Aurizon reports gold hedge position 10/8/99 18:25
VANCOUVER, Oct. 8 /CNW/ - Shares Listed:
Toronto Stock Exchange & Montreal Exchange
Ticker Symbol - ARZ
Aurizon Mines Ltd. reports that at September 30, 1999 it had entered into
spot deferred contracts for the sale of 34,000 ounces, representing
approximately 13% of Aurizon's current mineable reserves at an average price
of US$298 per ounce deliverable as follows:
Ounces Average Price Percentage of
(000) (US$/oz) Production
1999 17 $296 100%
2000 17 $301 28%
In addition, for the fourth quarter, 1999, Aurizon had sold call options
on 19,000 ounces at an average price of US$302 per ounce, and purchased put
options on 12,000 ounces at an average price of US$290 per ounce. If the
current gold price is sustained during the fourth quarter, it is likely that
the call options will be converted into spot deferred contracts for future
delivery, and that the put options will not be exercised. At current gold
prices, Aurizon's exposure on its hedge book is well within its existing
credit lines with its various counterparties.
The majority of Aurizon's hedge book was put in place in December, 1998
to maximize revenues and preserve cash flows during 1999 when significant
capital expenditures were planned for its projects. For the nine months ended
September 30, 1999, Aurizon's gold hedging activities have contributed
approximately US$32 per ounce in additional revenue over the average spot gold
price.
Aurizon is a Canadian-based gold mining company with operations and
exploration activities in the Abitibi region of north-western Quebec, one of
the world's most prolific gold and base metal regions. Aurizon operates and
owns fifty percent (50%) of the Beaufor Mine and owns fifty percent (50%) of
the Sleeping Giant Mine and one hundred percent (100%) of the Casa Berardi
property, all of which are located in the Abitibi region. Aurizon shares
trade on the Toronto and Montreal stock exchanges under the trading symbol
``ARZ'.
This News Release includes certain ``forward looking statements' within
the meaning of the United States Private Securities Litigation Reform Act of
1995. Without limitation, statements regarding potential mineralization and
resources, exploration results, and future plans and objectives of the Company
are forward looking statements that involve various risks. Actual results
could differ materially from those projected as a result of the following
factors, among others: risks inherent in mineral exploration, risk associated
with development, construction and mining operations, the uncertainty of
future profitability and uncertainty of access to additional capital.
-0- 10/08/1999
/For further information: David P. Hall, President or Ian S. Walton,
Chief Financial Officer (604) 687-6600, toll free: 1-888-411-GOLD, fax
(604) 687-3932, www.aurizon.com, info(at)aurizon.com
To request a free copy of this organization's annual report, please go to
www.newswi |
