Campbell finds new zone at Joe Mann

Campbell Resources (CCH-T) reports that five exploration drill holes at the Joe Mann mine in northern Quebec have intersected a gold-bearing quartz vein.

The vein runs 1.5-7 metres wide, and four of the holes yielded economic grades, including some visible gold. (The holes also cut sub-economic and economic grades in two other veins.)

The program was carried out on a 600-metre drift at level 2925, west of the production shaft.

Results are as follows:

— Hole 28 cut 2.6 metres averaging 24.3 grams gold per tonne starting at a down-hole depth of 130.3 metres.

— Hole 28A cut 1.7 metres of 0.5 gram gold starting at 130.5 metres down-hole.

— Hole 29 returned 2.1 metres of 19.3 grams gold at 130.5 metres down-hole.

— Hole 30 yielded 3.9 metres grading 31.5 grams gold at 126.6 metres down-hole.

— Hole 31 cut 1.6 metres of 8.2 grams gold at 142.5 metres down-hole.

— Hole 32 returned 6.5 metres averaging 12.1 grams gold, including 2.4 metres of 24.6 grams gold.

Drilling has outlined the vein for up to 137 metres of strike length along the horizontal extension of the mine’s main zone.

Previously, 26 holes indicated gold-bearing structures but returned mostly sub-economic grades from the western extension of the main vein. The best hole of that batch returned 34.7 grams gold over 0.46 metre.

Pending positive results from continued drilling, a 140-metre drift could be developed in the second half of the year to provide access to mineralization at level 2925.

Campbell recently posted a first-quarter loss of $2 million (or 4 per share) on revenue of $4.6 million, compared with a year-earlier loss of $691,000 (2 a share) on no revenue from metal sales. (Mining at Joe Mann was suspended from November 2000 to April 2002.)

Quarterly gold production from Joe Mann tipped the scales at 11,370 oz. (400 oz. off budget). More than 200,000 lbs. copper were also produced (6,600 lbs. over budget). Cash operating costs came in at US$349 per oz., while the company realized US$345.48 for each ounce produced.

The company expects to produce 54,000 oz. gold and 900,000 lbs. copper in all of 2003.

Earlier this year, Campbell inked a deal with Rocmec International to test a thermal-fragmentation technique on some ore blocks at Joe Mann. The new method could increase reserves and resources and significantly reduce costs by making available some currently uneconomic narrow structures.