Press Release Source: Miramar Mining Corporation
Miramar Amends Terms of George & Goose Lake Option, Plans Exploration Program
Thursday February 26, 5:46 pm ET
Option & Joint Venture Agreement Signed, Initial Earn-in Period Extended to 18 Months
VANCOUVER, British Columbia--(BUSINESS WIRE)--Feb. 26, 2004--Miramar Mining Corporation today (AMEX: MNG - News; TSX: MAE - News) announced execution of the final option and joint Venture agreement with Kinross Gold Corporation on the George and Goose Lake Projects in Nunavut, which has been amended to extend the initial option period from 12 to 18 months, requiring that Miramar spend a minimum of C$10 million by August 31, 2005 to maintain the option.
"The extended earn in period allows us to shift some of the expenditure obligations into 2005 and will enable us to mobilize bulk supplies by barge this summer, allowing for a more productive and cost efficient work program," said Tony Walsh, Miramar's President and CEO. "Meanwhile, a significant 2004 work program on the George & Goose Lake properties should get underway in April, targeting resource expansions with the objective of providing the critical mass necessary to consider development options."
Amendments to Option Agreement
Under terms of the letter agreement with Kinross announced on November 17, 2003, Miramar could earn up to 60% in the George and Goose Lake properties, which contain an estimated combined resource of 2 million ounces of gold as detailed below. The amended terms of the final option and joint venture agreement signed February 25, 2004 call for C$10 million in expenditures by August 31, 2005 and a cumulative C$25 million in expenditures within the subsequent 12 months, after which expenditures are shared pro rata. Provided Miramar has spent a cumulative C$15 million by August 31, 2006, Miramar can extend the earn-in period to 36 months by increasing the total earn in requirement to C$28 million. The other provisions of the option agreement remain the same.
2004 Work Program
Final planning is underway for a program of exploration and drilling which is expected to commence in April 2004 which will focus on confirming and expanding the resources at Goose and George Lakes, as well as evaluating the numerous showings and untested sections of banded iron formation on the properties that offer potential for new discoveries.
Initial plans call for expenditures of approximately C$6.5 to 7.0 million during 2004, which allows for an initial 13,000m of core drilling and mobilization of supplies sufficient to complete up to an additional 12,000m during the year, dependent on results. The principal target in 2004 will be testing for extensions to the Goose Lake deposit, where there are a number of gold bearing zones within banded iron formation ("BIF") units which are stacked and folded into an anticline. The BIF units appear to be thickened and enriched in the vicinity of the fold nose, which lies just below surface. The most obvious potential for increasing the resources in the Goose Lake deposit lies in tracing the extensions of the fold nose and zones of mineralization associated with both the east and west limbs of the fold to the north and south. For example, drilling in the fall of 2002 tested the iron formation at depth and intercepted 18.9m of 7.3 g/t gold (including 8.6m of 12.4 g/t) and 13.3m grading 23.6 g/t gold. In addition, there is an area south of the current resource where shallow drilling intercepted significant gold values over considerable widths (including 14.0m of 17.7 g/t, 15.6m of 9.5 g/t, 18.2 of 9.1 g/t), which lie outside the current resource but could provide additional near surface resources as drilling progresses.
A secondary target for 2004 will be drill testing the George Lake deposit, which currently contains the largest resource on the properties and where the gold deposits comprise two parallel gold bearing BIF units in close proximity to each other. The objective of the 2004 drilling will be evaluate potential geologic controls on the localization of gold mineralization at George Lake, to determine whether there is potential to extend the resources along strike versus extensions to depth.
Quality Assurance
The Goose Lake resources for 2002 were estimated by Watts Griffis and McOuat Limited (WGM). The indicated resource measures 4.37 million tonnes grading 9.8 g/t gold, with an inferred resource of 1.88 million tonnes grading 9.9g/t gold. WGM states that the estimate complies with National Instrument 43-101. At the George Lake project, AMEC (formerly MRDI) completed a resource estimate in 1998 which was reviewed for National Instrument 43-101 compliance in 2001. A detailed audit of the MRDI 1998 resource estimate for Locale 2 and a brief review of the Locale 1 resource was undertaken by WGM in 2002.
Additional Information
All other information previously released on the George & Goose Lake Projects is also available on Miramar's website at miramarmining.com.
Forward Looking Statements
Statements relating to exploration work at the George and Goose Lake projects and the expected results of this work 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 the words "expects," "plans," "anticipates," "believes," "intends," "estimates," 'projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling results and information concerning mineral resource estimates 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 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 and the estimation of gold reserves and resources; the possibility that required permits may not be obtained on a timely manner or at all; the possibility that capital and operating costs may be higher than currently estimated and may preclude commercial development or render operations uneconomic; the possibility that the estimated recovery rates may not be achieved; 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 Miramar's operators and other risks and uncertainties, including those described in the Miramar's Annual Report on Form 40-F for the year ended December 31, 2002 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. Miramar undertakes no obligation to update these forward-looking statements of management's beliefs and estimates or opinions or other factors should they change.
All resource estimates reported 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. "Resources" are sometimes referred to as "mineralization" or "mineral deposits".
This news release has been authorized by the undersigned on behalf of Miramar Mining Corporation.
To view the map accompanying this press release please click on the following link: www2.cdn-news.com.
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Contact:
Miramar Mining Corporation
Anthony P. Walsh, 604-985-2572
or Toll Free: 1-800-663-8780
Fax: 604-980-0731
Email: info@miramarmining.com
Website: www.miramarmining.com
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Source: Miramar Mining Corporation |
