Aur awards $50-million shaft contracts

Sinking of two shafts at the $326-million Louvicourt Twp. base metal project is set to begin after operator Aur Resources (TSE) awarded the contract to Dynatec Mining and Entrepreneur Miniere Talpa.

Aur and partners Societe Miniere Louvem (TSE) and Teck (TSE) are spending $50 million to complete separate exploration and production shafts as part of a plan to build a 5,000-tonne-per-day copper-zinc mine.

With collaring scheduled to begin in May, Aur Vice-President Howard Stockford said he expects the 2,400-ft. exploration and ventilation shaft to reach its target depth by June, 1993.

The 3,300-ft. production shaft will take until May, 1994, to complete because the hoist room and headframe are not ready and contractors won’t begin collaring until August. About 50 people are now working at the site. “We are very excited because we are anxious to get down there and see what the orebody looks like,” said Stockford. So far, surface drilling has established diluted minable reserves of 22.8 million tonnes grading 4.01% copper, 1.99% zinc, 1.3 grams gold and 31 grams silver per tonne. Dynatec and Talpa won the contract after five companies bid on the Val d’Or, Que., project.

One of Canada’s most experienced engineering firms, Dynatec recently completed work on a 4,960-ft. shaft at Falconbridge’s Craig nickel mine at Sudbury, Ont. Stockford said Talpa was selected because Aur wanted to involve a local company in the project. Based in Val d’Or, Talpa has previously specialized in smaller underground projects.

As Teck has already agreed to earn 25% of Louvicourt, by contributing $55 million toward the first $100 million spent on mine development, Aur’s 55% share of financing for the two shafts is already secured.

After Teck has exercised the option, Aur is responsible for 30% of development costs while Louvem provides the remaining 45%. Noranda (TSE), which owns 52% of Louvem, has yet to say how it will fund Louvem’s share of capital costs.