Aurizon had cash flow from operations of $9.2 million. Net earnings of $2.2 million, or $0.01 per share including stock based compensation charges totaling $3.0 million and unrealized derivative gains of $3.4 million. The operating profit margin per ounce was US$472, with total cash costs at US$538 per ounce. Gold production of 35,000 ounces was in line with plan.
       At Casa Berardi, Aurizon intends to utilize its strong cash flow to upgrade mineral resources to mineral reserves in order to extend and optimize the current mine plan in 2010, and to complete a prefeasibility study to assess the relative risks and opportunities of mining the Principal Zone crown pillar by open pit.
       In the first quarter of 2010, four surface rigs and seven underground drill rigs were active at Casa Berardi.
       The surface exploration drilling program was focused on infill drilling of the Principal area.The surface rigs have now moved to the East and West Mine to evaluate the extension of existing zones and to test new interpolated targets.
       Aurizon’s next property to shine – its Joanna Project – resides directly on an extremely prolific geologic fault line that includes such major gold camps as: Rouyn-Noranda (15+ million ounces), Cadillac (12+ million ounces), Malartic (8+ million ounces) and Val-d-Or (15+ million ounces).
       At Joanna, a $3.4 million surface exploration program, comprising 28,000 metres of drilling, is testing targets to the north and south of the Hosco deposit, performing infill drilling on the Heva deposit, testing a potential satellite pit, approximately 700 metres west of the proposed Hosco pit, and testing potential extensions of the Hoso pit. Two drill rigs are currently active on the project.
       According to the recently completed pre-feasibility study on the Joanna Project’s Hosco Deposit, which contains a measured and indicated gold resource of 1.3 million ounces, an open pit mine would produce 887,000 ounces of gold over an eight-year mine life at a cash cost of US$434 per ounce. At a gold price of US$1,090 per ounce and a C$/US$ rate of 1.07, Aurizon would capture a 31.8% pre-tax internal rate of return. For each $100 increase in the price of gold, Aurizon would realize an additional 7.3% in pre-tax IRR.
       The project also has excellent exploration potential.
       With the pre-feasibility study completed and the final feasibility study underway and anticipated to be completed in the fourth quarter of 2010, the Joanna property is set to expand Aurizon’s growth profile.
        “An operating mine at Joanna could increase Aurizon’s total gold production by 60% to about 260,000 ounces a year,” says Hall.
       Joanna, located 20 km east of Rouyn-Noranda, is within a one-hour drive of Aurizon’s technical office, and a two-hour drive from the company’s operating Casa Berardi mine. The site is close to existing infrastructure with easy access to power and roads. A main highway and a natural gas pipe line are less than 1,000 meters south of the future mine site, while hydro power lines are just 2.5 km to the north. The area hosts a large pool of experience mine workers and suppliers.
       “We are delighted we have been able to bring the Joanna Project from a zero resource to a reserve of over one million ounces plus a lot of future potential within just three years of optioning the property,” says Aurizon President and CEO David P. Hall.
       At Aurizon’s Kipawa property, a $1.3 million exploration drilling program to test gold targets has commenced with 6,500 metres of drilling planned.
       In May, 2010, Aurizon announced option agreements with Azimut Exploration on their Rex South property and with Typhoon Exploration on their Fayolle property. Aurizon can earn 50% interest in both of these properties by incurring exploration expenditures and making cash payments over a four and five year period, respectively (complete details of the agreements are available on Aurizon’s website at www.aurizon.com)
       2010 will be a “transitional year” at Aurizon’s flagship Casa Berardi Gold Mine, according to Hall, as the company prepares the mine for increased production beginning in 2011. Total gold production in 2010 may decline slightly as the company mines out lower grade areas in order to open access to higher grade ore.
       Aurizon expects to produce between 145,000 to 155,000 ounces of gold in 2010 from material grading an average 6.7 g/t gold. Daily mine production will increase to 2,000 tpd. Total cash costs for 2010 are expected to approximate $500 per ounce. Gold production is expected to rise, however, beginning in 2011 when Aurizon projects producing 160,000-170,000 ounces of gold at a total cash cost of US$425 an ounce.

       Aurizon is a gold producer of 150,000 ounces a year, with cash on hand of $114 million and with strong cash flow from operations. The company now is gearing up for a major expansion that will be realized in just the next few years. The company’s activities in exploration, development and operations were recognized recently for a “high level of environmental and social responsibility” and compliance with the Prospectors and Developers Association (PDAC) best practices guidelines. The e3 Plus award was presented at the 2009 Quebec Exploration 2009 convention. Aurizon is also committed to its corporate responsibility and community initiatives and in 2009 supported over 160 community causes.
       The coming year promises to yield equally significant news on multiple levels for Aurizon shareholders. The company will continue to actively explore its Canadian properties to both upgrade existing resources and add new resources.
       Aurizon also is actively looking to acquire other advanced-stage projects, as well as exploration properties with good potential for developing a mine the company can finance, build and operate itself, in Canada, the U.S. and Mexico.
“We have built a good foundation for Aurizon shareholders and are in a good position to fund projects going forward,” says Hall. “It is time to allocate increased finances and human resources to unlocking the potential of our properties.”