Treatment of a 20,000-tonne bulk sample from the Mobrun property near Rouyn, Que., is scheduled to start by the end of the month, Audrey Resources says. Audrey, which has the right to earn a 50% interest in the property from Corporation Falconbridge Copper, has also let a $4-million contract for the sinking of a 215-m shaft and underground development at the site.
Bulk sampling will come from the open pit area which has been stripped. Reserves totalling 225,000 tonnes, sufficient for an 8-month mine life, will be fed to Falconbridge’s nearby Norbec mill at a rate of 1,200 tons per day, Audrey president Guy Hebert says.
Proven reserves for the first bench of the open pit are 63,225 tonnes grading 0.76% copper, 2.95% zinc and 0.073 oz gold per ton. The underground project is expected to be completed by November, Mr Hebert says.
Mr Hebert notes that the feasibility study for the project was ba sed on a gold price of $320(US) per oz. At current prices of more than $400 per oz, he feels the economics of the deposit are greatly enhanced.
The key to the success of the project after the open pit closes is the underground work. The program is designed to confirm underground reserves of one million tonnes grading 3.12 g gold per tonne (0.09 oz per ton). Audrey can earn its interest by spending $5 million on exploration and development of the property.