43-101 technical report camp caiman project, cambior nov 2004

7/27/2019 43-101 Technical Report Camp Caiman Project, Cambior Nov 2004

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Should you find any discrepanciesin the present document,the French version dated

September 6 , 2005 prevailst h

Technical Report

November 2005

National Instrument 43-101Standards of Disclosure for Mineral Projects


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TECHNICAL REPORT National Instrument 43 - 101

CAMBIOR INC. / CBJ-CAIMAN S.A.S i

SUMMARY

LIST OF FIGURES..................................................................................................................................... vii

LIST OF TABLES........................................................................................................................................ ix1.0 INTRODUCTION...............................................................................................................................1 2.0 DENIAL .............................................................................................................................................13.0 SITUATION GO-POLITIQUE..........................................................................................................1

3.1 Corporate Profile.........................................................................................................................23.2 Project Description and Location................................................................................................43.3 Project History ............................................................................................................................53.4 Mining Claims and Authorizations ..............................................................................................6

3.4.1. Legal Structure of Mining Claims ...........................................................................................63.4.2. Authorization to Initiate Mine Operations ...............................................................................73.4.3. Authorization to Operate (ICPE).............................................................................................83.4.4. Property and Surface Rights ..................................................................................................93.4.5. Additional Exploration Rights .................................................................................................9

4.0 GEOLOGY ......................................................................................................................................124.1.1 Mineralization .......................................................................................................................19

5.0 DEPOSIT GEOLOGY......................................................................................................................215.1 Unified Model............................................................................................................................215.2 Scout Zone................................................................................................................................215.3 CC-08 Zone ..............................................................................................................................215.4 CC-88 Zone ..............................................................................................................................22

6.0 EXPLORATION PROGRAM AND DATA COLLECTION................................................................266.1 Exploration Strategy .................................................................................................................26

6.1.1 Mapping................................................................................................................................26 6.1.2 Trenching..............................................................................................................................26 6.1.3 Ground Geophysics..............................................................................................................266.1.4 BRGM Soil Geochemistry Programs....................................................................................276.1.5 Drilling Programs..................................................................................................................276.1.6 Targeted Soil Geochemistry.................................................................................................28

6.2 Data Collection .........................................................................................................................286.2.1. Soil Sampling........................................................................................................................286.2.2. BRGM Deep Augering..........................................................................................................296.2.3. Trenching..............................................................................................................................29 6.2.4. Percussion Drilling................................................................................................................296.2.5. Diamond Drilling ...................................................................................................................30

6.3 Data Storage and Manipulation ................................................................................................317.0 ASSAY RECONCILIATION.............................................................................................................32

7.1 Assaying Procedures................................................................................................................327.1.1. Assay Laboratories...............................................................................................................357.1.2. Duplicates and Standards ....................................................................................................367.1.3. Check Assay Program (QA/QC)...........................................................................................387.1.4. Pulp Duplicates.....................................................................................................................417.1.5. Coarse Reject Duplicates.....................................................................................................41


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7.1.6. Field Duplicates....................................................................................................................43 7.1.7. Twinned Drill Holes ..............................................................................................................45

7.2 External Laboratories (Assay Precision Control)......................................................................46

8.0 ADDITIONAL POTENTIAL..............................................................................................................49

8.1 Future Resources in the Camp Caiman Area...........................................................................498.1.1 Nearby Extensions ...............................................................................................................49 8.1.2 Depth Extensions .................................................................................................................49 8.1.3 Regional Extensions.............................................................................................................50 8.1.4 SMBG and CBJ-France Permits ..........................................................................................50

9.0 ORE CHARACTERIZATION...........................................................................................................529.1 Gold Size and Distribution ........................................................................................................53 9.2 Metallurgical Testwork..............................................................................................................54

9.2.1 Overview of Tests and Summary of Results ........................................................................549.2.2 Ore Characterization and Grindability ..................................................................................569.2.3 Gravity Concentration Testwork...........................................................................................609.2.4 Cyanide Leach Testwork......................................................................................................61

9.2.5 Thickening and Sedimentation Testwork .............................................................................66 9.2.6 Miscellaneous Slurry Characteristics ...................................................................................679.2.7 Flotation Testwork ................................................................................................................68 9.2.8 Bio-oxidation/Pressure Oxidation Testwork .........................................................................709.2.9 Cyanide Detoxification Testwork..........................................................................................719.2.10 Arsenic..................................................................................................................................74

10.0 MINERAL RESOURCES ESTIMATION .........................................................................................7510.1 Geological Interpretation...........................................................................................................7510.2 3D Modeling..............................................................................................................................7510.3 Compositing..............................................................................................................................76 10.4 Variography ..............................................................................................................................78 10.5 Mineral Resources....................................................................................................................79

10.5.1 Description Resource Estimation Parameters .....................................................................7910.5.1.1 Geometry of the Block Model ......................................................................................7910.5.1.2 Resource Estimation Parameters................................................................................80 10.5.1.3 Estimate Parameters ...................................................................................................80

10.5.2 Specific Gravity.....................................................................................................................8210.5.3 Mineral Resource .................................................................................................................82

11.0 MINING ...........................................................................................................................................8711.1 General .....................................................................................................................................87 11.2 Geotechnical.............................................................................................................................87 11.3 Bulk Density of Mined Materials ...............................................................................................91 11.4 Conception of pits and equipment ............................................................................................91

11.4.1 Loading and Hauling Operations..........................................................................................91 11.4.2 Mining Roads and ramp design............................................................................................9211.4.3 Waste Dumps.......................................................................................................................9211.4.4 Maintenance equipment .......................................................................................................93

11.5 Infrastructure and Support Facilities.........................................................................................93 11.5.1. Heavy Equipment Shop........................................................................................................9311.5.2. Warehouse ...........................................................................................................................93 11.5.3. Fuel Storage.........................................................................................................................9411.5.4. Wash Bay .............................................................................................................................94

11.6 Mining Reserves .......................................................................................................................9411.7 Production Schedule.................................................................................................................9611.8 Capital Costs ..........................................................................................................................100


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11.9 Manpower ...............................................................................................................................10211.10 Operating Costs......................................................................................................................106

12.0 PROCESSING ..............................................................................................................................11012.1 Design Criteria ........................................................................................................................110

