"to produce 315,000 ounces of gold per year"Cumberland Submits Final Environmental Impact Study for Meadowbank Gold Project
Nov 10, 2005 9:30:00 AM
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 10, 2005) - CUMBERLAND RESOURCES LTD. (TSX:CLG)(AMEX:CLG) is pleased to report that it has submitted its Final Environmental Impact Statement (FEIS) to the Nunavut Impact Review Board (NIRB) for development permitting of the Company's 100% owned Meadowbank gold project located 70 kilometres north of the Hamlet of Baker Lake, Nunavut. The NIRB has acknowledged receipt of the FEIS, advancing Cumberland to the final stages of permitting. The Meadowbank project is a proposed open pit gold mine with a scheduled 12 year project life including two years of construction, over eight years of gold production and a two year closure period.
"We are pleased to see that such a comprehensive permitting process can maintain its high standards and remain on schedule. This is a reflection of the combined efforts of the regulators and our permitting team," commented Kerry Curtis, President and CEO of Cumberland. "With the progress made to date, we anticipate completion of the permitting process in early 2006 allowing the Company to consider a formal production decision."
Final Stages of Permitting
The NIRB, the leading authorizing agency, will now complete a technical review of the FEIS and hold public hearings within local communities. The NIRB will then submit its decision and assessment to the federal government leading to the issuance of the project certificate.
Cumberland is in the process of negotiating an Inuit Impact Benefits Agreement with the Kivalliq Inuit Association as a requirement for the development of the Meadowbank gold project. The agreement focuses on jobs, education and training, contracting and community initiatives.
Financial Adviser Arranging Financing Alternatives and Terms
Acting as exclusive financial adviser in connection with debt financing of Meadowbank, SG Corporate & Investment Banking (SG CIB)'s Mining Finance team (a division of Societe Generale Group) is arranging for a syndicate of financial institutions as prospective underwriters and arrangers of the debt financing. Cumberland hopes to complete SG CIB's mandate in early 2006.
Expanded Drilling Completed at Cannu Zone
The Phase III drill program, consisting of 12 holes, was completed at the new Cannu zone in the first week of November. The near surface, high grade mineralization at the Cannu zone is located 350 metres north of the proposed Portage open pit and represents additional near surface gold mineralization which may contribute to the resource and reserve potential of the project. Assay results from the Phase III drill program will be announced as received.
Low Cost Production Profile at Meadowbank
Meadowbank is forecast to produce 315,000 ounces of gold per year over an 8.3 year mine life with an estimated total cash cost of US$224 per ounce based on a feasibility study(1) completed in February 2005. Operations from three, shallow open pits are planned to commence in mid-2008 provided the permitting process is completed in early 2006.
Meadowbank Production Profile(1)
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Open Pit Mineral Reserves 2,768,000 ounces(2)
(Proven and Probable)
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Mine Throughput 2.73 Mtpa
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Mine Life 8.3 years
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Average Annual Production Rate
Years 1 to 4 375,000 ounces
Life of Mine 315,000 ounces
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Total Cash Cost per Oz.
Years 1 to 4 US$197
Life of Mine US$224
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Meadowbank Open Pit Gold Reserves - Q1/2005(2)
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Pit Category Tonnes Grade (g/t) Ounces
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Portage
Proven 1,253,000 5.19 209,100
Probable 9,927,000 4.15 1,324,500
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Goose
Probable 2,247,000 5.09 367,700
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Vault
Proven 53,000 3.31 5,600
Probable 8,416,000 3.18 860,400
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Total 21,896,000 3.93 2,768,000
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Note: 95% mining recovery and contact dilution applied.
Cumberland is a well financed mineral exploration and development company. The Company has completed a feasibility study on the Meadowbank gold project (100% interest) in Nunavut and is advancing the project towards production. The Company also holds a 22% carried to production interest in the Meliadine West gold project and a 50% interest in the Meliadine East gold project, both located in Nunavut. The shares of Cumberland are traded on the Toronto Stock Exchange and the American Stock Exchange under the symbol CLG.
CUMBERLAND RESOURCES LTD.
Kerry M. Curtis, B.Sc., Geo., President and CEO
Qualified Person - Gordon I. Davidson, P.Geol., is Exploration Manager, Canada, for Cumberland Resources Ltd. and is the designated Q.P. for the Meadowbank Project. Mr. Davidson has supervised drill hole planning, implementation and quality control/quality assurance programs at the Meadowbank Project since 2002. Drill core analysis is performed on split core with standard fire assay procedures and AA finish. QA/QC programs employ random insertion of four internal standards, field duplicates and blank samples. Gravimetric analysis is performed on any sample yielding greater than 1 g/t gold in fire assay. Primary assaying is performed by IPL Laboratories, of Vancouver. ACME Analytical Laboratories of Vancouver provides external reference assaying. True thickness of intersections ranges from 95-100% of intersected widths.