Market anticipates results of Aur, Louvem drill holes

As operator Aur Resources prepared to release a batch of new drill holes located up dip from the Louvicourt Twp. discovery area, the share prices of Aur, Louvem and St. Genevieve Resources (TSE) continued to move upward on large volumes.

In addition to the 400,000 Aur shares bought recently on behalf of Noranda Inc. by Canarim Investment Corp., a block of about 700,000 Aur shares was picked up for anonymous buyers by Bunting Warburg Inc. of Toronto. According to trading records, on June 28 Gordon Capital Corp. purchased 150,000 shares of St. Genevieve at $1.93 each. St. Genevieve holds a 56% stake in Louvem.

After encountering high grade copper-zinc-gold mineralization about 2,000 ft below surface in a previously unexplored horizon, Aur is looking for up dip extensions of its massive sulphide deposit at the 1,250-ft level.

If results are similar to the ones released three weeks ago, the size potential of the Louvicourt deposit could double from the present 6.5 million tons.

“Holes don’t always go where you want them to,” said Aur vice- president Howard Stockford.

He admitted that Aur would like to settle a Louvicourt ownership dispute which arose in February after Louvem defaulted on a $40,000 payment required to fund exploration on the property. In a notice, which Stockford said was sent to Louvem April 4, the latter company was asked to make the paymen t within 10 days or risk having its interest in the property diluted down from 50% to a 25% non-participating interest. He said Louvem has yet to pay.

But Stockford said there has been no discussion between the two companies since Louvem Chairman Pierre Gauthier promised, at Louvem’s June 29 annual meeting, to take the dispute to court if a settlement isn’t reached.

“We’d like to settle out of court if we can because you never know what a judge is going to do,” Stockford told The Northern Miner. “You have to recognize that evidence could be heard by someone with no experience in the mining business.”

Meanwhile CMP 1989 Resources Ltd. has committed itself to purchasing $750,000 worth of Louvem shares at $4.40 each. Louvem says it will use the proceeds of the financing agreement dated June 30 to Feb 28, 1990 for mineral exploration on properties it already holds or eventually acquires.

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