12.2 Process Flowsheet .................................................................................................................112 12.3 Plant Design and Location......................................................................................................114 12.4 Primary Crushing ....................................................................................................................11512.5 Saprolite Feed System ...........................................................................................................11712.6 Grinding ..................................................................................................................................11712.7 Gravity Circuit .........................................................................................................................11812.8 Thickener ................................................................................................................................11812.9 Leach/CIP Circuit....................................................................................................................11912.10 Carbon Stripping/Carbon Reactivation/Gold Refining ............................................................12012.11 Reagent Storage Building.......................................................................................................122 12.12 Reagent Preparation...............................................................................................................12212.13 Support Infrastructure.............................................................................................................12512.14 Offices and Process Automation System ...............................................................................126

12.15 Mill Workshop .........................................................................................................................127 12.16 Manpower Requirement .........................................................................................................12712.17 Operating Cost........................................................................................................................130

13.0 INFRASTRUCTURE AND SUPPORT FACILITIES......................................................................13513.1 Site Access .............................................................................................................................135

13.1.1. North Access ......................................................................................................................13613.1.2. South Access......................................................................................................................13613.1.3. Site Roads ..........................................................................................................................137

13.2 Service Buildings ....................................................................................................................137 13.2.1. Administrative Building .......................................................................................................13913.2.2. Heliport ...............................................................................................................................13913.2.3. Heavy Equipment Shop and Warehouse...........................................................................139

13.2.4. Fuel Storage.......................................................................................................................14013.3 Municipal Works .....................................................................................................................141 13.3.1. Drinking Water....................................................................................................................14113.3.2. Fire Protection ....................................................................................................................141 13.3.3. Waste Water Treatment Plant ............................................................................................14113.3.4. Camp..................................................................................................................................142

13.4 Cayenne Office .......................................................................................................................142 13.5 Permanent Housing ................................................................................................................142 13.6 Capital Costs ..........................................................................................................................142

14.0 ADMINISTRATION ET SERVICES...............................................................................................14414.1 Organizational Structure.........................................................................................................144

14.1.1 Operating Workforce ..........................................................................................................144 14.2 General Services ....................................................................................................................146

14.2.1 General Management.........................................................................................................14714.2.2 Corporate Expenses...........................................................................................................14714.2.3 Accounting..........................................................................................................................147 14.2.4 Telecommunications ..........................................................................................................147 14.2.5 Environmental Management ..............................................................................................14714.2.6 Human Resources..............................................................................................................14814.2.7 Purchasing and Procurement.............................................................................................14814.2.8 Health and Safety...............................................................................................................149 14.2.9 Public Security....................................................................................................................14914.2.10 Housing and Cars...............................................................................................................149


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14.3 Transportation of Manpower and Materials............................................................................150 14.3.1 Road Transportation...........................................................................................................15014.3.2 Shipping..............................................................................................................................151 14.3.3 Air Transportation...............................................................................................................152 14.3.4 Human Resource Requirements........................................................................................152

14.4 Operating Costs......................................................................................................................154

15.0 ENVIRONMENTAL LEGISLATION AND WORK REGULATION .................................................15615.1 Authorizations .........................................................................................................................156

15.1.1 Authorization for the Initiation of Mine Operations .............................................................156 15.1.2 Authorization to Operate a Mineral Processing Plant ........................................................15915.1.3 Construction and Deforestation Authorization....................................................................16115.1.4 Road Building Authorization...............................................................................................162

15.2 Environmental Impact Study...................................................................................................16215.2.1 Classified Installations........................................................................................................163 15.2.2 Initiation of Mine Operations...............................................................................................164

15.3 Danger Study..........................................................................................................................16515.3.1 Classified Installations........................................................................................................165

15.3.2 Initiation of Mine Operations...............................................................................................166 15.4 Tailings and Water Management............................................................................................16615.5 Geotechnical Investigations....................................................................................................169

15.5.1 Drilling and Sampling .........................................................................................................169 15.5.2 Tailings Site Characterization.............................................................................................17015.5.3 Hydraulic Conductivity Test................................................................................................17215.5.4 In-laboratory Testing Program............................................................................................173

15.6 Geological Model ....................................................................................................................174 15.6.1 Geological Characteristics of the Tailings Site...................................................................174 15.6.2 Local Stratigraphy ..............................................................................................................17415.6.3 Structure.............................................................................................................................176 15.6.4 Laterization.........................................................................................................................176 15.6.5 Tailings Impoundment Evaluation ......................................................................................176

15.7

Natural Hazard Assessment...................................................................................................17715.7.1 Flooding..............................................................................................................................177

15.7.2 Seismic Activity and Ground Motion ..................................................................................17815.7.3 Lightning .............................................................................................................................179 15.7.4 Cyclones.............................................................................................................................179 15.7.5 Forest Fires ........................................................................................................................179 15.7.6 Dam Failure ........................................................................................................................179

15.8 Thickened Tailings Production................................................................................................18015.8.1 Location ..............................................................................................................................180 15.8.2 Design Criteria....................................................................................................................18115.8.3 Process Flowsheet .............................................................................................................181

15.9 Thickened Tailings Pumping...................................................................................................18215.9.1 Pumping System ................................................................................................................182 15.9.2 Piping..................................................................................................................................182

15.10 Management of Thickened Tailings........................................................................................18215.10.1 Design Criteria....................................................................................................................18415.10.2 Closure and Restoration Plan ............................................................................................18615.10.3 Tailings Management .........................................................................................................187 15.10.4 Deposition Area Development............................................................................................18815.10.5 Fill Plan Discussion .........................................................................................................190 15.10.6 Typical Stages in Cell Life ..................................................................................................192

15.11 Dam Design ............................................................................................................................19315.11.1 General...............................................................................................................................193 15.11.2 Design Criteria....................................................................................................................193


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15.11.3 Details and Comments .......................................................................................................19615.11.4 Geometry and Materials .....................................................................................................19615.11.5 Settlement ..........................................................................................................................197 15.11.6 Stability ...............................................................................................................................19715.11.7 Fill Volumes........................................................................................................................199

15.11.8 Instrumentation...................................................................................................................200 15.12 Tailings Characteristics...........................................................................................................20015.13 Closure of the Thickened Tailings Deposition Area ...............................................................200

