical depth of 380 m, and a series of ramp-connected levels.
 
Facilities providing basic infrastructure to the mine, including electric power, ventilation, heat, water treatment and supply, and sewage treatment.
 
Tailings impoundment facilities.
 
 
Access by highway and gravel roads.
 
RPA has been regularly engaged by Aurizon to estimate Mineral Resources and audit Mineral Reserves since completion of a Feasibility Study on the Casa Berardi Mine in 2006.
 
BBA has carried out studies on open pit mining for the East Mine and Principal Zone.  Most recently, BBA was mandated by Aurizon in October 2010 to undertake a Pre-Feasibility Study (PFS) for the Casa Berardi Principal Zone.
 
CONCLUSIONS
 
In RPA’s opinion, the Casa Berardi Mine has been developed and operated by Aurizon in a reasonable and professional manner.  Since 2005, a tremendous effort was undertaken by Aurizon to develop the Casa Berardi Mine, to move forward 3D block modeling, and to conduct aggressive exploration and definition drilling programs along and outside the Casa Berardi fault in order to better understand the local geology and the mineralization controls.  Such programs returned positive results for the renewal of mineral resources and mineral reserves.  RPA is of the opinion that the 2011 drilling programs will, as did the previous drilling programs, return encouraging and positive results, and RPA concurs with Aurizon’s approach.
 
BBA concludes that PFS results for the Principal Zone open pit show that it is economically viable and suitable for inclusion in Mineral Reserves. 
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-1
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Mineral Reserves as of December 31, 2010, are summarized in Table 1-1:
 
TABLE 1-1   MINERAL RESERVES SUMMARY
Aurizon Mines Ltd. – Casa Berardi Mine
         
Area
Category
Tonnes
Grade (g/t Au)
Contained Ounces
Underground
Proven
1,775,000
8.41
480,000
Underground
Probable
2,282,000
7.15
524,900
Open Pit
Proven
496,000
4.54
72,400
Open Pit
Probable
3,300,000
3.57
379,200
Total
Proven & Probable
7,854,000
5.77
1,456,600
 
Notes:
1.  
CIM definitions were followed for Mineral Reserves.
2.  
Underground Mineral Reserves were audited by RPA.
3.  
Open Pit Mineral Reserves were estimated by BBA.
4.  
Mineral Reserves are estimated at a cut-off grade of 4.15 g/t based on long term operating costs and gold prices for most of the underground zones in the West Mine; except for zones 118 and 123S, where cut off grades of 4.8 and 5.4 g/t, respectively, were applied based on long term operating costs.  For the East Mine crown pillar and for Principal open pit, Mineral Reserves are estimated at a cut-off grade of 1.2 and 0.5 g/t respectively based on long term operating costs and gold prices.
5.  
Mineral Reserves are estimated using an average long-term gold price of US$950 per ounce and a US$/C$ exchange rate of 1:1.00.
6.  
A minimum mining width of three metres was used.
7.  
Totals may not represent the sum of the parts due to rounding.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-2
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Mineral Resources, exclusive of (in addition to) Mineral Reserves in Table 1-1, as of December 31, 2010, are summarized in Table 1-2:
 
TABLE 1-2   MINERAL RESOURCES (EXCLUSIVE OF MINERAL RESERVES)
Aurizon Mines Ltd. – Casa Berardi Mine
         
Area
Category
Tonnes
Grade (g/t Au)
Contained Ounces
Underground
Measured
843,000
6.66
180,600
 
Indicated
2,923,000
6.15
578,000
 
Measured + Indicated
3,766,000
6.26
758,600
 
Inferred
3,017,000
6.85
664,500
         
Open Pit
Measured
311,000
3.13
31,300
 
Indicated
404,000
2.65
34,500
 
Measured + Indicated
715,000
2.86
65,700
 
Inferred
965,000
2.69
83,400
Total
Measured & Indicated
4,481,000
5.72
824,300
Total
Inferred
3,981,000
5.84
748,000
 
Notes:
1.  
CIM definitions were followed for Mineral Resources.
2.  
Underground Mineral Resources were estimated by RPA.
3.  
Open Pit Mineral Resources were estimated by BBA.
4.  
Mineral Resources are estimated at cut-off grades of:
  
4 g/t Au for the West Mine, Principal Mine Underground and East Mine.
  
3 g/t Au for South West, Inter and 104 zones in the West Mine.  Those zones were estimated by Aurizon in 2000 using 2D polygons on longitudinal sections and reviewed by RPA in 2005.
  
1.30 g/t Au for the East Mine – Open Pit.
  
0.50 g/t Au for the Principal Mine
  
0.47 g/tor 160 Zone – Open Pit.
5.  
Mineral Resources are estimated using an average long-term gold price of US$950 per ounce, and a US$/C$ exchange rate of 1:1.00.
6.  
Minimum mining widths of two to three metres were used.
7.  
Mineral Resources are exclusive of Mineral Reserves.
8.  
Totals may not represent the sum of the parts due to rounding.
 
In RPA’s opinion, there is good potential for further conversion of Mineral Resources to Mineral Reserves.  RPA recommends that resources considered for conversion to reserves should continue to be estimated using parameters and methodology similar to those used for the current reserves.
 
Over the last five years, Aurizon has completed extensive work in all of the geological aspects of the mine: geological interpretation, developing quality assurance and quality control (QA/QC) programs, integration of the Gemcom software and training, and 3D solid modelling and 3D block model grade interpolation.  Aurizon has been successful in generating new resources and converting resources to reserves.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-3
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Mill production results reconcile well with Mineral Reserve estimates.
 
Ground control problems experienced in previous operations have been addressed by measures included in current operating procedures.  Stability of mine development has been increased by locating the major infrastructure on the north side of the Casa Berardi Fault, and by applying ground support in accordance with commonly accepted practice for the anticipated conditions.  Stope stability has been enhanced by the use of a smaller typical stope size, conservative sublevel spacing, and application of cemented rock fill. The planned application of alternate mining methods, such as the Avoca method and the Undercut Longhole with Delayed Backfill method, are anticipated to help sustain the desired production levels for the future. RPA supports these initiatives.
 
Mill recovery increases from previous levels are due to more consistent feed rates, the addition of intensive cyanidation, reduced levels of “preg-robbing” graphite, and increased gravity circuit capacity.
 
BBA carried out a pit optimization and design in order to determine the reserves for the Principal Zone open pit. This work resulted in a Proven and Probable ore reserve of 3.2 million tonnes at a grade of 3.64 grams per tonne. Total overburden and waste rock removal for the open pit life was estimated at approximately 46 million tonnes giving an overall stripping ratio of 14.6 tonnes of waste per tonne of ore. The above reserves were estimated using a cut-off grade of 0.50 grams per tonne, with a dilution factor of ten percent and a loss factor of seven percent. The Principal Zone pit reserves are included in the LOM plan and cash flow projection.
 
RECOMMENDATIONS
 
RPA and BBA recommendations are as follows.
 
BLOCK MODEL UPDATES
 
With the considerable amount of diamond drilling that has been carried out over the last several years, block models should be updated at fixed dates, preferably on a monthly or quarterly basis.
 
CAVITY MONITORING SURVEYS OF MINED-OUT STOPES INTO GEMCOM DATABASE
 
Volumes of mined-out stopes are evaluated from a cavity monitoring survey (CMS) system by the geology department.  The CMS evaluations are treated through Promine software to determine the dilution rate and the mining extraction factors on a stope by stope basis.  So  far, importation of  CMS into Gemcom has not  been successful; however, RPA is of the opinion that integration of CMS information into Gemcom would allow calculating tonnes and grades of mined-out excavations and the grade of dilution from the block model.  This should also facilitate the mine-mill reconciliation process.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-4
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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DENSITY DETERMINATIONS
 
RPA recommends carrying out density determinations on a regular basis on drill core from new zones such as 123 and 152, where mineral reserves may be developed, in the 117S Zone which has no density determinations, and at the East Mine.    RPA is also of the opinion that density data for several lenses that have fewer than 30 density determinations is statistically inadequate.
 
QUALITY CONTROL/QUALITY ASSURANCE PROGRAM – MINE LABORATORY
 
The mine laboratory has its own QA/QC program, including the analysis of one blank sample, one standard, and one duplicate in every 24 samples.  RPA recommends that results of blank and standard assays and types be shown on the assay certificates that are provided to the geology department.
 
PRINCIPAL MINE OPEN PIT – MINERAL RESOURCE CONVERSION
 
Additional definition diamond drilling should be planned to convert a significant portion of Indicated Resources into Measured Resources at the Principal Mine open pit. Because the strip ratio to expose the first ore benches is significant and because the mine life is relatively short, increasing Measured Resources and transferring some of the Inferred Resources into the Indicated category would have a net positive impact.  This would also better assess the potential of the low grade envelope.
 
Exploration drilling along the prospective Casa Berardi Fault may also result in additional tonnage, which would decrease the strip ratio.
 
CUT-OFF GRADE DETERMINATION – UNDERGROUND RESERVES
 
In RPA’s opinion, the cut-off grade is conservative.  Although it reflects the average mining cost in the present Life of Mine (LOM) plan, the gold price of $950 per oz is considerably below current long-term forecasts and/or the three-year trailing average price ($1050 per oz).  Increasing the gold price would result in a lower cut-off grade, and additional material would be likely to qualify as Mineral Reserves.
 
MINING
 
Since development requirements presently average approximately 22 m/day and should remain at this level for the next several years, RPA recommends completing the development schedule on a quarterly basis, since the mine life is relatively short. This would permit identifying potential problems and mitigating them in advance.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-5
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Given the recent adjustment in the mining approach as a result of ground conditions in the 113 Zone, RPA recommends that Aurizon staff complete a more detailed production plan, with individual stope blocks and the sequence indicated. This has been done in the past, with the stope location (level), tonnage, and sequence (quarter & year) identified in a longitudinal view. This would provide a more complete view of the mining horizons, how they relate to each other, and provide identification of potential problem areas, including development, production scheduling, and sequencing.
 
RPA also recommends preparation of a backfill schedule in the same format as the stoping schedule, which can be used as a planning tool to monitor the backfill program and to make any necessary adjustments.
 
EAST MINE OPEN PIT RESERVE ESTIMATION
 
BBA notes that pit optimization and cut-off grade inputs date back to 2007 or earlier, and recommends that they be updated to reflect current values.  Reserve quantities would not be expected to undergo any significant change as a result.
 
BBA recommends that advanced engineering studies for the East Mine open pit be carried out.
 
PRINCIPAL MINE OPEN PIT
 
BBA recommends that the Principal Zone open pit be advanced to a Feasibility Study (FS) including the following:
 
  
Carry out testwork to confirm metallurgy (ie. gold recovery).
  
Review the mining plan with respect to timing and length of the pre-production phase with the objective of reducing the pre-stripping cost.
  
Obtain updated budget pricing for contract mining.
  
Assess new regulations concerning the conservation and protection of the “eskers” systems.
  
Carry out a hydro-geological study with pumping tests.
 
BBA also recommends investigation of other opportunities at the Feasibility Study stage including underground mining versus open pit mining or a combination of both.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-6
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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ECONOMIC ANALYSIS
 
A pre-tax Cash Flow Projection has been generated from the LOM production schedule and capital and operating cost estimates, and is summarized in Table 1-3.  A summary of the key criteria is provided below.
 
ECONOMIC CRITERIA
 
  
Ten year mine life (2011-2020)
  
2,000 tonnes per day mining from underground.
  
2100 tonnes per day (avg.) supplemental ore from open pit mining (2016-2020), with an average of 2,700 tpd for 2017-2019
  
Mill recovery by zone, as indicated by testwork, averaging 88.4%.
  
Gold at refinery 99.9% payable.
  
Exchange rate US$1.00 = C$1.00.
  
Average Gold price: US$989 per ounce gold, based on annual prices used by Aurizon.
  
Net Revenue includes doré refining, transport, and insurance costs.
  
Mine life capital totals $293.2 million.
  
Average operating cost over the mine life is $93.77 per tonne milled.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-7
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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TABLE 1-3   PRE-TAX CASH FLOW SUMMARY
Aurizon Mines Ltd.-Casa Berardi Mine

 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-8
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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CASH FLOW ANALYSIS
 
Considering the Casa Berardi Mine on a stand-alone basis, the undiscounted pre-tax cash flow totals $252 million over the mine life.  Net Present Value (NPV) at a 5% discount rate is $205 million.
 
