Cambior, Aurizon to restart Sleeping Giant in early ’93

The Sleeping Giant gold project in northwestern Quebec will be placed back into production next year by Cambior (TSE) and Aurizon Mines (TSE).

The property, 50 miles north of Amos, was operated by Aurizon (and its predecessor, Perron Gold Mines) during the period 1988-1991. Underground exploration by Cambior comprising 7,400 ft. of drifting and 126,300 ft. of diamond drilling confirmed the grade and continuity of a series of lenses identified by earlier exploration.

Minable reserves are estimated to be 455,000 tons grading 0.22 oz. gold per ton using the relatively high cutoff grade of 0.12 oz. ton. The reserves are carried by veins dipping at 65-70 degrees. The companies say several have indicated potential for expansion; all are accessible through existing underground development.

An investment of about $5.6 million will be needed to develop the project during the next eight months.

Commercial production is scheduled to begin during the second quarter of 1993 at a milling rate of 172,000 tons per year (about 500 tons per day) to produce 35,000 oz. gold per year. Operating costs are estimated to be $260 per oz.

Sixty-five people will be employed during the pre-production phase and this number will increase to 90 when full production is reached. Cambior will be the operator.

Under the terms of the agreement, Cambior must incur $12 million in expenses before July 1, 1993, to maintain its 50% interest. As of June 30, 1992, $7,630,000, had been spent. Once the $12 million investment has been made, pre-production expenses will be funded equally by Cambior and Aurizon. There is a 1,000-ton-per-day mill on the property built by Aurizon. That company suspended production in 1991 when developed ore reserves were exhausted.