Press Release
Source: Miramar Mining Corporation
Exploration Results From Miramar's Hope Bay Project
Madrid Area Continues To Expand: Gold Discovery At Marianas, South Patch Zone Extended
Thursday October 10, 10:30 pm ET
VANCOUVER, B.C.--(BUSINESS WIRE)--Oct. 10, 2002--Miramar Mining Corporation (TSX: MAE - News; AMEX: MNG - News)
today announced encouraging results from its $3.4 million summer exploration program at Hope Bay. By September 13, 2002,
9,770m of drilling in 43 holes had been completed in the Madrid, Twin Peaks and a number of other areas, with assay results
for all the holes received. This total excludes infill and condemnation drilling in the Doris area and exploration drilling at Doris
South. The most significant results to date include the discovery of gold mineralization in the Marianas target and an
extension to the South Patch zone, both located in the Madrid area, plus the extension of the favourable Deformation Zone by
a further 5km to the south. These results continue to build on the potential of the Deformation Zone, where multiple gold
deposits and occurrences have been identified on several parallel zones over a strike length of at least six kilometres.
Highlights of these results are summarized below and complete results attached.
Area Target Type Hole # Length Gold(x)
(m) (g/t)
Madrid South Patch Step-out PSD-060 4.0(x)(x) 19.9
PSD-061 1.7(x)(x) 47.0
PSD-70 3.5(x)(x) 18.4
PSD-72A 1.1(x)(x) 13.7
Madrid Marianas Exploration PSD-064 1.9 6.3
PSD-065 8.3 8.6
Including 3.2 17.1
PSD-066 2.2 6.6
(x) Capped at 100 g/t.
(x)(x) True Width
"The Madrid area at Hope Bay is rapidly emerging as a major mineralized centre," said Tony Walsh, Miramar's President &
CEO. "The Deformation Zone, which, through a combination of diamond and reverse circulation drilling, has now been traced
over a strike length of at least 11km in the Madrid area, lies in close proximity to multiple gold occurrences and it continues to
demonstrate its prospectivity, generating two new gold deposits in 2001, and now encouraging results from the South Patch
and Marianas areas in 2002. The scale of this structure, and the presence of multiple gold occurrences associated with it,
clearly makes the Madrid area a priority target for future exploration activities."
Summer Exploration Drilling
Madrid Area
The Deformation Zone is a major structure that appears to be the locus for significant gold mineralization in the Madrid area,
including the Naartok and Suluk deposits discovered in 2001, which added more than one million ounces of gold to the
resource base at Hope Bay. In addition to the main Deformation Zone structure, a number of parallel zones with associated
gold mineralization have been indicated by prior exploration prospecting and drilling. While some of the more prospective areas
need to be drilled from lake ice in the winter, a number of targets along the Deformation Zone in the Madrid area were slated
for drill testing as part of the summer exploration program, including the South Patch, Marianas, Nexus and Rand Spur areas.
Four holes had initially been planned to test the South Patch area, where prior drilling had encountered significant gold values.
Based on encouraging results, this program was expanded to 10 holes. These holes appear to define a steeply southerly
plunging zone of high-grade mineralization comparable in dimensions to the Naartok discovery of 2001. There are two
sub-parallel mineralized veins that occur a few meters apart, along the margins of the Wolverine Porphyry. This high grade
zone is open to depth and to the south. Drilling on a parallel structure at Wolverine to the west of South Patch identified a
zone of strong shearing with carbonate alteration with sub-economic gold values.
Initial planning called for three holes to test the Marianas area, a 700m long section of the Deformation Zone between the
Suluk and South Patch areas not previously tested by drilling. The central hole of three spaced 150m apart along strike
intersected significant quartz veining and visible gold mineralization, justifying the addition of a fourth deeper hole.
Mineralization at Marianas is sulphide rich and is similar to the Suluk deposit to the north. Results from the four holes outline a
mineralized structure parallel with the Deformation Zone that extends for at least 250m along strike that has been intersected
up to 100m below lake bottom. The southernmost hole of the three also intersected a parallel zone of anomalous gold
mineralization, similar to the '7 Zone' located 200m to the south. The Marianas mineralization is open to depth and along strike.
