Louvicourt takes back seat at Aur Res. annual meeting

A lawsuit overhanging the Louvicourt Twp. massive sulphide discovery took a backseat at a recent annual meeting in Toronto as President Jim Gill of Aur Resources (TSE) outlined the company’s plans for the coming year. Although the meeting was well attended, the euphoria that accompanied earlier drill results from the Aur, Societe Miniere Louvem (TSE) discovery east of Val d’Or, Que., has died down for the moment. Lawsuits launched by partners Aur and Louvem against one another are currently in the discovery stage and the trial is set to begin Sept. 10.

With 21 million shares outstanding and $49 million in working capital, Gill said his company will continue to do the things that led to the disputed Louvicourt discovery.

Aur expects to spend $12.8 million this year to explore Louvicourt and a number of properties in the Val d’Or area. Of that amount, $6.8 million has been earmarked for Norlartic gold project where a production feasibility study should be completed by the second half of this year.

The Norlartic project is connected via underground workings to Aur’s Kierens zone mine, which last year produced 9,743 oz. With reserves in the Norlartic Main zone standing at 1.2 million tons grading 0.13 oz. gold per ton, the project is expected to increase Aur’s annual gold output from an expected 21,000 oz. this year to 45,000 oz. in 1991.

Also, shareholders approved a proposed two-for-one stock split which is scheduled to take effect, April 20.

As Aur shares are trading at just below $10, well below the 52-week high of $14.63, the stock split has drawn some criticism from brokers. But Gill said it was designed to encourage retail investors to buy the stock.

Under it, each registered holder of either common shares or Class B shares can receive a certificate representing one additional common or Class B share for every share held on the record date.

“The split should increase liquidity and allow shareholders who have played the game with us throughout all of our years to continue to participate,” Gill said. Teck (TSE) and Cominco (TSE) now hold 3.29 million Aur shares or 21%.

This year, Aur is planning to spend $3 million at Louvicourt Twp., where potential massive sulphide reserves stand at 36 million tons of grade 3.11% copper and 1.34% zinc.

“We will attempt to establish the centre of gravity and develop a strategy for underground exploration,” said Gill, who predicted that results from three more holes could be available by the end of this month.

What he didn’t say, however, is that underground exploration can’t begin until legal proceedings relating to ownership of the property are settled.