Cambior drills 27,300 ft on Golden Star’s Omai bet

After completing 27,300 ft. of drilling on the Omai gold project in Guyana, joint venture partners Cambior Resources (TSE) and Golden Star Resources (TSE) have defined minable reserves of 52.4 million tons grading 0.046 oz. gold per ton in three separate deposits. That represents about 2.4 million oz. of gold in-situ. To date, compilation of all geological data has outlined mining reserves in three separate areas known as the “Main Stock” deposit, the “Wenot Lake” deposit and an alluvial deposit.

With about 90% of the known reserves classed as proven and probable, the companies are continuing to evaluate the feasibility of developing an open pit mine at the site. The property is about 100 miles south of Georgetown.

Tonnage for each deposit is reported as follows: Main Stock Tonnage Grade (000s) (oz./ton) Saprolite 3,040 0.056 Fresh rock 39,481 0.046 Total 42,521 0.047 Wenot Lake Laterite 5,108 0.036 Saprolite 2,382 0.051 Fresh rock 135 0.051 Total 7,625 0.041 Alluvial 2,250 0.042 Grand Total 52,396 0.046

By spending US$1.5 million on a feasibility study and arranging production financing, Cambior can earn a 60% interest in the project. Secondary options allow the company to increase its stake to 70% with Golden Star retaining a 25% interest. The government of Guyana will hold the other 5% interest.

Golden Star’s previous partner Placer Dome (TSE) pulled out of the project last May after it completed more than 96,000 ft. of drilling.

Cambior is currently pursuing discussions with various financial backers to arrange funding and political risk insurance, should a positive production decision be taken.

Concerted efforts are also going into the feasibility of building an hydro-electric facility on the Potaro River, about 20 miles from the mine site. Such a facility could supply the operation’s power requirements of 20 megawatts.

Final results from the Omai feasibility study, being co-ordinated by six engineering firms, will be available in December. The milling rate has been tentatively set at 13,200 tons per day with gold recovery expected to be 93.5% from a carbon-in-pulp circuit.

Meanwhile, Golden Star has successfully closed a private placement and option deal with Ivanhoe Capital to sell a 65% interest in its Mazaruni diamond property elsewhere in Guyana. Ivanhoe has subscribed for a $1-million convertible debenture, together with one million shares of Golden Star (at $1 each) and 1-million-share purchase warrants exercisable at $1 per share. The $2 million will be used for exploration and development funding on the diamond property.