To All:
Information on other companies in Suriname include Cambior Inc. and Golden Star Resources Ltd., and Canarc Resource Corp.
This is the Cambior web site....click on Projects, then Gold, then Gross Rosebel to see news releases on Suriname projects.
cambior.com
I will post later on how this may benefit Savanna...still trying to confirm some rumors. Below are 2 news releases from Cambior and Canarc:
GROSS ROSEBEL MINING RESERVES INCREASE TO 2.4ÿMILLION OUNCES
Cambior Inc. (Cambior) and Golden Star Resources Ltd. (Golden Star) are
pleased to announce a significant increase in mining reserves at the Gross
Rosebel project in Suriname. Proven and probable mining reserves are now
approximately 49ÿmillion tonnes grading 1.6ÿg Au/t, representing
approximately 2.4ÿmillion ounces of gold inÿsitu, a 32%ÿincrease over the
Mayÿ1997 estimate and a 74%ÿincrease over the Septemberÿ1996 estimate.
The current reserve estimate is based on results from 1,045ÿdiamond drill
holes for a total of more than 108,000ÿmetres, 5,054ÿAuger holes totaling
35,000ÿmetres and 45ÿkilometres of trenching. Approximately 60%ÿof the
total mining reserves identified to date are in soft rock material
(saprolite and laterite). Hard rock reserves include a transition zone
which represents 25%ÿof the mining reserves. The mining reserves were
completed using the inverse distance squared technique, five metre benches
and a 40ÿdegree average pit slope, soft rock and hard rock mining and
processing costs based upon experience elsewhere in the Guiana Shield, 93%
gold recoveries and a $400ÿgold price. The estimate was also determined
using a gold price of $350ÿper ounce, resulting in an approximately 27%
decline in proven and probable mining reserves within a 40ÿdegree whittle
pit.
The concession covers 170ÿsquare kilometres and consists of two blocks: the
North and South blocks. The focus of exploration has been on expanding
reserves in the North Block, that hosts the Pay Caro, East Pay Caro and
Koolhoven deposits, and the South Block, that contains the Mayo, Royal Hill
and Rosebel deposits. A breakdown of the current proven and probable mining
reserves in the North and South blocks is, as follows:
The potential for reserve expansion is excellent along strike of certain
orebodies, in the largely untested zone found throughout the Gross Rosebel
concession and on several known gold occurrences on the contiguous Thunder
Mountain and Headley's concession.
A revised budget of $1.3ÿmillion was approved for the project for the
second half ofÿ1997. Approximately $800,000ÿwas spent in July and August to
complete the definition drilling. Work over the remainder of the year will
focus on the update of the feasibility study that was submitted last May
with the Government of Suriname. The final feasibility study for Gross
Rosebel is scheduled for completion by the end ofÿ1997.
Cambior earned 50%ÿof Golden Star's interest in the Gross Rosebel Agreement
and the Gross Rosebel Property in Januaryÿ1996. Expenditures to date on the
project include $16ÿmillion spent by Cambior and $9ÿmillion by Golden Star.
Grassalco, a state mining company, has an option to acquire a 20%
participating interest in the project, at cost, within 60ÿdays from the
approval of the feasibility study by the Government of Suriname and the
granting of the right of exploitation pursuant to such approval.
Cambior and Golden Star continue to progress on several issues which must
be resolved in order to proceed with construction of the project,
including: agreement with the Government of Suriname and Grassalco on the
form and financial structure of the operating company; the ability to
secure foreign investment insurance; the availability of financing from
banks and other financial institutions including the structuring of a gold
hedging program; and the relocation of Nieuw Koffiekamp, a small village at
the boundary of the Gross Rosebel concession.
Cambior Inc. is an international diversified gold producer with operations,
development projects and exploration activities throughout the Americas.
Cambior shares trade on the Toronto, Montreal and American (AMEX) stock
exchanges under the symbol "CBJ".
Golden Star Resources Ltd. is a gold and diamond exploration company which
holds a 30%ÿequity interest in the Omai gold mine in Guyana, one of the
largest gold mines in South America. Golden Star also holds significant
gold and diamond exploration interests in South America and Africa. Golden
Star is listed on the Toronto Stock Exchange (symbolÿ"GSC") and the
American Stock Exchange (symbolÿ"GSR").
canarc-ccm.com
EXECUTIVE SUMMARY
Canarc Resource Corp. is one of the largest mineral landholders in the
country of Suriname, South America. The Company has interests ranging from
70% to 100% in 12 properties totaling 382,000 hectares.
