Miramar and Hope Bay Gold Discover New Mineralized Area at Madrid Deposit, Hope Bay Project
- Hole M92 intercepts width of 170 feet grading 0.20 oz/ton gold,
including 37 feet grading 0.62 oz/ton -
HGC - TSE
MAE - TSE
MAENF-OTC Bulletin Board
VANCOUVER, Oct. 26 /CNW/ - Miramar Mining Corporation and Hope Bay Gold
Corporation Inc. announced today that drilling on the Hope Bay project in
Nunavut has identified a new area of near surface gold mineralization, 250m
west of the Madrid deposit. This discovery resulted from part of a 2,600m
drill program conducted at the north end of the Hope Bay belt during September
2000. The newly discovered mineralization occurs in altered and locally
brecciated volcanics located north of a major east-west trending deformation
zone and is open to the east, west and to depth. Highlights of recent results
are summarized below and complete results are attached.
<<
Width(x) Gold Grade Width(x) Gold Grade
------- ---------- -------- ----------
Hole ID (meters) (g/t) (feet) (oz/t)
------- -------- ----- ------ ------
M88 12.3 4.5 40.3 0.13
And 5.7 5.0 18.7 0.14
M92 51.8 6.9 170.0 0.20
Including 11.4 21.4 37.4 0.62
(x)Intercept width. True widths not available.
>>
"While only tested in one hole to date, the identification of what may be
a new style of gold mineralization, west of the Madrid deposit, would be a
positive development for the Hope Bay Project(x)," said Tony Walsh, Miramar's
President & CEO. "This discovery could open up a third area on the Hope Bay
belt(x)," he said. The Boston and Doris deposits are the two other areas on
the Hope Bay belt, and are where the Hope Bay Joint Venture conducted an
extensive drill program during the first half of 2000, completing
approximately 39,000m of drilling.
"I am very excited by the results in drill hole M92," said David Fennell,
President & CEO of Hope Bay Gold Corporation. "especially in light of the
other drilling in the area and what this discovery may mean for the upside
potential of the entire Madrid-Patch area. This hole opens up exciting new
possibilities for exploration in the area," he said. The Madrid-Patch area is
an 8km long trend with numerous associated gold targets, including Madrid,
Penn, South Patch and Wolverine. "We are busily re-evaluating the information
in this area to come up with a comprehensive model for this extensive
mineralized system and to determine how the broad mineralized intercept in
hole M92 fits into this model, with a view to follow-up exploration in 2001,"
noted Mr. Walsh & Mr. Fennell.
Madrid
The Madrid Deposit was discovered in 1993 and subsequent drilling of 85
holes totalling approximately 18,000m by BHP identified a large area of near
surface gold mineralization that tends to occur in wider, relatively shallow
zones that are potentially amenable to open pit mining. Within these broader
mineralized zones occur narrower zones of higher grade.
Following detailed mapping carried out by the Hope Bay Joint Venture and
new geological concepts developed in the summer of 2000, it was decided to use
these new interpretations to test for possible extensions of the previously
defined gold bearing zones at the Madrid deposit. Six holes, totalling 1,166m,
were completed in areas where geophysical and geochemical anomalies, in
conjunction with the newly developed geologic concepts, suggested potential
for possible extensions. Four of the six holes drilled in September 2000 cut
gold mineralization, including a significant gold intercept in drill hole M92.
Deformation Zone
Most mineralized intercepts from the 2000 drilling lie in close proximity
to a major shear zone (the "Deformation Zone") that separates basalts on the
north against a probable porphyritic intrusive body to the south. The
mineralization lies north of the Deformation Zone in a zone of quartz-
carbonate altered basalts that are pervasively sulphidized and locally
brecciated.