15.13.1 General...............................................................................................................................200 15.13.2 Cell Closure........................................................................................................................200 15.13.3 Spillways.............................................................................................................................201

15.14 Mine Tailings Purification Plant ..............................................................................................203 15.14.1 Cyanide Detoxification........................................................................................................20315.14.2 . Arsenic Precipitation.........................................................................................................204 15.14.3 Detoxification Plant Control ................................................................................................204

15.15 Tailings Pumping ....................................................................................................................20515.15.1 Pumping System ................................................................................................................205 15.15.2 Piping..................................................................................................................................205

15.16 Water Balance ........................................................................................................................206 15.16.1 Process and Service Water................................................................................................20815.16.2 Reclaim Water....................................................................................................................20915.16.3 Drinking Water....................................................................................................................20915.16.4 Pit Dewatering Water .........................................................................................................20915.16.5 Runoff .................................................................................................................................210 15.16.6 Final Effluent.......................................................................................................................21015.16.7 Operating Costs..................................................................................................................211

16.0 CONSTRUCTION SCHEDULE AND MANAGEMENT.................................................................21216.1 Management Methodology .....................................................................................................21216.2 Engineering.............................................................................................................................212

16.2.1 Road Engineering...............................................................................................................21216.2.2

Infrastructure Engineering ..................................................................................................212

16.2.3 Geotechnical Engineering ..................................................................................................21316.2.4 Electrical and Automation Engineering ..............................................................................213

16.3 Procurement ...........................................................................................................................213 16.3.1 Longueuil Administrative Office..........................................................................................214 16.3.2 Houston Purchasing Department .......................................................................................21416.3.3 Cayenne Office and Site ....................................................................................................214

16.4 Construction Management......................................................................................................21416.4.1 Administrative Office Team................................................................................................214

16.5 Field Team..............................................................................................................................21616.5.1 Technology Transfer ..........................................................................................................216

16.6 Project Schedule.....................................................................................................................21616.6.1 Year 2005...........................................................................................................................21816.6.2 Year 2006...........................................................................................................................218

16.6.3 Year 2007...........................................................................................................................21816.7 Construction Manpower..........................................................................................................21816.8 Indirect Costs..........................................................................................................................22116.9 Contingency............................................................................................................................223

17.0 OPERATING COST ESTIMATE...................................................................................................22417.1 Operating Costs......................................................................................................................22417.2 Capital Expenditures...............................................................................................................22617.3 Preproduction Expenditures ...................................................................................................226 17.4 Production Expenditures.........................................................................................................229


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17.5 Closure and Rehabilitation Plan .............................................................................................23117.5.1 Introduction.........................................................................................................................231 17.5.2 Rehabilitation Goals ...........................................................................................................23117.5.3 Closure and Rehabilitation Criteria.....................................................................................23217.5.4 Closure of the Various Project Elements ...........................................................................233

17.5.5 Revegetation Trials ............................................................................................................24017.5.6 Post-Closure Plan ..............................................................................................................24117.5.7 Timetable and Costs ..........................................................................................................242

18.0 FInancial Analysis .........................................................................................................................247 18.1 Methodology and Parameters ................................................................................................247

18.1.1 Gold Price...........................................................................................................................24718.1.2 Cost of Electricity................................................................................................................24818.1.3 Fuel Price ...........................................................................................................................248 18.1.4 /US$ Exchange Rate........................................................................................................250

18.2 Taxation ..................................................................................................................................25018.2.1 Direct Taxation ...................................................................................................................251 18.2.2 Income Taxes and Indirect Taxes ......................................................................................251

18.3 Government Aid......................................................................................................................25418.4 Economic Analysis..................................................................................................................25518.4.1 Cash Flow Analysis ............................................................................................................255Capital Costs.....................................................................................................................................255Working Capital.................................................................................................................................256Residual Value..................................................................................................................................256Closure and Rehabilitation................................................................................................................25618.4.2 Internal Rate of Return .......................................................................................................259 18.4.3 Payback Period ..................................................................................................................259

18.5 Sensitivities.............................................................................................................................259

19.0 MARKETS AND CONTRATS .......................................................................................................264

20.0 CONCLUSION AND RECOMMENDATION..................................................................................26520.1 Conclusion ..............................................................................................................................26520.2 Recommendation....................................................................................................................266

21.0 BIBLIOGRAPHY............................................................................................................................267

22.0 APPROVAL AND SIGNATURES..................................................................................................268

23.0 CERTIFICATES OF QUALIFICATIONS .......................................................................................269


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CAMBIOR INC. / CBJ-CAIMAN S.A.S vii

LIST OF FIGURES

Figure 3.1 Location of French Guiana in South America.............................................................................1

Figure 3.2 Cambior Society..........................................................................................................................3

Figure 3.3 Permit Location and Geological Context ..................................................................................10

Figure 4.1 Camp Caiman Project Plan View and Geology ........................................................................14

Figure 4.2 Camp Caiman Project 3D Geology........................................................................................... 15

Figure 4.3 Camp Caiman Project 3D Mineralized Zones ..........................................................................16

Figure 4.4 Camp Caiman Project Mineralized Zone..................................................................................17

Figure 5.1 Camp Caiman Project Section 300NW, SCOUT Zone.............................................................23

Figure 5.2 Camp Caiman Project Section 450SE, CC-08 Zone................................................................24

Figure 5.3 Camp Caiman Project Section 925SE, CC-88 Zone................................................................25

Figure 7.1 Assay Procedure Flowsheet .....................................................................................................34

Figure 7.2 Camp Caiman Project QA/QC Program ...................................................................................40

Figure 8.1 Camp Caiman Project Location Plan........................................................................................51

Figure 12.1 Schematic Flowsheet.............................................................................................................113

Figure 12.2 Plan 604-D-101.....................................................................................................................116

Figure 13.1 Camp Caiman Access Road..................................................................................................135

Figure 13.2 General Service Building Layout ..........................................................................................138

Figure 14.1 Organigram............................................................................................................................145

Figure 15.1 Authorization procedure for mine development.....................................................................158

Figure 15.2 Authorization procedure for operation of an ICPE.................................................................160

