Aur begins to get handle on Louvem sulphides bet

One of the two holes, which were drilled to a depth of over 2,000 ft, averaged 235.4 ft of grade 3.66% copper, according to Aur. It is exploring the property in a joint venture with Societe Miniere Louvem (TSE). A second hole in the same area yielded a 130.6-ft intersection averaging 6.98% copper.

But Aur’s vice-president Howard Stockford said the long distance of the two best holes (309-58 and 66) from previous ore-grade intersections preven ts him from determining how the latest results will affect the size potential of a deposit that is currently estimated to host geological reserves of 18 million tons of 2. 8 % copper and 2.8% zinc.

While Stockford said he is “pretty damn excited” about the latest results from the Louvicourt property where the partners’ ownership rights are the subject of a legal dispute, market response to the holes was only lukewarm.

Shares of Aur, which is attempting to increase its stake in the project to 100% from 50% via a Quebec court declaration, began trading at $9.38, u p 13 cents fr om the previous day’s closing.

Louvem opened at $6.13 after closing a day earlier at $5.88. It is attempting to defend its right to a 50% stake in the property in an $83-million lawsuit and have Aur removed as operator. Shares of St. Genevieve Resources (TSE), which ho lds a 56% stake in Louvem, remained steady opening at around $2.04. Stockford said he is particularly encouraged by results of

step-out hole 58 wh ich intersected three massive sulphide and stringer sulphide zones 400 ft east o f the most easterly ore-grade drill hole. In addition to the 235-ft copper inter section, hole 58 intersected 27 ft of grade 4.34% copper and 21.5 ft of 6.92% zi nc.

Hole 66, which was drilled between an earlier hole 42B and hole 58 averaged 4.34% copper over 38.2 ft and 130.6 ft of grade 6.98% copper, 0.96% zi nc, 1.37 oz silver per ton and 0.07 oz gold.

“The (holes 58 and 66) appear to indicate that the deposit is opening up as we go down plunge to the east,” said Stockford who believes that future increases in the size and grade of the deposit will be predicated on this area.

However, the Toronto company hasn’t totally given up on the western section of the area drilled so far. Hole 309-61 which was drilled to test the western exte nsion of the deposit intersected 7.45% copper over 6 ft. Other conclusions drawn from six Louvicourt holes are as follows:

As zinc values in the latest holes were relatively weak in comparison to copper grades, Aur drill rigs haven’t yet hit the main zinc zone, accor ding to Stock ford who believes that the property contains separate zinc and copper zones.

The fact that a hole drilled to a depth of 975 ft intersected nothing of economic significance probably means that the deposit is “topping out” at a depth of 1,000-1,200 ft, according to Stockford. The deepest hole drilled so far interse cted massive sulphide mineralization at 2,190 ft below surface.

Massive sulphides appear to be located in an “upper” and “main” zone, according to Stockford who doesn’t see that being a negative factor. “T he type of depos it that Aur and Louvem are exploring are typically zoned,” he told The Northern Miner.

Aur says it hasn’t yet found the deposit’s centre of gravity and it is still “anybody’s guess” how big the deposit will turn out to be. The centre of gravity is used by mining companies to determine where a shaft would be located.

Having outlined an east/west strike length of about 2,000 ft, Stockford says his company still has a long way to go before it reaches the eastern bo undary of the Louvicourt property.

Results of a geophysical survey have strengthened Aur’s confidence in the deposit’s continuity, and the company is using four drill rigs in a bid to expand re serves to test the outer as well as upper limits of the deposit.

So far, 25 holes have been drilled in an area 2,000 ft southeast of the old Louvem copper zinc mine.

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