Partners boost Gross Rosebel reserves

Partners Cambior (CBJ-T) and Golden Star Resources (GSC-T) have boosted, by nearly a third, the estimated size of the Gross Rosebel gold project in northern Suriname.

Proven and probable reserves now exceed 35 million tonnes grading 1.6 grams gold per tonne — a 32% increase over the September 1996 estimate — and at a slightly higher grade.

The reserve estimate is based on results from 814 diamond drill holes (spanning 85,500 metres), 5,054 auger holes (35,000 metres) and 45 km of trenches. About two-Thirds of the reserve material identified to date is in saprolite and laterite.

The concession, situated 80 km south of the capital, Paramaribo, consists of two blocks: the North and South. The focus of exploration has been on expanding reserves in the North block, which hosts the Pay Caro and Koolhoven deposits. The South block contains the Mayo, Royal Hill and Rosebel deposits.

Golden Star and Cambior share Gross Rosebel equally, while a state-owned mining company, Grassalco, has an option to acquire a 20% participating interest at cost, upon approval of the feasibility study and the granting of the right of exploitation.

A feasibility study was recently tabled with the government of Suriname in order to obtain the required approvals and commitments to begin construction in the second half of the year. The partners must resolve several issues before they can proceed, including relocation of a village and the securing of foreign investment insurance and mine financing.

The feasibility study was prepared on the basis of a milling capacity of 12,000 tonnes per day, later to be increased to 15,000 tonnes. Production levels are estimated at 200,000 to 275,000 oz. gold annually at a cash cost of US$230 to $240 per oz. Construction costs are estimated at US$170 million.

Cambior and Golden Star plan to continue with a US$2-Million program of definition drilling on the Pay Caro, Koolhoven, Mayo and Royal Hill deposits over the coming months. The immediate objective of continued definition, stepout and exploration drilling at Gross Rosebel is to increase minable reserves to 2 million oz. gold.