Although the mineral potential of Suriname has only received minimal
exploration by modern methods, it has a prolific gold mining history in the
last 100 years from creek and river placer deposits. Each one of Canarc's
properties is known to have either produced gold historically or to be
currently producing gold as a result of small-scale placer mining
activities.
The gold prospects typically exhibit shear-hosted or porphyry-type
mineralization related to quartz-carbonate veins or stockworks within
volcano-sedimentary greenstone belts intruded by tonalite-diorite plutons
along major crustal breaks within the Guyana Shield.
The Guyana Shield became to focus of exploration interest in the past four
years as a result of the huge Las Cristinas gold discovery by Placer Dome
in Venezuela, as well as the commencement of commercial production by
Cambior at the large Omai gold deposit in Guyana, the only modern gold mine
operating throughout the Guyana Shield. Both of these gold discoveries have
strong affinities to the porphyry gold, bulk tonnage, open pit model. In
addition, these lower Proterozoic greenstone belts are prolific for high
grade, shear-hosted gold deposits elsewhere in the world, such as the
Ashanti mine in Ghana.
Canarc's latest project is its 80% option in the Benzdorp property, the
largest historic and current gold producing property in all of Suriname.
This 38,000-hectare property has a recorded production history from
dredging of river gravels totaling over half a million ounces, as an
additional half million ounces in estimated, unofficial production.
Approximately 250 small-scale hydraulic miners, or porknockers, currently
produce between 25,000 and 100,000 ounces per annum, from placer deposits,
according to government estimates. Over the past nine months, Canarc has
spent US$1 million exploring the Benzdorp property. Canarc has discovered a
semi-continuously, gold mineralized belt 20 km. long on the eastern-most 5%
of the Benzdorp property. Virtually every creek draining this gold
mineralized belt has been mined for gold in the past and Canarc has now
confirmed multiple gold soil anomalies on the property indicating the
presence of large lode source areas for gold.
Follow-up deep auguring in four gold prospect areas has confirmed large
gold mineralized zones now ready for drilling. The first drill target, JQA,
averages almost 1gpt gold over a 700 m long x 300 m wide area. Additional
deep auguring indicates that this zone is still open in all directions and
could in fact extend to 1 km x 1 km. The exploration target here is a
porphyry gold deposit of several hundred million tonnes containing 3 to 10
million oz. gold to 300 m depth.
Canarc's most advanced project is its 80% interest in the Sara Kreek
property, the third largest historic gold producing property in the country
with estimated historical production of a half million ounces gold. Canarc
has spent US$4 million exploring this 22,500-hectare concession. Gold was
mined in the creeks and hillsides over a 15 km strike length on the
property. Canarc found multiple soil anomalies by reconnaissance sampling,
including two main mineralized shear zones that extend for 7 km and 6 km
respectively. Out of some 12 gold soil anomalies generated by
reconnaissance sampling surveys, four high priority gold prospect areas
were selected for follow-up.
Follow-up deep auguring, machine trenching and diamond drilling has
confirmed high grades over mineable widths in four gold prospect areas.
Additional trenching and drilling are planned for 1997. The first two drill
targets, EB and DP, average 5 gpt over 10 m wide in the 5 drill holes that
intersected the principle shear zone. This zone is wide open along strike
for several kilometres. The exploration target here is a shear gold deposit
of several million tonnes containing 1 to 3 million oz. gold to 300 m
depth.
Sara Kreek is also the only legal small-scale gold mine in operation today.
Last year, total production by our Suriname partner from a small placer
operation totaled 2,200 ounces, including an 80 oz. nugget. Production
should climb 40% to 3,000 ounces in 1997.
In summary, Canarc has significant strategic advantage over the competition
in the country of Suriname. The Company holds a huge land base, including
two of the largest historic gold producing properties in the country. Both
historic river gravel production and recent modern exploration discoveries
in the Guyana Shield support the potential for both large tonnage, open pit
gold porphyry type deposits, as well as high grade, shear vein type
deposits typical of Lower Proterozoic greenstone belts in Ghana and
elsewhere.
Suriname recently proposed new mining legislation to attract foreign
investors into the mining sector. Some attractive features of the new
policy include a 38% tax rate, 2 1/4% NSR royalty, minimal import duties,
full repatriation of capital and profits and an accelerated depreciation
rate. As well, the country has a mineral agreement with Cambior and Golden
Star to develop the Gross Rosebel deposit, and over 80 years of
uninterrupted bauxite mining agreements which have never been breached by
the government. |
