LITERATURE REVIEW — Cambiex Exploration acquires gold project in south Peru

The Arequipa region of southern Peru has attracted the attention of Cambiex Exploration (CBX-T), the exploration arm of parent company and majority shareholder Cambior (CMH-T).

Cambiex recently signed an agreement with a Peruvian company to acquire 100% of a gold property in that country’s mineral district. To earn the interest, the company must make payments totalling US$200,000, of which US$30,000 must be paid this year. The vendor retains a 1.5% royalty, which can be repurchased for US$500,000 at Cambiex’s discretion.

The property covers a strong quartz-sericite alteration zone, which is more than 4 km long and 500 metres wide, with disseminated pyrite. The zone is associated with a dioritic intrusion in metamorphosed sedimentary rock. A stockwork system of veins and veinlets has been identified in this area (the main veins were mined before the arrival of the Spaniards). Low copper grades accompany the gold mineralization, as noted in several small tunnels.

A reconnaissance program conducted there in recent years returned 0.13 gram gold over 40 metres and 0.6 gram gold over 40 metres. Those values are considered significant, given the high degree of leaching of the outcrops.

Sultana project

In Idaho, Cambiex and Cambior are partners in the Sultana copper-gold project.

Earlier this year, Cambiex reported a geological resource of 15 million tonnes grading 0.42% copper and an additional resource of 8 million tonnes at 0.45% copper and 0.5 gram gold per tonne. Results from the drill program, which is now complete, will be compiled and released soon.

Cambiex can earn a 50% interest in the Sultana project by spending US$5 million on exploration over 30 months. To date, the company has spent US$2 million to earn a 30% stake in the project.

Cambiex reported a loss of $93,000 for the quarter ended June 30, compared with a loss of $116,100 for the same period a year earlier.