Cambior is upbeat over Cameron Lake

The Cameron Lake gold deposit in northwestern Ontario could be brought into production using bulk-mining methods, producing 1,800 tonnes daily.

Such is the conclusion of an assessment by gold producer Cambior (TSE), which has revised the minable reserve to 4.3 million tonnes with an average grade of 4 grams gold per tonne from 2.9 million tonnes grading 5.7 grams.

The new mining model uses bulk methods in stopes measuring 30 to 60 metres wide, in contrast to earlier studies that had assumed the deposit would be mined by shrinkage stoping of high-grade breccia and vein structures.

Cambior and property owner Nuinsco Resources (TSE) will exercise an option agreement that allows the former to earn a 51% interest in the property by spending $1.5 million over one year, then spending $15.6 million towards bringing the project into production.

The study estimated a recovery rate of 93% and annual production of 73,000 oz., costs of US$202 per oz., and a 7-year mine life. It assumes an exchange rate of US$1-1.37.