Figure 15.3 Plan 805-G-0147-OC.............................................................................................................168


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Figure 15.4 Saprock Size Distribution Curbs Summary ..........................................................................171

Figure 15.5 Geological Tailing Site ..........................................................................................................175

Figure 15.6 Tailings Deposition Method ...................................................................................................184

Figure 15.7 Deposition Model ..................................................................................................................191

Figure 15.8 Deposition Area and Flow of Surface Water after Restoration.............................................202

Figure 15.9 Camp Caiman Water Balance ..............................................................................................207

Figure 16.1 Administrative Office Team...................................................................................................215

Figure 16.2 Field Team............................................................................................................................217

Figure 16.3 Manpower and cumulative manhours for Camp Caiman construction project.....................220

Figure 17.1 Life of Tailings Pond Cells Year -2 ....................................................................................235

Figure 17.2 Life of Tailings Pond Cells Year -1 ....................................................................................236

Figure 17.3 Life of Tailings Pond Cells Year 1 .....................................................................................237

Figure 17.4 Life of Tailings Pond Cells Year 3 .....................................................................................238

Figure 18.1 Gold Price in US$ and .......................................................................................................248

Figure 18.2 Diesel Fuel and Crude Oil Prices..........................................................................................250

Figure 18.3 Sensitivity: Rate of Return ....................................................................................................261

Figure 18.4 Sensitivity: Present Value Discounted at 8%........................................................................262


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CAMBIOR INC. / CBJ-CAIMAN S.A.S ix

LIST OF TABLES

Table 4.1 Camp Caiman Project Weathering Profile .................................................................................18

Table 6.1 Summary of Camp Caiman Drilling Programs...........................................................................27

Table 6.2 Holes Drilled in the Mineralized Zone ........................................................................................31

Table 7.1 Control Standard Statistics (g/t) .................................................................................................37

Table 7.2 Check Assay Results .................................................................................................................38

Table 7.3 Summary of Reassays Performed by CGL in 1997-1998 .........................................................42

Table 7.4 Summary of Reassays Performed by SGS in 1998-2000 .........................................................42

Table 7.5 Summary of Reassays Performed by Filab in 2002-2005 .........................................................43

Table 7.6 Summary of Field (Percussion Drilling) Duplicate Assays by CGL and Filab............................44

Table 7.7 Summary of Field Duplicates (Diamond Drilling) Assayed by CGL in 1998..............................45

Table 7.8 Checks Between CGL and SGS in 1998 ...................................................................................46

Table 7.9 Checks Between SGS and CGL in 1998-2000.......................................................................... 47

Table 7.10 Checks Between Filab and ALS-Chemex, 2002-2005 ............................................................48

Table 9.1 Recovery Versus Grind Size Composite Sample 1 ................................................................53

Table 9.2 Bond indice (LR 9712089) .........................................................................................................56

Table 9.3 Comparative Results Coarse Material Content ......................................................................56

Table 9.4 Work Index Comparison Mill Rod ...........................................................................................57

Table 9.5 Comparison of Ball Mill Work Indices ........................................................................................58

Table 9.6 Comparative Assessment Saprolite Lumping Effect ..............................................................59

Table 9.7 Work Indice Determined ............................................................................................................59

Table 9.8 Gravity Concentration (Knelson et Mozley) ...............................................................................60


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Table 9.9 Overall Recovery GRG ..............................................................................................................61

Table 9.10 Zone 88 Saprolite Gravity/Cyanidation Gravity Tailings (1999).........................................62

Table 9.11 Zone Scout Saprolite Gravity/Cyanidation Gravity Tailings (1999) ................................62

Table 9.12 Cyanidation Saprolite composite (2004)...............................................................................63

Table 9.13 Gravity Separation/cyanidation testwork Sulfides (1998) .....................................................64

Table 9.14 Recovery vs grind size Sulfides (1998) ................................................................................65

Table 9.15 Recovery vs grind size Transition P2391B (1997) ............................................................65

Table 9.16 Sedimentation static testwork (1999)....................................................................................66

Table 9.17 Sedimentation High rate thickening testwork........................................................................67

Table 9.18 Flotation Collector and Depressant Assessment.....................................................................69

Table 9.19 Calcite Depressant Assessment.............................................................................................. 70

Table 9.20 Oxidation and Cyanidation Ore and Flotation Concentrates ................................................71

Table 9.21 Cyanide Detoxification Direct Cyanidation............................................................................73

Table 9.22 Cyanide Detoxification Oxidation Tailings + Flotation Tailings.............................................74

Table 9.23 Cyanide Detoxification Results ................................................................................................74

Table 10.1 5 meter Composite gold value stastistic ..................................................................................77

Table 10.2 Modeled Correlograms for Camp Caiman Scout and CC-08 + CC-88 Zones.........................78

Table 10.3 Camp Caiman Interpolation spherical ID3, April 2005.............................................................81

Table 10.4 Summary of Densities by Lithology.......................................................................................... 82

Table 10.5 In-Situ Camp Caiman Resources Classified by Material Type................................................84

Table 10.6 Camp Caiman In-situ Resources Classified by Zone ..............................................................85

Table 10.7 Camp Caiman in situ measured and indicated resources per area.........................................86


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Table 11.1 Lerchs-Grossman Optimization Parameters............................................................................90

Table 11.2 Material Properties by Rock Type............................................................................................91

Table 11.3 Camp Caiman Reserves by Pit and Rock Type ......................................................................95

Table 11.4 Tonnage Mined from Pits .........................................................................................................97

Table 11.5 Tonnage Mined from CC-88 Pit ...............................................................................................97

Table 11.6 Tonnage Mined from the Scout Pit ..........................................................................................98

Table 11.7 Mine to Mill ...............................................................................................................................98

Table 11.8 Stockpile Status .......................................................................................................................99

Table 11.9 Mine Capital Expenditures ($ US)..........................................................................................101

Table 11.10 Manpower Requirements by Departments ..........................................................................103

Table 11.11 Operation Manpower Requirements ....................................................................................104

Table 11.12 Maintenance Manpower Requirements ...............................................................................105

Table 11.13 Mine Operating Budget by Activity .......................................................................................107

Table 11.14 Mine Operating Budget per tonne........................................................................................108

