Campbell confirms deeper zones at Corner Bay (March 20, 2006)

Further drilling by Campbell Resources (CCH-T, CBLRF-O) at the Corner Bay copper deposit south of Chibougamau, Que., has intersected more mineralization at depth and west of the previously known zone.

The new intersections are west of a diabase dyke that had traditionally been thought to cut off the mineralized zone at around 600 metres depth. The intersections west of the dyke carry copper grades mainly in the 2-5% range, over true thicknesses of 0.4 to 6.7 metres.

The holes tested structural extensions of the deposit mainly between 600 and 1,200 metres vertical depth.

A new resource calculation, including the recent drilling, puts the measured and indicated resource at 967,000 tonnes grading 5.25% copper, based on a 3% copper cutoff grade. Another 793,000 tonnes grading 6.6% copper are inferred.

Dropping the cutoff to 2% brings the measured and indicated resource to 1.2 million tonnes at 4.64% copper, plus an inferred resource of 1 million tonnes at 5.76% copper.

Campbell, currently under the protection of the Companies’ Creditors Arrangement Act, will go ahead with a planned development of a decline and two exploration drifts for a bulk sample of 40,000 tonnes once its financial situation is stable. Further exploration work, including down-hole geophysics, is already budgeted.

Campbell will be under creditor protection up to May 31, thanks to another extension granted by the courts. Campbell was also authorized to go ahead with a deal under which Montreal junior Strateco Resources (RSC-V, SRSIF-O) takes over 100% ownership of the Discovery gold property, 45 km northwest of Lebel-sur-Quvillon, Que. Strateco, which had already spent about $3 million earning a 50% interest in the property, will be paying $500,000 in cash, in three scheduled payments, and spinning out its gold assets into a new company. Once shares in the new company are out in a public offering, Campbell will own of $1 million worth of shares, or receive the cash equivalent. Campbell retains a 2% net smelter return, which Strateco can buy out for a further $1 million.