Drilling of three holes at Rand Spur, north of Suluk, identified multiple sulphide-bearing structures that splay off the
Deformation Zone. Intercepts at Rand Spur include 10.0 g/t Au over 1.5m, 7.2 g/t Au over 0.5m and 4.4 g/t Au over 3.2m. This
mineralization is open in all directions and occurs in close proximity to the Perrin, Perrin Bulge, Rand and P112 Zones
previously identified by drilling. These results open up the potential of this area for further gold discoveries associated with the
Deformation Zone itself and with splays off it.
Drilling of the Spots showing on the shore of Patch Lake east of South Patch intersected a quartz vein that grades 10.7 g/t
Au over 0.6m. The mineralization at Spots occurs within a zone of structure and alteration sub-parallel to the Deformation
zone, occurring 700m to the east. Portions of this structure remain largely untested by drilling to date.
Re-logging of some holes drilled in the Suluk area in 2001 also identified some additional gold mineralization not previously
recognized, and which may potentially correlate with the intercepts in hole M180 from 2002, which intersected a possible new
zone of gold mineralization within the Deformation Zone, west of the Suluk deposit.
Drilling of 12 holes in two fences at Nexus was designed to identify the stratigraphy in a large covered area to the south of
Patch Lake and to determine whether the Deformation Zone and other mineralized structures carried through the area. It is
clear from the drilling that at least one structure, which may correlate with the Deformation Zone, was intersected and that a
number of additional, parallel structures containing anomalous gold values occur in the area. This drilling appears to have
successfully extended the prospective strike length of the Deformation Zone by at least 5km. Future exploration is planned to
step-out along strike of these structures.
Conceptual Targets
Four holes were drilled at the Twin Peaks target, a conceptual target testing for a 'Timiskaming' type gold deposit. Two of
these holes completed a fence commenced during the winter drilling program; these holes intersected anomalous gold
mineralization hosted within disseminated arsenopyrite mineralization. Two additional holes stepped out 600m and 1500m to
the south, with the southernmost hole intersecting significant amounts of disseminated arsenopyrite, anomalous in gold with
values up to 1.4 g/t gold over 3.0m. Drilling to-date has confirmed the existence of a gold endowed hydrothermal system.
Geologic information will be compiled to vector future drilling towards higher grade mineralization.
Five holes also targeted the North Windy Link, a conceptual target for an east-west trending structure similar to that hosting
the Naartok deposit to the south. Drilling did intersect shearing and sulphide bearing structures, but no significant gold grades
were encountered.
The QSP and Chicago targets encompass areas of felsic volcanic rocks on the western margin of the Hope Bay Belt, a setting
similar to that hosting a number of significant deposits in the Bousquet district of Quebec. These areas have been selected
for systematic regional exploration to evaluate their potential for hosting significant felsic associated gold deposits.
Reconnaissance mapping and sampling this summer identified widespread anomalous gold values hosted in
quartz-sericite-pyrite altered felsic volcanics. Both areas have multiple zones of extensive alteration and silicification. At QSP,
368 grab samples were collected, 26 of which graded over 0.25 g/t gold, with locally anomalous copper, zinc and silver values.
The highest grab samples graded 12.4 g/t and 12.2 g/t gold. At Chicago 112 grab samples were taken, 19 of which graded
over 0.25 g/t gold with the highest grade being 69.4 g/t gold. These samples also returned anomalous copper (30 samples
greater than 0.5% copper to a maximum of 21% copper), silver (29 samples greater than 20 g/t to a maximum of 940 g/t) and,
to a lesser extent zinc (20 samples greater than 0.1% to a maximum of 6%) values. These values continue to demonstrate the
potential of the felsic volcanics to yield significant gold discoveries.
Exploration Implications
With the discovery of gold in the Marianas and Rand Spur areas and the extension of the South Patch Zone to depth, Miramar
has now identified a series of deposits and gold occurrences that extend over a 6km area from Naartok in the north, through
the Perrin, Perrin Bulge, Matrim areas, the Suluk discovery of 2001 and now the Marianas and South Patch areas. The Nexus
drilling opens up an additional 5km of favourable strike. A series of splays and parallel structures identified to the north and
east of the Deformation Zone host the Perrin, Rand and Rand Spur areas and offers potential for other discoveries along this
trend. A third trend has been identified 700m to the east at Spots, on the east shore of Patch Lake. Each of the gold deposits
and occurrences in the Madrid area has its own unique characteristics, varying from shear-hosted to stock work or
breccia-hosted gold mineralization. Most of the deposits are on or near the hanging wall of the Deformation Zone or one of the
parallel structures or splays, except at the southern end of Suluk and at South Patch where mineralization is contained within
the Deformation Zone. Many of the deposits, except South Patch consist of high grade cores surrounded by large halos of
lower grade mineralization and, as a result of the recent developments in the Deformation Zone, Miramar is re-evaluating the
drilling completed to date to determine the potential of the area to host large scale, lower grade deposits.
