Cambior gold production up 33%

Cambior (CBJ-T) produced 694,100 oz. of gold in 2004, one third more than during its previous year’s operation.

The company attributed the increase to the start-up of its Rosebel open pit mine in Suriname. Its other gold mines: Omai, Doyon and Sleeping Giant all produced less gold than in 2003.

Rosebel began operating in February. In its fourth quarter, production totaled 93,300 oz. gold.The mill processed an average of 17,200 tonnes of ore per day. The grade was 11% higher than predicted, at 1.93 grams gold per tonne.

Overall Rosebel produced 273,700 oz. gold. Changes are already being made to the primary crusher, stacker and conveyor so that hard rock can be treated in the circuit. This is expected to cost about US$11 million and construction should be complete by the middle of this year.

The Omai mine is at the end of its mining cycle. A final blast in the Fennell open pit took place in early October. Low-grade ore, which had been stockpiled, is now being treated. There is still enough of this material (3.8 million tonnes grading 0.98 gram gold per tonne) to continue gold-production through 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, Guyana.

Omai Bauxite Mining, a 70%-owned subsidiary of Cambior, (the Government of Guyana owns the other 30%) will operate the Montgomery bauxite mine. The mine has reserves of 62 million tonnes of bauxite at 60% Al2O3.

The Doyon division includes both the Doyon and Mouska mines. Changes were made to production at Doyon, where the underground mining rate was reduced from 1 million tonnes per year to 700,000 tonees 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 re-opened in October following a program of shaft-deepening. Ore from Mouska is being milled at Doyon.

Cambior owns 50% of the Sleeping Giant mine; Aurizon Mines (ARZ-T) holds the other half. Cambior’s share of production in 2004, totaled 33,500 oz. of gold (200 oz. greater than the previous year).

Cambior bought Sequoia Minerals in early July, thereby increasing its ownership in the Niobec mine, in northeastern Quebec, to 100%. Niobec produces a niobium concentrate that grades 66% niobium. Last year niobium sales totaled US$36.6 million.

The company is working on a pre-feasibility study at its property in Peru and a feasibility study should be completed by the middle of this year on its Camp Caiman gold project in French Guiana.