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Cumberland Resources Ltd - News Release
Cumberland approves $2.5-million program on Meadowbank
Cumberland Resources Ltd CBD
Shares issued 27,403,781 Feb 18 2002 close $1.320
Monday Feb 18 2002 News Release
Mr. Kerry Curtis reports
MEADOWBANK GOLD PROJECT: $2.5 MILLION PHASE 1 PROGRAM AP ...
Cumberland Resources' phase 1 of a $4.5-million program has been approved by the company's board of directors for its 100-per-cent-owned Meadowbank gold project, located 70 kilometres north of Baker Lake, Nunavut. Phase 1, consisting of $2.5-million in expenditures, will include extensive expansion and exploration drilling and targeted engineering studies. A phase 2 program, consisting of a further $2-million in expenditures, is contingent on the results from phase 1.
"We are very pleased that the board has accepted our aggressive program for phase 1 of the 2002 program. The recently expanded production model of 250,000 ounces per year at Meadowbank provides the basis for low-cost gold production at a scale which could launch our company into mid-tier producer status," remarked Kerry Curtis, senior vice-president.
Recent economic studies by consulting engineers MRDI Canada, (see news release in Stockwatch on Jan. 24, 2002), using a production rate of 246,000 ounces per year generated estimated total cash costs of $168 (U.S.) per ounce gold with initial capital costs of $123.5-million (U.S.). A mine life of 8.3 years with 85 per cent of production from open pits indicated a 4.9-year payback using a life of mine gold price at $300 (U.S.) on a 100-per-cent equity basis.
2002 phase 1 program
To further improve the economics of the project management has outlined several goals for the phase 1 program including: delineating the additional resources necessary to provide a 10 year mine life, improving gold recoveries and optimizing milling techniques, reviewing contract mining costs, and reviewing provisions for the selective use of reconditioned equipment in order to reduce capital cost estimates. Management believes that with positive results from even a few of these areas the viability of the project will be sufficiently improved to enable phase 2 initiatives to be launched.
In addition, the phase 1 program will include an aggressive program of overburden drilling designed to evaluate the prospective five-kilometre area between the Vault gold deposit and the other four gold deposits at Meadowbank.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
(c) Copyright 2002 Canjex Publishing Ltd.
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