Table 11.15 Unit Costs by Rock Type .....................................................................................................109

Table 12.1 Mill Availability........................................................................................................................110

Table 12.2 Production..............................................................................................................................111

Table 12.3 Manpower Planning - Mill.......................................................................................................129

Table 12.4 Mill Production Summary.......................................................................................................131

Table 12.5 Mill Operating Cost Summary................................................................................................132

Table 12.6 Mill Consumables per Feed Type ..........................................................................................133

Table 12.7 Costs per Type of Ore Life of Mine .....................................................................................134


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Table 13.1 Infrastructure and Auxiliary Facilities Capital Cost Estimate ..............................................143

Table 14.1 CBJ-CAIMAN Manpower Summary.....................................................................................146

Table 14.2 CBJ-CAIMAN - Manpower .....................................................................................................153

Table 14.3 General Services and Administration Operating Budget by Activity......................................155

Table 15.1 Thickened Tailings Design Criteria ........................................................................................181

Table 15.2 Design Criteria Tailing Production ......................................................................................185

Table 15.3 Main Development Phases ....................................................................................................189

Table 15.4 Principal Characteristics of teh Dams and Berms .................................................................195

Table 15.5 Estimated fill quantities (m3) ..................................................................................................199

Table 15.6 Summary of Cyaide Detoxification (SO2/AIR) Testwork ........................................................204

Table 15.7 Estimate of volumes of water from runoff and seepage ........................................................208

Table 15.8 Estimate of Runoff and Seepage Water Volumes from the Waste Dumps ...........................210

Table 16.1 Summary of indirect costs......................................................................................................221

Table 17.1 Operating costs......................................................................................................................225

Table 17.2 Operating costs by currency ..................................................................................................226

Table 17.3 Pre-production Expenditure ...................................................................................................227

Table 17.4 Pre-production Expenditure ...................................................................................................230

Table 17.5 Restauration surfaces ............................................................................................................244

Table 17.6 Dismantling ............................................................................................................................245

Table 17.7 Rehabilitation Costs (US$).....................................................................................................246

Table 18.1 On Site Composition of Gazole Price ....................................................................................249

Table 18.2 CBJ-CAIMAN Production Calendar .......................................................................................257


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Table 18.3 Monetary Flux ........................................................................................................................258

Table 18.4 Actual Value (k US$)..............................................................................................................259

Table 18.5 Parameter Variance ...............................................................................................................260

Table 18.6 Risk Summary........................................................................................................................263


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CAMBIOR INC. / CBJ-CAIMAN S.A.S 1

1.0 INTRODUCTION

The feasibility study for the Camp Caiman project in French Guiana was carried out by the CBJ-CAIMANproject team together with Cambiors Projects and Construction group, supported by independent

consultants retained for specific technical and financial issues.

The various groups that assisted Cambior on this project, along with their fields of activity and specialties,

are shown in the following table:

Mineral resource estimate: Cambior business development and exploration

Geology department, OMAI Gold Mines Ltd.

Mining reserves: Project technical team

Qualified person, Cambior Inc. Technical Services

Mine plan: Project technical team

Capital and operating costs: Cambior Inc. Projects and Construction Group

Project technical team

Pit slope stability: Golder Associates Inc., Denver, Colorado USA.

Hydrogeology, soil bearing capacity, Golder Associates Inc., Montral, Qubec, Canada

Waste dump stability, ground water analysis:

Metallurgical testwork: AMTEC, Australia

Bateman Minerals, Australia

Dawson Metallurgical Laboratories Limited, AustraliaGoldfield, South Africa

INCO Technical Services, Ontario, Canada

Jack Irvine, Ontario, Canada

Lakefield Research Limited, Ontario, Canada

Pacock Industrial, Australia

Metallurgical process: Met-Chem Inc. Montral, Qubec, Canada


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Tailings paste process: Golder Paste Technology, Sudbury, Ontario

Tailings cells and settling ponds: Golder Associates Inc., Montral, Qubec, Canada

Review of design and tailings storage methods: C.O. Brawner Engineering, Vancouver, Canada

Permit applications for ICPE and Initiation Apave, France

of mine operations: ALTOA, Cayenne, French Guiana

ANTEA Antille-Guyane, Cayenne, French Guiana

B. Bordenave Consultance, Trgunc, France

BRGM, Cayenne, French Guiana

Cabinet ECOBIOS, Cayenne, French Guiana

Defos du Rau, Cayenne, French Guianameraude, Cayenne, French Guiana

FUGRO Gotechnique, Cayenne, French Guiana

G.A. Borstad Associates Ltd, Sidney, BC, Canada

GAIA Hydrobiologie, St-Sulpice sur Lze, France

GEOHYD, Cayenne, French Guiana

Goplus Environnement, Gardouch, France

GEOREM, Chizeuil, France

Golder et Associs, Montral, Qubec

Golder Associates, London, Ontario, Canada

Hydreco, Kourou, French Guiana

INERIS, Verneuil-en-Halatte, France

Institut Pasteur, Cayenne, French Guiana

IRD, Cayenne, French Guiana

Laboratoires Filab, Cayenne, French Guiana

Laboratoires Filab, Chenve, France

Laboratories Wolff Environment, Evry, France

LGIT, Grenoble, France

NRAP, French Guiana

ONF, Cayenne, French Guiana

Royal Haskoning, Villeneuve dAsq, France

Saunier et Associs, Lille, France

SGS, Accra, Ghana

URSTM, Rouyn-Noranda, Qubec, Canada


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Access road: ALTOA, Cayenne, French Guiana

French Guiana taxation: Bobrie Conseil, Cayenne, France

Ernst and Young, Toulouse, FranceOGEFA, Cayenne, France

PWC, Montral, Canada and Paris, France

Power generation: Kaehnee, Vancouver, Canada

Human resources: Bobrie Conseil, Cayenne, France

This feasibility study sets out in detail the mining and mineral processing operation, support activities and

capital and operating costs required to develop the Camp Caiman project. It describes the miningreserves and mineral resources, the mining plan, the metallurgical process and the tailings storage

methods, as well as water treatment, the mine infrastructure and finally, the environmental considerations

that apply to the operation in relation with the requirements in French Guiana.

