The year began auspiciously for Audrey Resources (ME). Not only did the Mobrun polymetallic mine enter production on schedule and under budget, minable reserves rose by 16%.
Situated 30 km northeast of Rouyn-Noranda, Que., the mine was reopened this year following a feasibility study on the 1100 lens. Concurrent with the reopening, Audrey carried out deep drilling, only to discover additional reserves.
Minable reserves, calculated as part of the study last April, stood at 8.5 million tonnes averaging 4.4% zinc and 0.74% copper plus 32.6 grams silver and 1.3 grams gold per tonne. At year-end, they had risen to 9.8 million tonnes grading 4.29% zinc and 0.79% copper, plus 34.5 grams silver and 1.2 grams gold.
In January, the Mobrun mill processed 35,600 tonnes at 6% zinc and 0.74% copper, as well as 31 grams silver and 1.6 grams gold. It is now operating at the proposed rate of 2,000 tonnes per day and, for the year, is expected to yield 25,800 tonnes zinc, 4,600 tonnes copper, 20,800 oz. gold and 336,900 oz. silver.
Under a hedging program, Audrey is able to sell up to two-thirds of the next 10 months’ worth of zinc production for US$1,200 per tonne (or US54 cents per lb.). The program is a defence against potential volatility in the price of zinc.
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