3 holes extend size of Aur’s discovery, intersect new zones

Two holes extended the zone announced earlier (N.M., June 19/89), one missed and one was abandoned. A fifth hole, for which assays are expected soon, cut three zones rich in zinc and copper sulphides over 210 ft.

The share price of Aur, its partner Societe Miniere Louvem (TSE) and Louvem’s parent company, St. Genevieve Resources (TSE), all made big jumps on heavy volume when the results were released.

The four completed holes are up-dip from the drill holes that revealed the joint venture’s discovery in Louvicourt Twp., east of Val d’Or, Que. Aur holds at least a 50% stake in the project while Louvem says it holds the remaining 50%. Louvem’s interest is a matter of dispute between the two partners.

Designed to follow-up on results of seven holes which revealed high grade copper-zinc-gold mineralization in a previously unexplored horizon more than 1,500 ft below surface, the results were described as “very positive” by Aur President Jim Gill.

“They are confirmation that the exploration program is still panning out,” said Prudential Bache Securities mining analyst Alan Ferry.

As a result, Louvem was the second most actively traded stock on the Toronto exchange on the day the drill holes were announced. With more than 1.2 million shares changing hands, Louvem gained 25 cents before closing at $4.40. Trading on more than 430,000 shares, Aur was up 75 cents to $8.75 and St. Genevieve Resources, which holds a 56% stake in Louvem, added 6 cents to its share price and closed at $2.15.

Highlights from the latest results include 62.3 ft of grade 2.34% copper, 8.41% zinc, 0.56 oz silver and 0.08 oz gold per ton in a hole located 150 ft above the previously announced hole 309-43.

A second hole (309-46) situated 735 ft up-dip of discovery hole 309-42 intersected 0.16% copper, 18.52% zinc, 3.73 oz silver and 0.05 oz gold over 10.3 ft. (Hole 309-42 intersected 117 ft of grade 4.96% copper at a depth of around 2,617 ft.)

A third hole (309-49), 40 ft further east, intersected copper-rich massive sulphides over lengths of 50.8 ft and 59.5 ft in two zones separated by 17.3 ft of barren rock. The hole struck 99.8 ft of zinc-rich sulphides 83-ft deeper. Assays from this hole are not yet available, but after a visual inspection Aur is convinced that the core contains ore grade material over “significant mineable widths.”

News that a fourth hole (309-47) didn’t hit anything of economic significance seems to indicate that Louvicourt massive sulphides are contained in a number of separate zonations or pods, said Ferry, who like other analysts is still attempting to interpret the results.

Complicating the issue is the fact that holes drilled to depths of 1,000 ft or more usually deviate from their true destination and Aur is having to survey all of the holes to find out where the intersections are located.

Blank hole 47, for example, may mean that there is a thinning in the sulphide zone because of a geological event known as a topographic high or ridge, said Gill who has yet to determine how far the mineralization extends toward surface and along strike.

“In deposits of this type you will always get some holes that are not that good,” he said.

However, a down-hole survey has identified a strong off hole conductor within 200 ft of hole 309-47 which will be tested in the near future, according to Gill.

When the discovery holes were released June 16, the deposit was thought to contain about 6.5 million tons of massive sulphide mineralization. Although Gill said the latest assays “are telling us that the deposit is increasing in size,” he predicted that it will take a lot more drilling to determine how large it will eventually be.

Since Aur encountered a deep deposit which could be the source of the past producing Louvem copper zinc mine which lies about 1,000 ft further north, it has been drilling below a vertical depth of 1,000 ft and along a strike length of about 1,000 ft.

“We will all be waiting with bated breath for signs of strike extensions,” said Yorkton Securities base metals analyst Eric Zaunscherb. Based on results from Val d’Or so far, he estimated that Aur and Louvem are “now looking at upwards of 10 millions tons” of massive sulphides in the Louvicourt deposit.

Aur has three drill rigs on site preparing to collar some step out holes to the east of the area it has been concentrating on and about 100 ft up dip from hole 45. A fourth rig is being used to re-survey all of the holes drilled so far.

“We don’t plan to drill above the 1,000 ft level,” said Gill who allowed representatives from Louvem to view the core even though a Louvicourt ownership dispute involving Aur and Louvem has yet to be resolved. Due to an alleged default by Louvem in an earlier exploration phase, Aur is claiming the right to dilute its partner’s interest in the project from 50% to a 25% carried interest.

Louvem says it is not in default of a $40,000 exploration payment and that it may defend its right to a 50% interest in court. However, a street rumor suggests that the two companies may be close to a settlement.

Results from the next round of drilling are not expected to be available for another three to four weeks.

]]>