Campbell Res. expands Cedar Bay gold mine

Gold production is to be expanded at the Cedar Bay mine in Chibougamau, Que.

The 29-year-old gold-copper producer is to be deepened 1,000 ft to a working depth of 3,200 ft. Consequently, an additional 1.2 million tons are expected to be delineated. Reserves now stand at 971,038 tons, with a production rate of 350 tons per day grading 0.14 oz gold and 1.10% copper.

Engineering work for the expansion has been completed and shaft- sinking will begin immediately, says Toronto-based Campbell Resources, which owns the mine. The total cost of the program is estimated to be $7.5 million and completion is scheduled for late 1988 (assuming that drilling results are verified).

Cedar Bay is one of four metal mines operated by Campbell in the Chibougamau camp of northwestern Quebec. Others include the Joe Mann and S-3 mines, which entered production earlier this year, and the Henderson 2 mine which has been producing gold and copper since 1967. The Joe Mann mine had been operated twice before.

“The expansion of the Cedar Bay mine is one more step in the solidification and rebuilding of these operations,” President Richard Lister tells The Northern Miner. “They’re all doing very, very well.”

The operating cost for all four mines combined is $310(US) per oz, which includes $45 per oz for development, he says.

Completion of the expansion program is expected to bring Campbell’s total gold production to 75,000 oz per year.