Miramar posts $32m loss

Vancouver — Miramar Mining (MAE-T) was more than $32 million in the red in 2004, owing to closure costs incurred at the Con and Giant mines in the Northwest Territories.

Low production caused Miramar to close the mines. Combined, Con and Giant produced almost 16,000 oz. gold in their final year, compared with 89,000 oz. in 2003. Revenue from gold sales fell 82% between the two years, to $7.6 million from $42.6 million.

Meanwhile, Miramar’s Hope Bay gold project in Nunavut is undergoing a feasibility study, which should be completed by late 2006.

Hope Bay has three main deposits, Boston, Doris and Madrid, all of which are in a major greenstone belt.

Miramar plans initially to develop the Doris North portion of the Doris deposit. Doris North is expected to produce 155,000 oz. gold annually over two years at the low cash cost of US$109 per oz. Mining of the other deposits would follow at the projected annual rate of 200,000 oz. In total, and over the long term, Hope Bay is expected to sustain annual gold output of 350,000-400,000 oz.

As a result of drilling in 2004, the Madrid deposit is now estimated to host an indicated resource of 4.7 million tonnes grading 5.5 grams gold per tonne, or about 838,000 oz. The estimate is based on a cutoff grade of 3 grams gold per tonne. An additional, inferred resource of 15 million tonnes grading 5.4 grams gold, or 2.6 million oz., has been calculated using the same cutoff. The Hope Bay project has a total measured and indicated resource of 6.9 million tonnes averaging 9.6 grams gold, or 2.1 million oz., plus an inferred resource of 19.2 million tonnes at 7 grams gold, or 4.3 million oz.

Miramar intends to spend $16 million at Hope Bay in 2005, $13 million of which is allocated for definition drilling. Results will be incorporated into feasibility studies.