The Total Cash Cost is US$565 per ounce of gold.  The mine life capital unit cost is US$227 per ounce, for a Total Production Cost of US$792 per ounce of gold.  Average annual gold production over the LOM is 136,000 ounces per year.
 
At the current (March 17, 2011) gold price of US$1,398 per ounce and a C$/US$ exchange rate of 1, the undiscounted pre-tax cash flow totals $780 million, and the NPV at a 5% discount rate is $632 million.
 
The U.S. Securities & Exchange Commission requires that Mineral Reserves be evaluated at three-year trailing average metal prices.  The three-year trailing average gold price is US$1,050 per ounce.  At that price, the undiscounted pre-tax cash flow totals $330 million over the mine life, and the NPV at a 5% discount rate is $268 million.
 
SENSITIVITY
 
Key economic risks were examined by running cash flow sensitivities:
 
  
Gold price
  
Exchange rate
  
Head Grade
  
Metallurgical Recovery
  
Operating costs
  
Capital costs
 
Sensitivity of the NPV to the input variables has been calculated for various ranges of inputs based on their probable values. The ranges are  -20% to +20% for capital costs and exchange rate, -20% to +30% for operating costs, -30% to +40% for the head grade, -4% to +4% for recovery, and -9% to +40% for the gold price.  The sensitivities are shown in Figure 1-1 and Table 1-4.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-9
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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FIGURE 1-1   SENSITIVITY ANALYSIS
 
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-10
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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TABLE 1-4   SENSITIVITY ANALYSES
Aurizon Mines Ltd. – Casa Berardi Project
             
Parameter Variables
Units
Lower
Low
Base
High
Higher
Price
US$/oz
900
950
989
1,050
1,398
Exchange Rate
C$/US$
0.80
0.90
1.00
1.10
1.20
Head Grades
g/t
4.03
5.01
5.76
7.03
8.06
Recovery
%
84%
86%
88%
90%
92%
Operating Cost
C$/t
75
84
94
103
121
Capital Cost
C$ millions
235
264
293
323
352
 
NPV@5%
Units
Lower
Low
Base
High
Higher
Price
C$ millions
111.4
163.2
204.6
267.7
632.0
Exchange Rate
C$ millions
(3.3)
100.6
204.6
308.5
412.4
Head Grades
C$ millions
(107.2)
69.5
204.6
433.2
620.3
Recovery
C$ millions
158.0
181.3
204.6
227.9
251.1
Operating Cost
C$ millions
321.6
263.1
204.6
146.1
34.9
Capital Cost
C$ millions
254.1
229.3
204.6
179.8
155.0
 
Gold price, exchange rate, head grade, and recovery impact on the cash flow in the same proportion since they affect revenues in the same way.
 
The Project is most sensitive to external economic criteria related to the gold price (spot price and C$:US$ exchange rate).  Changes in the Canadian dollar will have a direct impact, since costs are almost entirely in C$ and revenues are in US$.
 
TECHNICAL SUMMARY
 
PROPERTY DESCRIPTION AND LOCATION
 
The Casa Berardi property is located in the Province of Quebec, approximately 95 km north of the town of La Sarre, in the James Bay municipality.
 
LAND TENURE
 
The property is composed of 299 contiguous designated claims (CDC), covering a total area of 14,801.88 ha, and two mining leases, BM 768 and BM 833, covering areas of 397.09 ha and 84.35 ha, respectively.  On the whole, the property totals 15,283.32 ha  Other legal titles, under the name of Aurizon, include the non-exclusive lease BNE 25938 (sand and gravel pit), the tailings lease 70218, and an additional five hectares of land contiguous to mining lease BM 768 for rock waste material storage.
 
The Casa Berardi claims are in good standing.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-11
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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INFRASTRUCTURE
 
Surface infrastructure at the East Mine includes a crushing plant, a 2,200 tpd ore processing plant, a tailings pond, and a two-storey administrative building with offices, shops, and a warehouse.  Underground infrastructure includes a 380 m deep shaft, a decline, and a series of ramp-connected levels.
 
Surface infrastructure at the West Mine includes a backfill plant; a dry house with offices, shops, and warehouses; core racks; and a gate house.  Underground infrastructure includes a decline and a 760 m deep shaft.
 
There is no infrastructure related to the Principal Mine.  A five-kilometre track drift joins the East and West mines and provides access to the Principal Mine.
 
HISTORY
 
Before 1974, the Casa Berardi area was explored for base metal and iron formations.  In 1974, the first 13 claims were staked by Inco Gold.  The discovery hole was drilled in 1981, and 590 additional claims were staked.
 
Inco Gold and Golden Knight Resources Inc. (Golden Knight) formed a joint venture to operate the mine.  September 12, 1988 marked the official opening of the East Mine, and the commercial production of the West Mine began in 1990. The total combined production for the period from 1988 to 1997 was 3.5 million tonnes at an average grade of 7.1 g/t Au.  The total gold recovered during the operating years was 688,400 ounces, with a mill gold recovery rate averaging 87%.
 
In 1991, TVX acquired Inco Gold’s 60% interest in the Mine.  In 1994, TVX and Golden Knight purchased the remaining interest in the Domex claim block, a part of the Principal (Main) Zone between the West Mine and East Mine, from Teck Corporation.
 
In January 1997, TVX announced the closure of the East Mine due to ground control problems. Two months later, the West Mine was closed.
 
In September 1998, following the due diligence work, Aurizon signed an agreement and completed the acquisition of all Casa Berardi assets and mining rights.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-12
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Following the acquisition of Casa Berardi, Aurizon completed exploration diamond drilling programs, feasibility studies, underground development, shaft sinking, and construction.
 
In November 2006, Aurizon completed construction and development at the West Mine area and commenced underground mining and milling operations, achieving commercial production as of May 1, 2007.  From November 2006 to December 31, 2010, a total of 2,680,000 tonnes at an average grade of 8 g/t have been milled at Casa Berardi for a total gold output of 636,400 gold ounces recovered.  Table 1-5 lists Aurizon production by year.
 
TABLE 1-5   CASA BERARDI ANNUAL PRODUCTION
Aurizon Mines Ltd. – Casa Berardi Mine
         
Year
Tonnes
Grade (g/t Au)
Ounces Recovered
Recovery (%)
2006
68,481
8.58
17,731
93.9
2007
545,259
9.78
159,469
93.0
2008
654,398
8.16
158,830
92.5
2009
688,677
7.77
159,261
92.6
2010
722,746
6.76
141,116
89.8
Total
2,679,562
8.02
636,408
92.1
 
GEOLOGY
 
The Mine is located in the northern part of the Abitibi Subprovince, a subdivision of the Superior Province, the Archean core of the Canadian Shield.  The Mine area belongs to the Harricana-Turgeon Belt, which is part of the North Volcanic Zone.
 
More specifically, the regional geology is characterized by a mixed assemblage of mafic volcanics, flysch-type sedimentary iron formations, and graphitic mudrocks that are limited by a large granodioritic to granitic batholith.
 
Structurally, the property is enclosed in the Casa Berardi Tectonic Zone, a 15 km wide corridor that can be traced over 200 km.  A network of east-west to east-southeast and west-northwest ductile high strain zones mainly follows the lithological contacts.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-13
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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The Casa Berardi Fault is defined by a stratigraphic contact between a graphite-rich sediment sequence, northern continuous mafic fragmentary volcanic units, and a southern polymictic conglomerate unit.  On the north side of the fault, a thick sequence of very homogeneous wacke and volcanites is observed.  The fault strikes east-west and dips 80° to the south.  Inside the fault zone, ductile deformation intensity is heterogeneous.  Foliation is uniform in larger competent rock units, such as mafic volcanites and conglomerates.
 
The Casa Berardi gold deposit can be classified as an Archean sedimentary-hosted lode gold deposit.  Gold mainly occurs south of the Casa Berardi Fault, and sometimes is found on both sides of the fault.  Mineralization is found in large low-sulphide quartz veins and low-grade stockworks.  Gold is fine grained.
Mineralized zones of the West Mine, such as Lower Inter, Inter, and North West, show weak or no plunge, a moderate south dip (30°), and have extensions which branch off from the fault at 130°.  On the east side of the mine, the mineralized zones, such as 111 and 113 zones, show a steeper plunge (>50°) with a dip varying between 70° south and 70° north, similar to the Casa Berardi Fault.
 
The 113 Zone is a 20 m to 70 m wide mineralized corridor, with an east-west strike, subvertical, adjacent to the Casa Berardi Fault.  The width of the zone along holes varies from five metres to 20 m.  The zone extends vertically for over 650 m, the top being at the 250 m level.  Lateral extension decreases from 300 m at the 600 m level to 150 m at the 700 m level.
 
In plan view, the South West and South East zones can be interpreted as a dome which is cut by the South Fault and by the subsidiary Auxiliary Fault.  The mineralized system extends 200 m laterally and 300 m along dip, from surface to the 300 m level.
 
The Lower Inter Zone is located between the 375 m and 610 m levels, dips at 25° to 45° south, and plunges to the west at 15°.  It is controlled by the Casa Berardi and Lower Inter faults.  The Casa Berardi Fault dips steeply north, while the Lower Inter Fault dips 40° to 45° to the south, joining with the South Fault.  Thickness varies from four metres to 50 m, with the maximum observed just below the contact of the two faults, and thinner sections observed down-dip along the Lower Inter Fault.  The mineralized zone extends for 200 m.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-14
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MINERAL RESOURCE ESTIMATES
 
Mineral Resource estimates for the Mine, inclusive of Mineral Reserves, are summarized in Table 1-6.  Total Measured and Indicated Resources, which include the portion of undiluted resources that have been converted into Mineral Reserves, are estimated at 11.78 million tonnes at 6.39 g/t Au containing 2.42 million gold ounces.  Inferred Resources total 3.98 million tonnes at 5.84 g/t Au for 747,900 gold ounces.
 
Mineral Resources are classified based on the density of drill hole data and continuity of the auriferous zones.  The classification complies with the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves as of December 11, 2005 (CIM definitions).  The classification of Mineral Resources is guided by the drill hole spacing, which ranges from 15 m to 50 m, and by the ranges of variograms, which are between 10 m and 50 m, and is based on the distance of drill hole composites to block centres.
 
Outlines were created around blocks that were estimated based on drill hole composites.  The blocks were classified as follows:
 
  
Measured Resources: blocks inside the polygon + local development that confirms the continuity of mineralization.
 
  
Indicated Resources: blocks inside the polygon.
 
  
Inferred Resources: blocks outside the polygon.
 
Each block of the model is therefore classified as Measured, Indicated, or Inferred Resource.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-15
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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TABLE 1-6   MINERAL RESOURCES INCLUSIVE OF MINERAL RESERVES
Aurizon Mines Ltd. – Casa Berardi Mine
 
Classification
Location - Zone
Tonnes
Au g/t
Ounces
Measured
     
West Mine – 113
865,000
9.31
259,100
West Mine - 113-5
10,000
5.70
1,900
West Mine - 115-1
141,000
13.71
62,100
West Mine - 115-2
34,000
12.19
13,200
West Mine - Lower Inter
948,000
9.37
285,700
West Mine - North West
41,000
6.71
8,800
Principal Mine- In Pit
87,000
7.35
20,400
Principal Mine– UG
153,000
7.31
36,000
East Mine Mine - In Pit
650,000
4.10
85,700
East Mine Mine - UG
299,000
6.84
65,800
Total Measured
3,229,000
8.07
837,700
 
Indicated
     
West Mine - South West
365,000
4.80
56,400
West Mine - Lower Inter
28,000
12.17
11,000
West Mine - Inter
124,000
4.43
17,700
West Mine - 109
135,000
6.37
27,600
West Mine - 111
84,000
5.81
15,600
West Mine - 113
387,000
11.61
144,500
West Mine – 113-S4
245,000
5.47
43,000
West Mine – 113-5
2,000
6.03
400
West Mine – 115-2
4,000
10.31
1,300
Principal Mine - 117S
17,000
8.24
4,500
Principal Mine - 118
1,436,000
6.69
308,900
Principal Mine -123
578,000
8.01
148,800
Principal Mine – Open Pit
3,003,000
3.92
378,900
Principal Mine - Underground
1,257,000
7.38
298,500
East Mine - Crown Pillar
594,000
3.21
61,300
East Mine - Underground
138,000
8.20
36,400
East Mine - 152
125,000
5.78
23,200
Low Grade Development
31,000
3.90
3,900
Total Indicated
8,551,000
5.75
1,581,600
       
Total Meas. + Ind.
11,780,000
6.39
2,419,300
 
Inferred
     
West Mine - 104
115,000
6.62
24,500
West Mine – 113 S4
15,000
5.79
2,700
Principal - 118
369,000
7.93
94,200
Principal - 123S
909,000
8.01
234,100
Principal - Crown Pillar
655,000
2.53
53,200
Principal - Underground
628,000
6.57
132,700
East Mine - Crown Pillar
310,000
3.03
30,200
East Mine - Underground
156,000
9.10
45,600
East Mine - 152
13,000
8.22
3,500
East Mine – Cherty
225,000
6.80
49,300
East Mine – 160 – Open Pit
131,000
1.68
7,100
East Mine – 160 - Underground
455,000
4.84
70,800
Total Inferred
3,981,000
5.84
747,900
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-16
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Notes:
1.  
CIM definitions were followed for Mineral Resources.
2.  
Underground Mineral Resources were estimated by RPA.
3.  
Open Pit Mineral Resources were estimated by BBA.
4.  
Mineral Resources are estimated at cut-off grades of:
  
4 g/t Au for the West Mine, Principal Mine Underground and East Mine.
  