This document also presents the schedules and the capital and operating costs, within a 10% margin of

error. All costs shown are in US dollars; the following exchange rates were used in the third quarter of

2005:

1 US dollar = 0.833 Euros

1 US dollar = 1.25 Canadian dollars

All data discussed in this document supports the technical success of the Camp Caiman project.

This Technical Report 43-101 recapitulates the information and the results of the feasibility study of CBJ-

Caiman. The feasibility study of the project and the documents are available for a review at the Cambiors

offices in Longueuil. This report also contains the information which had not been verified and reviewed

during the feasibility study of CBJ-CAIMAN, but which was finished and subjected to the Government ofFrench Guyana. The information has been reviewed and verified since and is included in this report.


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2.0 DENIAL

This report is based on the information contained in the feasibility study of CJB-CAIMAN INC.S as well ason councillors' reports supporting the feasibility study. The authors compiled the information contained in

this report from these sources. A review and verification beyond the feasibility study was not executed.


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3.0 SITUATION GO-POLITIQUE

Camp Caiman is a gold project indirectly owned by Cambior Inc. (Cambior). Prior to August 2002, theproject was owned by Asarco Inc. (Asarco) through its French Guiana subsidiary, Asarco Guyane

Franaise SARL (AGF). The project lies 45 kilometres (km) southwest of Cayenne, the main city in

French Guiana, and is accessible by road. French Guiana has been a French overseas dpartement

(dpartement doutre-mer, or DOM) since 1946, and as such is subject to French and European law. It is

located in northeastern South America, and shares a border with Suriname to the west and Brazil to the

east and south (Figure 3.1). French Guiana occupies an area of about 84,000 square kilometres (km2),

95% of which is covered by humid tropical forest. The country has a censured population of about

157,000 inhabitants, most living along the coast. The capital Cayenne itself has a population of about

51,000, with a total of about 84,000 people living in the greater Cayenne area, which includes the

adjacent communities of Rmire-Montjoly and Matoury.

0 200

km

CAMPCAMAN

OMAIROSEBEL

Georgetown

Paramaribo

Cayenne

Amriquedu Sud

GUYANA

SURINAMEGUYANE

FRANAISE

Ocan Atlantique

Location of French Guiana in South America

Figure 3.1


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French Guianas GNP is about US $1 billion, and inflation runs at around 2.5%. All transactions are

conducted in Euros. The town of Kourou, northwest of Cayenne, is the launch site for Ariane rockets and

the site of Europes Spaceport. The space industry is the French Guianas leading economic activity,

followed by gold mining.

The mining industry consists primarily of small and medium-sized placer operations, with a large number

of illegal sites. Declared production is in the order of 3.5 tonnes (112,500 ounces) per year, with true

production estimated at over 10 tonnes (321,500 ounces).

Shrimping, lumber and tourism also contribute to the Guianese economy, which is nonetheless heavily

supported by both Paris and Brussels under a six-year national and European subsidy agreement

(contrat de plan tat-Rgion).

Air France has daily flights between Paris and Cayenne, and there are regular flights to Miami, the

Antilles and Brazil.

3.1 Corporate Profile

The Camp Caiman project is owned by CBJ-CAIMAN, a simplified form of incorporation (socit par

actions simplifie, or SAS) with a share capital of 6,010,500, registered in December 2004 as the

transformation of AGF, a limited liability company (Socit Responsabilit Limite, or SARL). The headoffice of CBJ-Caiman is located at PK 6,5 Route de Montjoly, Chemin Poupon, 97354 Rmire-Montjoly in

French Guiana.

The sole shareholder of CBJ-CAIMAN S.A.S. (CBJ-CAIMAN) is CBJ-FRANCE, an SAS with a share

capital of 270,000, registered in December 2004 as the transformation of SARL CBJ-France. The head

office of SARL CBJ-France is at PK 6,5 Route de Montjoly, Chemin Poupon, 97354

Rmire-Montjoly in French Guiana.

CBJ-FRANCE S.A.S. (CBJ-France) is 92.6% owned by Ariane Holdings (Barbados) Inc., a company

incorporated in Barbados and wholly-owned by CBJ Caiman Inc. (a Canadian company), and 7.4%

owned by CBJ Caiman Inc., which is in turn wholly-owned by Cambior (Figure 3.2).


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Cambior inc.(Canada)

CBJ Caiman inc.(Canada)

Ariane Holdings (Barbados) Inc.

(Barbade)

CBJ-France S.A.S.(Guyane franaise)

CBJ-Caiman S.A.S.(Guyane franaise)

100 %

92,6 %7,4 %

100 %

100 %

Figure 3.2

Procedures are presently underway to eliminate Ariane Holdings Barbados and CBJ Caiman Inc. bytransferring the Barbados Company to Canada and merging the two companies with their parent,

Cambior Inc. This will simplify the French subsidiarys corporate structure and accounting procedures, as

well as the fiscal fees and perhaps the defiscalization process with French fiscal authorities. These

changes should be completed by the end of the fiscal 2005.


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For all intents and purposes, CBJ-CAIMAN and CBJ-FRANCE are wholly-owned subsidiaries of Cambior.

Cambior is an international mining company created in 1986 through the privatization of mining assets in

Quebec. It is based in Qubec and has six producing mines: five gold mines (three in Quebec, one in

French Guiana and one in Suriname) that produced 694,000 ounces (nearly 22 tonnes) of gold in 2004and a large niobium mine in Quebec (Niobec), as well as a 70% interest, through a subsidiary, in Omai

Bauxite Limited, a bauxite mine located in Linden, French Guiana. Cambior also has numerous

exploration projects in Canada, the United States, Peru and the Guiana Shield. At this time, Cambior

employs almost 2,700 people, more than 60% in the Guiana Shield. All Cambior mines are certified

under the ISO 14001 environmental standard. Cambior shares trade on the Toronto Stock Exchange

(TSX) and the American Stock Exchange (AMEX) under the symbol CBJ. Its warrants (CBJ.WT.C and

CBJ.WT.D) are listed on the TSX.

3.2 Project Description and Location

The Camp Caiman gold project consists of three contiguous exclusive exploration permits (permis

exclusifs de recherches, or PER) covering a total area of 71 km2, including the 30 km2Camp Caiman

mining concession.

