Despite shutdown, Mobrun mine boosts 1989 income for Audrey

Annual financial results reported recently by Audrey Resources (TSE) reflect the recent expansion of its Mobrun polymetallic mine near Rouyn-Noranda, Que. Reopened after a 1-year shutdown from mid-1988 to October, 1989, the operation generated revenues of $8 million in 1989, compared with $7.5 million for the year ended Dec. 31, 1988. Revenues in 1988 reflect only five months of production.

The shutdown was necessary to allow Audrey to build a new 1,100- ton-per-day mill at the Mobrun mine site.

As a result, Audrey reported net income in 1989 of $1.8 million or 16 cents per share, compared with $1.03 million or 11 cents per share in the previous year. Net income for 1989 includes an extraordinary gain of $444,000 or 4 cents per share while results for the previous year include a gain of $152,000 or 2 cents per share.

As the company elected to adopt retroactively the deferral method of tax allocation, 1989 income was reduced by 2.7 million and figures for 1988 were also adjusted accordingly with a reduction of $248,110.

In the final three months of 1989, Mobrun produced 1.1 million lb. copper, 3.7 million lb. zinc, 7,648 oz. silver and 4,274 oz. gold.

At year-end, Audrey had a weighted average of 11.6 million shares outstanding, compared with 9.4 million at the same time in 1988. The company is attempting to arrange financing to table a competitive offer for the U.S. and Canadian resource assets of Calgary- based Asamera Minerals (TSE). Audrey Resources (TSE) $000sexcept per share items Year ended Dec. 31 1989 1988 Revenues $8,012 $7,503 Net earnings 1,822 1,031

per share 0.16 0.04003