Cambior sees rise in gold output

Cambior (CBJ-T) produced 694,100 oz. gold in 2004. That’s a third more than in 2003, reflecting the startup of the Rosebel open-pit mine in Suriname.

The company’s other gold operations — Omai, Doyon and Sleeping Giant — all produced less gold than in 2003.

Rosebel began operating in February 2004 and, in the fourth quarter, produced 93,300 oz. The mill processed 17,200 tonnes per day during the period, and the grade was 11% higher than predicted, at 1.93 grams gold per tonne.

Overall, Rosebel produced 273,700 oz. gold in 2004. Changes are already being made to the primary crusher, stacker and conveyor so that hard rock can be treated in the circuit. These changes are expected to cost US$11 million, and construction should be complete by mid-year.

The Omai mine, in Guyana, is at the end of its mining cycle. A final blast in the Fennell open pit took place in early October. Stockpiled low-grade ore is now being treated. There is still enough of this material (3.8 million tonnes grading 0.98 gram gold per tonne) to continue producing gold until the end of August. The operating cost is estimated at US$293 per oz.

Rehabilitation at the Omai mine has begun; some equipment will be transferred to Cambior’s bauxite operation, 100 km to the north in Linden.

Omai Bauxite Mining, a 70%-owned subsidiary of Cambior (the government of Guyana owns the remainder), will operate the Montgomery mine, which has a reserve of 62 million tonnes of bauxite grading 60% Al2O3.

The Doyon division, in Quebec, includes both the Doyon and Mouska mines. Changes were made to production at Doyon, where the underground mining rate was reduced to 700,000 from 1 million tonnes per year. Some staff have been relocated to Mouska.

The Doyon division produced 146,500 oz. gold, down from a total of 217,200 oz. gold in 2003. This year, the company plans to mine 834,000 tonnes grading 6.5 grams gold per tonne.

Mouska reopened in October following a program of shaft-deepening. Ore is being milled at Doyon.

Cambior owns half of the Sleeping Giant mine in Quebec, with the remainder held by Aurizon Mines (ARZ-T). Cambior’s share of production in 2004 totalled 33,500 oz. gold, or 200 oz. more than in 2003.

Cambior bought Sequoia Minerals in early July 2004, thereby increasing its ownership in the Niobec mine, in northeastern Quebec, to 100%. Niobec produces a niobium concentrate, which grades 66% niobium. Sales of niobium last year totalled US$36.6 million.

The company is working on a prefeasibility study at its property in Peru. And a feasibility study is due by mid-year at the Camp Caiman gold project in French Guiana.