Gold production by Cambior Inc. (ME) has increased to 42,986 oz in the first quarter of this year from 30,439 oz produced during the same period last year. The big improvement was reflected in the company’s bottom line — a 16.3% jump in profits to $3.6 million or 15} per share.
The increased gold output, which was achieved despite a 34-day strike at the East Malartic mill in Quebec, is expected to reach the 200,000-oz-per-year mark this year. The strike affected gold production at Cambior’s Vezina and Doyon mines which process ore at the East Malartic mill. The company has a 50% interest in the Doyon mine with Lac Minerals holding the remaining interest.
Additional growth is planned from exploration projects which will be entering the production development phase. At the Eldrich- Flavel project, Cambior began production in May. Reserves total 1.58 million tons grading 0.15 oz gold per ton. The mine is expected to reach its rated capacity of 275,000 tons per year sometime in 1989. This should add another 40,000 oz of gold to Cambior’s account.
Work is also on schedule at the 25%-owned Silidor project, also in Quebec. A shaft has reached a depth of 660 ft and lateral development has commenced at a depth of 330 ft. A feasibility study and production decision are expected by March, 1989. Reserves at Silidor stand at 5.4 million tons grading 0.18 oz gold.
On the Mouska project, construction of surface facilities is on schedule with exploration work expected to begin in the second quarter. Probable and possible reserves are calculated at 1.8 million tons grading 0.18 oz gold.
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