News

September 03, 2008

Cambridge Minerals Confirms That It Is On Target For Initial Gold Production By The Year End

By Charles Wyatt

Not a lot has been heard from Cambridge Minerals of late, but Colin Andrew, the managing director who returned from Colombia over the weekend, assures Minews that things are going to plan and that the Quintana mine should be in production by the end of this year, even in spite of the fact that the rainy season there has been the worst on record. As there are only four months left in 2008 it is reasonable to assume, therefore, that by 2009 the company will have made the jump from explorer to producer. The initial annual production may be modest at 15,200 ounces of gold and 6,000 ounces of silver, but needs must when the devil drives. In this case the devil is money and Cambridge has always been short of cash. The plan is to bring a sequence of small mines like Quintana into production in Colombia with the cash flow from each contributing to the development of the next one.

Funding for the development of Quintana and the next couple of mines has come from a hedge fund called Bluecrest Capital Management, said to be one of the biggest in Europe mines, even though a decision has yet to be made as to whether the first of the new projects will be La Rosaleda or another project called Las Pepas which is part of the Colina Negra project in the same area. As might be expected from a hedge fund, the agreement between Bluecrest and Cambridge involving up to US$15 million...