Production increases 11% at Audrey’s Mobrun

With production from the underground section of its 70%-owned Mobrun polymetallic mine well underway, Audrey Resources has completed its second quarter as an operating mining company.

Production at the Rouyn-Noranda, Que., operation was up 11% compared with the previous quarter as 90,754 tonnes of ore was processed through Minnova Inc.’s Norbec mill. Minnova holds a 30% interest in the Mobrun project.

According to Audrey, third quarter production amounted to 1.4 million lbs copper, 2.6 million lbs zinc, 16,615 oz silver and 3,684 oz gold.

For the nine months ended Dec 31, Audrey reported earnings of $961,912 or 13 cents per share on revenues of $8.1 million. During the same period, Audrey had a cash deficit of $1.2 million compared with a balance of $1.3 million during the same period last year.

During the recent third quarter, Audrey says development continued as the company excavated 319 m of raises and drifts at Mobrun. Some 10,871-m of long-hole drilling was also completed.

By the end of this month a completed underground program will provide access to some 750,000 tonnes of ore. On Dec 31, the company said 62,000 tonnes of ore were drilled and ready for blasting in the 2-2 and 2-1 stopes,

During the recent quarter, surface drilling at the adjacent Dufresnoy project, contined to define lateral and vertical extensions of two new massive sulphide lenses containing high grade gold.

According to President Guy Hebert, the latest discovery justifies construction of a new 1,000 tpd on-site mill and he is currently negotiating a private placement to finance the $15 million project.

European investors have already shown interest and decision on financing is expected by the third week of March. Audrey has budgeted $650,000 for additional definition drilling at Dufresnoy where a third anomaly was discovered last week. Hebert says it is located 150 m north east of Mobrun at a depth of 1,000 ft.

Rouyn-Noranda-based Lyon Lake Mines is spending $200,000 to drill its 50%-owned Estrees-Estrades property at Casa-Berardi were induced polarization surveys revealed several anomalies.

Lyon Lake will also spend $700,000 to extract a bulk sample from Audrey’s Belleterre gold prospect near Temiscamingue Lake. The two companies are currently involved in a 50%/50% joint venture at the grass roots project where some encouraging results have been produced.

The Audrey Resources issue was trading recently on the Toronto Stock Exchange at a 52-week low of $2.15. It’s previous high stood at $5.75.