Cumberland awards Meadowbank feasibility

Vancouver — Cumberland Resources (CBD-T) has awarded AMEC the contract to perform the feasibility study for its wholly-owned Meadowbank gold project, 70 km north of Baker Lake, Nunavut.

The feasibility study scheduled for completion late next year and will provide a detailed mine model with accurate capital and operating parameters which will serve as a basis for financing and construction of the project.

A preliminary assessment completed in January 2002 indicated the project could support a production rate of approximately 250,000 oz. per year at an estimated cash cost of US$168 per ounce over an eight year mine life, with 85% of gold production from open pit mine designs.

“Meadowbank enters the feasibility process with the advantage of large, well-defined resources and a reserve base sufficient for four years of production at the current planned production rate," said Kerry Curtis, Interim President and Chief Executive Officer. "The feasibility study should benefit from the enhanced resource definition and additional gold deposits outlined in the 2002 program. We are pleased to be working with AMEC and eager to develop Nunavut’s first new major gold mine.”

AMEC has provided engineering, procurement, construction and management services to numerous remote mining operations in Canada’s north including the EKATI mine in the Northwest Territories as well as Teck-Cominco’s Red Dog mine in Alaska, the world’s largest lead-zinc mine.

Meadowbank hosts five closely spaced, near surface, gold deposits totaling 7.78 million grading 5.79 grams gold, or 1.4 million oz. contained gold, in the measured and indicated category and 10.9 million tonnes grading 4.44 grams gold, or 1.56 million contained oz. gold in the inferred category.

Proven and probable reserves are pegged at 5.5 million tonnes averaging 5.44 grams gold, or 963,000 oz. contain gold.

Last year Cumberland drilled 150 holes, or about 16,000 metres, and defined a new gold deposit. New resource estimates at Meadowbank are planned for completion in the first quarter of 2003.

Cumberland is well financed with approximately $19.25 million in its treasury. Cumberland holds interests in two undeveloped gold projects in Canada: Meadowbank (100%) and Meliadine West (22% carried).