Rosebel construction under way

Cambior (CBJ-T) has officially broken ground to begin construction and development of the Rosebel gold project in Suriname after receiving all the necessary permits and securing political risk insurance.

Rosebel’s political risk coverage will be underwritten by a group of insurers including Export Development Canada.

During 2003, Cambior plans to spend about US$95 million developing Rosebel. Construction at Rosebel, which lies 80 km south of the capital city of Paramaribo, is expected to last a year.

Beginning in early 2004, and based on current reserves, the operation is slated to produce 220,000 oz. gold per year at an average mine operating cost of US$187 per oz. During its projected 8-year life, the mine will employ 600 people.

During its first year of production, Rosebel is expected to churn out 270,000 oz. at a mine operating cost of US$157 each, boosting Cambior’s 2004 gold output to more than 700,000 oz.

At last count, Rosebel had a reserve of 36.9 million tonnes grading 1.63 grams gold per tonne, equivalent to 1.9 million contained ounces. Reserves were recently boosted by 43%, owing to the addition of a crushing and grinding circuit to allow for the processing of Rosebel’s transitional and hard-rock ores. The estimate is based on an assumed, long-term gold price of US$300 per oz.

Of the reserve, 21.2 million tonnes grading 1.47 grams gold are soft-rock material, 11.7 million tonnes are transitional material grading 1.81 grams gold, and the remaining 3.9 million tonnes are hard-rock material averaging 1.93 grams gold.

Total measured and indicated resources of 68 million tonnes grading 1.5 grams gold are found in six deposits: Kollhoven, Pay Caro, East Pay Caro, Mayo, Royal Hill and Rosebel. These lie within 15 km of each other, and most remain open laterally and at depth.

Meanwhile back in Canada, Cambior has agreed to take half of Cancor Mines (KCR-T) stake in the Gmini-Turgeon project, 80 km north of La Sarre, Quebec. To do so, Cambior must fund $2.5 million worth of exploration, and pay Cancor $100,000 over six years. Cambior will manage the work.

In September, Cancor reached to assume full ownership of the Turgeon property by acquiring Aur Resources‘ (AUR-T) 49% interest in return for 100,000 shares and a 2% net smelter return royalty on production from the property. At Gemini, Cancor has already earned a 75% interest from Inco (N-T), which owns the remainder and has certain back-in rights.

At Turgeon, Cancor has outlined a 250-metre-long, massive to semi-massive sulphide zone of pyrite associated with sericitized chert breccia in the centre of the property. The zone contains significant gold values, with hole 95-30 cutting a 9-metre core length of 1.04 grams gold. Cancor believes the mineralization may the northern extension of the gold-bearing A zone on the Gemini property to the south.

So far, Cancor has delineated three massive-sulphide lenses at Gemini: a main zinc-bearing lens in zone B grading 5-12% zinc; a copper-bearing lens, also in zone B, grading 1-3.8% copper; and a gold-bearing lens grading 1.65-3.96 grams gold per tonne in zone A, which is 4 km north of zone B, in the same stratigraphic horizon.

Last month, Cancor announced the discovery of a new gold-bearing zone at the property. The discovery hole, no 02-51, returned 6 metres (from 177 metres) AVERAGING 9.46 grams gold per tonne.

Five holes totalling 1,290 metres were drilled during the recent program, which targeted isolated anomalies detected during an airborne-Megatem survey in January. The holes cut pyritic lenses or tuffs in felsic volcanics.

Earlier this month, Cancor closed a private placement with Socit en Commandite (SIDEX), which subscribed fro 600,000 shares at a quarter apiece for gross proceeds of $150,000. Sidex was also granted 600,000 warrants good for one share at 30 each for 6 months after closing and 35 per share from 6-18 months after closing.