Cambior drilling in NW Mexico

Toronto-listed Cambior plans to spend an additional US$3.5 million exploring the Metates gold property in Mexico’s Durango state.

To date, more than US$4.3 million has been spent on 25,000 metres of drilling. This work enabled the company to arrive at a preliminary mineral inventory estimate of 200 million tonnes averaging 1.2 grams gold-equivalent per tonne.

Currently, four rigs are drilling 20,000 metres in an effort to test the newly discovered North zone. The Main zone will also be drilled, on 100-metre centres.

Initial metallurgical tests indicate the ore is refractory, and bio-oxidation tests are planned.

Cambior can earn a half interest by preparing a feasibility study and paying the vendor US$6.25 million by April, 1996.

Alternatively, Cambior may be called upon to finance all development, in which case Cambior will pay the vendor US$5 million and its interest will rise to 80%.