Partnering. Since expenditures minimal in early period, not sure why Miramar needs to do this. But it has back in and equity provisions which may make it worthwhile.
IMO it means we will see more deals. Sherwood was the first, and it also was a non deal, Sherewood is in effect Miramar.
Miramar & Maximus Announce Letter of Intent to Explore Part of Hope Bay Belt
Friday June 25, 9:00 am ET
Deal Would Accelerate Exploration of Twin Peaks & Eastern Contact Areas
VANCOUVER, British Columbia--(BUSINESS WIRE)--June 25, 2004--Miramar Mining Corporation (AMEX:MNG - News; TSX:MAE - News) and Maximus Ventures Ltd. (TSX VENTURE:MXV - News) today announced that they had signed a letter of intent that would allow for the accelerated exploration of the Twin Peaks and Eastern Contact target areas of Miramar's 100% owned Hope Bay belt in Nunavut.
"The Twin Peaks and Eastern Contact areas at Hope Bay are very prospective exploration targets," said Tony Walsh, Miramar's President & CEO. "However, Miramar's immediate focus is on building the production profile from the existing deposits on the belt. Given the large number of other exploration opportunities available to Miramar within the Hope Bay belt, it makes sense to bring in another party to accelerate the exploration of areas that might not have been exploited for a number of years. The goal of this transaction is to allow Miramar to maximize the value of the Hope Bay belt by advancing it to production as soon as possible, while continuing to build the production profile through the systematic exploration of the belt, with grassroots exploration being conducted in cooperation with strategic partners."
"We are very excited to have the opportunity to participate in the exploration of one of Canada's most prospective gold belts," said Ian Rozier, Chairman of Maximus. "High grade gold showings in the Eastern Contact area present immediate drilling opportunities, while the Twin Peaks area has numerous indications of potential to host large scale, bulk tonnage gold deposits. These targets provide Maximus with a blend of risks and opportunities within a prolific, under-explored gold belt: high grade outcropping gold showings ready to drill, and longer term, higher risk exploration offering potential for the discovery of very large gold deposits."
Eastern Contact
The Eastern Contact land package encompasses several high grade gold showings, lying near the eastern granite-greenstone contact, mostly comprised of outcropping high grade quartz veins. Included in these showings are the 'BD', 'Brick', 'Gunn', 'Her' and 'Lawa' showings, all of which have returned significant gold values (see table below).
The BD, Brick and Her showings, though poorly exposed, occur as auriferous veins hosted in iron carbonate altered tonalitic granitoids, while Lawa and Gunn are hosted by mafic volcanic rocks with associated carbonate alteration. The Gunn showing in particular has three distinct episodes of veining/mineralization while the Her showing is observed as a folded vein in the discovery outcrop. There is potential at each of these showings to develop significant low tonnage, high grade gold resources.
-0-
Highlights of Grab Samples from Eastern Contact Showings
--------------------------------------------------------
Showing Sample # Gold (g/t) Silver (g/t) Host unit Year
------- -------- --------- ----------- --------- ----
BD 18604 26.0 8.5 Granitoid 2000
18603 6.6 Granitoid 2000
Brick 18100 41.4 32.1 Granitoid 2000
16722 9.4 Granitoid 2000
95PQZT005D 34.5 28.7 Granitoid 1995
Gunn 96PDDT002A 9.3 18.2 Volcanics 1996
96PDJT032F 10.4 Volcanics 1996
96PDJT002M 8.4 Volcanics 1996
43449 13.8 Volcanics 2002
43450 19.3 Volcanics 2002
Her 94PTJT028 7.4 67.3 Granitoid 1994
94PTJT027 5.7 16.7 Granitoid 1994
94PTJT036 7.0 Granitoid 1994
Lawa 16377B 182.5 9.8 Volcanics 2000
18833 110.3 Volcanics 2000
95PAAT012C 491.0 18.1 Volcanics 1995
95PAAT012B 122.0 Volcanics 1995
Twin Peaks
At Twin Peaks, at the north end of the Hope Bay belt, argillaceous sediments and conglomerates unconformably overlie volcanics and syenitic intrusives adjacent to a major lineament. This is a setting geologically similar to the Porcupine and Kirkland Lake mining districts, a source of significant historic gold production including production from large scale, bulk tonnage gold deposits. Miramar has interpreted the Twin Peaks area as having potential to host similar large scale gold deposits at or near the volcanic-sedimentary contact.
