(COMTEX) Miramar Significantly Increases Resource Estimate for 100% Owned Hope Bay Pro
ect ( CCNMatthews )
VANCOUVER, BRITISH COLUMBIA, Jan 22, 2004 (CCNMatthews via COMTEX) -- Resource
Growth Supports Continued Aggressive Exploration & Expands Development Options.
Miramar Mining Corporation today announced a 25% increase in the mineral
resources at its 100% owned Hope Bay project in Nunavut. Due to the nature of
the work programs in 2003, the entire increase was driven by the Madrid area,
where measured and indicated resources increased by 55% to 565,000 oz and the
additional inferred resource increased 87% to 1,886,000 oz of gold. Madrid now
ranks as the largest of the three gold districts on the Hope Bay belt following
2003 exploration successes that defined significant quantities of lower grade
resources as the Suluk deposit expanded, South Suluk was discovered and the
Perrin and Rand zones were redefined.
"Our successful exploration continues to add resources at the Hope Bay project,
providing opportunities for added value to our shareholders," said Tony Walsh,
Miramar's President and CEO. "With over five million ounces of gold in all
categories, combined with our option on 60% of the two million ounce George and
Goose Lake projects, we control some of the largest, highest grade undeveloped
gold deposits in Canada. We anticipate that our 2004 exploration program will
further build our gold resource base and improve our geologic understanding of
the belt. Moreover, we continue to advance the high grade Doris North project
through the permitting process, with the objective of achieving commercial
production at Hope Bay by the end of 2005."
Resource Estimates
The following table sets out a summary of the year-end mineral resource
estimates for the Hope Bay project. Further details, including a specific
breakdown of measured, indicated and inferred mineral resources for individual
deposits, cut-off grades and other assumptions are outlined below and in the
tables attached.
Summary of Hope Bay Project Mineral Resource Estimates to
December 31, 2003
(Inclusive of Mineral Reserves at Doris North)
Category/Deposit Tonnes Gold Grade Contained Gold
---------------- ------ ---------- -------------
(000's) (g/t) (000's oz)
------ ----- ---------
Measured & Indicated Resources
------------------------------
Boston 1,387 15.4 687
Doris 763 23.9 586
Madrid 3,606 4.9 565
-----------------------------------------------------------------------
Sub-total Measured &
Indicated Resources 5,756 9.9 1,838
Additional Inferred Resources(a):
--------------------------------
Boston 2,574 10.9 901
Doris 1,675 14.7 795
Madrid 11,921 4.9 1,886
-----------------------------------------------------------------------
Sub-total Additional 16,170 6.9 3,582
Inferred Resources(a)
(a)Inferred resources are in addition to measured and indicated
resources.
The principal changes in the mineral resources from 2002 to 2003 are a result of
the following factors:
1. Gold resources at Suluk climbed significantly as a result of increases in the
dimensions of the Suluk resource area, its re-interpretation based on an
improved geologic model combined with the discovery of the South Suluk resource
area. Some of the gains were offset by losses related to in fill drilling,
geologic re-interpretation and reductions in the capping to levels more
appropriate for a bulk mining scenario resulted in significant net increase in
gold resources at Suluk;
2. Gold resources increased in the Naartok, Perrin and Rand areas, as a
consequence of an enhanced geologic model that resulted in the incorporation of
significant quantities of lower grade material previously excluded from resource
estimates. These increases were partially offset by the elimination of two
higher grade subsidiary lenses at Naartok related to the more conservative
geologic model, and a reduced capping level that better reflects a bulk mining
scenario;
No changes were reported in the mineral resource at Boston and Doris since there
was only wide spaced exploratory drilling at Boston and only minimal,
geotechnical drilling at Doris. No resources could be estimated at Boston
despite the encouraging results from depths significantly greater than the
extent of the current resource, since the deep holes are too widely spaced to
allow resource estimates to be prepared.
"Our geologic team made considerable progress in re-interpreting the geology of
the Madrid area as a result of an intensive lithogeochemical program to define
the volcanic stratigraphy," said Mr. Walsh. "As a result, we now see potential
for a high tonnage, lower-grade mining scenario at Madrid (likely involving a
combination of open pit and underground operations), utilizing low-cost bulk
mining methods that could allow us to recover more gold and generate higher
margins." As currently contemplated, the Naartok, Perrin and Rand areas may be
amenable to open pit mining, while Suluk could be approached as a bulk
underground mining operation. Mr Walsh added "We expect work to be carried out
in 2004 will help us refine our assessment of the potential of the Madrid area,
the optimal mining methods and possible milling rates as we proceed with our
systematic evaluation of the Hope Bay belt.