3 g/t Au for South West, Inter and 104 zones in the West Mine.  Those zones were estimated by Aurizon in 2000 using 2D polygons on longitudinal sections and reviewed by RPA in 2005.
  
1.30 g/t Au for the East Mine – Open Pit.
  
0.50 g/t Au for the Principal Mine
  
0.47 g/tor 160 Zone – Open Pit.
5.  
Mineral Resources are estimated using an average long-term gold price of US$950 per ounce, and a US$/C$ exchange rate of 1:1.00.
6.  
Minimum mining widths of two to three metres were used.
7.  
Mineral Resources are exclusive of Mineral Reserves.
8.  
Totals may not represent the sum of the parts due to rounding.
 
Except for the Inter and South West zones, which are 2D polygonal estimates prepared by TVX and Aurizon, and the East Mine Crown Pillar, which was estimated by Geostat System International Inc. (Geostat), and the Principal Mine, which was estimated by BBA, the resource estimates for the different mineralized zones at Casa Berardi have been carried out by RPA, assisted by mine staff, using block model grade interpolation techniques.  The current Mineral Resource estimate is based on the mine drill hole database and geological interpretation results.  In RPA’s opinion, the estimates are valid and representative of the geological context.
 
Estimation Parameters
Density was evaluated by zone, ranging from 2.7 t/m3 to 2.9 t/m3.  Minimum mining widths vary between two and three metres.  RPA believes that the impact of variable widths on resource figures is negligible.
 
MINERAL RESERVE ESTIMATES
 
Underground Mineral Reserves are estimated for the 113 Zone, Lower Inter Zone, and a number of smaller zones.  Open Pit Mineral Reserves are estimated for the Principal Mine and for the East Mine.  These portions of the total Mineral Resources have the best potential for economic extraction due to size, grade, and proximity to existing workings and infrastructure.  Mineral Reserves are classified based on the transfer of Measured Resources to Proven Reserves, and Indicated Resources to Probable Reserves.  Inferred Resources are not used in the reserve estimation.  Mineral Reserves are presented in Table 1-7.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-17
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TABLE 1-7   MINERAL RESERVES BY ZONE
Aurizon Mines Ltd. – Casa Berardi Mine
 
Zone
Tonnes
Grade (g/t Au)
Contained Ounces
Underground - Proven
     
113
587,000
8.85
167,000
115-1
147,000
11.42
54,100
Lower Inter
910,000
7.97
233,200
North West
42,000
5.81
7,900
East Mine
88,000
6.27
17,800
Total Underground - Proven
1,775,000
8.41
480,000
       
Underground - Probable
     
113
402,000
9.88
127,800
Lower Inter
30,000
8.18
7,900
South West
72,000
4.64
10,700
109
114,000
5.71
21,000
111
37,000
5.44
6,400
117S
19,000
6.96
4,300
118
1,021,000
6.36
208,600
123S
493,000
7.42
117,700
East Mine
63,000
8.20
16,500
Low-Grade Dev.
31,000
3.90
3,900
Total Underground - Probable
2,282,000
7.15
524,900
Total Underground Proven + Probable
4,057,000
7.70
1,005,000
       
Open Pit - Proven
     
Principal Mine
89,000
6.26
18,000
East Mine
407,000
4.16
54,400
Total Open Pit - Proven
496,000
4.54
72,400
       
Open Pit - Probable
     
Principal
3,072,000
3.57
352,400
East Mine
228,000
3.66
26,800
Total Open Pit - Probable
3,300,000
3.57
379,200
       
Total Open Pit Proven + Probable
3,796,000
3.70
451,600
       
Grand Total Proven + Probable
7,854,000
5.77
1,456,600
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-18
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Notes:
1.  
CIM definitions were followed for Mineral Reserves.
2.  
Underground Mineral Reserves were audited by RPA.
3.  
Open Pit Mineral Reserves were estimated by BBA.
4.  
Mineral Reserves are estimated at a cut-off grade of 4.15 g/t based on long term operating costs and gold prices for most of the underground zones in the West Mine; except for zones 118 and 123S, where cut off grades of 4.8 and 5.4 g/t, respectively, were applied based on long term operating costs.  For the East Mine crown pillar and for Principal open pit, Mineral Reserves are estimated at a cut-off grade of 1.2 and 0.5 g/t respectively based on long term operating costs and gold prices.
5.  
Mineral Reserves are estimated using an average long-term gold price of US$950 per ounce and a US$/C$ exchange rate of 1:1.00.
6.  
A minimum mining width of three metres was used.
7.  
Totals may not represent the sum of the parts due to rounding.
 
Underground Mineral Reserves were estimated for a longhole open stoping mining method without pillars, with stopes mined in a primary-secondary sequence.  Tonnes and grades were calculated for each stope, including ore development inside the stope outline.  Dilution quantities were estimated for each stope, including hanging wall/footwall sloughage and backfill dilution, where applicable.  Dilution averages 21%.  Extraction was estimated at 90% for primary stopes, and 95% for secondary stopes.
 
East Mine open pit reserves are contained in the crown pillar left behind by previous mining.  Open pit optimization and detailed design were updated in November 2008, by BBA, after an in-fill drilling campaign was completed.  A dilution factor of 20% was applied to open pit mineralization within the pit design, and above the 1.2 g/t Au cut-off grade. The overall stripping ratio of 17:1 includes approximately 7.4 million tonnes of overburden and 3.6 million tonnes of waste. Parameters have changed since 2008, and BBA recommends updating the design as part of a feasibility study.
 
The reserves for the Principal Zone open pit were prepared by BBA and presented in a PFS completed in February, 2011. The mineral reserve estimates included a dilution factor of 10% at zero grade, and an ore loss of 7%. The mineral reserves were based on a cut-off grade of 0.50 g/t Au.
 
TONNAGE AND GRADE RECONCILATION: MINERAL RESERVES VS. MILL (STOPE BY STOPE ANALYSIS)
 
Tonnage and grade reconciliation between Mineral Reserves and mill production was carried out on a stope by stope basis and is presented in Table 1-8.  Tonnes, grades, and gold ounces of block model estimates are compared to mill production.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-19
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Because the block models are not updated on a regular basis, the stope grades are estimated using the nearest neighbour method for all of the stopes for mine planning and some of the stopes for Mineral Reserve reporting.  Tonnes, grades, and gold ounces of nearest neighbour estimates are also compared to mill production. Volumes are estimated from 3D solids in Gemcom.  To obtain the grade of a particular stope, only drill hole intercepts that are found within that stope are used, instead of using all surrounding drill hole samples (composites) no matter where the composite is located, inside or outside a stope.
 
Reconciliation results indicate that 3D block modelling provides a better estimate than the nearest neighbour method.  RPA recommends that the nearest neighbour grade interpolation method be discontinued, and a regularly updated Gemcom block model be used.  Grade interpolation based on composites should be used not only for long-term Mineral Resource estimation, but also on a day-to-day basis.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-20
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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TABLE 1-8   MINE-MILL RECONCILIATION - STOPES
Aurizon Mines Ltd. – Casa Berardi Mine
         
 
2008
2009
2010
Cumulative
Block Model
       
Tonnes
560,625
550,629
533,530
1,644,784
Au g/t
8.81
7.99
7.38
8.07
Gold Ounces
158,877
141,381
126,633
426,890
         
Nearest Neighbour
       
Tonnes
605,287
515,557
520,529
1,641,373
Au g/t
8.23
7.42
7.22
7.66
Gold Ounces
160,220
123,002
120,867
404,089
         
Mill
       
Tonnes
552,369
519,664
580,954
1,653,564
Au g/t
8.37
8.36
7.16
7.94
Gold Ounces
148,716
139,653
133,727
422,200
         
Block Model/Mill ratios
       
Tonnes
1.01
1.06
0.92
0.99
Au g/t
1.05
0.96
1.03
1.02
Gold Ounces
1.07
1.01
0.95
1.01
         
Nearest Neighbour/Mill ratios
       
Tonnes
1.10
0.99
0.90
0.99
Au g/t
0.98
0.89
1.01
0.96
Gold Ounces
1.08
0.88
0.90
0.96
 
MINING
 
Current reserves at Casa Berardi comprise nine zones at the West Mine, spread over a moderate horizontal distance from each other and located at different elevations, one zone at the Principal Mine, and open pit at the Principal Mine, and open pit and underground areas at the East Mine.  The 113 Zone, Lower Inter Zone, 118 Zone, and East Mine form the bulk of the deposit tonnage.  The zones are of varying thickness, ranging from over 50 m to less than three metres, which is the minimum mining width.  Most of the hanging walls are subvertical (55º to 85º) and exhibit similar wall characteristics with the exception of the Lower Inter Zone, which in a number of places has relatively shallow hanging wall configurations (less than 45º).
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-21
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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A transverse blasthole open stoping mining method was selected for the Casa Berardi Mine to provide the desired production rate.  Timely supply of both cemented and unconsolidated backfill plays a crucial role in controlling dilution and maintaining a short stoping cycle.
 
Stopes are nominally 15 m long by 20 m high (floor to floor), oriented in a transverse manner to the strike of the ore, and alternating in a primary and secondary extraction sequence.  Overcut and undercut drifts are driven to provide access to the top and bottom of the stope.  Cable bolts are installed in the hanging wall.  Ring drilling takes place from the overcut drift, using a production 75 mm top hammer longhole drill.  Forty-two inch diameter raise bore holes are used to create a free face into which the blastholes break.
 
After blasting, the broken ore is removed from the stope through the undercut drift, using a remote-controlled scooptram, and hauled to an ore pass.  When mining is completed, the stope is backfilled from the overcut, with cemented rock fill for primary stopes and unconsolidated waste rock for secondary stopes.  Stope sequencing generally proceeds from the bottom of a zone to the top.
 
Underground work is carried out by contractors.
 
GROUND STABILITY
 
A history of ground instability and related incidents during pre-Aurizon operations points to the importance of addressing rock mechanics issues for mining at Casa Berardi.  Ground instability is mainly restricted to the Casa Berardi Fault system, where graphitic fault rocks comprise the hanging wall of the ore zones.  The rock environment south of the Casa Berardi Fault is composed of relatively weak sediments with a frequent occurrence of schistose and graphitic rocks exhibiting weak contacts.  It is prone to develop wedge forms, due to frequent unstable joint formations, flat-lying gouge, or graphite-filled joints above mine openings.
 
Since Aurizon reopened the mine, ground control incidents have been minor for the most part, mainly involving sloughing in the graphitic fault at various locations.  One incident in January 2007 involved an unravelling stope back, when backfill was delayed due to commissioning problems at the cemented rock fill (CRF) plant.  In that case and other, smaller incidents, sloughing has been controlled through application of shotcrete, or by backfilling with cemented rock fill from levels above.  Minor sloughing incidents have been on the decline, due to changes in development techniques near the graphitic fault.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-22
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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A recent incident in the 113 Zone where the back came down after a stope had been blasted and left open for only a short period (5 days), has prompted Aurizon staff to reassess the mining method in this zone.  Presently, Aurizon is reviewing the application of an Undercut Longhole Method with Delayed CRF backfill. This would permit mining under an “engineered” back permitting better conditions, albeit at a higher mining cost.
 
The use of a modified Avoca method was studied and tested in three stopes in the North West Zone in the fall of 2010. In the present LOM plan there are no areas that were targeted for use of this method.
 
