Giant mine gets extension

The Federal Department of Indian Affairs and Northern Development (DIAND) and a wholly owned subsidiary of Miramar Mining (MAE-T) have signed an agreement to extend the life of the Giant gold mine near Yellowknife, N.W.T.

Miramar will continue to operate the mine as a source of supplemental feed for its nearby Con mill. DIAND has agreed to contribute $300,000 per month toward environmental compliance and holding costs.

This amended agreement saves 50 jobs and will remain in effect for as long as Miramar operates the mine.

Miramar is free from all environmental liabilities related to previous operations at the mine, and the reclamation security provisions of existing agreements between Miramar and DIAND will continue.

The mine is expected to contribute 25,000 oz. gold to Miramar this year. The combined Giant and Con operations should yield more than 125,000 oz. in 2002. Cash operating costs are pegged at less than US$240 per oz.