Shaft being deepened at Joe Mann

Deepening the No. 2 shaft at the Joe Mann gold-copper mine of Campbell Resources (TSE) southwest of Chibougamau, Que., to 2,700 ft. is under way.

The shaft excavation and related work is expected to be completed this summer; additional development work will include four new levels. The entire project is expected to take 12 months to complete and cost about $9 million. Campbell Chairman John Kearney, speaking at the annual meeting in Toronto, said the company foresees further deepening of the shaft as the property is developed. Currently, the No. 2 shaft reaches 2,010 ft.

In 1991, Joe Mann, the company’s only remaining producer in the Chibougamau camp, turned out 87,500 oz. gold (a record for the mine) and about 1.5 million lb. copper.

The company, which was forecasting eventual gold output of 100,000 oz. or better, now says output will decrease in 1992 and 1993, mainly because of the shaft sinking and development work.

Total production of 75,000 oz. is forecast for 1992; no forecast was made available for 1993. “A slight dip is all we’re talking about at this stage,” Kearney told shareholders.

Kearney said the company’s cash reserves currently stand at $16.5 million, up from $13.5 million at the end of 1991. The long-term debt has been reduced considerably, he said.

Proven and probable reserves at Joe Mann at the end of 1991 totalled 864,000 tons grading 0.27 oz. gold per ton and 0.26% copper, down from 1.2 million tons grading 0.26 oz. gold and 0.27% copper at the end of 1990. The mine hosts an additional possible reserve estimate of 2.5 million tons grading 0.25 oz. gold and 0.3% copper.

In Mexico, Campbell is budgeting $1 million this year for exploration work in the northwestern part of that country. Campbell’s presence in Mexico dates back to 1956.

Campbell has 99.2 million shares outstanding. Its stock was recently trading in the 50 cents range.

Kearney moved to the chairman’s position from the presidency. John Kachmar is the new president of Campbell. Kearney and Kachmar occupy the same positions with Campbell’s major shareholder, Northgate Exploration (TSE). Former Campbell chairman Richard Lister has become the company’s honorary chairman.