The impressive results from hole M92 occur in a zone of highly altered
basalt with finely disseminated pyrite. The 52m interval grading 6.9g/t starts
in bedrock below the overburden and extends down to 67m, where the hole
intersected the Deformation Zone. Finely disseminated gold was observed in the
higher-grade interval between 52.9m and 64.3m down hole. Hole M92 lays
approximately 250m west of the nearest BHP hole M77, which intercepted 11.6
g/t over 5.8m and the potential for mineralization between these holes remains
to be tested. Hole M77 was drilled by BHP and defined what was then thought by
BHP to be the western margin of the Madrid deposit. The area west of hole M92
remains entirely open. These results suggest significant room for
expansion(x). The attitude of mineralisation is not known and therefore the
true width cannot be determined, but it clearly lies immediately north of the
steeply south dipping Deformation Zone and is open to depth(x).
Re-evaluation of Previous Interpretation
This discovery in hole M92 suggests that the north side of the
Deformation Zone is a potentially significant gold bearing environment. As a
result of this discovery, a complete re-evaluation of the Madrid deposit is in
progress to further refine the new geologic model. Similar styles of gold
mineralization, characterized by moderate to strong carbonate alteration, fine
grained disseminated pyrite and stock work style quartz-carbonate veining,
seem to occur along the northern contact of the Deformation Zone and in other
zones within the Madrid deposit(x). This geological model could also lead to
potential additional targets in the Patch Lake area to the south due to a
similar geologic setting in these areas(x).
Several intercepts in hole M88 (completed in September 2000) further east
along the trace of the Deformation Zone, confirm the existence of a
significant body of the same type of mineralization in proximity to earlier
BHP drill holes. BHP hole M25, intercepted 2.6g/t gold over 73.8m, hole M26
intercepted 25.3g/t gold over 4.9m, hole M77 intercepted 11.6g/t gold over
5.8m, and hole M24 intercepted 10.1g/t gold over 11.6m. These intercepts
suggest additional potential for this style of mineralization in the vicinity
of the main Madrid deposit(x).
"Recognition of the style of mineralization we saw in hole M92 in other
drill holes suggests that there is potential for near surface, disseminated
gold mineralization over a broad area(x)," said Mr. Walsh. "Re-evaluation of
all the work in this area will allow us to continue our exploration activities
in these areas during 2001(x)."
Doris North Extension
Following successful results obtained by the Hope Bay Joint Venture at
the northern end of the Hinge zone at Doris North, the Hope Bay Joint Venture
elected to explore for the extensions of the Doris vein system approximately
500m, 1000m and 2500m north of the northernmost drill hole completed in 2000.
Based on geologic interpretations in areas with extremely limited outcrop, the
northward continuation of the vein was projected to occur on the west side of
a diabase dyke.
Seven holes, totalling 1,477m, were drilled in September 2000,
intersecting some narrow veins and patchy alteration zones without significant
gold mineralization. Current interpretation of these results is that the
potential northward extension of the Doris vein system, which has been traced
for more than 4km in drilling, has not yet been located. The potential for
such an extension still remains a priority exploration target(x).
Interpretation of these and earlier drill holes will continue in search for
the possible northward continuation of the Doris vein system and for potential
recurrences of Hinge Zone style targets(x).
"While we are disappointed to have not determined whether there exists a
continuation of the Doris system, we are hopeful that such an extensive
mineralized system has potential to continue," said Mr. Fennell. "If we can
determine whether such a potential mineralized trend continues in an area with
little outcrop we will be able to better target our exploration
activities(x)."
Hope Bay Project
Miramar Mining Corporation, through its wholly owned subsidiary Miramar
Hope Bay Ltd., and Hope Bay Gold Corporation Inc. are in a 50-50 joint venture
at Hope Bay and control virtually the entire 80km long Hope Bay Archean
greenstone belt. Three principal deposits have been identified to date:
Boston, Doris (North and Central) and Madrid. All drill results available to
date for the 2000 work program can be obtained from previous news releases
available on the Miramar or Hope Bay Gold websites at
miramarmining.com or hbgold.com.
Quality Assurance/Quality Control
These results are reported under an extensive quality control program
supervised by Dean McDonald, P.Geo. Ph.D., Exploration Manager with Miramar
Mining Corporation, who is an appropriately qualified person as defined by
Proposed National Instrument 43-101. To further ensure the integrity of
exploration results, the Hope Bay Joint Venture had Roscoe Postle and
Associates independently audit quality control and quality assurance ("QA/QC")
programs in place at the Hope Bay project. See News Release 00-06 dated April
11, 2000 for details on the program. This QA/QC program includes on site
control of core samples and a program of duplicate, check, and blank assaying,
including check assaying at a separate laboratory. Roscoe Postle found that
the quality of these QA/QC programs exceeded industry standards. Dr. McDonald
has corroborated the data, including sampling, analytical and test data, on
which the above information is based.
