Cumberland exercises warrants

Vancouver — Cumberland Resources (CBD-T) has exercised share purchase warrants originating from a $14.7-million financing in June 2002, raising $5.1 million in the process.

As a result, Cumberland’s working capital has increased to about $20 million, with 41.3 million shares issued.

The additional working capital will enable Cumberland to advance the Meadowbank gold project, in Nunavut, to development and continue exploration at other projects, says President Kerry Curtis.

A feasibility study is under way and should be completed late this year. According to a preliminary assessment, the Meadowbank deposits are capable of producing 250,000 oz. gold per year at a cash cost of US$168 per oz. The mine life is projected to be eight years, and 85% of the gold would be mined from open pits.

A $10.5-million program of engineering, resource definition, exploration drilling, and environmental studies is under way.

The Portage Pit area has a measured and indicated resource of 10.2 million tonnes grading 4.75 grams gold per tonne, whereas 2.6 million tonnes grading 4.57 grams gold are classified as inferred. Overall, the project hosts a measured and indicated resource of 15.5 million tonnes grading 4.66 grams gold, plus an inferred resource of 8.9 million tonnes grading 4.2 grams gold.

Covering some 350 sq. km along a 25-km-long trend, Meadowbank comprises six closely spaced, near-surface deposits, and these contain more than 3.2 million oz. gold in total.

The deposits are hosted by iron formation or volcaniclastic sediments of the Archean Woodburn Lake Group in the Rae Craton of the Western Churchill structural province. The Meadowbank deposits occur in a structurally complex, narrow neck of supracrustal rocks sandwiched between granite plutons and metamorphosed-to-upper-greenschist facies.

Cumberland holds a 100% interest in the Meadowbank project and a 22% carried interest in the idle, 4.5-million-oz. Meliadine West project, also near Rankin Inlet. Australia’s WMC Resources (WMC-N) is the operator of that project and holds a 56% stake, while Comaplex Minerals (cmf-t) is carried with the remaining 22%. Cumberland is also exploring for diamonds at the Meliadine East project, which is shares equally with Comaplex.