JUNIOR MINING SPECIAL — Cambior expands operations both at

Total gold production of Cambior (TSE) is expected to increase by about 10% this year to nearly 580,000 oz.

The Montreal-based company is counting on a full year of production from its 65% owned Omai mine in Guyana, which should yield nearly 270,000 oz., and a higher contribution from its Valdez Creek placer operation in Alaska. In other corporate developments:

* Feasibility studies will be filed this quarter for the 1100 Lens polymetallic project of Audrey Resources (TSE) near Rouyn-Noranda, Que., and the Grevet zinc project near Lebel-sur-Quevillon, Que. (Cambior is Audrey’s major shareholder; Audrey recently announced receiving a positive feasibility study for the 1100 Lens project.)

* Receipt of environmental permits for the Carlota copper project in Arizona is anticipated during the second half of 1994, which, upon approval by the board of directors, would allow construction to begin this year with commercial production slated for the third quarter of 1995

* The Company intends to actively pursue its Latin American development plan, with major emphasis on the Santa Rosa gold project in Peru and the Metates gold project in Mexico. Major drilling programs are planned for these projects this year.

* The company recently submitted the winning bid for the Peruvian copper project La Granja. It has an option to earn a 100% interest in the property from state-owned mining company Minero Peru; Cambior must spend US$25 million during a 5-year period. Minero Peru would retain a net smelter return royalty. President Louis Gignac says Cambior’s long-term strategy is to receive 70% of its income from gold and the remainder from base and other minerals. The company is aiming to become a first-tier gold producer.

About one-half of the company’s current $15-million exploration budget is being spent on grassroots projects.

While Cambior is committed to Canada, the company’s search for large, quality deposits took it outside the country, Gignac told a recent conference in Florida focusing on Latin American investment.

Cambior’s total revenue of $279.9 million for 1993 was 50% higher than in 1992 and the highest generated by the company since it was formed in 1986. Net earnings amounted to $14.9 million compared with a loss of $4.4 million in 1992.

The increase in revenue for the year was attributed mainly to higher gold production following the commencement of commercial production at the Omai mine in January, 1993, and to the rise in gold prices during the second half of the year.

Gold output rose to 518,083 oz. in 1993, 46% higher than in 1992. The 1993 cash cost per oz. was higher than in 1992, rising from US$250 to US$248.

Cambior has hedged its entire forecast 1994 gold production at a floor price of US$380 per oz.

At December 31, 1993, cash and short term investments and working capital stood at $174.8 million and $176.4 million, respectively.

In Quebec, Cambior organizes its gold assets into four divisions: Doyon (50% interest), Rouyn-Noranda, Val d’Or and Sleeping Giant (50% interest). The company also owns a half interest in the Niobec mine (North America’s only niobium producer) in the Lac St. Jean area.

Cambior operates the Omai mine in the Guyanese interior; its partners are 30% owner Golden Star Resources (TSE) and the Guyanese government with a 5% interest.

Michael Fowler, of brokerage house ScotiaMcLeod, noted in a recent report that Omai reserves increased 9% in 1993 (to 55.4 million tons at 0.045 oz. gold per ton) and additional finds are expected this year. He foresees an increase in output at the mine from 1996 onwards to the 300,000-oz. level following a mill expansion in 1995 (output is expected to decline in 1995). In Alaska, Cambior is looking for better returns this year from its wholly owned Valdez Creek placer project (Cambior became the sole owner in mid-1993). The company’s share of production last year totalled 31,418 oz., half of the 1992 output.