Aur estimates reserves of 18 million tons at 2.8% copper, 2.8%

Toronto-based Aur Resources (TSE) has attempted to put an end to speculation regarding the size of its 50%-owned Louvicourt Twp. base metal discovery by announcing a preliminary reserve estimate.

Using a 2% cut off for copper and 4% for zinc, Aur says it has outlined 18 million tons of grade 2.8% copper, 2.8% zinc, 1 oz silver and 0.04 oz gold per ton in geological reserves.

While reserve estimates were calculated on the basis of results from 19 widely-spaced drill holes, Vice- president Howard Stockford said, “There is no question that Aur and partner Societe Miniere Louvem (TSE) are sitting on a mine.”

“It would be irresponsible to say that this is another Kidd Creek (the Falconbridge-owned orebody which contains 50 million tons of zinc copper reserves) but we’ve been getting consistently good intersections to the east and we expect to get more like that,” Stockford told The Northern Miner.

Located east of Val d’Or, Que. the Louvicourt Twp. discovery has attracted the attention of Teck Corp. (TSE), Cominco Ltd. (TSE) and Noranda Inc. (TSE), who have all agreed to take down shares of Aur and partner Louvem. How much those investments will eventually be worth will depend on the outcome of a dispute between Aur and Louvem (see separate story).

Confidence in the size of the deposit has been increased by news that it appears to contain a high grade core of nine million tons grading 4.2% copper, 4.9% zinc, 1.8 oz silver and 0.07 oz gold. Stockford says a 4% cutoff for copper and 6% for zinc has been used in the high grade core calculations.

If the cutoff for copper drops to 3%, core reserves rise to 12 million tons of grade 3.5% copper, 3.7% zinc, 1.37% silver and 0.06 oz gold.

Included in the over-all reserve calculations are results from hole 53 which intersected two zones averaging 2.22% copper, 0.06% zinc, 0.09 oz silver and 0.01 oz gold at a vertical depth of 2,500 ft below surface. As reported (N.M., Aug 21/89), hole 53 is significant because it has intersected the deposit 400 ft below the deepest ore grade intersection obtained previously.

Situated about 500 ft southeast of the main drilling area, hole 53 contains 56.8 ft of grade 2.18% copper, 0.39% zinc, 0.02 oz silver.

According to Stockford, he and President James Gill felt they needed to put an end to all the speculation that has been circulating since the discovery was announced in June. A report by Burns Fry Ltd. analyst Fraser Phillips, for example, said the deposit could contain 14.8 million tons of grade 2.41% copper, 2.38% zinc, 0.7 oz silver and 0.04 oz gold.

“Since we had more information than anyone else, we felt it was prudent that we put out a preliminary figure,” said Stockford who admits to being annoyed by suggestions that the deposit could be lensed and therefore unmineable. “Our conclusion is that the people spreading those rumors wanted to depress the price of Aur and Louvem shares,” he said.

Based on results so far, Stockford said the Louvicourt deposit is contained in at least one mineralized zone which is comprised of stacked lenses in some areas. From hole 53, he concludes that the deposit is open at depth where it plunges fairly steeply to the east.

Results from a previously unreleased hole (309-60), which was not included in the reserve calculation, will not affect Aur’s tonnage estimates. “But it could push the grade up a bit,” said Stockford. Drilled between holes 47 and 42B near a cluster of drill holes, hole 60 intersected 70.5 ft of grade of grade 7.08% copper, 2.22% zinc, 1.45 oz silver and 0.14 oz gold at a vertical depth of 1,830 ft. The intersection contained 48.5 ft of 15.3% copper, 0.68% zinc, 2.29 oz silver and 0.48 oz gold.

According to Aur, the deposit remains open in all directions and four drills are being used to delineate and expand the known reserves. “It is still too early to speculate on how much drilling we will do,” Stockford said.