LITERATURE REVIEW — Guyanese and Canadian production land Cambior back in the black

Expansion of the Omai mill in Guyana, along with increased production from the Bouchard-Hebert mine in Quebec, enabled Cambior (CBJ-T) to report improved cash flow and earnings in 1996.

The Montreal-based company also reported record gold production of 155,000 oz. for the fourth quarter.

Revenue increased by 24% to $313.1 million in 1996, compared with $252.5 million in the previous year. Net earnings amounted to $4.6 million, compared with a net loss of $6.6 million in 1995.

Gold production increased last year by 13% to 502,000 oz., while zinc output increased to 58,500 tonnes and copper production rose to 8,300 tonnes.

This year, Cambior expects to produce 550,000 oz. gold, which includes a production target of 340,000 oz. from Omai. At year-end, gold resources stood at 6.1 million oz. in situ — a 9% increase from 1995. Copper reserves at the end of 1996 were 11.2 million tonnes (25 billion contained pounds), while zinc reserves stood at 1.2 million tonnes (2.7 billion contained pounds).

Cambior intends to spend $18 million exploring various properties this year, compared with $12 million in 1996. This year’s effort will target existing properties at Omai (including the newly acquired Quartz Hill and Omai River concessions), the Doyon and Mouska mines in Quebec, as well as areas surrounding the Bouchard-Hebert mine. The company also plans to test gold targets at properties in Mexico, the Guiana Shield and the Peruvian Cordillera.

Cambior has budgeted $140 million for construction of the Carlota copper project in Arizona and for ongoing expenditures at producing mines and other development projects.

During the first half of this year, the company expects to complete feasibility studies for four projects: El Pachon in Chile, La Granja in Peru, Gross Rosebel in Suriname, and Metates in Mexico.

At Gros Rosebel, drilling will attempt to confirm an increase in reserves to a target of 2 million contained ounces.

At El Pachon, the feasibility study will be completed on the basis of reserves of 882 million tonnes grading 0.62% copper.

Work at La Granja is expected to translate into an increase in proven and probable reserves, along with the completion of a reserve update.