Underground plans on schedule for producing Audrey Resources

The recent rise in copper prices couldn’t have come at a better time for Audrey Resources, which recently started producing underground at its Mobrun polymetallic mine in northwestern Quebec.

The company, which began open- pit operations at the first of July and started up underground production near the first of September, has released quarterly results showing output of more than 1.2 million lb copper, 2.5 million lb zinc, 13,082 oz silver and 1,975 oz gold during the 3-month period July 1-Sept 30. (Spot prices for copper were recently as high as $1.15US per lb.)

Jean Bailly, a vice-president and manager of the Mobrun project, located about 20 miles north of Rouyn-Noranda, said the daily production rate during the last two months has exceeded 1,000 tons per day, in line with preproduction projections. Milling of the ore is taking place at the nearby Norbec facility owned by Minnova Inc., which has a 30% interest in the Mobrun project.

A $10-million, on-site milling facility has been proposed but no decision on such a facility has been taken.

A new office building on the property was completed this month.

Reserves, Bailly said, currently stand at 1.3 million tons, which would give the mine a lifespan of about four years. Exploration continues, the mine manager said, with two drills currently working on-site.

A massive sulphide deposit dipping north, Mobrun was discovered in 1956. Average strike length is about 790 ft, with a depth of about 660 ft and an average thickness of about 50 ft.

Mining activity is currently centred on the west zone, where reserves stand at about 700,000 tons.

Ore from the open-pit operation was stockpiled and since July 1 has been finding its way to the Norbec mill; Bailly said that ore is near depletion. Milling of ore from the underground stopes commenced in mid-October.

Audrey, which started up operations in June, 1985, is involved in a number of other exploration projects, including the Belleterre property east of Ville Marie, Que., and properties in the Casa Berardi area.

Shares of Audrey are listed on the Montreal and Toronto exchanges; the company was recently trading on the tse in the $2.50 range.