Cambior to spend $62 million at Grevet

The directors of Cambior (TSE) have decided to spend an additional $62 million on preproduction work at the Grevet polymetallic project, 80 km northeast of Lebel-sur-Quevillon, Que.

The deposit has a possible and probable reserve of 11 million tonnes averaging 8.5% zinc, 0.45% copper, and 35 grams silver and 0.09 grams gold per tonne.

In June, 1994, the board approved a feasibility study calling for development at a cost of $80 million. Initial preproduction in the second half of 1994 consisted of shaft-sinking and construction of surface and underground infrastructure, at a total cost of $18 million.

The decision to spend the additional $62 million was based on receipt of environmental permits, and also on improvements in zinc and copper prices. It is also possible that the federal and/or Quebec government may provide financial assistance.

The initial discovery of base metal mineralization was made by Serem-Quebec in 1989, when two zones of high-grade zinc mineralization were intersected. Formerly listed Exploration VSM acquired a 50% option on the 60-claim property as exploration continued.

During the second half of 1992, Cambior obtained VSM’s 50% interest by purchasing all of its outstanding shares for $11.8 million. Through various option agreements and other purchases, Cambior acquired the remaining interest in Grevet in 1993. The total cost of acquiring the project was about $18 million.

As of December, 1993, a shaft had reached a depth of 1,790 ft. below surface, on its way to an ultimate depth of 2,530 ft.

The $62 million will be spent developing underground infrastructure, preparing stopes, building surface facilities (including a

2,500-tonne-per-day concentrator) and buying mining equipment. Preproduction is expected to be completed by December, 1995, and startup is envisaged for the first quarter of 1996.

Annual production during the 12-year life is expected to average 134,000 tonnes of zinc concentrate averaging 54% zinc and 12,700 tonnes of copper concentrate grading 26% copper. It is estimated that 95% of the zinc and 81% of the copper will be recovered.

Cambior holds interests in eight mines and more than 100 exploration properties throughout the Americas.