Cambio Inc. is principally an international gold producer with operations, developmentprojects and exploration activities throughout the Americas: Quebec, Suriname, Peru, Guyana and French Guina. To a lesser extent, it is also involved in mining and exploring for other metals and minerals from deposits and properties also located in the Americas. Cambior pursues more particularly: the exploration for and delineation of mineral deposits; development and preproduction of deposits; construction of facilities required for mining; underground and open-pit mining; drying, milling and concentrating to produce a commercial product; and marketing of minerals, metals and concentrates. In 2005, Cambior produced 638,400 ounces of gold, consistent with an average production of 608,000 ounces during the past five years. As part of its strategy, the company also produces niobium and refractory-grade calcined bauxite to provide a long-term source of cash flow to support its gold operations. In 2005, 25.3% of its revenues were generated by non-gold operations. The company's exploration and business development strategy is as follows: invest in exploration at or near its operating mines to benefit from available infrastructure; fund early stage exploration in areas with a strong potential for discovery; focusing mostly in North and South Americas; and monitor the activities of junior and emerging producers with high value and potential in order to make acquisitions and/or joint ventures. In 2005, Cambior pursued an aggressive exploration and business development program. The program included completion of a feasibility study at the French Guiana Camp Caiman project as well as exploration programs at the Westwood, Quebec and La Arena projects, Peru. Drilling results at La Arena have been positive and the company plans to pursue additional drilling programs and complete a prefeasibility study in 2006. Additionally, Cambior is accelerating its exploration of the Westwood deposit following positive surface drilling results. It has increased its gold exploration and business development activities during recent years, with focus on the Americas, while considering opportunities in other regions. During 2005, Canadian exploration activities focused entirely on gold projects in Quebec. As of Dec. 31, 2005, mineral reserves of the Sleeping Giant mine stood at 376,000 tonnes at 11.4 g Au/t, representing 137,800 ounces of gold contained. Cambior's share of gold production from the Sleeping Giant mine amounted to 40,000 ounces of gold in 2005.
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