Cambior and Aurizon boost production at Sleeping Giant

While gold production for the Sleeping Giant mine in northwestern Quebec was up in 1995, it did not reach mid-year projections.

Output for the year was 48,042 oz., 12% higher than the 43,003 oz. produced in the previous year.

In July 1995, half-owner Aurizon Mines (TSE) projected production of 50,000 oz. for the year. Production was shared with Aurizon’s partner, Cambior (TSE), the operator of the mine.

The head grade at Sleeping Giant was 12.45 grams gold per tonne, compared with the geologically calculated grade of 8.7 grams per tonne. It was the second consecutive year that the grade mined was significantly higher than expected. Aurizon officials say lower-than-expected dilution and a conservative cutting grade assigned to high diamond drill assays account for the increase.

After accounting for production, the reserve level at the end of 1995 increased 8% over the previous year, despite a reduced development and diamond drill program. Reserves are expected to increase in 1996 as a result of definition drilling on the downdip extensions of the 20 and 30 zones. Recent drilling has identified two new veins parallel to these zones.

Also, a 900-metre drift, completed in December, will allow further drilling of the D zone in the first half of 1996.

As of Dec. 31, 1995, total reserves stood at 626,000 tonnes grading 10.5 grams gold per tonne, representing 212,000 oz. gold.

Aurizon expects gold production to exceed 43,000 oz. in 1996. Cash costs per ounce are expected to be less than US$240.