Drilling reveals new zone at Hope Bay

Infill drilling at the Hope Bay gold project, in Nunavut, has discovered a new zone of mineralization for equal partners Miramar Mining (MAE-T) and Cambiex Exploration (CBX-T).

Dubbed Stringer, the zone lies in the Doris Central area, immediately west of the Lakeshore vein. Mineralization is associated with abundant quartz veining and occurs as visible gold in association with 2-5% fine-grained pyrite — a new style for the region. Highlights include:

– hole 368, which cut 15 metres (true width, starting at a down-hole depth of 144.3 metres) grading 37.8 grams gold per tonne;

– hole 385, which cut 12.7 metres (216.5-234 metres) grading 17.2 grams;

– hole 356, which graded 36.5 grams over 3.6 metres (89.8-94 metres); and

– hole 370, which graded 10.6 grams over 9.6 metres (234.1-244.8 metres).

Meanwhile, highlights for those intervals representing the Lakeshore vein include:

– 4.1 metres (true width, starting at 235.8 metres downhole) grading 42.9 grams gold in hole 385;

– 2.3 metres (239.9-242.5 metres) grading 24.2 grams gold in hole 370;

– 0.3 metre (137-137.6 metres) grading 32.9 grams gold in hole 371; and

– 3.5 metres (174.5-179.3 metres) grading 8.1 grams gold in hole 363.

To date, 40 holes totalling 9,821 metres have traced mineralization at Doris Central for nearly 400 metres along strike and about 150 metres updip. The best intercepts occur where the Lakeshore vein and Stringer zone intersect.

The discovery follows the recent doubling to 300 metres in the Hinge zone’s strike length. That zone lies 1.2 km to the north and is considered the hinge structure of an isoclinally folded vein. Only the limbs of that fold, dubbed Lakeshore and Central, were known previously (T.N.M., May 22/00).

In the 1990s, Broken Hill Proprietary spent US$85 million on the Hope Bay greenstone belt, defining inferred resources of 2.1 million tonnes of 17.8 grams gold at Doris (excluding the Hinge zone), 5.7 million tonnes grading 13.1 grams gold (2.4 million contained ounces) at Boston, and 5 million tonnes of 4.3 grams gold (690,000 oz.) at Madrid.

Less explored, was the South Patch prospect, where up to 48 grams gold over 4.2 metres were intersected in drilling. The prospect lies 10 km south of the Doris Central zone and is a quartz-veined, altered shear structure with a strike length exceeding 1.1 km.

Miramar and Cambiex are focusing on the Doris and Boston deposits in an attempt to boost the grade of each and advance them to the feasibility stage. Drilling continues.

For a half-interest in the project, Miramar has paid Cambiex US$13.3 million and will spend $2 million on exploration over the next six months. As part of the deal, the company must arrange for third-party financing (no less than 60% of the total) should the project be advanced to production.

Cambiex is managing the exploration program, whereas Miramar will manage the feasibility and development phases, if warranted.