Louvem reserves up Aur meeting told

Infill drilling at the Louvicourt Twp. massive sulphide project of Aur Resources (TSE) and Societe Miniere Louvem has resulted in a slight increase in undiluted preliminary reserves. But otherwise there were few surprises in store for shareholders who attended Aur’s recent annual meeting in Toronto.

As expected, preliminary reserves at the Val d’Or, Que., project held 55% by Aur and 45% by Louvem, have risen to 30.8 million tons averaging 4.3% copper, 2.1% zinc, 0.81 oz. silver and 0.03 oz. gold per ton.

The new figure, calculated at a 2% copper equivalent cutoff grade, represents a 1.5-million increase in tonnage and a 0.20% rise in the zinc grade, shareholders were told. According to President James Gill, new reserve estimates are based on several drill holes within a deposit that remains open below 3,000 ft. Hole 309-60A, for example, intersected 214.5 ft. of average grade 7% copper, 3.30% zinc, 1.80 oz. silver and 0.11 oz. gold.

Another hole (309-66C) cut a 144-ft. intersection averaging 6.24% copper, 0.05% zinc, 0.46 oz. silver and 0.02 oz. gold. Results of a Louvicourt feasibility study are expected to be released next month. Meanwhile predevelopment work, including the collaring of an exploration and production shaft, is continuing on the property.

Shaft sinking is scheduled to begin in September when Gill expects to have financing in place for Aur’s share of an estimated $180-300 million capital costs. In case the company is unable to obtain financing on schedule, it will avoid equity dilution by using a new class of shares (designated as Class A shares) to raise exploration funding.

At the annual meeting, Aur obtained shareholder approval for the creation of the new class of shares which Gill said will be utilized in the event that Aur can’t raise all the money it needs. On Jan. 31, there were 43.6 million Aur common shares outstanding, of which 9.1 million or 21.2% are held by Teck (TSE) and Cominco (TSE); and two million Class B shares.

Meanwhile, after spending $25 million on exploration this year, Gill said he expects the company’s cash reserves to drop to $20 million from $29 million by year-end. About $5.8 million is earmarked for Aur’s 50% owned ‘Aurbel division,’ which includes Belmoral Mines’ (TSE) 22,000-acre Bourlamaque Twp. property and the Ferdeber and Dumont gold mines east of Val d’Or.

Acquired under an agreement with Belmoral, Ferderber and Dumont are expected to produce 53,000 oz. gold this year from 260,000 tons of ore. Gill says it is ‘highly likely’ that additional reserves can be proven up at the two mines where combined reserves now stand at about 800,000 tons grading 0.24 oz. gold.

Aur’s other two Val d’Or gold mines, the First Canadian and Norlartic are expected to produce about 25,000 oz. of the yellow metal this year.