The use of paste backfill is also being evaluated at present to establish if any economies can be had in converting to this type of system.
 
RPA concurs with all of the efforts put forth by Aurizon personnel to improve productivity while maintaining an excellent safety record.
 
PROCESSING
 
Ore is hauled by truck from the West Mine headframe complex to the crusher dump pocket.  A reciprocating feeder under the dump pocket meters the ore into a jaw crusher.  The ore is crushed to approximately 5.5" (140 mm), and fed to a semi-autogenous (SAG) mill.
 
The SAG mill operates in closed circuit with a sizing screen.  The screen oversize material is returned to the SAG mill for further reduction, and the screen undersize is sent to primary and secondary cyclones.
 
Cyclone underflow is diverted and equally split to two parallel gravity circuits.  Each circuit is comprised of a vibrating screen and a Knelson gravity concentrator.  The gravity concentrates are leached in an intensive cyanidation reactor (Inline Leach Reactor, or ILR).  The pregnant solution from the ILR unit reports to the surge tank and to the electrowinning circuit for gold recovery, and the tail reports to the discharge ball mill pump box.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-23
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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The #1 Carbon-In-Leach (CIL) tank overflows into the #2 CIL tank and subsequently through the #3, #4, #5, #6, and #7 CIL tanks.  Overflow from the #7 CIL tank feeds a carbon safety screen to collect any fugitive carbon.  Oversize from the safety screen is collected in a collection bin and recycled back to the CIL circuit.  The safety screen underflow is discharged into the effluent treatment tank for cyanide destruction or by-pass to the tailings pump box.  The tailings pump box pumps the material to the tailings pond.
 
Samplers cut representative CIL feed and tailings samples.  Process air is added to each CIL tank.  Cyanide solution is added to the first CIL tank as required.
 
Regenerated and fresh carbon is supplied by batch to the #7 CIL tank and advanced from tank to tank counter current to the slurry flow.  Loaded carbon from the #1 CIL tank is pumped to a loaded carbon wash screen to remove any residual cyanide solution.  Oversize carbon from the loaded carbon wash screen flows by gravity to a loaded carbon surge bin.  The loaded carbon screen undersize returns to the # 1 or #2 CIL tank.
 
Loaded carbon from the surge bin is transferred to the stripping vessel.  Hot barren solution is pumped through the stripping vessel to remove the gold from the carbon.  The solution exiting the top of the stripping vessel is defined as a pregnant solution containing gold in solution.  To maintain the required volume and strength of the barren solution entering the stripping vessel, caustic and cyanide are added as required.
 
After stripping, the carbon is transferred to a regeneration circuit where organic contaminants are removed from the carbon by heat in a carbon regeneration kiln.  Carbon is discharged from the kiln into a quench tank.  Quenched carbon is educted to the sizing screen.  Fresh carbon from an attrition tank is also fed to the sizing screen.
 
Regenerated carbon is pumped to the #7 CIL tank to maintain the required carbon loading in the CIL circuit.
 
Pregnant solution from the CIL circuit, along with pregnant solution from the ILR unit, is fed to two electrowinning cells for gold removal.  The solution exiting the electrowinning cells is returned to the process.  The gold extracted from the solution is deposited on cathode plates.  The gold is removed from the plates, filtered, and smelted in an induction furnace.  The refined gold is poured into gold bullion moulds to form “doré” bars.  These bars are shipped to a refiner for further upgrading.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page  1-24
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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LIFE OF MINE PLAN
 
The mine and mill complex were designed to produce and process 803,000 tonnes of ore per year at a rate of 2,200 tpd.  Prevailing ground conditions at Casa Berardi constrain stope sequencing and currently limit underground production to 730,000 tonnes per year (2,000 tpd).  The current LOM plan forecasts a steady 2,000 tpd pace, and increases to 3,000 tpd (2016-2020) from the Principal Zone open pit, followed by   the East Mine to supplement mill feed from underground in later years when the underground reserves diminish.
 
Although Aurizon has not achieved production of 730,000 tonnes per year in the past (see Table 1-5, above), production rates have been steadily increasing, and the mine   produced 722,746 tonnes in 2010.  In RPA’s opinion, the planned production rate should be achievable.
 
The LOM plan totals 7.96 million tonnes of ore grading 5.73 g/t Au, to be mined over ten years (2011 to 2020) from the 113 Zone, 118 Zone, Lower Inter Zone, and six smaller West Mine zones, plus open pit from the Principal Zone as well as open pit and underground production from the East Mine.
 
CAPITAL AND OPERATING COST ESTIMATES
 
LOM capital costs of $293.2 million, summarized in Table 1-9, include contractor mine development, mine infrastructure, open pit costs, equipment costs, tailings management, repayment of government loans, and mine reclamation and closure costs.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-25
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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TABLE 1-9   LOM CAPITAL COSTS
Aurizon Mines Ltd. – Casa Berardi Mine
 
 
Million $
Item
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Total
UG Mine Development
20.9
20.0
16.9
13.1
1.1
.1
-
-
-
-
72.2
Mining Infrastructure
6.7
5.7
4.5
3.3
.7
.3
.06
.06
.06
-
21.3
Open Pit
-
-
-
-
58.5
25.4
-
6.2
9.7
2.3
102.2
Equipment
8.3
9.1
2.5
1.7
.8
.4
       
22.8
Tailings
.75
1.0
1.0
1.0
1.0
1.1
1.3
1.3
1.3
.3
9.9
Exploration (Dev. & D.D.)
13.4
5.2
4.6
2.3
1.1
         
26.6
Projects
14.4
17.2
               
31.7
Closure
.42
1.2
2.1
2.9
           
6.6
Total
64.9
59.5
31.5
24.2
63.4
27.3
1.3
7.6
11.1
2.6
293.2
 
Operating costs average $74 million per year.  Unit operating costs are presented in Table 1-10:
 
TABLE 1-10   UNIT OPERATING COSTS
Aurizon Mines Ltd. – Casa Berardi Mine
     
Item
Units
LOMP Average
Underground Mining
$/t ug ore
56.20
Open Pit Mining
$/t moved
2.06
 
$/t op ore
33.12
Mining - Average
$/t milled
45.04
Mill
$/t milled
18.77
Administration
$/t milled
 
Total
$/t milled
93.77
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 1-26
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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2 INTRODUCTION
 
Roscoe Postle Associates Inc. (RPA) and BBA Inc. (BBA) were retained by Aurizon Mines Ltd. (Aurizon) to prepare an independent Technical Report on the Casa Berardi Mine (the Mine), in the Abitibi region of Quebec.  The purpose of this report is to support public disclosure of Mineral Resource and Mineral Reserve estimates, as of December 31, 2010.  This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects.
 
Aurizon is a Canadian gold mining company based in Vancouver, British Columbia, with an administrative office in Val d'Or, Quebec.  Aurizon owns 100% of the Casa Berardi property.
 
The Casa Berardi gold deposits are located along a five-kilometre East-West mineralized corridor.  They include the East, West, and Principal Mines.  Prior to Aurizon’s acquisition of the mine, production spanned ten years, 1988 to 1997, at first by Inco Gold Ltd. (Inco Gold) and then by TVX Gold Inc. (TVX).  During this period, a total of 3.5 million tonnes of ore was mined and 688,400 ounces of gold were recovered in the ore processing plant.
 
In September 1998, Aurizon acquired 100% of Casa Berardi's assets from TVX.  Aurizon reopened the mine in November 2006, achieving commercial production on May 1, 2007.  Currently, the major assets and facilities associated with the Mine are:
 
  
West Mine Mineral Reserves, including Lower Inter, South West, North West, 109, 111, 113, 115, 117S, and 118 Zones.
 
  
East Mine Mineral Reserves in the East Mine open pit and underground.
 
  
Principal Mine Mineral Reserves in the Principal Mine open pit.
 
  
Additional Mineral Resources associated with the West Mine (Inter, 104, 123S), Principal Mine (Open Pit and Underground), and East Mine (Underground).
 
  
West Mine infrastructure, including surface maintenance facilities, backfill plant, mine dry, a decline for underground access, and a shaft down to a vertical depth of 760 m.
 
  
East Mine infrastructure, including a crushing plant, an ore processing plant, a building complex with warehouse, maintenance facilities, a mine dry and offices; an underground decline, a shaft down to a vertical depth of 380 m, and a series of ramp-connected levels.
 
●  
Facilities providing basic infrastructure to the mine, including electric power, ventilation, heat, water treatment and supply, and sewage treatment.
 
  
Tailings impoundment facilities.
 
  
Access by highway and gravel roads.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 2-1
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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SOURCES OF INFORMATION
 
Mr. Bernard Salmon, Eng., of RPA, visited the mine on many occasions since 2005, most recently and especially in 2010-2011 for this report (September 20 to 22, November 30 to December 2, December 6 to  9, and January 17 to 19).  Mr. Normand Lecuyer, P.Eng., ing., from RPA, visited the mine in September 2010, accompanied by Mr. Salmon.  Mr.Patrice Live, Eng., of BBA, visited the property on October 30, 2009 for general acquaintance with the project setting and verification of a potential dump site as well as general infrastructure locations.
 
RPA has carried out block model updates and assisted mine staff in the use of Gemcom software.  RPA also inspected the underground workings during the September site visit.
 
The key Aurizon contacts during RPA’s visits were:
 
  
Chief-Geologist Jeannot Boutin
  
Principal Mine Geologist Sylvain Picard
  
Technical Services Superintendant François Girard
  
Chief Mine Engineer Richard Lavallée
  
Senior Mine Engineer Daniel Côté
  
Senior Rock Mechanics Engineer André Harvey
  
Senior Exploration Geologist Réal Parent
  
Resource Geologist Alain Quenneville
  
Geology Technician Nathalie Brissette
  
Mill Superintendant Réjean Ricard
  
Environment Coordinator Lucienne Anctil
 
Property review and preparation of the Technical Report was carried out under the direction of Bernard Salmon.  Mineral Resources were estimated and/or reviewed by Bernard Salmon, ing., assisted by Aurizon personnel, except for 2D polygonal estimates.  Underground Mineral Reserves and mining aspects of the operation were reviewed and audited by Normand Lecuyer, P.Eng., ing. Open Pit Mineral Reserves have been estimated by Patrice Live, Eng., as part of prefeasibility studies carried out for Aurizon.
 
SGS Geostat (formerly Geostast System International Inc. (Geostat)) and BBA provided reports on the East Mine crown pillar, and BBA provided reports on the Principal Mine.  Mr. G. McIsaac provided reports on the East Mine underground.  The Casa Berardi Life of Mine (LOM) plan was provided by Richard Lavallée.
 
The documentation reviewed, and other sources of information, are listed at the end of this report in Section 22, References.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 2-2
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Units of measurement used in this report conform to the SI (metric) system.  All currency in this report is quoted in Canadian dollars (C$) unless otherwise noted.
 
LIST OF ABBREVIATIONS
 
m
micron
 
km2
square kilometre
°C
degree Celsius
 
kPa
kilopascal
°F
degree Fahrenheit
 
kVA
kilovolt-amperes
mg
microgram
 
kW
kilowatt
A
ampere
 
kWh
kilowatt-hour
a
annum
 
L
litre
m3/h
cubic metres per hour
 
L/s
litres per second
CFM
cubic feet per minute
 
m
metre
bbl
barrels
 
M
mega (million)
Btu
British thermal units
 
m2
square metre
C$
Canadian dollars
 
m3
cubic metre
cal
calorie
 
min
minute
cm
centimetre
 
MASL
metres above sea level
cm2
square centimetre
 
mm
millimetre
d
day
 
mph
miles per hour
dia.
diameter
 
MVA
megavolt-amperes
dmt
dry metric tonne
 
MW
megawatt
dwt
dead-weight ton
 
MWh
megawatt-hour
ft
foot
 
m3/h
cubic metres per hour
ft/s
foot per second
 
opt, oz/st
ounce per short ton
ft2
square foot
 
oz
Troy ounce (31.1035g)
ft3
cubic foot
 
oz/dmt
ounce per dry metric tonne
g
gram
 
ppm
part per million
G
giga (billion)
 
psia
pound per square inch absolute
Gal
Imperial gallon
 
psig
pound per square inch gauge
g/L
gram per litre
 
RL
relative elevation
g/t
gram per tonne
 
s
Second
gpm
Imperial gallons per minute
 
st
short ton
gr/ft3
grain per cubic foot
 
stpa
short ton per year
gr/m3
grain per cubic metre
 
stpd
short ton per day
hr
hour
 
t
metric tonne
ha
hectare
 
tpa
metric tonne per year
hp
horsepower
 
tpd
metric tonne per day
in
inch
 
US$
United States dollar
in2
square inch
 
USg
United States gallon
J
joule
 
USgpm
US gallon per minute
k
kilo (thousand)
 
V
volt
kcal
kilocalorie
 
W
watt
kg
kilogram
 
wmt
wet metric tonne
km
kilometre
 
yd3
cubic yard
km/h
kilometre per hour
 
yr
year
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 2-3
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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3 RELIANCE ON OTHER EXPERTS
 
This report has been prepared by Roscoe Postle Associates Inc. (RPA) and BBA Inc. (BBA) for Aurizon Mines Ltd. (Aurizon).  The information, conclusions, opinions, and estimates contained herein are based on:
 
  
Information available to RPA and to BBA at the time of preparation of this report,
 
  
Assumptions, conditions, and qualifications as set forth in this report, and
 
  
Data, reports, and other information supplied by Aurizon and other third party sources, the reliability and integrity of which have satisfied the authors of this report.
 
