NewsMiramar Mining Corporation announced today that its 2005
exploration success at its 100% controlled Hope Bay Gold project in
Nunavut offers the company exciting opportunities to pursue for the
next phase of development after its proposed Doris North mine.
Significant progress has been made in expanding the still open
Naartok zone of the Madrid deposit which has given the company an
opportunity to examine alternatives for larger scale production
earlier than previously anticipated.
"Every year Hope Bay continues to demonstrate its potential to
become a major mining district," said Tony Walsh, Miramar's President
and CEO. "The significant exploration accomplishments this year,
particularly at Madrid, have presented new opportunities for us as a
company. In 2006, with our cash and technical resources boosted by
Newmont Mining's investment in Miramar, we will turn our sights to
completing the studies required to evaluate larger scale, Phase 2,
production opportunities."
Miramar continues to expand and refine its understanding of the
geology and mineralization of the Hope Bay greenstone belt, which at
year end 2004 contained measured and indicated resources of 6.8
million tonnes grading 9.6 g/t for a total of 2.1 million ounces of
gold, and inferred resources of 19.2 million tonnes grading 7.0 g/t
for total of 4.3 million ounces of gold. At Hope Bay, analogies are
readily made with geological settings and styles of mineralization
that characterize famous gold camps such as the Porcupine Camp near
Timmins, (+60 million ounces produced) and the Kirkland/Larder Lake
Camp, (+38 million ounces produced). Similar styles of
mineralization, volcanic host rocks and structural framework are
recognized between these different gold camps in the Abitibi and Hope
Bay, such as the 11 km long Madrid Deformation zone, which is similar
in many respects to the Porcupine-Destor fault zone and the
Larder-Cadillac Break, which continue to yield gold after almost a
century.
Miramar will report year end resources for Hope Bay in early
January and will devote a good part of 2006 to the feasibility
studies required to submit phase 2 production plans for permitting.
These updated gold resource calculations will support the 2006
studies which will include conceptualized underground and open pit
development scenarios.
Reported below are the exploration results of the last of the
summer drill holes as well as the significant achievements of the
overall 2005 campaign.
Exploration Achievements in 2005
The goals and objectives of the 2005 drilling campaigns at Hope
Bay were:
- to upgrade sufficient resources within the Boston, Doris
Central and Naartok deposits to an indicated confidence level which
would support a feasibility study for the contemplated phase 2
development on the belt;
- to expand the resource at Madrid; and
- to conduct regional exploration work as part of Miramar's
assessment obligations at Hope Bay.
"We were successful in all three of these areas, making
considerable advancement in resource expansion, target identification
and geological understanding," said Mr. Walsh.
At Naartok the resource continues to grow at depth and to the
north which will likely result in a resource addition over 2004. This
is a significant accomplishment considering that the bulk of the
drilling was directed toward infill resource drilling with only
limited expansion drilling. The Naartok East expansion hole 05PMD328
assayed 11.5 g/t over 66.5m (previously reported, June 2005) and is,
for now, the best hole ever drilled at Hope Bay.
Improved continuity and tighter drill density will have a
significant positive impact on 2005/2006 resource and engineering
studies which will now include the upper portions of the Naartok East
zone (upper portions were previously drilled at +100m centers and
excluded).
An improved Boston resource model is being completed to support
ongoing development studies. Also, compilation work and an improved
understanding of geology and controls on mineralization has
identified potential for the B3.5/B4 zone to have a significant
positive impact o the Boston resource. The B3.5/B4 zone is a shallow
gold bearing structure which lies 125 metres to the west of the main
Boston resource. Mineralization previously encountered from this zone
includes drill holes; S04-315 which returned 7.9 g/t over 9.0m, hole
S04-325, 9.4 g/t over 0.5m and hole 97NOD182, which assayed 56.2 g/t
over 6.5m. Generally drill density is low and assay data are limited
in this area. Interpretation is ongoing, but mineralization in the
B3.5/B4 zone remains open down dip and this area may represent a
significant opportunity to impact the current Phase 2 development
scenarios for the Boston deposit.
Exploration outside the main deposits continues to advance with
improved target selection. Though no significant intersections were
recorded this summer, our exploration methods continue to improve and
our exploration tools such as geophysics and lithogeochemistry
continue to evolve and enhance the potential of other targets.
