ONTARIO CAMBIOR RESOURCES of Montreal has entered into an agreement with AURIZON MINES for the purchase of the remaining 50% in the Sleeping Giant underground gold mine near Timmins. The deal, with a cash purchase price of $5 million, is expected to close by the end of May 2005. Aurizon will be released from all future obligations related to the operation and closure of the mine.
Louis P. Gignac, Cambior’s president and CEO, stated: “The acquisition cost of Cdn$55 per ounce (US$45 per ounce) is reasonable and provides us with greater flexibility in
the future development and exploration of the Sleeping Giant mine. We believe that further benefits may accrue from the potential to add to current reserves, especially in the extensions at depth of the known mineralized lenses.”
This year the mine is budgeted to produce 28,000 oz of gold at $320/oz. It has proven and probable reserves of 245,000 tonnes at 11.6 g/t Au, which will be mined out in four more years at the projected rate. Detailed information is available at www.Cambior.com.