Cambior ups Rosebel’s reserves

Cambior (CBJ-T) has tabled the results of a feasibility study of its Rosebel open-pit gold project about 80 km south of Suriname’s capital city of Paramaribo.

The latest study peg’s Rosebel’s reserves at 36.9 million tonnes running 1.63 grams gold per tonne, for 1.93 million contained ounces of gold. That’s an increase of 43% over reserves reported in a December 2000 prefeasibility study. The increase is thanks to the addition of a crushing and grinding circuit to allow for the processing of Rosebel’s transitional and hard-rock ore. The estimate is based on an assumed, long-term gold price of US$300 per oz.

Of the reserve, 21.2 million tonnes grading 1.47 grams gold are soft rock ores; 11.7 million tonne of transitional ores grade 1.81 grams gold; and the remaining 3.9 million tonnes of hard rock ore average 1.93 grams gold. Total measured and indicated resources currently stand at 68 million tonnes of 1.5 grams gold.

The resource at Rosebel is found in six deposits within 15 km of each other. Most of the deposits remain open laterally and at depth.

The plan at Rosebel calls for the initial mining of soft ores at an average rate of 43,000 tonnes per day. For the first 18 months of operation, the mill will run through the soft ore at 14,000 tonnes each day. During year 2, the mill feed will include up to 50% combined transitional and hard rock ore. Accordingly, the milling rate will be dropped to 12,000 tonnes per day. Over a proposed project life of 8 years, the mill is expected to run through about 37 million tonnes of ore.

Processing will consist of a crushing and grinding circuit followed by a conventional gravity circuit and a carbon-in-leach plant. Power will be supplied by the Afobaka hydro-electric generating station 32 km away.

The project comes with an initial price tag of US$95 million, including US$4 for mining and processing equipment, much of which will be transferred from Cambior’s Omai gold mine in neighbouring Guyana. The study pegs the project’s internal rate of return (IRR) at 12%. At gold prices of US$315 and US$325 per oz., the IRR increases to 15% and 18%, respectively.

Production from Rosebel is subject to a 2% royal payable to the Government of Suriname, and a price participation of 6.5% on the amount exceeding a market price of US$425 per ounce of gold. Cambior must also surrender 0.25% of production to a foundation to stimulate mineral exploration in Suriname.

Golden Star Resources (GSC-T) will also receive 10% of the excess, if any, of the average quarterly market price above US$300 per oz. for production fromthe soft and transitional rock portions, and above US$350 per oz. from the hard rock portion.

Under a 1994 agreement, state-owned Grassalco (Grasshopper Aluminum Co.) holds an option to acquire a 20% stake in Rosebel for 20% of accumulated project costs at the time of exercise, which is allowed only after the granting of an exploitation concession.

Earlier this year, the government formally committed to eliminate state-owned Grassalco’s options in return for a 5% interest in Rosebel’s operating company. The government also rescheduled net smelter payments, provided for a beneficial tax regime and agreed to supply power at a gold-indexed rate.

Cambior hopes to begin construction, which is slated to take 14 months, during the fourth quarter of 2002. To do so, the company still needs an exploitation permit, finalized amendments to the mineral agreement; and financing.

Cambior plans to submit its feasibility study and environmental impact study shortly to get he construction permitting ball rolling.

During production the mine will employ 600 people.

Print


 

Republish this article

Be the first to comment on "Cambior ups Rosebel’s reserves"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close