All samples are assayed at TSL Laboratories in Saskatoon using standard
sample preparation and fire assay procedures with a gravimetric finish. All
samples assaying over 5.0 g/t were re-assayed with a standard metallics
procedure.
Diagrams
Diagrams locating the areas described in this release and locating the
drill holes referred to in the text are attached to this news release. If you
are missing these diagrams, please download this news release from Miramar's
or Hope Bay Gold's websites at miramarmining.com or
hbgold.com, to which they are attached, or contact us at the
numbers listed below.
(x)This News Release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform Act of 1995
concerning Miramar and Hope Bay Gold's plans for work at the Hope Bay project
and the expected results of this work. Information inferred from the
interpretation of drilling results 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
this forward-looking statement, including, without limitation, uncertainties
involved in the interpretation of drilling results and other tests; that the
contemplated work will not advance the known mineralization to a measured and
indicated resource standard; that additional work may not support a
feasibility study; that capital and operating costs may be higher than
currently estimated and may preclude commercial development, risks and
uncertainties relating to fluctuating precious and base metals prices;
possible variations in recovery rates; accidents, equipment breakdowns and
labour disputes or other unanticipated difficulties with or interruptions in
production or exploration activities; the possibility of unexpected costs and
expenses relating to environmental issues, uncertainties relating to the need
for government approvals and the cooperation of government agencies in regards
to any environmental liabilities; and other risks and uncertainties, including
those described in the Miramar's Annual Report on Form 20-F for the year ended
December 31, 1999 and Reports on Form 6-K filed with the Securities and
Exchange Commission and Cambiex's Annual Information Form ("AIF") filed with
the Ontario Securities Commission, the Quebec Securities Commission, and other
regulatory authorities, respectively. Cambiex has subsequently changed its
name to Hope Bay Gold Corporation.
Certain forward-looking statements in this news release are indicated
with a "(x)".
This news release has been authorized by the undersigned on behalf of
Miramar Mining Corporation and Hope Bay Gold Corporation, respectively.
Anthony P. Walsh David Fennell
President & CEO President & CEO
Miramar Mining Corporation Hope Bay Gold Corporation
<<
Hope Bay JV Fall 2000 Drill Results - Madrid Zone
-------------------------------------------------
Hole No. From (m) To (m) Width (m)(x) Gold (g/t)
--------- -------- ------ ------------ ----------
M87 No Significant intercept
M88 36.8 49.1 12.3 4.5
53.2 54.9 1.6 3.5
70.6 72.6 2.0 3.5
75.3 76.1 0.9 3.5
88.2 92.3 4.1 3.4
101.0 106.7 5.7 5.0
M89 No Significant intercept
M90 96.9 98.9 2.0 4.8
117.7 118.5 0.9 3.1
M91 94.3 95.3 1.0 3.3
M92 15.2 67.1 51.8 6.9
Including 52.9 64.3 11.4 21.4
(x) Intercept width. True width not available.
>>
BUSINESS/PHOTO EDITORS: A copy of the Miramar Mining Corporation maps of
the "Hope Bay Joint Venture Madrid Area Drill Targets Drill Locations, Fall
2000" and Hope Bay Joint Venture Doris Northern Extension Drill Targets Drill
Hole Location, Fall 2000" are available by fax by calling Canada NewsWire
Vancouver at (604) 669-7764.
-30-
For further information: Anthony P. Walsh, President & CEO, Miramar
Mining Corporation, Tel: (604) 985-2572, Fax: (604) 980-0731, Toll Free:
1-800-663-8780, Email: info@miramarmining.com; David Fennell, President &
CEO, Hope Bay Gold Corporation, Tel: (514) 878-3166, Fax: (514) 878-0635,
Email: info@hbgold.com |
