Cambior builds Rosebel mine

Cambior (CBJ-T) has begun building the Rosebel gold mine in northern Suriname, with political risk coverage underwritten by a group including Export Development Canada.

Cambior will spend US$95 million developing Rosebel this year, with construction due to be completed by early 2004.

Based on current reserves, the operation is slated to produce 220,000 oz. gold per year at an average operating cost of US$187 per oz. During its projected 8-year life, the mine will employ 600 people.

In its first year, Rosebel is expected to churn out 270,000 oz. at an operating cost of US$157 per oz., which would boost Cambior’s 2004 gold output to more than 700,000 oz.

At last count, Rosebel had a reserve of 36.9 million tonnes grading 1.63 grams gold per tonne, equivalent to 1.9 million contained ounces. Reserves were recently boosted by 43%, owing to the addition of a crushing and grinding circuit to allow for the processing of Rosebel’s transitional and hard-rock ores. 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 material, 11.7 million tonnes are transitional material grading 1.81 grams gold, and the remaining 3.9 million tonnes are hard-rock material averaging 1.93 grams gold.

Total measured and indicated resources of 68 million tonnes grading 1.5 grams gold are found in six deposits: Kollhoven, Pay Caro, East Pay Caro, Mayo, Royal Hill and Rosebel. These lie within 15 km of each other, and most remain open laterally and at depth.

Rosebel is 80 km south of the capital city of Paramaribo.

Meanwhile, back in Canada, Cambior has agreed to take half of Cancor Mines‘ (KCR-T) stake in the Gemini-Turgeon project, 80 km north of La Sarre, Quebec. To do so, Cambior must spend $2.5 million on exploration, and pay Cancor $100,000 over six years. Cambior will manage the work.

In September, Cancor assumed full ownership of the Turgeon property by acquiring Aur Resources‘ (AUR-T) 49% interest in return for 100,000 shares and a 2% net smelter return royalty on production from the property. At Gemini, Cancor has already earned a 75% interest from Inco (N-T), which owns the remainder and has certain back-in rights.

At Turgeon, in the centre of the property, Cancor has outlined a 250-metre-long, massive-to-semi-massive sulphide zone of pyrite associated with sericitized chert breccia. The zone contains significant gold values, with hole 95-30 cutting a 9-metre core length of 1.04 grams gold. Cancor believes the mineralization could be the northern extension of the gold-bearing A zone, on the Gemini property to the south.

So far, Cancor has delineated three massive-sulphide lenses at Gemini:

q a main, zinc-bearing lens in zone B grading 5-12% zinc;

q a copper-bearing lens, also in zone B, grading 1-3.8% copper; and

q a gold-bearing lens grading 1.65-3.96 grams gold per tonne in zone A, which is 4 km north of zone B, in the same stratigraphic horizon.

Last month, Cancor discovered a new gold-bearing zone: hole 51 returned 6 metres (at a down-hole depth of 177 metres) averaging 9.46 grams gold per tonne.

Five holes totalling 1,290 metres were drilled during the recent program, which targeted isolated anomalies detected during an airborne survey. The holes cut pyritic lenses or tuffs in felsic volcanics.

In January, Cancor closed a private placement with Socit d’investissement dans la diversification de l’exploration (SIDEX) — a new, $50-million fund set up by the Quebec government and the Quebec labour fund Fonds de solidarit.

SIDEX subscribed for 600,000 shares at a quarter apiece for gross proceeds of $150,000. It was also granted 600,000 warrants good for one share at 30 each for six months after closing, and at 35 per share from 6-18 months after closing.