EXPLORATION ’94 — Cambior prepares projects for production

A pair of polymetallic projects in northwestern Quebec, in which Cambior (TSE) is the major player, are in preproduction.

Commercial production at the 1100 Lens project of Audrey Resources (TSE) near Rouyn-Noranda, Que., is expected to be under way in the first quarter of 1995 at a rate of 2,000 tonnes per day.

Audrey completed some 1,100 metres of drifts, ramps and raises earlier this year, and then turned its attention to the installation of the production hoist, expansion and restoration of the mill, and construction of additional facilities.

Annual output during the first five years is expected to average 22,000 tonnes of 20% copper concentrate, 47,000 tonnes of 54% zinc concentrate, 11.1 million grams (358,000 oz.) silver and 740,250 grams (23,800 oz.) gold. The estimated development cost of the project is $36 million. Audrey, which is controlled by Cambior, owns 100% of the project, subject to a 4% net smelter return royalty payable to Metall Mining (TSE). Meanwhile, at the Grevet project, 80 km northeast of Lebel-sur-Quevillon, the preproduction cost is pegged at $81 million.

Cambior is hoping to complete the work at Grevet by December, 1995, for a startup that month, or early in 1996. The investment includes construction of a 2,500-tonne-per-day concentrator.

Probable and possible reserves at Grevet stand at almost 11 million tonnes grading 8.5% zinc, 0.45% copper, and 35 grams silver and 0.09 grams gold per tonne, good for a 12-year mine life.

Annual production is expected to average 134,000 tonnes of zinc concentrate grading 54%, and 12,700 tonnes of copper concentrate grading 26%. In other news, increased reserves are reported for the producing Sleeping Giant gold mine property north of Amos, Que., which is owned equally by Cambior and Aurizon Mines (TSE). The increase follows a program of deep drilling and definition.

Proven and probable reserves have jumped to 675,000 tonnes grading 9.4 grams gold from 375,000 tonnes at 8.2 grams at the end of 1993. Particularly encouraging has been the deep drilling of zones 20 and 30.

The joint venture is in the process of deepening the shaft by about 300 metres; the work is expected to be completed in the first quarter of 1995.