Audrey to announce results of Mobrun study

Mine manager Jean Bailly refused to speculate on the content of the reserve announcement which is based partly on results of a 19-hole surface drilling program focusing on a newly discovered massive sulphide lens.

But judging by Audrey’s share price — it was trading recently at a 52-week high — news from Mobrun is expected to be good.

Audrey holds a 70% stake and Minnova 30% in the Rouyn-Noranda operation where a shaft extension program designed to provide access to deeper ore, is complete. Construction of a 1,000-ton- per-day milling complex should also be finished as planned in mid-July.

By lengthening the shaft to 481 m from 217 m, Audrey can mine three new sulphide lenses — the 850, 870 and 930 at the same time as the shallower Main lens which has sustained the operation since it began.

Together they contain about 1.1 million tonnes grading 0.79% copper, 2.46% zinc, 0.89 oz silver and 0.07 oz gold per ton of proven reserves.

With production on hold until the mill is complete, Audrey has also been doing some surface drilling in a bid to probe the recently discovered 1100 lens.

Located about 240 m south-east of the Mobrun mine workings, the 1100 lens is thought to be one of the most promising sulphide discoveries in Quebec for years.

As reported (N.M., Aug 22/88), possible reserves in the 1100 lens stand at 3.1 million tonnes grading 0.65% copper, 6.09% zinc, 1.28 oz silver and 0.05 oz gold. But Bailly said the 1100 lens, which is still open at depth and to the east and west could contain as much as 10 million tons of massive sulphides.

However, Audrey should be able to better define the dimensions of the 1100 lens by conducting an underground drilling program from a new drift on the 381-m level. An additional $1 million has been added to the company’s exploration budget for that purpose.

Despite shutting down mining operations last September, Audrey managed to increase its 1988 net earnings to $1.31 million or 14 cents per share for the year ended Dec 31 from $899,076 or 12 cents per share for the period ended March 31, 1988.

However, since Mobrun was in production for only five months of the current fiscal year compared to nine months last year, year-end revenues decreased to $7.5 million from $12.07 million for the year ended March 31, 1988.

Audrey Resources (TSE) has reported a new gold discovery at the Galinee 3/6 property 17 km south of Matagami, Que.

A 50/50% joint venture involving Audrey and Noranda Exploration, the Galinee is part of a package of 13 properties held under an agreement with Noranda.

After spending $700,000 so far, the joint venture has come up with some interesting results, according to Michel Bouchard, Audrey’s vice- president of exploration.

They include drill hole GAL-88- 31, which yielded a 90-ft intersection grading 0.178 oz gold per ton at a depth of 43 m.

A second drill hole located 60 m further east intersected 0.146 oz gold over 7.03 m at a vertical depth of 175 m. The results come after several drill holes to the east intersected subeconomic gold values up to 0.131 oz over 6.1 m.

As a result of these discoveries, Noranda has staked an additional 107 claims to the west and south of the property and signed an agreement with Vior Mining Exploration (ME) of Quebec City. Under the agreement, the joint venture can acquire a 70% interest in 44 claims held by Vior at the southeast of the Galinee 3/6 property.

The joint venture will spend $250,000 on further drilling, said Bouchard.

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