For the purpose of this report, RPA relied on ownership information provided by Aurizon.  RPA has not researched property title or mineral rights for the Casa Berardi Mine and expresses no opinion as to the ownership status of the property.
 
RPA has relied on Aurizon for guidance on applicable taxes, royalties, and other government levies or interests, applicable to revenue or income from the Casa Berardi Mine.
 
Except for the purposes legislated under provincial securities laws, any use of this report by any third party is at that party’s sole risk.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 3-1
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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4 PROPERTY DESCRIPTION AND LOCATION
 
The Casa Berardi property is located in the Province of Quebec, approximately 95 km north of the town of La Sarre, in the James Bay municipality (Figure 4-1).  The mine site is located at longitude 79° 16' 46.4" and latitude 49° 33' 56.7".  The property is limited to the west by the Quebec/Ontario border and covers parts of Casa Berardi, Dieppe, Raymond, D'estrees, and Puiseaux townships.
 
The Casa Berardi property extends east-west for more than 37 km and reaches 3.5 km in width.  Even though the overall property covers several thousand hectares, the immediate area of the Mine covers only a few hectares (Figure 4-2).  The Casa Berardi gold deposits are located along a five-kilometre east-west mineralized corridor.  They include the East and West mines, and the Principal Zone (Figure 4-3). 
 
LAND TENURE
 
The property is composed of 299 contiguous designated claims (CDC), covering a total area of 14,801.88 ha, and two mining leases, BM 768 and BM 833, covering areas of 397.09 ha and 84.35 ha, respectively.  On the whole, the property totals 15,283.32 ha (Table 25-1, Appendix 1).  Other legal titles, under the name of Aurizon, include non-exclusive lease BNE 25938 (sand and gravel pit), tailings lease 70218, and an additional five hectares of land contiguous to mining lease BM 768 for rock waste material storage.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 4-1
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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FIGURE 4-1   LOCATION MAP
 
 
 

 

 

   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 4-2
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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FIGURE 4-2   PROPERTY LOCATION MAP
 
 

 

 

 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 4-3
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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FIGURE 4-3   COMPOSITE LONGITUDINAL SECTION
 
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 4-4
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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According to Quebec's Mining Act, renewal of claims takes place every two years, with cost depending on area.  The claims and mining leases were renewed for a total amount of approximately $37,014 (Table 25-1, Appendix 1).  The Casa Berardi claims are in good standing.
 
The Mining Act stipulates that titleholders are required to conduct statutory work during the validity period of the claim.  Each claim or lease shows excess spending amounts for required works.  These amounts are put to the credit of the claims and are expected to cover several years in most cases.  The Casa Berardi exploration property has excess work credits of approximately $12,860,308.
 
The school taxes to the James Bay School Board and the Lac-Abitibi School Board, totalling $22,416.31, have been paid for 2010.
 
The municipal taxes to the James Bay Municipality, the Villebois Municipality, the Dupuy Municipality and the La Sarre Municipality, totalling $115,677.45, have been paid for 2010.
 
As of July 4, 2002, Aurizon had purchased all rights, title, and interest of TVX in the net smelter return (NSR) royalty that had previously been granted by Aurizon as partial consideration for the payment of the purchase price for the Casa Berardi property on April 30, 1998.
 
Aurizon owns a 100% interest in the Casa Berardi property.  The transfer of the mining rights regarding titles registered for the property was completed on September 15, 1998. The transfer of the mining rights on the tailings lease was completed on December 3, 1998.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 4-5
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY
 
ACCESSIBILITY
 
The Casa Berardi property is located 95 km north of the town of La Sarre, in the James Bay Municipality in the Abitibi region of northwestern Quebec.  The nearest commercial airport is located at Rouyn-Noranda.  La Sarre can be reached from Rouyn-Noranda via provincial roads 101 and 111.  The 38 km all-season gravel road to Casa Berardi branches off from the paved road linking La Sarre and the Selbaie Mine through the village of Villebois.  The branch is approximately 21 km north of Villebois.  On the property, a gravel road links the East Mine and the West Mine, and a number of forestry roads provide access to the rest of the property from east and west.
 
CLIMATE
 
The mean annual temperature for the area is slightly above the freezing point at 0.8°C.  Average July temperature is 16.8°C, and average January temperature is -17.9°C.
 
According to the 1961-1990 precipitation data, the average annual precipitation is 856 mm.  Rain precipitation is highest in September, averaging 113 mm of water.  Snow precipitation is registered between October and May, but its peak falls on the period between November and March, when its monthly average reaches 39 mm (expressed in millimetres of water).
 
LOCAL RESOURCES
 
The Abitibi region has a long history of mining activity, and mining suppliers and contractors are locally available.  Both experienced and general labour is readily available from the La Sarre area, a municipality of 7,728 inhabitants (2001 census).  Aurizon has had success in hiring experienced staff and personnel with good mining expertise, despite tight current labour markets experienced industry-wide.  The mine enjoys the support of local communities.
 
INFRASTRUCTURE
 
The surface infrastructure at Casa Berardi which includes both planned Principal Mine and east Mine open pits and dumps, is presented in Figure 5-1.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 5-1
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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The surface and underground infrastructure at the East Mine includes the following:
 
  
A 2,200 tpd mill;
 
  
A tailings pond comprising three cells, a polishing pond, and a process water pond;
 
  
A crushing plant;
 
  
A two-storey administrative building covering an area of 1,887 m2 with office space, including a conference room, a warehouse, a dry, an infirmary, a laboratory, a main garage of 970 m2, a millwright shop, and an electrical shop;
 
  
A warehouse for reagents and lubricants;
 
  
A second garage used as a core shack and covering an area of 430 m2;
 
  
A pumping station;
 
  
A backfill plant located at the ventilation raise collar;
 
  
A hoistroom, a headframe, and a 380 m deep shaft;
 
  
A decline and a series of ramp-connected levels.
 
Existing surface and underground infrastructure at the West Mine includes the following:
 
  
A backfill plant, including a compressor room and a ventilation raise intake;
 
  
Settling ponds;
 
  
A pumping station;
 
  
A 380 m2 garage;
 
  
A dry house with offices and warehouse;
 
  
A second warehouse;
 
  
A core storage area;
 
  
A gatehouse;
 
  
A decline providing access to all intermediate levels;
 
  
A shaft down to a vertical depth of 760 m.
 
There is no infrastructure related to the Principal Zone.  A five-kilometre track drift joins the East and West mines and provides access to the Principal Zone at the 280 m level.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 5-2
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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The power supply of the site is provided by a 55 km, 120 kV power line, from the town of Normétal.
 
FIGURE 5-1   SURFACE INFRASTRUCTURE (CURRENT AND PLANNED)
 
 
PHYSIOGRAPHY
 
The topography is generally gentle and is mostly characterized by swamps and thick overburden coverage (up to 60 m locally).  Elevation varies between 270 m and 360 m above sea level.  An esker crosses the property south of the West Mine, and was once quarried for gravel.  According to the map of ecological regions of Quebec, the area falls within the boreal zone and the spruce and moss domain.  The forested zones are characterized mainly by jack pine and spruce and have generally been logged.  The Mine area is characterized by swamps and is therefore classified as a bare to semi-bare wetland.  The Turgeon River crosses the property in its western part, while Raymond Lake is located to the east of the mines.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 5-3
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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6 HISTORY
 
PRE-AURIZON ERA
 
Before 1974, the Casa Berardi area was explored for base metal and iron formations.  In 1974, the first 13 claims were staked by Inco Gold.  The discovery hole was drilled in 1981, and 590 additional claims were staked.  In 1983, a joint venture agreement was reached between Inco Gold and Golden Knight Resources Inc. (Golden Knight).  The following years were marked by exploration drilling and, eventually, project engineering and construction.  September 12, 1988 marked the official opening of the East Mine, and the commercial production of the West Mine began in 1990 - both under the ownership of Inco Gold/Golden Knight.
 
In 1991, TVX acquired Inco Gold’s 60% interest in the Mine.  In 1994, TVX and Golden Knight purchased the remaining interest in the Domex claim block, a part of the Principal (Main) Zone between the West and the East Mine, from Teck Corporation.
 
By 1997, 3,769 holes had been drilled on the property for a total of 463,492 m.  Approximately 92% of these holes were located in the area between the West Mine and the East Mine.  Table 6-1 summarizes the drilling program.
 
TABLE 6-1   HISTORICAL DIAMOND DRILLING
Aurizon Mines Ltd. – Casa Berardi Mine
       

Project

Location

Drill Holes               

Metres           

Casa Berardi – Exploration

West side

205

18,695

 

East side

261

17,821

Casa Berardi – Mine

West Mine

1,480

177,876

 

Principal Zone

379

76,037

 

East Mine

1,444

173,063

Total
 

3,769

463,492

 
The first mineral resource estimation was published in 1987.  The Mineral Reserve estimate was reported at 11.1 million tonnes grading 6.8 g/t Au containing 2.4 million ounces (all categories).  Mineral Reserves were estimated yearly during the life of the mine until 1997.  Following mine closure, the remaining mineralization was reclassified as Mineral Resources.  Table 6-2 shows the evolution of the mineral inventory at the mine from 1987 to 1997.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 6-1
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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TABLE 6-2   HISTORICAL MINERAL RESOURCES AND RESERVES 1987-1997
Aurizon Mines Ltd. – Casa Berardi Mine
 
 
Mineral Resources
Mineral Reserves
Year
Tonnes
g/t Au
Ounces
Tonnes
g/t Au
Ounces
1987
     
11,106,000
6.8
2,421,000
1988
     
12,412,000
7.4
2,909,000
1989
     
9,652,000
7.3
2,251,000
1990
     
8,934,000
7.1
2,028,000
1991
     
6,234,000
6.3
1,265,000
1992
     
6,216,000
6.4
1,275,000
1993
     
4,767,000
6.2
946,000
1994
     
4,526,000
6.1
881,000
1995
     
3,253,000
5.9
620,000
1996
     
6,199,000
5.5
1,105,000
1997
3,189,000
5.8
591,000
     
 
Production began at the East Mine in September 1988 and at the West Mine in April 1990.  The total combined production for the period from 1988 to 1997 was 3.5 million tonnes at an average grade of 7.1 g/t Au.  The total gold recovered during the operating years was 688,400 ounces, with a mill gold recovery rate averaging 87%.  Although average statistics are not readily available for daily production, it appears that during the life of operation, the average production rate of the mill was less than 1,800 tpd.  Historical annual production is presented in Table 6-3.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 6-2
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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TABLE 6-3   HISTORICAL MINE PRODUCTION
Aurizon Mines Ltd. – Casa Berardi Mine
 
Year
Tonnes Milled
g/t Au
Recovery (%)
Oz Rec.
1988
124,057
5.9
88.0
19.025
1989
337,130
5.5
86.4
51,096
1990
361,935
8.9
87.4
88,999
1991
487,769
8.7
86.9
119,015
1992
315,938
9.3
87.1
80,319
1993
306,597
10.0
89.3
86,964
1994
550,638
6.5
86.8
97,518
1995
469,542
4.7
85.7
61,179
1996
498,405
5.4
87.2
76,039
1997
51,356
5.8
87.2
8,270
TOTAL
3,503,367
7.1
87.0
688,424
 
The maximum annual production of over 550,000 tonnes was achieved in 1994.  In the following years, the figures fell below 500,000 tonnes.  In January 1997, TVX announced the closure of the East Mine due to ground control problems. Two months later, the West Mine was closed.
 