Recent exploration over this 12km long sequence has defined two alteration trends in the underlying volcanic-intrusive rocks and identified a significant shear or fault structure believed to influence the localization of gold mineralization. Limited core drilling intersected quartz stringer veining and alteration, with assays up to 1.7 g/t gold over 2m, confirming the proximity of a gold bearing fluid pathway. In the Discovery and Conglomerate Hill areas, numerous gold showings are indicative of significant mineralizing systems in the area. Surface sampling at Discovery has yielded values up to 25.6 g/t Au in arsenopyrite bearing quartz veins that cut all lithologies (mafic volcanic, felsic fragmental and late "Timiskaming-type" sedimentary rocks), while the Conglomerate Hill area displays widespread gold bearing quartz veining within conglomerate units overlying volcanics and returned values up to 6.4 g/t Au. These results are encouraging as they confirm the interpreted geologic model and indicate the potential of the Twin Peaks area to host Timiskaming unconformity-style mineralization similar to the Porcupine and Kirkland Lake districts.
A program is proposed for the Twin Peaks area that would see systematic exploration of this extensive area to define controlling structures, favourable host rocks and alteration trends that would allow Maximus to focus in on prospective covered areas.
Letter of Intent
Miramar and Maximus have signed a letter of intent whereby Maximus can earn a 75% interest in the Eastern Contact and Twin Peaks areas (the "Properties") on the following basis:
1. C$7.5 million in expenditures over three years, with scheduled minimum expenditures of $0.5 million in 2004, C$2 million in 2005, C$3 million in 2006 and C$2.0 million in the first half of 2007. Maximus will earn no interest until it has made these expenditures. After Maximus has earned their interest, Miramar and Maximus will explore the property through a joint venture.
2. Miramar will have a one time right to buy back up to a 50% interest and become operator by paying Maximus 150% of Maximus' proportionate exploration costs for the percentage being acquired.
3. Maximus will be the operator unless Miramar increases its interest to at least 50%. If requested, Miramar would provide Maximus exploration administration and management services.
4. Miramar will have a right of first refusal on any sale of all or a portion of the Properties, and a right to approve any joint ventures with third parties.
The consideration payable by Maximus to Miramar for entering the option agreement would be as follows:
1. The issuance of five million shares of Maximus to repay Miramar for its expenditures on the Properties. These shares would be issued over a three-year period.
2. The issuance of 1.5 million shares of Maximus following reporting of the first 500,000oz of gold in measured, indicated or inferred resources.
3. The issuance of 2.5 million shares of Maximus on each of the following events: the reporting of the first, second and third million ounces of measured and indicated resources, on delivery of a positive feasibility study, and on production.
The option agreement would be conditional on Maximus completing a financing for at least C$3 million, completion of a formal option agreement, any legal or regulatory approvals required and would be subject to other terms and conditions.
Quality Assurance
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by John Wakeford, P. Geo. Vice President Exploration for Miramar Mining Corporation.
Additional Information
Diagrams, tables and maps detailing some of the matters described herein are attached to this news release (http://www2.cdn-news.com/database/fax/2000/0625mae1.jpg and www2.cdn-news.com. If you are missing these, please download this news release from Miramar's website at miramarmining.com, to which they are attached, or contact us at the numbers listed below. All other information previously released on the Hope Bay Project is also available on this website.
Forward Looking Statements
Statements relating to the proposed exploration work at the Twin Peaks and Eastern Contact areas, the expected results of this work and the transaction between Maximus and Miramar are forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by words such as "expects," "plans," "anticipates," "appears," "believes," "intends," "estimates," "projects," "potential," "indicative," "prospective" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results and sampling and other tests may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to the need to negotiate and sign definitive transaction documents, the need for Maximus to complete its C$3 million financing and dispose of other assets and to satisfy other closing conditions and dependence on continued performance by the parties in accordance with the terms of the letter of intent and definitive transaction documents; fluctuations in gold prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; uncertainties involved in the interpretation of drilling results and other tests; the possibility that required approvals and permits may not be obtained on a timely manner or at all; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from operations and other risks and uncertainties, including those described in the Miramar's Annual Report on Form 40-F and Reports on Form 6-K filed with the Securities and Exchange Commission.
Forward-looking statements are based on the beliefs, estimates and opinions of Miramar's management on the date the statements are made. Neither Miramar nor Maximus undertakes any obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change.
This news release has been authorized by the undersigned on behalf of Maximus Ventures Ltd. and Miramar Mining Corporation, respectively.
------------------------------------------------------------------------
Contact:
Maximus Ventures Ltd.
Barbara Dunfield
President & CEO
(604) 685-6851
Fax: (604) 685-6493
Email: ir@maximusventures.com
Website: maximusventures.com
or
Miramar Mining Corporation
Anthony P. Walsh
President & CEO
(604) 985-2572 or Toll Free: 1-800-663-8780
Fax: (604) 980-0731
Email: info@miramarmining.com
Website: miramarmining.com |
