Audrey has strong quarter as development continues

While production at the Mobrun mine near Rouyn-Noranda is on hold because of development work until July 1989, Audrey Resources (TSE) managed to strengthen its financial position recently.

Revenues for the six months ended Sept 30 increased to $7.2 million from $3.09 million at the same time last year. Net earnings during the same period also increased to $703,188 or 8 per share compared to $347,787 or 5 per share.

Second-quarter net earnings were affected by costs related to a 10-month suspension of production at the Mobrun mine and to costs associated with cleaning and overhauling the Norbec mill which treated Mobrun ore until Aug 27.

During the three months ended Sept 30, Audrey produced 660,109 lb copper, 2.46 million lb zinc, 11,100 oz silver and 2,275 oz gold. Since ore from Minnova Inc.’s (TSE) Ansil copper mine in northwestern Quebec, is being processed at Norbec, Audrey has been forced to raise $17 million to build its own milling facility. Minnova also holds a 30% interest i n the Mobrun project, while Northgate Explorations (TSE) of Toronto retains a 20% equity stake in Audrey.

In a bid to access the 850, 870 and 930 lenses and continue mining the Main lens at Mobrun, Audrey is extending the shaft to 362 m from 145 m. As reported (N.M., Aug 22/88) proven and probable reserves in the four predominantly massive sulphide lenses are about 1.2 million tonnes.

But the discovery of the huge 1,100 lens to the southeast of the underground workings, promises to add at least four million tonnes of massive sulphide material to that amount. Drilling in the 46-m 1100 structure recently produced a 28 m intersection which assayed at 0.41% copper, 2.25% zinc, 0.569 oz silver and 0.015 oz gold.

In September, underground development work began with the deepening of the shaft and the excavation of the fourth level station.

Shaft deepening work, including the fifth and sixth level stations and loading facilities will be completed by February, said Audrey President Guy Hebert.