A significant portion of the 2003 exploration budget went towards drilling deep
at the Boston deposit to demonstrate the potential to extend the favourable
geology to depth. The results significantly exceeded expectations, not only
demonstrating that the favourable host rocks and alteration extended to depths
of up to 1,400m below surface and over a strike length of up to 750m, but 2003
drilling also intersected significant gold values at depths of over 1,000m below
surface, more than twice the depth of the previously estimated resource. All of
Boston's gold resources are currently in the upper 500m of the deposit and
comprise a measured and indicated resource of 687,000 oz of gold at a grade of
15.4g/t plus an additional inferred resource of 901,000 oz of gold at a grade of
10.9g/t.
Work Plans for 2004
A major exploration program for the Hope Bay project in 2004 is in the final
planning stages and will likely be comprised of approximately 40,000m of core
drilling and 5,000m of reverse circulation drilling. The majority of this work
will focus on continuing to evaluate the potential of the Boston mineralization
at depth, and continuing to test the favourable 11km long Deformation Zone trend
in the Madrid area and related structures. In addition, Miramar plans to drill
test several other areas outside the known mineralized districts, including the
potential of a north extension to the high grade Doris hinge zone and an area
6km south of Boston around hole NOD93 where Boston-style mineralization was
discovered.
Drilling is expected to commence in mid-February 2004 at Doris and Madrid, and
early March at Boston, while the additional targets will be tested throughout
the year. It is anticipated that the initial results of this drilling could be
available in early April 2004.
Hope Bay Project
The Hope Bay project extends over 1,000 sq.km. on the northern arctic coast of
Canada and contains three major resource areas (Boston, Doris and Madrid) as
well as numerous other gold occurrences. Miramar has a two-tracked plan for the
exploration and development of the Hope Bay belt: to bring the high grade Doris
North deposit into production as soon as possible with the objective generating
significant free cash flow and to continue the aggressive exploration of the
Hope Bay belt to more fully expose its tremendous potential.
As contemplated in the feasibility study announced January 9, 2003, Miramar
believes that it can generate significant, low cost gold production from Doris
North that could then be expanded through the development of additional
resources in the Doris deposit and mining the ramp accessible upper portions of
the Boston deposit. Longer term, Miramar believes the large tonnage, lower grade
Madrid mineralization has the potential to drive the development of a large
scale, lower grade, bulk mining operation involving a combination of open pit
and underground mining with centralized processing facilities that could treat
all resources developed on the belt. As a result Miramar plans to focus its
on-going exploration efforts on more fully evaluating the upside potential of
the Madrid area, determining whether the Boston hosts a substantial deposit at
depth, and continuing to explore for new deposits on this prolific gold region.
Given the impressive production history of many of Canada's greenstone belts and
the geologic similarities of the Hope Bay belt to several of these belts,
Miramar believes that the Hope Bay belt has the potential to provide
substantial, long lived, low cost gold production and the basis for the growth
of a major gold producing enterprise.
Miramar's option to a 60% interest in the 2 million oz George and Goose Lake
deposits, as announced November 17, 2003, provides additional opportunities to
increase Miramar's resource base and potential production profile.
Quality Assurance
All resource and reserve estimates have been prepared by the Miramar Hope Bay
Limited staff in accordance with Canadian regulatory requirements set out in
National Instrument 43-101 and reviewed by John Wakeford, P. Geo. Exploration
Manager for Miramar Mining Corporation. Resource estimates for the Boston and
Doris deposits have not changed since year-end 2002. Resource estimation models
for the Madrid area were estimated utilizing three dimensional block model
methods, except for the South Suluk and South Patch 14 areas, which were
estimated utilizing a two dimensional polygonal approach. Capping and cut off
grades were applied as set out in the attached tables. Measured resources were
estimated only in the Boston B2 Zone where the resource blocks have been
undercut. Indicated resources for all the deposits generally lie within 25
metres of a drill hole within detail drilled areas and inferred resources
generally lie no more than 50 metres from a drill hole. The estimates for the
Madrid area (except South Patch 14) were reviewed by Roscoe Postle Associates
Inc. in 2003-4, while those for Doris Central and Boston were audited by
independent resource consultant Geostat Systems Inc. of Montreal in 2001. The
resource estimates for Doris Hinge, Doris North and South Patch were audited by
independent resource consultant SRK Engineering of Toronto in 2002.
Pillars lie within 30 m of lake bottoms and are unlikely to be mined without
significant economic and permitting challenges. The regulations for pillars
under lakes in Nunavut require the Mines Inspection Branch to provide a variance
for mining within 100m of a lake bottom.
Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for mineability,
selectivity, mining loss and dilution. These mineral resource estimates include |
