NEWS ROUNDUP (April 20, 1992)

Weak metal prices and a high Canadian dollar forced Audrey Resources (TSE) to report a loss of $1.1 million or 7 cents a share in 1991, compared to a loss of $2.9 million or 19 cents a share in 1990.

Despite increased production at the Mobrun polymetallic mine near Rouyn-Noranda, Que., revenues in 1991 dropped by 2% to $18.9 million from $19.9 million the previous year.

However, due to economies of scale and higher production levels, operating costs also dropped, by 23% last year, to $29.20 per ton from $37.97 in 1990. Before exhausting all of the ore in the Main lens and three smaller deposits, Mobrun produced 534,303 tonnes of ore resulting in 17,964 oz. gold, 23.4 million lbs. zinc, 7.9 million lbs. copper and 109,385 oz. silver The mine was shut down in January to enable Audrey to save cash and raise the $45 million needed to develop the new 1100 massive sulphide lens. Australia-based Elders Finance Inc. has agreed to postpone until June 30, payments on $14.8 million owed to it by Audrey. It has also agreed that interest should be added to the capital balance of the debt as of April 1.