Audrey enters first quarter in the black

After successfully bridging the gap separating explorers from production companies, Rouyn- Noranda, Que.-based Audrey Resources has reported positive net earnings results for its first quarter as a Canadian gold and base metal producer.

In spite of milling low grade ore from open pit workings at Audrey’s newly producing Mobrun polymetallic mine near Rouyn, the company reported earnings of $347,787 or 5 cents per share for the 6-month period ended June 30.

According to President Guy Hebert, revenues of $2,687,035 for the quarter ended June 30 were applied to deferred expenditures since the company had not reached commercial production at that time. As a result, Audrey reported revenues of $3,090,000 for the first six months of 1987.

Liquid assets were $174,000 for the 1987 first half, compared with $798,215 during the same period last year. However, Audrey expects to add $2,665,000 to its cash position from Mobrun ore sales and a $2 million line of credit granted by the National Bank of Canada.

Assets on Sept 30 were $15,520,000 compared with $8,265,000 in 1986.

During the 1987 second quarter, Audrey produced 1,235,409 pounds of copper, 2,517,166 pounds of zinc, 13,082 oz silver and 1,975 oz gold from the Mobrun mine.

Milling of ore from underground stopes began at Mobrun in mid- October. Audrey has also completed 501 m of raises and production drifts as well as 5,961 m of long-hole drilling.

During the quarter, 38,864 tons of ore from the raises and sub-level development have also been drilled, according to the company.

Despite late delivery of materials and mining equipment which postponed underground development and preproduction for seven weeks, Audrey says ore from the Mobrun open pit has kept the nearby Norbec mill running at 1,100 tpd.

While bringing the Mobrun mine successfully to production, Audrey’s exploration department has made a number of discoveries. They include the Belleterre gold property near Temiscamingue Lake, Que., where Audrey is involved in a 50%/50% joint venture with Lyon Lake Mines.

Audrey says the gold-bearing quartz vein stripped and sampled on more than 140 m during the summer, has been explored by 10 drill holes and 23 samples have given an average value of 0.54 oz.

However, since mineralization is erratic and the true grade of the vein difficult to assess, Audrey is planning to extract a bulk sample early next year.

At the company’s 70%-owned Dufresnoy project which encompasses a land area surrounding the Mobrun mine, drilling has cut a horizon of economic massive sulphides at a vertical depth of 250 m.

Audrey says this massive sulphide intersection is the first of its kind to be discovered outside Mobrun’s main lens.

Audrey shares were trading recently on the Toronto Stock Exchange at $2.70 in a 52-week range of $2.30 and $5.75.