Cambior follows yellow brick road

For the fifth year in a row, Cambior (TSE) has increased the level of its gold output.

The Montreal-based company cranked out 522,077 oz. in 1994, compared with 518,083 oz. in the previous year. The overall increase is due to higher production levels at the Omai, Sleeping Giant and Valdez Creek Placer mines in Guyana, Quebec and Alaska, respectively.

Omai completed its first full year of production at a steady rate of 12,800 tonnes per day. Production jumped 21% from 1993, rising to 250,642 oz. Production from the Sleeping Giant, which is jointly owned with Aurizon Mines (TSE), totalled 43,003 oz. — a 30% increase over estimates made at the beginning of the year. The surplus was due to the fact that mined ore averaged 11.47 grams per tonne, significantly more than the geologically calculated grade of 8.99 grams.

Moreover, reserves at Sleeping Giant have increased by 110% since the end of 1993; when 1994’s surplus production is factored in, the number of contained ounces is approximately 242,025. The source of the new reserves is an area below the 20 and 30 zones, where an additional 275,000 tonnes of ore grading 12.48 grams has been identified. Cambior has given the nod to a $7.2-million development program to extend the shaft 300 metres and develop five new levels.

The company expects production to grow further this year. Increases at the Chimo and Mobrun mines in northwestern Quebec have prompted the board of directors to set 550,000 oz. as a production target. The Mobrun is wholly owned by Audrey Resources, a 65%-owned subsidiary of Cambior.