Miramar hits more gold at Hope Bay (October 11, 2002)

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

Located in the Madrid area, the new zone, dubbed Marianas, was discovered 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, while 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 is similar to the Suluk deposit to the north.

The 9,770 metre drill program also extended the 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 southerly plunging zone of high-grade mineralization. The high-grade zone is open to depth and to the south.

“The Madrid area at Hope Bay is rapidly emerging as a major mineralized centre,” says the company’s President, Tony Walsh. “The Deformation Zone, which, through a combination of diamond and reverse circulation drilling, has now been traced over astrike length of at least 11 km in the Madrid area, lies in close proximity to multiple goldoccurrences and it continues to demonstrate its prospectivity, generating two new golddeposits in 2001, and now encouraging results from the South Patch and Marianasareas in 2002.”

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 1.5 metres, 7.2 grams gold 0ver 0.5 metre and 4.4 grams gold over 3.2 metres.

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

The Twin Peaks target was tested by 4 holes, with the southern most hole cutting 1.4 gram gold over 3 metres and five holes into the North Windy Link prospect failed to return any significant values.

Prior to this year’s drilling, the Hope Bay project hosts a measured and indicated resources of 3.36 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 of gold over a 2.1-year period at a cash cost of US$114 per oz, for an 85% rate of return at a US$280 per oz gold price. The mine plan was updated in September to increasing this to 323,900 ounces of gold. A feasibility study is slated to be complete before year-end, with production coming as early as 2004.