Summer Program Results
Overall, resource expansion was successful at Naartok and
exploration on the regional targets has identified priority areas for
2006 drilling. All drilling for the summer program is now complete
with 58 holes totalling 15,533 meters. The bulk of this drilling
11,370 meters was directed toward infill and expansion of the Naartok
deposit. Tabulated below are drill results from the final ten core
holes drilled in the Naartok area of the Madrid deposit. This
drilling was designed to extend significant intercepts from the
earlier 2005 winter and spring drilling, including stepout drilling
from the previously reported hole 05PMD328 at a depth of
approximately 275m below surface.
Also completed in the summer program were 21 shallow core holes,
totalling 4,163 meters that were drilled to test regional targets
throughout the Hope Bay belt. The bulk of this drilling was completed
to meet assessment targets to maintain Miramar's 100% ownership on
the belt. While assays from this drilling were low, favourable
volcanic rocks (similar to those that host the bulk of the Madrid
mineralization) were encountered for the first time in core drilling
at both the Kink area, 9 km north of Naartok and at South Nexus, 12
km south of Naartok. Both Kink and South Nexus are covered by shallow
but extensive overburden and this limited drilling was the first time
these targets were tested.
Selected Naartok Drill Results
Gold
Intercept Grade
Drill hole From (m) To (m) (m) (g/t)
---------- -------- -------- --------- --------
05PMD369 193.0 202.5 9.5 7.6
Including 196.6 201.5 4.9 13.7
05PMD371 358.5 363.0 4.5 36.3
Including 360.0 361.5 1.5 105.7
05PMD375 382.0 441.5 59.5 4.2
Including 382.0 404.5 22.5 8.0
Including 384.5 394.0 9.5 15.2
05PMD376 502.0 503.3 1.3 12.1
- Full drill results are provided in a table attached
to this news release.
Miramar Mining Corporation
Miramar is a Canadian gold company that controls the Hope Bay
project, the largest undeveloped gold project in Canada. The Hope Bay
project extends over 1,000 sq. km. and encompasses one of the most
prospective undeveloped greenstone belts in Canada.
Miramar aims to become an intermediate gold producer through the
integrated development of the Hope Bay belt. In order to achieve this
goal, while minimizing potential dilution and risk to shareholders,
Miramar has developed a phased approach to maximizing gold production
from the Hope Bay belt starting with the proposed small scale, high
grade Doris North Mine. Miramar then expects to extend and expand
production levels by developing through phase 2 & 3, the rest of
Doris, Boston and eventually Madrid. All contemplated production at
the Hope Bay project is subject to successful feasibility studies,
the availability of financing and permitting and regulatory approval.
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 John Wakeford, P. Geo.
Vice President, Exploration for Miramar Mining Corporation, and the
Qualified Person for the Company as set out in NI 43-101. The
analytical method for the gold analyses is gravimetric assay done by
TSL Laboratories in Saskatoon, with metallic screen assays for all
samples assaying over 20 g/t gold. Check assays are completed by ALS
Chemex in North Vancouver.
Assay intervals reported are drill core lengths. Geologic
interpretation of drill results is underway. However, it is estimated
that true widths would generally be at least 70-80% of reported core
lengths.
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 Project is also available on this website.
Forward-Looking Statements
Statements relating to exploration work at the Hope Bay project
and the expected costs and results of this work and statements
regarding the expected results of the 2005 work program and the
planned program for 2006, proposed feasibility studies and production
strategies 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", "aims", "potential", "goal", "objective",
"prospective", and similar expressions, or that events or conditions
"will", "would", "may", "can", "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 operations and other risks and
uncertainties, including those described in the Miramar's Annual
Report on Form 40-F for the year ended December 31, 2004 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 if management's beliefs, estimates or
opinions, or other factors, should 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, which permits U.S.
mining companies in their SEC filings to disclose only those mineral
deposits that qualify as proven or probable "reserves" because a
determination has been made based on an appropriate feasibility study
that the deposits could be economically and legally extracted or
produced. Accordingly, resource information reported in this
disclosure may not be comparable to similar information reported by
United States companies. The term "resource(s)" does not equate to
"reserves" and normally may not be included in documents filed with
the Securities and Exchange Commission, and investors are cautioned
not to assume that "resources" will be converted into "reserves" in
the future.
This disclosure uses the term "inferred resources". While this
term is recognized by Canadian regulations concerning disclosures by
mining companies, the U.S. Securities and Exchange Commission does
not recognize it. "Inferred resources" have a great amount of
uncertainty as to their existence and as to their economic and legal
feasibility. It cannot be assumed that all or any part of the
"inferred resources" will ever be upgraded to a high category. Under
Canadian rules, estimates of "inferred resources" may not form the
basis of feasibility or pre-feasibility studies except in rare cases.
Investors are cautioned not to assume that part or all of an
"inferred resource" exist or are economically or legally feasible.