The Camp Caiman gold project is in the Roura commune, 45 km south-southeast of Cayenne as the crow

flies, in the DOM of French Guiana (). The project is accessed by about 65 km of paved road from

Cayenne: first the RN-2 from Cayenne to Regina, then the CD6 from the town of Roura to the village ofKaw, and finally in a 4x4 vehicle over a five kilometre logging road. The project lies at the base of the

southwest slope of Kaw Mountain, a 310 metre (m) high, 40 km long hill. An unpaved access road about

16.6 km long from the RN-2 (Piste Sud) should be functional by the end of 2006.

The local environment is humid tropical forest with average temperatures of about 29C during the day

and 23C at night. Kaw Mountain is the first obstacle met by clouds coming in from the Atlantic Ocean.

This is therefore one of the rainiest areas of French Guiana, with rainfall averaging

4,118 millimetres (mm) (average 1998 to 2003) and reaching a maximum of 5,678 mm in 2000. Rainfall

is mainly concentrated in the rainy season, from December to June. The Camp Caiman area, like the restof French Guiana, is not in a seismic zone and is not affected by hurricanes.


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3.3 Project History

The Camp Caiman project is a direct result of the French Guianas mining inventory, created by the

Bureau de recherches gologiques et minires (BRGM) between 1975 and 1995 for the Ministry ofIndustry.

The Camp Caiman area was put up for public auction by the French state through the Regional Bureau of

Industry, Research and the Environment (Direction Rgionale de lIndustrie, de la Recherche et de

lEnvironnement,or DRIRE) in 1994. In competition with numerous other companies, AGF, at the time a

subsidiary of the American company Asarco, submitted the winning bid. Two contiguous exploration

permits, Camp Caiman Est and Ouest, were initially granted in July 1995 for a two-year period, renewable

twice. Three other permits, Camp Caiman Trsor, Trsor Est and Trsor Ouest, were granted in January

1998. The remaining permit, Camp Caiman Patawa, was granted on March 10, 1999. These permitswere subsequently reduced and merged to form three contiguous PER with a total surface area of

71 km2, described in the next chapter.

Work by BRGM at Camp Caiman consisted of soil geochemistry programs that identified a large, seven

kilometre gold anomaly.

From 1996 to 1999, intensive drilling (diamond and reverse circulation totalling over 55,600 m in

544 holes) by AGF resulted in the identification of two significant primary gold deposits. An initial

feasibility study was done, including an environmental impact study, and an application for a 30 km 2

mining concession within the exploration permits was filed in April 1999.

The acquisition of Asarco by Mexican mining company Grupo Mexico, S.A. de C.V. in 1999 brought about

a change in the new structures corporate objectives for French Guiana and its commitment to the Camp

Caiman project. The mining concession application was allowed to go dormant. A small drilling program

was carried out in 2,000 (4,180 m in 47 holes) and the Camp Caiman project was put up for sale.

In August 2002, a junior mining company, Ariane Gold Corp. (Ariane Gold), created in March 2002, finally

purchased the shares of AGF through its French Guianese subsidiary, CBJ-France SARL, and its

Barbadian subsidiary, Ariane Holdings (Barbados) Inc., for a total of US $16,444,600 payable in five

installments.

Intense drilling (diamond and reverse circulation) resumed in September 2002, with the goal of outlining

the measured and indicated resource.


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An initial assessment performed in June 2003 resulted in an estimate of 37.4 tonnes of gold contained.

The 1999 environmental impact statement was updated, and a second application for a 30 km2mining

concession, along the same lines as the 1999 application, was filed on July 23, 2003 with the Directorate

for Energy and Raw Material Resources (Direction des Ressources nergtiques et Minrales, orDIREM), an arm of the Ministry of Industrys General Directorate for Energy and Raw Materials (Direction

gnrale de lnergie et des matires premires, or DGERM) in Paris.

On November 29, 2003, Ariane Gold merged with the Canadian mining group of Cambior and AGF to

become an indirectly-held, wholly-owned subsidiary of Cambior. From that point on, Cambior assumed

the financial obligations of Ariane Gold and its subsidiaries for payment of the balance of the acquisition

price to Asarco. As of August 17, 2004, two equal amounts of US $4,136,800 remain payable to Asarco,

one on August 16, 2006 and the other 120 days after the commencement of commercial production from

the Camp Caiman project.

Diamond and reverse circulation drilling programs continued until the end of March 2004 to test the

proximal extensions of the two known deposits and their satellite zones.

At June 30, 2005, a total of 140 km of drilling had been done at Camp Caiman in 1,941 holes, including

nearly 82 km of diamond drilling in 713 holes. Of this, nearly 80 km in 1,336 holes were drilled between

September 2002 and June 2005 by Ariane Gold and then CBJ-CAIMAN.

3.4 Mining Claims and Authorizations

3.4.1. Legal Structure of Mining Claims

The Camp Caiman project is covered by three contiguous PER covering a total area of 71 km2: Trsor to

the west, Camp Caiman in the centre and Camp Caiman Patawa to the east.

On July 23, 2003, AGF filed an application with the DIREM for a 50-year, 31 km2

mining concession. Theconcession covers almost all of the Camp Caiman PER and straddles the southeastern portion of the

Trsor PER.

Following a public inquiry held from November 20 to December 19, 2003 in the Roura commune, and the

administrative review that took place in parallel with it, the applicant reduced the life of the concession to


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25 years. The application cleared the Departmental Mines Commission in Cayenne on

February 26, 2004, with a favourable opinion issued for a 15-year period.

The application was then sent to the General Mines Council (Conseil Gnral des Mines, or CGM) inParis on July 12, 2004, which issued a favourable opinion for a 15-year period and smaller surface area

(without specifying the extent of the reduction).

DIREM sent the application to the State Council on August 17, 2004 with a favourable opinion for the

application as filed by AGF (30 square kilometres for 25 years), disregarding the CGMs opinion. The

State Council is the final stage of the review prior to signature of a decree by the prime minister granting

the mining concession.

It should be noted that opinions issued by the Departmental Mines Commission, the CGM and the StateCouncil are consultative only. The mining concession was delivered by Prime Ministers decree to CBJ-

CAIMAN on November 26, 2004 in accordance to the parameters suggested by the DIREM, which

correspond fully to those sought by CBJ-CAIMAN.

