Linmine Bauxite Project Guyana, South America involvement in the Guiana Shield in 1990 1991-1992 Construction and pre-production of the Omai Mine $175 M 1995-1996 Omai Mill Expansion

by

Norman McLeanHuman Resources Manager

Omai Gold Mines Limited

and

Vic Rozon

Project Manager

Linmine

- CONFIDENTIAL -

Linmine Bauxite Project

Guyana, South America

Omai

DoyonSleeping Giant (50%)

Niobec (50%)

PROJECTS

MINES

GROSSROSEBEL

HUAMACHUCO

CARLOTA

All amounts in US $

Cambior

Founded in 1986

Today Cambior is a gold (+550,000 oz) and niobium producer (1,550 tonnes)

All of our operations are ISO 14 001 certified

1,650 employees

Geographically diversified in two major mining camps

Canadian Shield, Quebec

Guiana Shield, South America

Total investment mines/projects to date: Cdn $1.9 billion

Listed: TSX/AMEX

First involvement in the Guiana Shield in 1990

1991-1992 Construction and pre-production of the Omai Mine $175 M

1995-1996 Omai Mill Expansion $55 M

1994-2001 Exploration Development and Feasibility Study on the Gross Rosebel Project $18 M + (Golden Star $ 16M)

Exploration/Development works in French Guiana $13 M

2000-2001 Contract mining for Linmine

Investments in the Guiana Shield

Cambior

LINMINE BAUXITE

PROJECT

Introduction

This study evaluates the feasibility of restructuring the

Linmine Bauxite operation, currently owned and

operated by the Government of Guyana, with the

objective of increasing the level of productivity,

efficiency and reliability as well as returning profitability

to the operation.


Operating Problems

Too large a workforce resulting in higher labour costs

High power costs and low reliability

High community expenses consisting mostly of power and water

Low availability of mine and plant equipment

Low recovery rates achieved in the plant

Dangerous working conditions especially in the plant

Dust pollution from calcination operation as well as other environmental problems.

Delays in meeting shipments and cancellation of shipments


…Operating Problems

Loss of market share

RASC sales down from 161,000 tonnes in 1997 to 62,000 tonnes in 2002

Financial losses related to high costs


Linmine Revitalization Plan

Guyana Government – Cambior Agreement

Signed June 6, 2002

New Operating Company (OBC) to be created

Ownership of OBC 70/30 (CBJ/GOG)

GOG to contribute Mineral Rights, Mining Leases and Assets (process plant, shops, etc…)

GOG to give Redundancy or Severance packages to all Linmine employees

GOG responsible for Environment Liabilities from past operations


…Linmine Revitalization Plan

Phase 1: Turnaround Phase

Conservative Plan based on Traditional Products

Refractory Grade Bauxite (RASC)

Chemical Grade Bauxite (ChGB)

Cement Grade Bauxite (CeGB)



Changes in Three Areas

Mine:

By changing Mining Methods and Equipment: Trucks and Shovels instead of Dragline-Bucket Wheel

Process Plant:

By investing Capital to Refurbish the Plant

Increase Recovery by Blending Material

Marketing:

By increasing Product Sales as a result of a Reliable Process Plant Operation



Phase 2: Expansion Phase

Establishment of new products or products that have been produced in the past such as:

Mullites

Metallurgical Grade Bauxite

Not part of this Study

Will be done with the internal cash flow


World Bauxite Production

135.7 million tonnes

• 95% used in Metallurgical Applications

• 5% used in Non-Metallurgical Applications (6.7Mt)

Metallurgical Applications

100% transformed into Alumina (99%Al2O3)

• 95% transformed into Aluminium

• 5% used in Non-Metallurgical Applications

Non-Metallurgical Applications (Bauxite)

Refractories (1.7Mt)

Abrasives (1.5Mt)

Cement (1.8Mt)

Slag Adjusters (0.6Mt)

Proppant (0.5Mt)

Bauxite Production (2000)


Refractory “A” Super Calcined Grade Bauxite (RASC)

Represents 86-89% of revenues

End markets => Steel, Glass, Aluminum, Ceramics

other non-ferrous.

Used in High Alumina Refractory bricks, and monolithics (plastics, castables, gunning)

Chemical Grade (CGB)

Represents 11-12% of revenues

End markets => Water Treatment, Sizing Agent (paper production)

Used in the Production of Aluminium Sulfate (ALUM)

Linmine’s Products


Cement Grade (CeGB)

Represents 1% of revenues

End markets => Cement and Others

Used as a source of High Alumina

…Linmine’s Products


China (export)

China (export) 700,000

China (domestic) 200,000

Brazil (export) 75,000

Brazil (domestic) 25,000

Guyana (export) 70,000

China (domestic)

Brazil (export)

Brazil (domestic)Guyana (export)

Total: 1,070,000 tonnes

Year 2002, excludes US bauxitic kaolin production

*High Alumina: Materials with an Alumina content higher than 85%

High Alumina* Refractory Production


Europe 450,000

China 200,000

USA 200,000

Japan 110,000

Others 90,000

Total: ~1,050,000 tonnes

Year 2001/2002 Estimates

Europe

China

USA

Japan Others

*High Alumina: Materials with an Alumina content higher than 85%

High Alumina* Refractory Consumption


Strong Support from Industry

Letter of Intent signed by numbers of end-users

• RHI Refractories (Austria, Chile)

• ANH Refractories (USA, Canada)

• Resco Products (USA, Canada)

• DSF Refractories (U.K.)

