Some observers say find the best since Kidd Creek

The copper-zinc intersections encountered by Aur Resources (TSE) and Societe Miniere Louvem (TSE) at their Louvicourt Twp. property east of Val d’Or, Que., are also said to be wider than those at Minnova Inc.’s (TSE) 1.5- million ton Ansil copper deposit.

But it will be some months before Aur Resources and partner Louvem can determine with any degree of certainty the size potential of the massive sulphide deposit.

After receiving the results of seven drill holes which probed a new massive sulphide horizon at a depth of 1,500 to 2,000 ft, Aur President Jim Gill says the potential exists for a 6.5-million ton deposit.

While admitting that it is too early to draw any hard and fast conclusions, he predicts that when assay results are received from three shallower holes, the size potential of the deposit could double.

Gill’s predictions are based on some very wide intersections encountered in drill holes about 2,000 ft southeast of the past producing Louvem copper-zinc mine. They include 117 ft of grade 4.96% copper and 35.3 ft of grade 13.82% per ton zinc. (The 35.3 ft intersection located at a depth of about 1,500 ft included 15.9 ft of grade 26.25% zinc and 0.40 oz gold per ton.)

According to Mike Knuckey, vice-president exploration at Falconbridge Ltd. (TSE), the combination of massive sulphides with gold is adding extra interest to a discovery which industry executives agree has been badly needed.

“The market has been waiting for something good and has pounced on it,” added Canarim Investment Corp. mining analyst John Hainey.

During a week and a half of intense speculation, almost eight million Aur and more than 11 million Louvem shares have changed hands. Aur, which says it holds a 58% property interest was trading at $3.00 before the results were announced has risen to $7.88. At press time Louvem, which dispute’s Aur’s right to any more than a 50% interest, had climbed from 52 cents to $2.71.

At least seven companies, including Cartier Resources (ME), Murgor Resources (VSE), Canhorn Mining (TSE) and Globex Mining (ME) have either gained or were negotiating to acquire a land position near the discovery claims.

Also active with 110,600 shares changing hands has been Val d’Or- based Consolidated Abitibi Resources (ME) which controls ground bordering Aur and Louvem’s discovery claims to the southeast.

“Everyone has gone nuts around here,” said Abitibi’s 84-year-old President Jack Kentish, who recently optioned the claims to Aur Resources.

Much of the market activity has been sparked by Canarim Investments which may be holding a large block of Aur shares on behalf of one or more institutional buyers. Because Noranda Inc.’s (TSE) Horne smelter is just 90 km from Louvicourt Twp., analysts believe that Canarim is buying on behalf of the Toronto-based resources giant. Executives in Teck Corp.’s exploration department in Vancouver have also been making enquiries regarding Aur’s progress at Louvicourt.

But since Ontario securities regulations allow the buyer to remain anonymous until it acquires more than 10% of Aur’s 16.5 million outstanding shares, a major shareholder doesn’t have to reveal itself.

“If someone wanted to make a takeover bid for Aur, there isn’t much we could do about it,” said Gill, who started out in 1981 with only a discarded poker table to work on. He is currently Aur’s largest shareholder of record with a 5% interest. Director Leo Thibodeau also holds around 1% representing 41,667 shares.

However, with $18 million cash in the treasury, Aur is under no immediate pressure to look for a joint venture partner and the company is adequately financed to carry out its plan to keep three drills on site at least until the end of the year.

“We were planning to spend $1 million on the property this year but it is safe to say that will be exceeded,” Gill told The Northern Miner.

“With a deposit like this, you have to keep drilling until you satisfy yourself that you know what you’ve got,” said Gill. He estimates that it could cost at least $75 million to bring the property into production.

But a Louvicourt Twp. ownership dispute could prevent Gill from calling on financial assistance from partner Louvem, if Aur succeeds in reducing the former’s stake in the property to a 25% non-participating interest.

Aur is claiming the right to do so because it says Louvem was in default of a $40,000 payment during an earlier phase of exploration. While Louvem is vigorously defending its right to a 50% stake in the property, Gill said the two sides will eventually have to sit down and discuss the issue.

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