Louvicourt opening highlights Quebec’s Mining Week

The official opening of the Louvicourt copper-zinc mine in late April proved to be the highlight of “Quebec Mining Week.” It was also a day of celebration for the companies that brought to fruition one of Canada’s most technically advanced producers.

Situated in the historic Val d’Or camp, Louvicourt is a joint venture owned 30% by Aur Resources (TSE), 45% by Novicourt (TSE) and 25% by Teck (TSE). About 750 guests, including federal and provincial politicians and mine employees, were on hand for its opening ceremonies staged in an underground garage some 655 metres below surface.

Francois Gendron, Quebec’s minister of natural resources, used the occasion to stress the importance of mining to the local economy and confirm his government’s support for the industry. Not to be outdone was the federal government’s spokesman, Martin Cauchon, who pointed to federal mining initiatives and Canada’s political stability as factors which contribute to mining development in the Abitibi region. (Cauchon spoke on behalf of Canada’s minister of natural resources, Anne McLellan, who was unable to attend).

Company officials bypassed politics and expressed appreciation for the support and encouragement given by all levels of government. “Quebec has always been a place where government works with mining companies,” said Aur President James Gill. “Louvicourt is no different.”

That support was no doubt helpful for Aur, which as a junior company discovered the Louvicourt deposit in May, 1989. It was no small feat for Aur to retain operatorship after two of Canada’s largest majors, Teck and TSE-listed Noranda (the majority owner of Novicourt), became involved in the project.

Teck President Norman Keevil said much of the credit for the project’s success goes to Gill and Aur Vice-president Howard Stockford. He also praised the team effort put forth by all partners, although he conceded that, at times, “melding the views of three companies took some doing.” Novicourt President John White described Louvicourt as an example of the “splendid results that can be achieved through partnerships,” and pointed out that considerable expertise was expended on the design, engineering and construction of the mine.

“In this regard, I would be remiss if I didn’t mention the excellent efforts on behalf of Novicourt by our major shareholder, Noranda, and the many consultants,” he added. “There is no doubt that this is a mine we can all be proud of.”

Louvicourt, which contrasts sharply with most of the older mines in the Val d’Or camp, is a veritable showcase of Canadian mining expertise and technology. It features the latest computer technology for geological mine planning; the first application at a massive sulphide mine in Quebec of a total tailings paste-fill plant; a highly automated mill; and an award-winning tailings facility. These and other features were highlighted in a recent, special supplement of Canadian Mining Journal.

Louvicourt was built at a capital cost of $290 million, about $30 million below budget. Construction and development contracts were signed during the height of the recession, when bidding for work was intensely competitive.

The company also was fortunate in that production began during a cycle of high copper prices. This helped offset some of the disappointment from last year’s announcement that the original reserve (based only on surface drilling) had to be reduced by about 40% after the 1994 underground drill program showed that the deposit was more geologically complex than originally thought.

Diluted minable reserves, at a 2% copper-equivalent cutoff grade, now stand at 13.9 million tonnes grading 3.8% copper and 1.8% zinc, plus 32 grams silver and 0.9 grams gold per tonne. The production rate was not changed, but the mine life was reduced to 12 from 17 years. By all accounts, the high-grade deposit still holds its status as one of the most significant discoveries made in Canada in recent decades, and exploration for additional reserves is planned. During the opening ceremonies, Gill described Louvicourt as “a great orebody and a great mine (that) will provide incentive for us to explore in the years ahead.”

The mine began production last July, and production at commercial rates began early this year. Louvicourt is expected to achieve full production of 4,000 tonnes per day by July of this year and employ a work force of 283.

During the first quarter, 226,356 tonnes of ore were processed in the mill, from which were extracted 16.2 million lb. of payable copper, 7 million lb. of zinc, 6,674 oz. gold and 119,924 oz. silver.

Aur’s 30% share of mining revenue totalled $12.5 million, while mining expenses were $7.9 million for the period. Louvicourt is reported to be operating at, or better than, the original 1995 mine plan with respect to production levels, mined grades, metal recoveries and payable metal content of the concentrates produced.

Copper production is projected at 94 million lb. in 1995, which is 4 million lb. above the level forecast in the original 1995 mine plan. Copper concentrates go to Noranda’s Horne smelter at nearby Rouyn-Noranda, while zinc concentrates go to the CEZ smelter at Valleyfield, Que.