Miramar Announces More Results from Exploration at Hope Bay & Back River
Wednesday October 13, 1:26 pm ET
- Results from Boston & Goose Lake Continue to Build on Resources, New Estimates in Process -
VANCOUVER, British Columbia--(BUSINESS WIRE)--Oct. 13, 2004-- Miramar Mining Corporation (AMEX:MNG - News; TSX:MAE - News) today announced further encouragement from on-going exploration at its Hope Bay and Back River projects, and the commencement of geologic modelling and resource estimation for both projects.
"Our summer drilling programs continue to build on the resources at both Boston and Goose Lake," said Tony Walsh, Miramar's President & CEO. "The results from both projects, combined with the outstanding results in the Naartok area of the Madrid deposit, demonstrate the potential of these projects to provide opportunities that should allow Miramar to grow into a significant, Canadian based gold mining company. We have now begun the process of generating new resource estimates at both Hope Bay and Back River. In the meantime, once we complete the recently announced flow-through financing, we expect to be back drilling at Naartok at the beginning of November, where we are looking to further expand this very large gold system."
Drilling at Boston continues to increase the confidence level in the existing resources and to add new mineralization outside of the limits of the existing resource immediately below the level of the decline, adding confidence to the inferred resource and providing the basis for consideration of a larger scale development scenario using more mechanized, bulk mining methods. The results from Goose Lake further illustrate the extent of this significant gold system, and provide additional information to support a model that incorporates the higher grade hinge zone and the greywacke-hosted mineralization in the core of the fold.
Hope Bay Results
The summer drilling programs at Hope Bay were focused on meeting the goal of extending and expanding the anticipated operating life of the Doris North processing facilities, which are currently in the permitting process.
Drilling at the Boston deposit was completed in September for a total of 35 holes and 20,157m of drilling during 2004. This work had two principle objectives: to increase the confidence in the current inferred resource at depths of 200-400m below surface and, secondly, to continue to evaluate the potential to add significant new resources at depth. Results from the 2004 program exceeded expectations, not only increasing confidence in the existing inferred resource (where hole 304 intercepted 6.6m grading 21.7g/t gold), but adding new mineralized areas (such as around hole S04-319, which intercepted 16.2g/t over 9.5m in a new area outside the existing resource). Further, as previously reported, the deep drilling encountered significant mineralization over an area approximately 400m by 500m area, below the level of the existing resources, including hole S04-301W2 which intercepted 28.9g/t gold over 3.8m and hole S04-315 which intersected an exceptional 461.3g/t gold over 0.5m.
The majority of results from the 2004 drilling have been previously reported, however highlights of the final 2004 holes are noted below and details are attached.
Highlights of New Boston Drill Results --------------------------------------
S04-325 Resource Infill 387.7 391.2 3.5 10.7 And 521.5 525.2 3.7 20.7 Including 521.5 522.8 1.3 58.7
Holes S04-323 to -326 all targeted the B2 zone within the existing inferred resource at depths of 250-400m below surface. Two holes, S04-323 and 324, were drilled approximately 50m below holes drilled earlier in the 2004 program (S04-313 and 302 respectively). Holes S04-325 and 326 were drilled as infill holes below S04-308A and S04-304 respectively. As previously reported, S04-308A intercepted 23.4 meters grading 7.3g/t and S04-304 intercepted 6.6 meters grading 21.7g/t. These four holes all intersected strong mineralization in the Boston B2 zone, further increasing confidence in the inferred resource. Two holes, S04-325 and 326 also intersected mineralization in the B3 zone, with S04-325 intercepting 3.5m grading 10.7g/t gold and S04-326 intercepting 3.6m grading 6.5g/t gold.
Now that all the results are available from the 2004 drilling, Miramar has begun the process of remodelling the Boston deposit to provide the basis for the estimation of a new mineral resource. This new resource will not just incorporate the results of the 2004 drilling, but will also examine options for estimating a bulk mineable resource more amenable to mechanized mining. Such an estimate would likely result in a somewhat lower grade than previously announced as a result of internal dilution, but could allow for more cost efficient resource extraction. Management believes this approach may be warranted given the considerably greater extent of mineralization that may justify the development of a larger scale mining operation at Boston than previously considered.
Madrid
Work during the summer at the Madrid deposit was focused on the Naartok area, with the objective of upgrading the confidence level in the newly discovered extensions to Naartok in order to support a resource estimate, and to step-out with the objective of further expanding the resource. Results of the remaining holes from this drilling will be announced shortly, and drilling is expected to resume in early November.
Back River Results
Drilling at Goose Lake was also completed in September, for a total of 41 holes and 11,090m of drilling completed in 2004. The 2004 program was designed to determine whether there was potential to significantly expand the Goose Lake resource and to identify higher grade zones within the overall resource. Previously announced results successfully outlined a hinge zone (where hole 04GSE024 intercepted 16.8m averaging 36.3g/t gold) with potential to host significant high grade, near surface gold mineralization and, secondly, a zone of significant gold mineralization hosted in greywackes in the core of the fold (where hole 04GSE010 intercepted 8.0m averaging 10.2g/t gold, close to surface). Highlights of results from the remaining 2004 holes are noted below and complete results are attached.
