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Campbell Resources Update on Operations.

Business Editors

TORONTO--(BUSINESS WIRE)--Oct. 6, 2000

Campbell Resources Inc.(TSE:CCH.)(NYSE:CCH) announces that during the third quarter of 2000 it produced approximately 14,000 ounces of gold of which 9,800 ounces were produced from the Joe Mann Mine and 4,200 ounces from the Santa Gertrudis Mine.

This compares with 13,400 ounces of gold produced in the third quarter of 1999, all from the Joe Mann Mine.

Joe Mann Mine

Progress is being made in resolving the start-up difficulties at the Joe Mann Mine. Production commenced in April, 2000 with tonnage and gold grades being significantly less than forecast. As a result of these difficulties, Campbell engaged Dynatec Corporation to assist mine management in developing and implementing an action plan to address these issues and attempt to return the mine to positive cash flow. The action plan is currently focused on increasing productivity rates to the levels forecast in the long-term plan. The action plan will also address grade control in order to increase mill-head grades.

Since mid-August, 2000 when Dynatec became involved, the average production of ore has increased to 580 tons per day, a 38% improvement from the average 420 tons per day during the period from April to mid-August. As a result, during the third quarter 50,476 tons of ore were milled at a grade of 0.212 ounces per ton to produce 9,800 ounces of gold. This compares to the second quarter's 33,600 tons excluding the development muck stockpiled prior to April 2000. Total ore milled during the second quarter including the development muck was 49,400 tons at a grade of 0.179 ounces per ton to produce 8,100 ounces of gold.

The mine is scheduled to produce approximately 800 tons of ore per day during October, a level that should enable the operation to break-even from a cash flow perspective at current gold prices. The increase in daily tonnage will be achieved with the commencement of mining of the 29-0-9 stope, a wide, multi-lens stope that will be mined by a variation of the long-hole method. The stope will be mechanically mucked out with electric scoop trams and back filled with cemented fill.

Santa Gertrudis Mine

The Santa Gertrudis Mine has continued to experience lower than expected gold production. The ore structures in the pits currently being mined are narrow and, with the current equipment configuration, are difficult to mine without excessive mining dilution. As a consequence, at current gold prices the Company's objectives of mining on a limited basis so as to cover the fixed overhead costs and contribute to the cost of exploration activities at the site are not being achieved. Accordingly, mining operations at the Santa Gertrudis Mine will be suspended in mid-October, 2000. Leaching of the stock-piled ore will continue as the economics permit.

Exploration activities at a few key targets will continue for the balance of 2000 after which exploration will focus on the large San Enrique geochemical anomaly discovered in 1998, provided an agreement for access can be reached with the surface rights owners.

In addition, Campbell has approached a number of the major gold companies to determine their interest in pursuing a deep drilling program to search for sulphide mineralization on the property. Campbell's exploration efforts and an independent mineral industry consultant's report support the similarities between the Santa Gertrudis Property and Nevada's Carlin Trend. These companies expressed interest in such a venture during 1997 but declined to participate due to the fall in the gold price and the reduced exploration budgets at that time. Since then Campbell has accumulated additional geological information and the preliminary response has been encouraging.

Forward-Looking Statements: Certain information contained in this release contains "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and is subject to certain risks and uncertainties, including those "Risk Factors" set forth in the Company's current Annual Report on Form 10-K for the year ended December 31, 1999. Such factors include, but are not limited to: differences between estimated and actual ore reserves; changes to exploration, development and mining plans due to prudent reaction of management to ongoing exploration results, engineering and financial concerns; and fluctuations in the gold price which affect the profitability and ore reserves of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events or developments.


Campbell Resources Inc.
120 Adelaide Street West, Suite 1910
Toronto, Ontario M5H 1T1
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Publication:Business Wire
Geographic Code:1CANA
Date:Oct 6, 2000
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