Cannu zone enhances potential at Meadowbank

Vancouver Buoyed by results from recent drilling, Cumberland Resources (CLG-T, CLG-X) plans to carry out a major drill program next year to define reserves at its newly discovered Cannu zone. The near-surface, high-grade target lies about 350 metres north of the proposed Portage open-pit, the largest of three proposed pits at the Cumberland gold project near Baker Lake, in eastern Nunavut.

Cumberland has already drilled 30 holes to test the zone, which is hosted by the same rock package as the advanced Portage and Goose Island deposits to the south. Results will be incorporated into an inferred resource estimate expected to be released early next year.

The drilling was part of a $3.5-million exploration program to boost existing reserves and resources and extend the life of the proposed mine at Meadowbank. Final permitting is under way, and assuming the process is completed early next year, mining could begin in mid-2008.

A feasibility study completed earlier this year was based on proven and probable reserves of 21.89 million tonnes grading 3.93 grams gold per tonne, containing 2.76 million oz. gold within the Portage, Goose and Vault deposits. Open-pit production is estimated at 315,000 oz. per year at cash costs of US$224 per oz. over an 8.3-year mine life.

Mineralization at Cannu is hosted in a shallow, bowl-shaped fold structure. Mineralization hosted in the east limb of the fold is believed to represent an extension of mineralization in the proposed Portage open pit, while the west limb represents a new, untested target that offers potential for resource expansion. The zone is described as continuous along a 350-metre strike length.

Highlights from the recent drilling at Cannu include: 9.6 grams gold per tonne over 7.62 metres; 10.37 grams gold over 14.83 metres; 11.21 grams over 3.62 metres; and 11.23 grams gold over 9.04 metres.

President Kerry Curtis notes that the zone’s shallow depths, high grades and proximity to the Portage open pit should bring about “a significant addition” to existing reserves and resources at Meadowbank.

Next year’s program will include infill drilling along the east limb of the Cannu zone to bring resources to the reserve category. Drilling will also test the potential of the west limb and targets south of the Goose Island deposit.

Cumberland owns 100% of the Meadowbank project. The company also holds a 22% carried interest in the Meliadine West gold project, and a 50% interest in the Meliadine East gold project, also in Nunavut.