• Sanac & Sirma (Italy)

• Nissho Iwai (Japan)

• Tennant Limited (Australia)

• Lafarge Refractories (France)

• Magnesita (Brazil)

• St-Gobain (USA)

• Refmex (Mexico)

• General Chemical (USA)

• Plibrico (USA, Canada)

Even rival producers voiced their support

Industry Feedback


Best Quality Product Available in Market

Lower Alkali, Fe, Ti contents

Ease of Mullite Formation on Calcination

Lower Hardness and Ease of Processing

Has been Used/Known for Half a Century

Customers

Cambior’ Marketing Reputation Marketplace

Direct Relationship with Customers

Technical Support to Customers & End-users

Developments of New Products with Linmine’s Top Quality Raw Materials

Market Advantages


Mining In Montgomery Mine

Use of Trucks and Shovels with Direct Delivery of Bauxite to the Plant (no railroad)

Pit Optimization done using Operating Costs, Recoveries and Product Pricing:

TOTAL MINERAL RESERVES

Montgomery Mine

Tonnes

X1000T Al2O3% Si02%

Low Silica (0-5% Si02) 28,800 61.1 3.4

High Silica (5-10% Si02) 33,800 59.3 6.7

Total 62,600 60.1 5.2


SITE PLAN

Linmine Bauxite ProjectLinmine Bauxite Project

…Geology and Resources

Mineral Inventory – Linmine and Cambior Drill Holes

Cutoffs: > 47.5% Al2O3, < 10% SiO2, < 10% Fe2O3

Resource

Category

Tonnes

(x103) Grade

%

TAl2O3

%

TSiO2

%

Fe2O3 % TiO2

Measured 7,384 59.95 5.99 1.08 2.28

Indicated 59,756 60.07 5.22 1.36 2.28

Total (Meas + Ind) 67,140 60.06 5.30 1.33 2.28

Inferred 771 61.36 2.32 2.17 2.30

Linmine Bauxite ProjectLinmine Bauxite Project

…Mining Pit Design completed for East & North Montgomery

MINERAL RESERVES

Montgomery MineTonnes

X 1,000

Al2O3

%

Si02

%

East Montgomery

Low Silica (0-5%) 370 60.9 4.2

High Silica (5-10%) 954 60.0 6.5

Sub-Total 1,324 60.3 5.8

North Montgomery

Low Silica (0-5%) 14,698 60.4 3.0

High Silica (5-10%) 5,009 59.3 6.7

Sub-Total 19,707 60.1 3.9

Montgomery Pits

Low Silica (0-5% Si02) 15,068 60.4 3.0

High Silica (5-10% Si02) 5,963 59.4 6.6

Total 21,031 60.1 4.0


East Montgomery SectionEast Montgomery Section

…Mining Combined Reserve will provide Plant Feed for 30 Years

Mining will start in East Montgomery and progress to North Montgomery following the Dewatering of Dorabece Lake

11KM Road Mine-to-Plant to be built using material from the mining area

Overall Strip Ratio of 4.3 BCM/t for the First 15 Years


Processing facility designed to produce the calcined and dried products forecasted in sales plan:

RASC, ChGB, CeGB

Extensive Metallurgical testwork conducted in the past be various parties and by Cambior in 2002 to confirm:

High quality of refractory grade calcined bauxite

Wash plant and kiln recoveries

Future operating strategy with 50% washed and 50% unwashed material fed to the kiln

Processing


Ore Preparation

New Delivery System

New Crusher and Wash Plant

Raw Product Storage

Two Storage Areas Designed to Produce Blended Piles

New Conveyors and Mobile Hopper

Kiln 14

Totally Refurbished: Gear, Pinion, Dust Collector, etc…

New Instrumentation

90% Availability Expected

Throughput: 27.3 Tonnes per Hour of Product

Process Plant Modification


Kiln 13

Minimum Amount of Refurbishing

Will be used on an Intermittent Basis

90% Availability Expected

Throughput: 27.3 Tonnes per Hour of Product

Dryer Feed & Storage

New Feed System

…Process Plant Modification


ENVIROMENTAL IMPACT

ASSESSMENT

By Senes Consultants – Toronto Canada

Based on:

1993 EIA by Rescan

2002 Environmental Review by Adam Smith Institute

2002 Tailings Report by Golder Associates

Recent soil, water quality and waste sampling by Cambior


Environmental improvement for all acquired components

application of proven remedial technology

reasonable time for implementation (up to 2 years)

Implementation of Environmental Management Plan

Meets international performance standards

Plan and close out acquired components

Seek ISO 14001 Certification within two years

Omai Bauxite Commitments


Already exists but required to be upgraded in:

Port Infrastructures

Laboratory

Fuel Storage and Handling

Substation & Electrical Rooms

Communications

Administration Buildings

Infrastructure


Investment


Capital Expenditures (US $000)

Mining

Electrical & Comm.

Infrastructures

Processing

Tailings & Water Mgmt

Admin. & Services

Indirects

Contingency (10%)

5,382

1,359

1,943

12,412

948

270

3,560

2,700

Total 28,574

Working Capital 4,921

Feasibility Study & Financing

Total Investment

1,667

35,162


Conclusion Restructuring of the Linmine Operation is Economically

Feasible

Base Case meets Cambior’s Financial Criteria

Base Case:

Know Products: Principal being RASC

Reserves/Resources: For Over 50 Years

Mining and Process: Low Risk

Further Improvements Possible: Cheaper Fuel, Process Control

Second Phase:

New Products from the same Resource Base

Documents

Linmine Bauxite Project Guyana, South America involvement in the Guiana Shield in 1990 1991-1992 Construction and pre-production of the Omai Mine $175 M 1995-1996 Omai Mill Expansion