Cambior boosts gold output (February 08, 1993)

Gold production in 1992 increased by 13% to 354,240 oz., Cambior (TSE) reports.

Higher output at the Mouska and Silidor mines in northwestern Quebec and at the Valdez Creek placer project in Alaska was the main reason for the overall increase.

The company says it will be taking a non-cash charge of about $16.3 million against its 1992 earnings through devaluation of the carrying value of the Valdez Creek and Beauchemin (northwestern Quebec) gold-mining operations. (Valdez, $8.2 million; Beauchemin, $8.1 million.)

Cambior attributes the writedown to high operating costs, continued weak gold market conditions and lower ore reserves.

For 1993, the company is projecting a 70% rise in production to about 620,000 oz., the growth to come from the Omai gold mine in Guyana which is expected to reach the commercial production stage during the next few weeks. Cambior says operations at the Beliveau (northwestern Quebec) and Beauchemin mines will cease during the fourth quarter of this year because of the depletion of reserves.

Work began last November at the Valdez Creek project on a second diversion of the Valdez River and the relocation of the wash plant. Cambior’s share of production from the project will total 60,000 oz. in 1993, about the same level as in 1992.

In Arizona at the Carlota copper project, environmental permits are expected to be issued by the end of this year, allowing for construction to begin in 1994 and commercial production to start during the first quarter of 1995.