Highlights of New Goose Lake Drill Results ------------------------------------------
Core Gold Hole-ID Target From To Length Grade ------- ------ ---- -- ------- ----- (m) (m) (m) (g/t) --- --- --- ----- 04GSE035 Hinge 247.0 249.6 2.6 12.0 Including 248.0 248.6 0.6 47.8
04GSE036 Hinge & 266.0 269.0 3.0 25.3 Including Central 266.0 267.0 1.0 74.3 And Greywacke 334.6 336.6 2.0 14.6 Including 335.6 366.6 1.0 27.8
04GSE039 East Limb 316.7 321.0 4.3 8.1 Including 317.4 321.0 3.6 9.2
Hole 04GSE-32 was targeted on the lower iron formation within the hinge area but went over the top of the mineralized banded iron formation, missing the target mineralization. Holes 04GSE-33 and -34 were designed to test the hinge area of the central greywacke and the east limb of the anticline. Both holes encountered moderately anomalous gold values within the central greywacke.
Hole 04GSE-35 tested the lower iron formation within the hinge area of the anticline, grid north of and down plunge of 04GSE-24. Although several sections of significant grade were encountered, the drill hole suggests that the mineralization encountered in hole 24 thins in this direction. Within the vicinity of hole 04GSE-35, the hinge is interpreted to plunge steeply north-westward and the thinning of the mineralization encountered in hole 35 is thought to be a consequence of this steepening of the plunge.
Holes 04GSE-36, -37, -38, -39, -40 and 41 were designed to test the central greywacke sequence within the hinge area and the lower banded iron formation located along the east limb of the anticline. With the exception of hole 04GSE-37, all holes encountered significant gold mineralization in the central greywacke. A considerable portion of the central greywacke and west limb iron formation were intruded by a non-mineralized dyke intercepted by hole 04GSE-37.
As with the Boston deposit, Miramar has commenced remodelling of the Goose Lake deposit to incorporate the new drilling to provide the basis for the estimation of a new mineral resource. This work is expected to be completed around year-end. Miramar's objectives at Back River are to add production capacity beyond Hope Bay by doubling the existing resource at Goose Lake, treating George Lake as a satellite deposit and exploring for new discoveries property wide.
Doris North Permitting Update
On August 16, 2004, the Nunavut Impact Review Board (NIRB) determined that the Doris North project could not proceed to the regulatory phase of permitting until a new application with additional information was provided to NIRB. Miramar continues to prepare the required supplemental information. The process for further review of the project is subject to the determination of the Minister of Indian and Northern Affairs Canada. Once the Minister has determined the process for further review, Miramar will seek a new schedule from NIRB and Miramar will be in a position to provide more definite guidance on the timing for its planned development of the Doris North project.
Miramar Mining Corporation
Miramar is a well financed Canadian gold mining company that controls two of the largest undeveloped high grade gold deposits in Canada: the Hope Bay and Back River projects. The Hope Bay project in Nunavut extends over 1,000 sq. km. and encompasses one of the most prospective undeveloped greenstone belts in Canada. Miramar has an option to earn a 60% interest in the prospective Back River Project in Nunavut, containing the George and Goose Lake gold deposits.
Miramar's objective is to build an intermediate gold production profile through the sequential development of its Arctic gold assets. The planned goals in the implementation of this strategy include:
1. Development of a mine at Doris North to commence production as expeditiously as possible, generating cash flow to pay for the mining infrastructure and to fund the continued exploration and development of the Hope Bay belt.
2. Demonstrate the potential of the upper portions of the Boston deposit to support an extended operating life;
3. Determine the potential for an expanded production scenario through the development of a large scale mining operation at Madrid;
4. Advance the Back River project to identify further production opportunities;
5. Continue the exploration programs at Hope Bay to expand the known deposits, such as Boston to depth and Madrid, and to discover new deposits to support a sustained intermediate production profile, while conducting grassroots exploration in cooperation with strategic partners.
Miramar's goal is to have one infrastructure centre for the entire Hope Bay belt, minimizing the environmental impact by reducing the project footprint, minimizing capital requirements and optimizing the return on future development areas.
All options for developing, extending and expanding the life of the Doris North operation are subject to the successful completion of additional drilling, economic studies and permitting process.
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 Miramar's qualified person, John Wakeford, P. Geo. Vice President, Exploration for Miramar Mining Corporation. The analytical method for the gold analysis is gravimetric assay, done by TSL Laboratories, with metallic fire assays for higher grade samples.
Additional Information
Diagrams and tables detailing some of the matters described herein are attached to this news release. If you are missing these, please download this news release from Miramar's website at www.miramarmining.com/, to which they are attached, or contact us at the numbers listed below. All other information previously released on the Hope Bay and Back River Projects is also available on this website.
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