Vancouver – Drilling by Miramar Mining (MAE-T) on the Goose Lake deposit at the Back River project in Nunavut, a 60 percent earn-in project from Kinross Gold (K-T), has returned significant gold mineralization over good widths.
Miramar has focused much of this year’s program on the Goose Lake deposit in the south of the project area. The latest drill program of 24 holes, totaling about 6,000 metres, tested the iron formation for confirmation of the calculated resource. It also assisted in determining the style and grade of mineralization in the fold structures.
Gold mineralization at Goose Lake is hosted within folded, banded iron formations. The fold structure forms a hinge or nose near surface, where the unit thickens and is generally enriched with gold, similar to the nearby Lupin mine.
Drilling targeted these enriched, fold hinges and the limbs of the iron formation. Miramar’s program intersected significant gold over substantial widths, including:
- Hole 04GSE001 The hole cut 11.6 metres (from 195.5 metres), within the fold core, grading 7.2 grams gold per tonne;
- Hole 04GSE013 This hole targeted the fold hinge and cut 4.1 metres (from 19.5 metres) averaging 36.5 grams gold, including a higher grade, 2.3 metre intercept of 74 grams;
- Hole 04GSE018 Drilling encountered two zones of gold mineralization on a fold hinge, including 6.3 metres (from 57.4 metres) grading 12 grams gold; and 20.7 metres (from 72.3 metres) of 12.4 grams, including 2.1 metres of 37.2 grams;
- Hole 04GSE024 An intersection of 16.8 metres (from 197 metres) through the fold hinge assayed 36.3 grams gold, including 5.4 metres of 73.5 grams.
Miramar’s objective is to double the Goose Lake resource by better delineating the mineralized fold structures. The indicated resource now stands at 1.75 million tonnes grading 9.6 grams gold per tonne (540,000 oz. gold) plus an additional inferred resource of 595,000 tonnes at 9.5 grams (182,000 oz. gold). Increasing the resource will be key to any development decision at Goose Lake, which may include the George Lake deposit to the north as a satellite operation.
Miramar is earning a 60 percent interest in the Back River project from Kinross for expenditures of $10 million by August 31, 2005, and a cumulative of $25 million within the subsequent 12 months.
As of the latest report, Miramar has 152 million shares outstanding.