Campbell Resources expects Copper Rand gold mine to start producing in 2004

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Campbell Resources expects Copper Rand gold mine to start producing in 2004

Canadian Press

Friday, October 31, 2003

MONTREAL (CP) - Campbell Resources Inc. says it has resumed work at its Copper Rand 5000 gold mine in Quebec's Chibougamau region and it expects commercial production to start by the end of 2004.

"Taking into account the work plan envisaged and with control of the project, we are confident that the development of the Copper Rand mine will be completed," CEO Andre Fortier said in a release Friday.

By 2005, he said, Copper Rand should have 180 employees and start producing 40,000 ounces of gold a year.

That would bring Campbell's annual production to over 100,000 ounces of gold, along with 20 million pounds of copper, including production from the Joe Mann Mine.

Resumption of work on the project follows an agreement with Investissement Quebec, the provincial government's investment agency, for repayment of $10 million of a $16.5-million loan to Corporation Copper Rand (CCR) by issuing common shares of Campbell at a price of $1.025 apiece.

The agreement also permits the previously announced conversion of interests held by other agencies into common shares of Campbell.

On the Toronto stock market Thursday, Campbell Resources shares (TSX:CCH) closed at 95 cents, up four cents.

The moves leave Campbell wth a 76 per cent stake in CCR and about 84.5 million shares issued.

"In effect, we have reduced our debt and increased our participation in the Copper Rand Project from 26 per cent to 76 per cent - excellent news for the shareholders of Campbell," Fortier said.

"Being both the operator and the principal shareholder of Copper Rand, we are in a position to complete the project by the end of 2004."

Over the past three years, CCR has invested about $32 million to develop the Copper Rand project.