The three PER that form the Camp Caiman project expired on July 31, 2004, and applications to extend

the Trsor and Camp Caiman Patawa PER for five years to July 31, 2009 were submitted to DIREM on

March 29, 2004.

Obtaining the mining concession is necessary but not sufficient to mine the deposits. Once the

concession has been granted, the Mining Code requires that an application for an authorization to initiate

mine operations must also be filed.

3.4.2. Authorization to Initiate Mine Operations

The conditions for granting authorization for the initiation of mine operations are outlined in decree

No. 2001-205 of March 6, 2001 applying and adapting to French DOM decree No. 95-696 of May 9, 1995

on the initiation of mine operations and mining policy.

The perimeter of the facilities in question includes the open pits, waste dumps, mine roads and surface

facilities required for mine operation. All these facilities must be located within the perimeter of the mining

concession.


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There are placer gold operations all along the projects. The northwest part of the permits, in the crossing

and Sainte-Marie area, was the site of a significant gold operation, both placer and primary, with a total

declared production of about 3.3 tonnes (106,000 ounces) of gold: 2 tonnes (65,000) ounces of placer

gold along the crossing, Anthony and Willy creeks in the second half of the 19 thcentury and early 20thcentury, and about 1.3 tonnes (41,000 ounces) of primary gold at the crossing and Sainte-Marie sites

between 1985 and 1996.

Exploration work (soil geochemistry, deep manual and mechanized auguring, trenching and diamond

drilling) by BRGM, SMBG and CBJ-FRANCE generated results that warranted continued work.

The existence of the south access road offers very good synergy with Camp Caiman, as future gold

mining would be facilitated by the presence of the Camp Caiman infrastructure.


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4.0 GEOLOGY

The volcanic-sedimentary geology of the Camp Caiman area consists of three main stratigraphic entities(Figure 4.2). Mafic volcanic rocks of the Paramaca Formation at the base are covered by a normally

graded bedding of stratified grey pelites, greywackes and siltites of the Armina Formation. Small

porphyry and intermediate sills are also present in the Armina Formation, cutting obliquely across the

sedimentary beds. The top of the Armina Formation shows inverse grading, changing gradually from

clayey facies to the locally kaolinitic terrigene sandstone facies and quartz-pebble conglomerates

associated with the Orapu Formation.

Two phases of folding produced the map pattern shown in Figure 4.1, Figure 4.2 and Figure 4.3. The first

phase produced tight folds as well as deeply penetrating regional schistosity (S1) accompanied by

metamorphism to lower green schist facies. The second phase produced open folds and regional

northwest southeast crenulations (S2).

These two deformation phases have affected the gold mineralization, giving it a generally sinuous trace in

three dimensions.

Numerous east-west, near-orthogonal, post-mineralization dolerite veins cut the mineralized body. These

vertical veins are several kilometres long and can have a true width of over 40 metres (m).


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The geology is masked by the equatorial forest cover. On hill tops and flanks, it is also hidden by three

levels of very hard laterite pan, each ranging in thickness from 0 to 5 m. In low lying areas, alluvial

deposits 0 to 5 m thick also play a role. It should be noted that the gold anomaly lies at a break in the

topographic slope. This anomaly is potentially larger that the BRGM work indicates, as it is probablymasked by the laterite pan to the north and alluvials to the south.

During a period of over 100 million years, intense tropical weathering altered all the rocks to laterites and

saprolites to a depth of more than 120 m below surface (Figure 4.4). A few resistant outcrops of Orapu

quartz-pebble conglomerates can be seen locally within the property boundaries.

Tropical alteration of the Guiana Shield considerably transformed and dismantled the paleo-relief, forming

strong saprolitic horizons often covered by discontinuous laterite layers and more erosion-resistant

duricrust. The vegetation cover has protected the soil from erosion. The chemical effects of tropicalweathering include the destruction of the crystal structure of the fresh rock primary minerals by intense

leaching of the silicates (SiO2) and alumina (Al2O3).

This results in the formation of secondary minerals (Ti and Al clays and oxides), mobilization and partial

precipitation of Fe and Mn, and concentration of the more resistant minerals such as zircon, magnetite

and quartz. This chemical phenomenon also tends to concentrate the gold near its source (supergene

gold).


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TECHNICAL REPORT

CAMBIOR INC. / CBJ-CAIMAN S.A.S

Camp Caiman ProjectPlan View and Geology

Scout Zone CC-88 Zone

CC-08 Zone

Dolerite

Conglomerate

Porphyry

Flysch

Graphitic Flysch

Coarse-grain Flysch

Greywacke

Volcanics

Pits

Anomalies

Roura-Cayenne


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TECHNICAL REPORT


Scout Zone

CC-08 Zone

Camp Caiman Project3D Mineralized Zones


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TECHNICAL REPORT


Saprolite

TransitionRock

Laterite

Landslide and residues

Mineralized Zone

Alluvials

Camp Caiman ProjectMineralized Zone


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5.0 DEPOSIT GEOLOGY

5.1 Unified Model

The deposit was originally divided into three mineralized zones called, from west to east, the Scout,

CC-08 and CC-88 (Figure 4.1) zones. Recent geological interpretations indicate that these three zones

are three subdomains of a single metallotect, with many geological characteristics common to the overall

deposit. For the purposes of regional modeling and resource estimation, it is more practical to describe

each of these zones individually.

5.2 Scout Zone

Occupying the west half of the deposit, the Scout zone consists of a main lens pinching in the northern

and southern extension. The lens is the continuity of the mineralization of the CC-08 and CC-88 zones.

This lens is essentially shaped like a flat-lying Z, encased exclusively in graphitic flyschs of the Armina

Formation, near felsic and intermediate porphyry veins (Figure 5.1). The anticlinal part of the Z

represents the largest volume of the mineralized lens, which has a maximum width of about 50 m. The

primary sulfides present are arsenopyrite and pyrite, forming most 5% of the whole.

The mineralized zone was tested almost exclusively in saprolite on a 25 m x 25 m grid, over a distance of

1,100 m and to a maximum depth of 140 m below surface. Very locally, a 12.5 m x

43-101 technical report camp caiman project, cambior nov 2004

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