Audrey considers alternate mining proposal for Mobrun

Still waiting for Minnova’s (TSE) response to feasibility results on the Mobrun polymetallic mine, Audrey Resources (TSE) is considering an alternate mining proposal which would limit the operation to 2,000 tons per day. The original proposal, which would increase daily production from 1,400 to 3,000 tons per day when the 1100 lens comes on-stream, was presented to partner Minnova at the end of last year. Minnova has spent $6 million of the $10 million required to earn a 50% stake in 1100 and three other lenses on the property near Rouyn-Noranda, Que.

“The project is a certainty, it will go, the only question is at what rate,” Bouchard told The Northern Miner at the end of February.

Meanwhile, Audrey seeks finaincing to pay for its share of the working costs on 1100. Developing the lens, which contains an estimated 15.5 million tons grading 4.64% zinc, 0.83% copper, 1.05 oz. silver per ton and 0.035 oz. gold, could carry a $90 million price tag.

Recently, Audrey, announced that three major companies had expressed an interest in buying the company to get at the Mobrun ore. Audrey has been looking for a major willing to purchase up to 10 million of its shares since last November. The junior gained 10 to close at $4.05 the day after the announcement.

Based on a bulk sample extracted from the top of the 1100 lens and processed through the Mobrun mill, indicated recoveries are 90% for zinc, 80% for copper, 50% for gold and 45% for silver. The results confirm earlier findings provided by Lakefield Research.

While engineers decide on the best way to approach future development at the mine, underground exploration program on the recently-discovered C lens, about 45 metres south of 1100, has been put on hold. As one of five lenses on the Mobrun property, the C lens was intersected during a summer drill program on the sixth level of the mine workings. Results from the 7-hole program indicate it could be as big or bigger than 1100.

On virgin territory about 1,000 metres west of the mine, Audrey has recently completed an 8-hole surface drilling program designed to test a possible extention of the geologic units hosting the Mobrun ore.

“We think the area should host the same package of rocks,” said Bouchard. But while the core contains extensive alteration and some sulphide mineralization, he said assays are pending.

Bouchard said Audrey expects to spend about $500,000 to explore the outer reaches of the mine property, including the Asarco ground, a 7-claim package bordering the Mobrun property to the south-east.

After reinterpreting geophysical and drill data on Asarco, Bouchard says the Audrey has identified several deep targets for drilling.