Audrey’s sulphide find could justify new mill

Toronto-listed Audrey Resources says it has encountered two new massive sulphide lenses with high grade gold at its Dufresnoy property, near the company’s Mobrun mine at Rouyn-Noranda, Que.

President Guy Hebert says the latest results may justify the construction of a 800- to 1,000-ton-per- day mill on site to process ore from both the Dufresnoy and Mobrun operations.

Audrey is already using the nearby Norbec mill but since it is scheduled to process ore from Minnova Inc.’s new Ansil mine when the operation is up and running later this year, Hebert needs to find an alternative.

He will meet with financiers in England and New York this week in a bid to raise $14 million for construction of a new mill and that’s why the latest results are so encouraging.

Hebert says the first lens — the 930 — was discovered by a surface drill hole which had targeted a geophysical anomaly detected by previous exploration.

During the 1987 fall drilling campaign, Audrey says the 930 lens was intersected by five drill holes. The best results are as follows: Hole AU-87-20 intersected 1.57% per ton copper, 1.31% zinc, 1.62 oz silver and 0.187 oz gold along a true width of 9.8 ft at a vertical depth of 738 ft.

Hole AU-87-26 cut 2.27% copper, 6.74% zinc, 2.06 oz silver and 0.42 oz gold along a true width of 14.7 ft at a depth of 849 ft. Hole AU-87-26A intersected 3.32% copper, 5.62% zinc, 2.4 oz silver and 0.37 oz gold along a true width of 16.4 ft.

While two additional drill holes on section 11,000 E and 11,040 E did not intersect massive sulphides, an interpretation of the stratigraphy in the drill cores and pem geophysical survey reveal that the stratigraphy and geophysical anomaly have shifted by about 100 m to the south.

A diamond drill is currently attempting to verify that assumption, Hebert says.

Meanwhile, underground drilling at the eastern extremity of the Mobrun mine has identified the 850 lens and some of the results from eight holes are as follows:

Hole 87-02-66 intersected 0.47% copper, 3.44% zinc, 1.25 oz silver and 0.21 oz gold along a true width of 17.7 ft at a depth of 445 ft. Hole 87-02-67 intersected 0.44% copper, 3.26% zinc, 1.13 oz silver and 0.20 oz gold along an 11.1 ft true width at a depth of 480 ft. Hole 88-02-02 intersected 0.63% copper, 4.14% zinc, 1.27 oz silver and 0.14 oz gold along a 16.4 ft true width at a depth of 565 ft. Drill hole 87-02-72 intersected 0.37% copper, 3.76% zinc, 1.12 oz silver and 0.13 oz gold along a 20.7 ft true width at a depth of 460 ft.

Hebert says his company has budgeted $650,000 for a surface drill program designed to define reserves at both sulphide lenses.

The first lens, 930, was discovered by a surface drill hole which had for a target a pem geophysical anomaly detected in an old drill hole. To date, five holes have intersected the lens, with the following results:

Width Grade

(ft) Cu Zn Ag Au Hole (%) (%) (oz/t) (oz/t) AU-87-20 9.8 1.57 1.31 1.62 0.19 AU-87-26 14.7 2.27 6.74 2.06 0.42 AU-87-26A 16.4 3.32 5.62 2.4 0.37 AU-88-30 2.6 1.26 3.48 1.2 0.22 AU-88-31 13.1 1.74 0.01 0.47 0.03

Following discovery of the 930 lens, underground drilling toward the south was carried out from the eastern extremity of the Mobrun mine and identified the 850 lens. Eight drill holes to date have intersected this lens:

Width Grade

(ft) Cu Zn Ag Au Hole (%) (%) (oz/t) (oz/t) 87-02-66 17.7 0.47 3.44 1.25 0.21 87-02-67 11.1 0.44 3.26 1.13 0.2 87-02-69 9.5 0.28 2.14 1.19 0.12 87-02-70 5.2 1.03 2.78 1.5 0.07 87-02-79 9.8 0.45 2.98 1.61 0.11 87-02-80 13.1 1.14 3.1 1.6 0.11 88-02-02 16.4 0.63 4.14 1.27 0.14 87-02-72 20.7 0.37 3.76 1.12 0.13