The presence of multiple gold deposits and gold occurrences in a variety of host rocks and geologic settings in several
parallel structures suggests that the Deformation Zone and the other structures have served as important pathways for gold
mineralization covering an area at least 11km long by 1km wide. With drilling to date generally targeting shallow levels, and
with substantial portions of these structures as yet untested by drilling, Miramar believes that there is significant potential for
additional gold discoveries in the Madrid area and that this area will be a major focus for future exploration programs.
2003 Exploration Planning Underway
Compilation and interpretation of the 2002 exploration results is currently in progress and planning for a major exploration
program in 2003 will be completed by year end. Given the encouraging results from 2001 and 2002 exploration, it is anticipated
that the Madrid area, including the Deformation Zone, parallel structures and splays, will be a major focus of the 2003
exploration program.
Hope Bay Project
Prior to the 2002 drilling, as announced on January 15, 2002, the Hope Bay project has measured and indicated resources of
3.36 million tonnes grading 15.4 g/t gold for a contained 1.66 million ounces, plus an additional 6.7 million tonnes grading 12.3
g/t gold, for an additional contained 2.65 million ounces of gold. A positive preliminary assessment, the results of which were
announced on February 8, 2002, established attractive base case economics for a small portion of the total resource. The
Doris North area was estimated to be able to support production of 270,000 ounces of gold over a 2.1-year period at a cash
cost of US$114 per ounce, and an 85% rate of return at a US$280 gold price. The mine plan was updated on September 10,
2002 to increasing this to 323,900 ounces of gold. A feasibility study is planned for completion by the end of 2002. Provided
that the feasibility study is positive, and permits and financing are obtained in a timely manner, major equipment would be
shipped to site in the summer of 2004 and production is targeted to commence by the end of 2004.
Quality Assurance/Quality Control
The information related to gold exploration is 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 National Instrument 43-101.
For further information on this news release or other Miramar news, please see our website at www.miramarmining.com.
Forward Looking Statements
Statements relating to planned gold exploration work at the Hope Bay project and the possible results of this work, the
possible development of Doris North, and estimates of possible production, cash costs, rate of return and timing, are
forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995.
Information inferred from the interpretation of drilling results and information concerning mineral resources 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,
fluctuating gold prices; the possibility that no significant additional gold mineralization will be identified by Miramar's Hope Bay
exploration program; possible changes in planned work resulting from interim results, weather, logistical, technical or other
factors or unforeseen developments; the possibility that the results of work will not fulfill expectations or not realize the
perceived potential; uncertainties involved in the interpretation of drilling results and other tests; accidents, equipment
breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of delays, cost overruns or
unanticipated expenses in the work program; the possibility that adequate financing or necessary permits for the development
of Doris North may not be available on a timely basis or at all; and other risks and uncertainties, including those described in
the Miramar's Annual Report on Form 20-F for the year ended December 31, 2001 and Reports on Form 6-K filed with the
Securities and Exchange Commission, Miramar's Annual Information Form ("AIF") filed with the Ontario Securities Commission,
the Quebec Securities Commission, and other regulatory authorities.
Forward-looking statements are based on the beliefs, estimates and opinions of management at the date the statements are
made. Miramar does not undertake to update forward-looking statements if management's beliefs, estimates or opinions or
other circumstances should change.
All resource estimates referred to in this disclosure are calculated in accordance with the Canadian National Instrument 43-101
and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the
requirements of the United States Securities and Exchange Commission, and resource information reported in this disclosure
may not be comparable to similar information reported by United States Companies. The terms "Resource(s)" does not equate
to "reserves" and normally may not be included in documents filed with the Securities and Exchange Commission. |
