Despite year-end loss, Cambiex remains active

Cambiex Exploration (CBX-T) incurred a loss in 1997 as a result of the devaluation of one project and the abandonment of several others.

On its home turf of Quebec, Cambiex and its affiliate, Cambior (CBJ-T), entered into funding commitments with new partners for jointly held properties, including the Lesperance, Flavrian and Montbray properties. In the process, Cambiex has devalued the Montbray project by $1.2 million, which, in large part, accounts for the year-end loss of $1.7 million (or 6cents per share). The company posted a loss of $537,000 (2cents per share) in 1996.

In 1997, investments in exploration projects amounted to $1.7 million. The company’s assets at year-end totalled $15.8 million, of which $10.9 million represented exploration projects. At year-end, cash and short-term investments amounted to $2.6 million.

Throughout last year, work continued at Cambiex’s 15%-owned Yaou-Dorlin project in French Guiana. Partners Cambior and Guyanor Ressources (GRL.B-T) funded some US$5.6 million in exploration expenditures, bringing the total amount spent since 1994 to US$13 million.

In 1997, the Dorlin concession was subjected to 103 drill holes totalling 15,800 metres. The drilling focused on the southern 1.5 km of the Nivre deposit, a significant north-south-trending system of mineralized breccias that has been mapped and sampled over a continuous distance of 5 km and discontinuously over 9 km.

Total resources at Yaou and Dorlin stand at 17 million tonnes grading 1.9 grams gold per tonne, representing about 1 million contained ounces. The calculations assumed a gold price of US$350 per oz.

A prefeasibility study of Yaou-Dorlin is expected to be completed in the second half of 1998. Also, metallurgical testing will be conducted to determine the amenability of Yaou and Dorlin ores to heap leaching.

In Idaho, Cambiex acquired a 30% stake in the Sultana copper-gold project by funding, over the past two years, exploration work to the tune of US$2 million.

Although last year’s drill program outlined additional resources, low metal prices prevented the economic value of the overall resource from increasing.

Preliminary scoping studies by Cambior indicate that some 13-15 million tonnes of oxide mineralization could support a small operation capable of yielding a profit. The study was based on gold and copper prices of US$360 per oz. and US$1 per lb., respectively.

In Peru, a modest exploration program is planned for the Jarwatuna and Carpiza gold-copper properties, while partners Cambior and Southwestern Gold (SWG-T)

are seeking a new partner to help fund the next phase of work on the Abancay polymetallic project, in which Cambiex holds an 8.5% share.