AURIZON ERA – UNTIL COMMERCIAL PRODUCTION
 
The Casa Berardi assets and property were offered for sale in the fall of 1996.  In January 1997, Aurizon expressed interest in a letter to TVX.  In September 1998, following the due diligence work, Aurizon signed an agreement and completed the acquisition of all Casa Berardi assets and mining rights.
 
Following the acquisition of Casa Berardi, Aurizon completed an exploration diamond drilling program totalling more than 76,000 m (50,000 m from surface and 26,000 m from underground).  The main objective of the campaign was to increase the gold mineral inventory of the property by drilling prospective sectors below the 400 m level in the West Mine area.  The program resulted in the discovery of the 113 Zone and other smaller mineralized bodies.
 
Using the results of this drilling program as a basis for Mineral Resource estimation, Aurizon issued an internal study in March 2000, which provided positive indications of the economic potential of the West Mine area below the 400 m level.
 
   
Aurizon Mines Ltd. – Casa Berardi Mine  Page 6-3
Technical Report NI 43-101 – March 28, 2011  
 
 
 

 
 
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Following two years of limited exploration drilling activities due to depressed gold prices, Aurizon re-embarked on a surface exploration program that led to the discovery of additional zones east of the 113 Zone.
 
To increase the confidence level of the mineral resources and prove the potential of a mining operation, an underground exploration program was planned and initiated in April 2003 to test the continuity of the mineralization of the 113 Zone.  That year, the West Mine ramp was extended 1,074 m from the 450 m level down to the 550 m level, to provide access to the 113 Zone for metallurgical testwork and to provide drill bases for in-fill definition drilling.  Approximately 44 m of the exploration drift were completed by the year-end, allowing the completion of 1,400 m of definition drilling.  A further 21,000 m of surface exploration drilling was completed in the area of zones 118-120 during 2003.
 
In 2004, $25.9 million was invested at the Casa Berardi Mine for the construction of the surface foundations and shaft collar, a shaft pilot raise from the 550 m level to surface, 878 m of exploration drifts, 53,100 m of exploration and definition drilling, 102 m of ventilation raising, and 1,590 m of ramping down to the 550 m level.  Aurizon commissioned Met-Chem Canada Inc. (Met-Chem) to prepare a feasibility study (the FS).  Aurizon proceeded with the implementation and construction of the West Mine infrastructure.
 
In 2005, $41.1 million was invested at Casa Berardi for:
 
Completion of two feasibility studies (the FS by Met-Chem in January 2005, based upon Mineral Reserves above the 700 m level, and the Updated Feasibility Study in October 2005, incorporating Mineral Reserves down to the 900 m level);
 
Construction of a new headframe, hoistroom, ore and waste bins;
 
Shaft sinking 290 m down from surface;
 
113 Zone ramp extension 1,200 m down to the 680 m level;
 
Access to the Lower Inter Zone down to the 570 m level with the completion of 429 m of ramping and drifting;
 
685 m of drifting and 367 m of ventilation raising;
 
Initiation of mill rehabilitation with the refurbishing of the crushing circuits, conveyors and assay laboratory;
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 6-4
 
 
 

 
 
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33,500 m of definition drilling from 137 holes; 19,000 m of surface exploration drilling from 32 holes; and detailed engineering for the shaft and surface infrastructure.
 
In 2006, an additional $74.5 million was invested to fund the aforementioned construction and development.  In early November, Aurizon completed construction and development at the West Mine area and commenced underground mining and milling operations.
 
In 2007, $33.9 million was invested to fund pre-production up to May 1, 2007, the date of achieving commercial production
 
In November 2006, Aurizon completed construction and development at the West Mine area and commenced underground mining and milling operations, achieving commercial production as of May 1, 2007.  From November 2006 to December 31, 2010, a total of 2,680,000 tonnes at an average grade of 8 g/t have been milled at Casa Berardi for a total gold output of 636,400 gold ounces recovered.  Table 6-4 lists Aurizon production by year.
 
TABLE 6-4   CASA BERARDI ANNUAL PRODUCTION
Aurizon Mines Ltd. – Casa Berardi Mine
 
Year
Tonnes
Grade (g/t Au)
Ounces Recovered
Recovery (%)
2006
68,481
8.58
17,731
93.9
2007
545,259
9.78
159,469
93.0
2008
654,398
8.16
158,830
92.5
2009
688,677
7.77
159,261
92.6
2010
722,746
6.76
141,116
89.8
Total
2,679,562
8.02
636,408
92.1
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 6-5
 
 
 

 
 
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7 GEOLOGICAL SETTING
 
REGIONAL GEOLOGY
 
The Mine is located in the northern part of the Abitibi Subprovince, a subdivision of the Superior Province, the Archean core of the Canadian Shield.  The Mine area belongs to the Harricana-Turgeon Belt, which is a part of the North Volcanic Zone (Figure 7-1).
 
More specifically, the regional geology is characterized by a mixed assemblage of mafic volcanics, flysch-type sedimentary iron formations, and graphitic mudrocks that are limited by a large granodioritic to granitic batholith.
 
Structurally, the property is enclosed in the Casa Berardi Tectonic Zone, a 15 km wide corridor that can be traced over 200 km.  A network of east-west to east-southeast and west-northwest ductile high strain zones mainly follows the lithological contacts.
 
Many significant deposits and past producers of different types are present in the region.  Base metals have been produced from the Joutel (Selbaie Mine, Estrades Mine) and Matagami camps.  New deposits have been identified 15 km south of Casa Berardi, on the Gemini property.  Eastward, in the Casa Berardi structural trend, is the former Agnico-Eagle Telbel Mine.  Other deposits, with tonnages in the order of one to three million tonnes and grades between 4 g/t Au and 6 g/t Au, have also been outlined on the Douay, Vezza, and Desjardins properties.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 7-1
 
 
 

 
 
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FIGURE 7-1   REGIONAL GEOLOGY

 

 

 

 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 7-2
  
 
 

 
 
PROPERTY GEOLOGY
 
STRATIGRAPHIC DIVISIONS
 
The property geological environment is centred on the Taïbi volcano-sedimentary domain, which is bounded on the north by the Recher batholith and on the south by different volcanic domains of tholeiitic affinity (Figures 7-2 and 7-3).  The Dieppe domain covers half of the southwestern part of the property, and the Turgeon domain lies immediately south of the eastern half of the property.  Dieppe volcanism is recognizable by a thick (up to 100 m) massive flow or volcanic conduit with sub-ophitic textures which indicate a deep volcanic environment with high rates of magma generation.
 
Well-defined flysch-type sedimentary units, like magnetite-rich wacke and conglomerate, can be traced over tens of kilometres without significant facies variations.  Volcanics units extend for five to fifteen kilometres inside the sediments and form lens-shape structures.  Smaller lenses are a few hundred metres wide and are included in the Casa Berardi deformation zone.
 
Basaltic to andesitic flows, with thickness generally less than 50 m, show normal progression facies from coarse crystalline to massive, amygdalar, and vesicular in lapilli tuffs and tuffs.  Flow contacts are identified by graphitic mudrock horizons.  Gabbroic sills, which are related to the Dieppe domain, are visible near the flow contacts.  The Turgeon volcanism is considered as a distal, near surface, more evolved volcanism environment.
 
Graphitic rocks (in the form of pyritic graphitic mudrock), black chert, wacke, and conglomerate form a 500 m wide structural corridor that coincides with the Casa Berardi Fault.
 
The stratigraphic sequence starts with basal mafic volcanism (2,730 to 2,720 million years old).  Pyrite-rich graphitic mudrock and the associated chert appear to be synchronous with the volcanism as evidenced by fragmentary hyaloclastic units of different compositions.  The main sedimentary event corresponds to a flysch-type sequence deposition.  U/Pb dating of the iron formation and conglomerate indicates ages between 2,695 and 2,692 million years for this event.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 7-3
 
 
 

 
 
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STRUCTURES
 
The mafic volcanic units along the Taïbi domain represent in plan view a lenticular shape corresponding to structural doming.  Polarity inversions are recognized in sediments on both sides of their contacts with these units.  Tight isoclinal folding forms an asymmetric dome and basin pattern which is well preserved around volcanic units in the iron formations.  The main north-south compression event, which is responsible for an 8:1 elongation ratio, is indicated by a strong penetrative east-west foliation.
 
Two fabrics are observed:
 
A constant main penetrative east-west foliation, dipping 60° south.
 
A crenulation cleavage with an undefined oblique orientation related to northeast or northwest fold components.  A higher strain rate along main sediment-volcanic contacts has resulted in a small-scale complex dome and basin folding and strong stretching mineral lineation with steep opposite plunges.
 
The Casa Berardi Fault is defined by a stratigraphic contact between a graphite-rich sediment sequence at the base of the Taïbi domain, a northern continuous mafic fragmentary volcanic unit, and a southern polymictic conglomerate unit.  On the north side of the fault, a thick sequence of very homogeneous wacke and volcanites is observed.  The fault strikes east-west and dips 80° to the south.  The 200 m to 600 m wide deformation zone shows a tight dome and basin pattern, dipping generally sixty degrees (60°) south.  The deformation zone can be traced along the basalt-conglomerate-iron formation sequence.  At depth, as evidenced by observations and gravimetric profiles associated to metamorphic rocks, the lithological units dip towards the fault.
 
The Casa Berardi Fault crosscuts locally asymmetric (drag) fold axes in the iron formation along the deposit, especially at the Principal Zone and Zone 160 locations, indicating an early sinistral displacement.  Stretching is represented by a 4:1 ratio in the vertical plane.
 
Inside the fault zone, ductile deformation intensity is heterogeneous.  Foliation is uniform in larger competent rock units, such as mafic volcanites and conglomerates.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 7-4
 
 
 

 
 
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ALTERATION AND METAMORPHISM
 
The regional metamorphism, which is of lower greenschist facies, is locally influenced by a series of syntectonic batholiths with associated thermal aureole.  The Recher thermal aureole limit follows the northern boundary of the property located approximately two kilometres from the batholith and the Casa Berardi Fault.
 
Inside the contact metamorphism halo, the sediments are affected by a quartz-plagioclase-biotite assemblage.  In the case of iron-rich sediments, the sediments are affected by a chlorite-chloritoid assemblage.  Garnet is locally visible.  Mafic volcanics are affected by a plagioclase-tremolite assemblage.  Chloritoid, plagioclase, and garnet are porphyroblastic, with chlorite-biotite pressure shadows indicating the synchronicity of crystallization and regional foliation.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 7-5
 
 
 

 
 
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FIGURE 7-2   PROPERTY GEOLOGY

 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 7-6
 
 
 

 
 
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FIGURE 7-3   SURFACE GEOLOGY

 
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 7-7
 
 
 

 
 
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8 DEPOSIT TYPES
 
The Casa Berardi gold deposit can be classified as an Archean sedimentary-hosted lode gold deposit.
 
The gold mineralization is superimposed on a continuous graphitic mudrock unit corresponding to the Casa Berardi Fault plane.  The deposit surface signature shows two main gold concentrations distributed over five kilometres.  Gold occurs mainly south of the Casa Berardi Fault, and sometimes on both sides of the fault.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 8-1
 
 
 

 
 
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9 MINERALIZATION
 
DEPOSITION MODEL
 
Some essential conditions were initially present in the Casa Berardi area during the formation of the Harricana-Turgeon volcano-sedimentary belt, preparing conditions for a later gold deposition event.
 
The Casa Berardi Fault represents an old discontinuity at the top of a mafic volcanic rock in a basement where hydrothermal activity has led to the formation of chert and graphitic mudrock containing large massive pyrite lenses.  The 30 to 40 million years old unconformity between the mafic volcanites and the flysch-type sequence is exposed in many places along the Casa Berardi Fault.  Iron formations and iron rich sediments are present near the base of the sequence and appear on both sides of the Casa Berardi Fault zone.  The presence of sulphur and iron in the environment is a factor which is highly favourable for gold mobilization.
 
The tectonic mechanism generated many structural features at different scales, creating a favourable context for the formation of gold deposits.  The regional north-south main compression events resulted in tight kilometre-scale isoclinal folding and in bringing the geological units into a vertical position.  The Casa Berardi Fault was generated during this stage by a movement at the contact of a graphitic unit.  The proximity of large volcanic units, such as the Dieppe and the Joutel-Raymon domain, has formed competent cores inside antiforms.  Those competent cores forced oblique movement and generated a polyphase elongated dome and basin folding pattern.  This first tectonic stage corresponds regionally to a 50% shortening and happened under ductile conditions at a depth of six to ten kilometres.
 
