Miramar hits more gold at Hope Bay (October 21, 2002)

Vancouver — A $3.4-million summer work program by Miramar Mining (MAE-T) uncovered a new zone of mineralization at the Hope Bay gold project in Nunavut.

Crews discovered the Marianas zone while drill-testing a 700-metre section of the Deformation zone, between the Suluk and South Patch areas.

Hole 64 returned 6.3 grams gold per tonne over 1.9 metres, whereas holes 65 and 66 cut 8.3 metres grading 8.6 grams gold and 2.2 metres grading 6.6 grams gold, respectively.

Mineralization at Marianas, which remains open along strike and at depth, is sulphide-rich and similar to that encountered at the Suluk deposit, to the north.

The 9,770-metre drill program also extended mineralization in the South Patch zone. Four of the 10 holes drilled into the zone returned 47 grams gold over 1.7 metres, 19.9 grams gold over 4 metres, 18.4 grams gold over 3.5 metres, and 13.7 grams gold over 1.1 metre. These holes mark a steeply south-plunging zone of high-grade mineralization. The high-grade zone is open at depth and to the south.

“The Madrid area at Hope Bay is rapidly emerging as a major mineralized centre,” says the Miramar President Anthony Walsh. “The Deformation zone, which, through a combination of diamond and reverse-circulation drilling, has now been traced over a strike length of at least 11 km, is close to multiple gold occurrences. The zone continues to demonstrate its prospectivity, having generated two new gold deposits in 2001 and, now, encouraging results from the South Patch and Marianas areas.”

The Deformation zone is a major structure that hosts significant gold mineralization in the Madrid area, including last year’s discovery of the Naartok and Suluk deposits.

Three drill holes collared on the Rand Spur prospect, north of Suluk, identified multiple sulphide-bearing structures that splay off the Deformation zone. The holes returned 10 grams gold over 1.5 metres, 7.2 grams gold over 0.5 metre, and 4.4 grams gold over 3.2 metres.

Moving 700 metres west of the South Patch zone, drilling at the Spots showing cut a quartz vein that returned 10.7 grams gold over 0.6 metre. The mineralization occurs in a structure that is sub-parallel to the Deformation zone.

The Twin Peaks target was tested by four holes, with the southernmost hole cutting 1.4 grams gold over 3 metres; five holes drilled at the North Windy Link prospect failed to return any significant values.

Prior to this year’s drilling, the Hope Bay project hosted a measured and indicated resource of 3.4 million tonnes grading 15.4 grams gold, plus an additional 6.7 million tonnes grading 12.3 grams gold in the inferred category.

Earlier this year, Miramar determined that the Doris North area could support production of 270,000 oz. gold over 2.1 years at a cash cost of US$114 per oz., for an 85% rate of return at a gold price of US$280 per oz. The mine plan was updated in September, increasing this to 323,900 oz. gold. A feasibility study is to be completed before year-end, with production coming as early as 2004.