Shaft sinking in early ’91 at Aur, Louvem discovery

The sinking of a 3,000-ft. shaft on the Louvicourt Twp. massive sulphide property east of Val d’Or, Que., should begin early in the new year, says Aur Resources (TSE) Vice-President Howard Stockford. Now that Aur has settled a legal dispute with partner Societe Miniere Louvem (TSE), the 55/45% joint venture is already contemplating the steps needed to bring the project into production.

Stockford said it will take approximately 12 months to sink a shaft and 2-3 years to bring the project into production once all the necessary permits are in place.

Under the legal settlement, Aur will operate any development program managed by a 4-man committee comprising two Aur representatives and two from Louvem affiliate Noranda Minerals. As owner of 22.7% of Louvem, Noranda has the right to manage Louvem’s interest in the project.

Before the legal dispute was settled, Aur had outlined potential reserves of 36 million tons grading 3.11% copper and 1.34% zinc per ton. But Lance Tigert, vice- president of finance at Noranda, predicted that less than half of the potential reserves outlined so far would prove minable.

Stockford, however, is more optimistic. “I would be surprised if we don’t mine in excess of 20-25 million tons,” said the Aur vice- president. “The amount of high- grade material in the deposit will give us a lot of flexibility (with respect to mining),” said Stockford. “The potential for finding additional reserves is still high.”

If he is correct, reserves would be sufficient to sustain a 4,000-to 6,000-ton-per-day mining operation for about 15 years. The final figures will depend on the cutoff grade used, future metal prices and overall mining costs which may be reduced by the property’s proximity to Val d’Or and local infrastructure.

In an effort to establish more confidence in Louvicourt reserves, Aur is completing additional infill drilling work as part of a prefeasibility study. But results won’t be released unless they are likely to affect the share prices of Aur and Louvem, Stockford said.

Meanwhile, Richard Fiorini was recently named president and chief executive officer of Louvem’s parent company St. Genevieve Resources (TSE). A mining engineer with 25 years experience in the business, Fiorini is a former president of Noranda Mining’s U.S. division.