High constraint zones, associated with pervasive carbonization, are generally developed where graphitic mudrock horizons are localized at major rock contacts.  This combination of factors acted as a ground preparation for the positioning of vein networks and long veins.  The general orientation of the veins and internal structures are generally concordant with the ambient fabric.  The veins are localized within the foliation and contain two types of enclaves: foliated host rocks and graphitic planes showing a stylolithic pattern.  The vein contacts are usually sharp.  The lack of fabric development indicates a late emplacement.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-1
 
 
 

 
 
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STRUCTURAL CONTROL
 
The mineralized zones are closely associated with the Casa Berardi Fault and are found on both sides of the fault.  They are restricted to a 500 m wide corridor, which is folded and plunges lightly to the west (Figure 9-1).  This corridor is intimately associated with the conglomerate and follows the same structural pattern.  The mineralized corridor and the conglomerate are located close to the contact between the basement and the sedimentary basin.  This contact plunges slightly to the west.
 
FIGURE 9-1   MINERALIZATION CORRIDOR AT THE WEST MINE

 
STYLES OF GOLD MINERALIZATION
 
Gold mineralization is essentially located in quartz veining, either in the form of plurimetric veins, small-scale veins, or veinlet networks.  Veins are heterogeneous and contain a variable percentage of foliated enclaves showing a laminated appearance.  Veins are of different colour, texture, and structure.  Gold grades are generally correlated with increasing complexity.  Different quartz phases have been recognized in mineralized veins to show the following sequence:
 
Phase 1: grey quartz, with abundant sulphides and fluid inclusions, comprising more than 50% of mineralized veins.
 
Phase 2: mosaic micro-crystalline quartz occurring in higher grade portions of veins.
 
Phase 3: non-mineralized coarsely crystallized white quartz which cuts the two others.
 
The gold bearing vein filling is rarely massive, but often brecciated, micro-brecciated, or laminated.  The fracture planes are rich in graphite and muscovite.  Veins contain only minor sulphides (1% to 3%), including mainly arsenopyrite, pyrite, and traces of sphalerite, chalcopyrite, pyrrhotite, tetrahedrite, galena, and gold.  Arsenopyrite is the main gold bearing sulphide present in all veins of the deposit.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-2
 
 
 

 
 
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The granulometric distribution of gold is similar for all locations.  According to petrographic compilations, 50% of the gold particles have an average diameter less than 30 μm, and approximately 3% are > 100 μm.  The gold distribution inside the mineral assemblage varies slightly according to the mineralized zones.  In the West Mine area and 113 Zone, the vein mineralization, which is related to the Casa Berardi Fault, shows that gold is mostly free and in contact with arsenopyrite grains (< 10 μm to 0.5 mm).  Arsenopyrite is associated with sphalerite and tetrahedrite in clusters, joints, and in micro-brecciated areas.  In the South West Zone, the Principal Zone, and some areas of the East Mine, where the mineralization is not related to the Casa Berardi Fault, the gold distribution is variable and depends on the amount of sulphides in quartz veins and host rocks.  Fifty percent (50%) of gold grains that have been observed are inclusions in pyrite and arsenopyrite crystals.
 
Gold bearing veins are typically enclosed in carbonate-sericite alteration envelopes, with LOI varying between 12% and 40% depending on the host rock reactivity.  High volatile values appear mainly along the Casa Berardi Fault zone, but develop also as continuous areas inside the ductile deformation zones, near the South Fault or in the higher deformation levels between the two faults.
 
In the West Mine, an albite-sericite assemblage is observed in metasomatized ultramafic dykes below the 400 m level.  Those dykes, enclosed in graphitic mudrocks, are associated with the gold bearing quartz vein system.  Sulphidation is an important part of the mineralization process in iron environments, such as the carbonated chert-magnetite iron formations and primary massive pyrite lenses in Zone 25-8, where magnetite is pervasively replaced by pyrite with coeval arsenopyrite crystallization.
 
Alteration halos with gold values of above 100 ppb and anomalous values of As and Sb surround most of the mineralized zones along the Casa Berardi Fault.  Those halos can be found up to five kilometres away, on both sides of the deposit.
 
Stockworks are the second style of gold mineralization in the deposit and represent nearly the same volume as the large quartz veins.  The stockworks are low grade and largely unexploited.  Across the deposit, hanging wall stockworks are present in contact with important mineralized quartz veins.  Between 10% and 20% of the rock volume is composed of centimetre- to decimetre-thick quartz veins with gold values ranging from 1 g/t to 10 g/t.  Veins of all textures and composition are concordant with host rocks.  Foliated and finely bedded rocks are cut by concordant veins.  Less deformed basalts or heavily carbonated iron-rich rocks are cut by fracture-controlled vein sets.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-3
 
 
 

 
 
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At the deposit scale, the Principal Zone and the East Mine zone areas correspond to the stockworks surrounding quartz cores.  The stockworks are not limited to the fault and can affect the total width of the deformation zone.  They appear as a superposition of metre to decametre wide mineralization subzones.
 
In the Principal Zone, the stockwork extends laterally for 400 m at a 50° western plunge.  In the East Mine, the mineralized system extends laterally also for 400 m, reaching a depth of 800 m down the dip (Figure 9-2).  The system crosses the Casa Berardi Fault at a low angle over a 100 m stripe.  Mineralization continues laterally westward on the south side of the fault and eastward on the north side of the fault.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-4
 
 
 

 
 
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FIGURE 9-2   COMPOSITE LONGITUDINAL SECTION
 

 

Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-5
 
 
 

 
 
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The third type of mineralization is the Banded Iron Formation (BIF) hosted mineralization.  This type of mineralization is found in:
 
The Principal area (Zones 25-8 and 27-1),
 
Areas between the mines (Zone 140), and
 
At the continuity of the East Mine area (Zone 160).
 
These examples are restricted to the north iron formation which is composed of 10% chert-magnetite beds in chloritic wackes.  Major sulphide minerals are pyrite and arsenopyrite.  These sulphides have replaced the oxide rich layers which surround the quartz veins and the veinlet stockworks where strong carbonization and chloritization are observed.
 
WEST MINE MINERALIZATION
 
The mineralized zones in the vicinity of the underground infrastructure of the West Mine are all located between sections 10350 E to 11250 E, which correspond to the western limit of the Lower Inter Zone and the eastern limit of Zone 111, respectively.  This is the sole mineralization located across the South Fault that has been mined to date.
 
The mineralization at the West Mine is represented by two main types:
 
Low sulphide quartz veins: networks of centimetric to plurimetric quartz veins located south of the Casa Berardi Fault in sedimentary rocks that are predominantly wacke and mudrock types.
 
Sulphide-rich stockworks: represent the same volume as large quartz veins, but have lower grades and are largely unexploited.  Hanging wall stockworks are present in contact with important mineralized quartz veins across the deposit.
 
In the West Mine area, a continuous two metre thick, 400 m wide, and over 1,400 m long quartz panel contains most of the mineralized zones.  The mineralized zones are stacked and appear to be located along an east-west folded trend.  The latter shows a double plunge, which is interpreted as a structural dome (Figure 9-3).
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-6
 
 
 

 
 
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FIGURE 9-3   GEOLOGY – WEST MINE ZONES (SECTION 10,700 E)

 

 

 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-7
 
 
 

 
 
Mineralized zones of the West Mine, such as Lower Inter, Inter, and North West, show weak or no plunge, a moderate south dip (30°), and have extensions which branch off from the fault at 130° (Figure 9-3).
 
On the east side of the mine, the mineralized zones, such as zones 111 and 113, show a steeper plunge (> 50°) with a dip varying between 70° south and 70° north, similar to the Casa Berardi Fault.
 
MINERALIZATION IN THE 113 ZONE
 
The 113 Zone is a 20 m to 70 m wide mineralized corridor, with an east-west strike, subvertical, adjacent to the Casa Berardi Fault (Figures 9-4 and 9-5).  Some off-shoots have been interpreted as fold noses and strike between N 065° and N 295° (Figure 9-6).  The width of the zone along holes varies from five metres to 20 m.  The zone extends vertically for over 650 m, the top being at the 250 m level.  Lateral extension decreases from 300 m at the 600 m level to 150 m at the 700 m level.
 
Gold mineralization is found within narrow to large folded quartz veins and in associated wall rock.  The quartz veins consist of white to grey quartz, locally brecciated and laminated, vitreous in places, and contain 5% to 15% graphitic mudstone in thin bands and stringers.  The mineralization occurs as fracture filling and dissemination of arsenopyrite, pyrite, and fine grained free gold.  Sphalerite and tetrahydrite are present in minor amounts.  Pyrrhotite, galena, and chalcopyrite occur in traces.  Visible gold is reported.
 
Wall rocks of the 113 Zone are composed of graphitic mudstone, greywacke, conglomerate, and mafic volcanics, and have thickness between 5 m and 50 m.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-8
 
 
 

 
 
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FIGURE 9-4   GEOLOGY – 113 ZONE (SECTION 11,375 E)

 

 

 

Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-9
 
 
 

 
 
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FIGURE 9-5   GEOLOGY – 113 ZONE (SECTION 11250 E)

 

 

 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-10
 
 
 

 
 
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FIGURE 9-6   GEOLOGY – 113 ZONE (550 M LEVEL)

 

 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-11
 
 
 

 
 
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MINERALIZATION IN THE SOUTH FAULT
 
In plan view, the South West and South East zones can be interpreted as a dome which is cut by the South Fault and by the subsidiary Auxiliary Fault.  The mineralized system extends 200 m laterally and 300 m along dip, from surface to the 300 m level.
 
The main quartz vein structures are developed at the contact between a conglomerate and a graphitic mudrock, and are associated with a large stockwork of disseminated sulphides.  The internal vein structure shows variable orientations and is, in many places, brecciated.  The economic mineralization extends down dip and is represented by a system of parallel veins which dip at 60° and split from the main quartz vein.
 
SOUTH DIPPING MINERALIZATION
 
The main remaining resource at the West Mine is represented by the Lower Inter Zone.  This zone is located between the 375 m and 475 m levels, and between sections 10525 E and 10360 E.  The mineralized zone, which dips at 25° to 45° south and plunges to the west at 15°, is controlled by the Casa Berardi and Lower Inter faults.  The Casa Berardi Fault dips steeply north, while the Lower Inter Fault dips 40° to 45° to the south, joining with the South Fault.  Thickness varies from four metres to 50 m, with the maximum observed just below the contact of the two faults, and thinner sections observed down-dip along the Lower Inter Fault.  The mineralized zone extends for 200 m.  A stacking of quartz veins is observed in a deformation zone that is located at the lithological contact between a mafic volcanic rock in the footwall and a graphitic mudrock in the hanging wall.
 
Mineralized veins are characterized by a grey to white layering.  Variations in the quartz textures are due to millimetric to decimetric graphitic-rich bands.  Gold is not uniformly distributed throughout the vein, the hanging wall being barren.  Weak disseminated arsenopyrite, with which gold is associated, is restricted to a few metres outside of the vein.  Gold grades are low.
 
The previously mined-out portions of the Inter Zone, which are located between the South Fault and the Casa Berardi Fault, present similar characteristics.  The quartz vein, the mineralized stockworks, and the chert are related to a ductile deformation zone which is bounded at the hanging wall by a brittle fault.  The fault is developed at a contact between the graphitic sediments and the volcanoclastic units.  The mineralized structure is located at the contact between the graphitic sediments and a mafic volcanoclastic unit.  The mineralized structure strikes southeast with a shallow dip to the south (5º to 45º), and extends 150 m laterally and 75 m along dip.  Its upper part is connected to the North East Zone.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-12
 
 
 

 
 
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MINERALIZATION IN CASA BERARDI FAULT
 
A group of mineralized zones, including North West, North East, 109, and 111 zones, are located in the vicinity of the Casa Berardi Fault.  The North West and North East zones are the most important in terms of mineralized volume.
 
The mineralization is contained within a quartz vein which extends between section 10385 E and section 11125 E.  The 111 Zone extends between the 150 m and 400 m levels.  Gold is found in quartz veins on the south side of the Casa Berardi Fault, at the contact with an assemblage of wacke, mafic pyroclastites, and graphitic mudrocks.  The North West Zone is enclosed in chert shreds located on the north side of the Casa Berardi Fault.  The 111 Zone is developed in the same context.
 
