Audrey finds higher grades underground at Mobrun mine

Underground drilling and bulk samples from Audrey Resources’ Mobrun project suggest that gold grades are approximately 30% higher than first estimated, President Guy Hebert, tells The Northern Miner. Shared 70%-30% between Audrey and Corporation Falconbridge Copper respectively, the Mobrun project is located 31 km northeast of Rouyn, Que.

Muck sampling from the 2-2 stope, the first to enter production if the project gets the go ahead this June, averaged a gold grade of 0.12 oz gold per ton. Copper, zinc and silver grades were 0.79%, 3.16% and 1.01 oz per ton respectively. Several definition drill holes also returned much higher grading gold values. One of the best was hole 87-3 which cut a 34.4-ft section grading 0.23 oz gold with appreciable copper, zinc and silver values.

Based on these initial underground results, Mr Hebert expects the overall gold grade to be significantly higher than the 1.35 million tonnes grading 0.81% copper, 3.39% zinc, 0.99 oz silver and 0.08 oz gold per ton. Total reserves exceed 3 million tonnes, but only the 1.35 million tonnes are deemed economic.

To the end of January, Audrey has milled 104,000 tonnes of ore from the existing Mobrun open pit at Falconbridge’s nearby Norbec mill. Gold recoveries averaged 37.2%, a figure expected to increase once higher grading, less oxidized underground ore is processed. Milling is scheduled to resume on May 4, Mr Hebert says. This will test development ore from underground which will test mill modifications made during the shut-down period. A re-grind ball mill added to the zinc circuit is expected to increase recoveries from 66.9% to 85%.

With 7.65 million shares issued fully diluted, Audrey is expected to realize earnings per share of more than 40 cents , according to several mining analysts at Pemberton, Houston, Willoughby, Bell, Gouinlock.