Meadowbank grows for Cumberland

With some 21,000 metres of diamond drilling under its belt form 2003, Cumberland Resources (CBD-T) has boosted measured and indicated resources at its Meadowbank gold project in Nunavut by 30%.

The category now includes 21.7 million tonnes running 4.3 grams gold per tonne, or nearly 3 million contained ounces of gold. An additional 5.7 million tonnes of inferred material runs at the same grade for another 788,000 oz. Combined, the global resources is an 8% improvement over the previous estimate of around 3.5 million oz.

Situated 70 km north of Baker Lake, Meadowbank is home to the third-largest undeveloped gold resource in Canada. The project comprises six closely spaced, near surface gold deposits; the resource estimate is limited to four of these – the Portage, Vault, Goose Island, and PDF deposits. With the bulk (91%) found in the Portage and Vault areas.

The Portage deposit is home to measured and indicated resources totalling 11.8 million tonnes grading 4.5 grams gold, while Vault contains 7.9 million tonnes averaging 3.6 grams gold. The estimates employ cutoff grades of 1.5 and 2 grams gold, respectively.

Prepared by AMEC E&C Services (AMEC), the updated estimates are part of an ongoing feasibility study at Meadowbank. The study is expected to wrap up in the first quarter.

“Resources have improved to threshold levels targeted for feasibility,” said Kerry Curtis, Cumberland’s CEO. “We are now well positioned to commence final open pit designs and complete the feasibility process.”

Cumberland currently envisages an open pit operation producing 250,000 oz. of gold per year over ten years. Cash costs are estimated at US$168 per oz.

With the new resource figure in hand, Cumberland plans to launch a $4.7-million exploration program in March. The six-month campaign will entail 12,000 metres worth of diamond drilling focussed around existing deposits, new prospects, plus some grassroots exploration on the 25-km gold trend.

Initially, Cumberland will aim its drills at the Goose Island deposit, where deep drilling in the late 1990s returned up to 15.4 grams gold over 3.2 metres (at a depth of 300 metres) and 19.6 grams over metres (at 270 m). Both intersection lie well below the preliminary pit shell.

Drilling will also look to follow up on previous drilling to the west of the pit outline at the Vault deposit. In 2003, drilling some 350 metres west of the proposed pit yielded 2.84 grams over 3.1 metres, beginning 15 metres below surface.

Some 3.5 km to the north at the Crown prospect, grab sampling on two islands in Wally Lake returned between 1.3 and 13.5 grams gold. Gold mineralization is said to resemble that at the Vault deposit.

Earlier this month, the Department of Indian Affairs and Northern Development and Nunavut Impact Review Board agreed that Meadowbank should move into the environmental review stage.