The mineralization dips steeply to the north, parallel to the fault.  Its thickness ranges between two metres and 25 m.  Sulphide dissemination and veinlets are generally restricted to a few metres away from the veins.  No significant gold is reported except in the areas where chert is observed.  In this case, economic grades are associated with conformable pyrite veinlets and disseminated arsenopyrite in chloritic layers.
 
Over several tens of metres along its south contact, the fault dips generally south; its dip varying accordingly with the dip of the host rocks.
 
The 109 Zone strikes east-west and dips 40º to 45º to the south.  It is a quartz vein-type structure with 15% to 30% graphitic mudstone in stringers and thin bands.  It splays off to the south from the Casa Berardi Fault approximately at the 450 m level.
 
MINERALIZATION IN THE 118 ZONE
 
The 118 Zone (118-1 to 118-9) occurs from section 11600E to 12400E, between the 400 m and 1,200 m levels. The mineralization occurs within a 20 m to 70 m wide mineralized corridor south of the Casa Berardi Fault (Figure 9-7) and is, composed of stacked quartz veins and quartz stockwork within a sequence of volcanic and sedimentary rocks.  It has an east-west strike and dips south at 60o to 80o, with a plunge to the west at a dip varying from 45o to 70o.  Mineralization consists of fine to medium grained disseminated arsenopyrite, pyrite, sphalerite, and visible gold associated with quartz veins.  One lens (118-6) occurs within a conglomerate unit and represents a quartz stockwork highly mineralized with fine to coarse grained arsenopyrite and pyrite. The lens ranges from three metres to five metres in thickness, strikes east-southeast, and dips to the southwest at 70o. Mineralization is open along the west down plunge and to the east.
 
MINERALIZATION IN THE 123 ZONE
 
The 123 Zone occurs in the south domain of the Casa Berardi deformation corridor and consists of plurimetric stacked quartz veins and quartz stockwork within a sequence of volcanic rocks, sediments, and chert on the south flank of the conglomerate that hosts the 118 Zone (Fig 9-7).  Mineralization consists of arsenopyrite, pyrite, pyrrhotite, visible gold, and sphalerite.  The zone strikes east-northeast and dips to the southeast at 60o.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-13
 
 

 
 
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FIGURE 9-7   GEOLOGY – 118 AND 123 ZONES

 

 

 

 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-14
 
 
 

 
 
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PRINCIPAL ZONE MINERALIZATION
 
The mineralization in the Principal Zone occurs near surface and extends to the 118 Zone at depth.  The zones are located between section 11975 E and section 12900 E. Mineralization occurs to the south (zones 24-01, 24-02, 24-03) and to the north (zones 22-06, 25-04, 25-08, 26-05, 27-01) of the Casa Berardi Fault.  Mineralization also occurs in the south domain of the Casa Berardi deformation corridor, corresponding to the up-dip plunge of the 123 Zone (to be tested). The Principal Zone is connected to the West Mine area by the up-dip extension of the 118 Zone along the Casa Berardi Fault.
 
Zone 24-01 is located south of the Casa Berardi Fault and consists of en-echelon veins within a sequence of volcanic and sedimentary rocks, generally oriented west-northwest and dipping to the southwest at 80o.  Mineralization consists of arsenopyrite, pyrite, and visible gold associated with quartz veins. Zone 24-01 plunges to the southeast at 50o. Zone 24-02 occurs mostly as metric quartz veins near the southern contact of the conglomerate and the volcanic rocks, within the volcanic rocks, and is oriented east-southeast, dipping to the southwest at 50o. Mineralization consists of pyrite and arsenopyrite.  Zone 24-03 occurs as stacked quartz veins and stockworks south of the Casa Berardi Fault and on top of the conglomerate, within or near the contacts of the volcanics and wacke.
 
Mineralization to the north of the Casa Berardi Fault occurs along an east striking, south dipping overturn anticline. The south limb includes zones 22-06, 25-4, and 26-05 and occurs in highly deformed and altered basalt. Mineralization occurs as fine grained disseminated pyrite and arsenopyrite in cherty units, plurimetric quartz veins, and quartz stockworks.  The zones have a major east-west strike and dip to the south at 60o to 80o, plunging to the east at 20o.  The north limb consists of zones 25-8 and 27-1 and occurs in a chloritic sediment/chert assemblage where the iron formation has been replaced at the contact with mafic volcanics. The mineralization occurs in quartz vein networks with disseminated and massive arsenopyrite and pyrite, as well as in pyrite rich fracture fillings. The zones have a major east-west strike and dip to the south at 60o to 80o, plunging to the east at 20o. Mineralization is still open to the east and to the west.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-15
 
 
 

 
 
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EAST MINE MINERALIZATION
 
The mineralized zones in the East Mine area are located between sections 14700 E and 16000 E.  Past production came from stopes which were located between surface and the 550 m level, and was restricted to two main parallel veins averaging five metres in thickness and not exceeding 150 m in lateral extension.
 
The North Zone is located along the Casa Berardi Fault.  The subvertical to steeply dipping zone lies between 100 m and 500 m levels, and its lateral extension is less than 150 m.  The South Zone is oblique in plan with variable directions, and dips at 60° due north.
 
The drilling information indicates mineralization down to a depth of 900 m.  The remaining resources are located in the crown pillar, and between the 550 m and 800 m levels.  The Cherty Zone and the 160 Zone are located north of the Casa Berardi Fault and have been drilled to a depth of 300 m, however, information is restricted to a 100 m thick corridor.
 
Based on geometry, structural and geological contexts, the East Mine mineralized structure can be divided into three depth-related parts:
 
1.  
Between surface and the 200 m level, the sediments and mafic volcanic units, which are located south of the Mine Fault, are south dipping and have variable directions.  The mineralized envelope is composed of quartz veins of several metres in thickness and stockworks, both located in the 30 m wide sulphide-rich sericitic schist, which dips 60° to the north.  Main veins of steeper dips are associated with subhorizontal tensional gashes.  From surface to the 100 m depth, two parallel subvertical veins (North Zone and South Zone) compose most of the crown pillar residual resources.
 
2.  
Between the 200 m and 550 m levels, the mineralization is restricted to a continuous vertical decametric quartz vein which is parallel to the Mine Fault.  Host rocks, except the narrow graphitic schist layer which controls the fault position, are mafic to intermediate volcanic rocks.
 
3.  
Between the 550 m and 900 m levels, the remaining resources are located in the south dipping area which is represented by a succession of mudrock layers inside the volcanic sequence.  Unit contacts are heavily faulted, intersecting the Mine Fault at a 60° dip.  Veins and stockworks are cut by the fault.  A 10 m to 30 m down-dip displacement is observed.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-16
 
 
 

 
 
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The 152 Zone lies to the north of the Casa Berardi Fault.  Vertical extension is 150 m, down to the 100 m level, and lateral continuity is over 100 m.  En-echelon veins are concentrated at a folded mafic volcanite-wacke contact.  The dip and thickness of the mineralization are highly variable.  The economic portion of the zone has been mined out in the subhorizontal sector of the zone.
 
The Cherty Zone and the 160 Zone are located between sections 15700 E and 16000 E, 30 m and 400 m north of the Casa Berardi Fault, respectively.  They have a lateral extension of 200 m and a vertical extension of 100 m down to the 350 m level.  The zones are not defined by tight drilling.
 
The mineralization in the 160 Zone is mainly related to sulphides in veinlets close to the iron formation and wacke.  Significant gold grades are related to the density of magnetite-chert beds.  Drilling at depth has confirmed the extension of the mineralization below the 350 m level.  The Cherty Zone context is similar to the carbonate altered magnetite-chert-iron formation near the Casa Berardi Fault.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 9-17
 
 
 

 
 
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10 EXPLORATION
 
Following the acquisition of the Casa Berardi Mine, Aurizon outlined a large surface-drilling program to investigate the West Mine Area.  A total of more than 76,000 m of core was drilled during the 1998-1999 campaign.  Holes were planned to intersect mineralization below the 400 m level.  The program resulted in the discovery of the 113 Zone and other smaller mineralized bodies, such as the 109 and 104 zones.  The program was extended, and the results of the widely spaced holes were used to estimate Mineral Resources in those areas.
 
In 2002-2003, a surface wide-spaced drilling program was conducted to investigate the lateral eastern extension of the known mineralization.  The program resulted in the discovery of multiple en-echelon lenses along the Casa Berardi and South faults, and south of the Principal Zone.
 
In 2004, a deep exploration drilling was conducted to investigate the dip extension of the mineralization below the 1,200 m level.  The program confirmed that the geological context below this level was similar to the context above this level.  Also, a wide-spaced drilling program was carried out to investigate the deep and lateral extension of the East Mine deposit.  The program resulted in the discovery of zones 140 and 157.
 
In 2005, a wide-spaced drilling program was carried out to investigate the potential outside the mining camp.  The program resulted in the discovery of a 50 m wide quartz vein located 1.5 km west of the previously known mineralization.
 
The drilling programs in 2006 totalled 72,761 m (Table 10-1).  Definition drilling was active in the 113 and the Lower Inter zones.  Exploration drilling was carried out to follow up on Inferred Resources in the area of the 118-120 Zones that were identified by wide spaced surface drilling.  In the Principal Zone, which contains multiple lenses, wide-spaced drilling was conducted from surface.  The majority of the Principal Zone is located north of the Casa Berardi Fault, 1,000 m east of the new production shaft.  Extension of the mineralization contained in the crown pillar of the East Mine was also tested.  Exploration of Zone 122-Deep continued where underground exploration intersected high grade mineralization along the Casa Berardi Fault, 1,000 m below surface and 800 m from the existing infrastructure.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 10-1
 
 
 

 
 
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TABLE 10-1   2006 EXPLORATION, VALUATION, AND DEFINITION DIAMOND DRILLING PROGRAMS
 
Aurizon Mines Ltd. – Casa Berardi Mine
Metres
Holes
Target Zone
Comments
Surface Exploration
28,304
76
Principal
East Mine
Principal: multiple lenses.  Wide-spaced drilling.
East Mine: Extension of mineralization contained in the crown pillar of the East Mine.
       
Underground Exploration
19,779
 
118
120
122
118-120: Identified by wide spaced surface drilling. 122-Deep: underground exploration intersected high grade mineralization along the Casa Berardi Fault, 1,000 m below surface and 800 m from the existing infrastructure.
       
Definition
9,612
185
113
 
14,966
151
Lower Inter
 
24,578
336
   
       
Total 2007 Diamond Drilling
72,761
     
 
In 2007, the drilling programs totalled 30,879 m (Table 10-2).   Definition drilling continued in Zone 113.  The first phase of definition drilling in the Lower Inter Zone was completed.  Underground exploration drilling was focused on the 118-120 Zones and surface exploration drilling targeted the 123 Zone, the most significant discovery of mineralization to date outside the Casa Berardi Fault.  The 123 Zone is located 350 m south and 900 m east of the existing West Mine infrastructure.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 10-2
 
 
 

 
 
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TABLE 10-2   2007 EXPLORATION, VALUATION, AND DEFINITION DIAMOND DRILLING PROGRAMS
Aurizon Mines Ltd. – Casa Berardi Mine
 
Metres
Holes
Target Zone
Comments
Surface Exploration
10,445
 
123
Significant discovery of mineralization outside the Casa Berardi Fault.
       
Valuation
8,473
62
118
120
 
       
Definition
8,779
177
113
 
3,182
33
Lower Inter
 
11,961
210
   
       
Total 2007 Diamond Drilling
30,879
     
 
In 2008, the drilling programs totalled 29,995 m in 299 holes (Table 10-3).  Surface exploration was carried at the East Mine to convert inferred mineral resources into indicated mineral resources.  Valuation and definition drilling were conducted in 113 and Principal zones.
 
Aurizon Mines Ltd. – Casa Berardi Mine
Technical Report NI 43-101 – March 28, 2011
Page 10-3
 
 
 

 
 
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TABLE 10-3   2008 EXPLORATION, VALUATION, AND DEFINITION DIAMOND DRILLING PROGRAMS
Aurizon Mines Ltd. – Casa Berardi Mine
 
Metres
Holes
Target Zone
Comments
Surface Exploration
1,014
10
East Mine
Drilling to convert in-pit inferred resources into indicated resources.
       
Underground Exploration
2,025
28
115
Geological reinterpretation. Some of the