Vancouver —
The Nunavut Impact Review Board (NIRB) issued its hearing report for the proposed Doris North gold mine, recommending that the project not proceed, based on its current application. The NIRB has forwarded its recommendation to the Minister of Indian Affairs and Northern Development (DIAND).
Miramar was told by NIRB that it would welcome and review another application containing additional information.
This setback comes on the heels of the NIRB’s earlier decision, in May, to delay public hearings by a month, owing to the unavailability of participants. That postponement caused Miramar to announce a delay in the planned start of Doris North by about one year, until mid-2006, due to the impact on planned shipping schedules as well as construction and equipment contracts.
The NIRB public hearings, held in the West Kitikmeot region of Nunavut, concluded that an informed assessment of environmental impact and related issues could not be ascertained, based on the level of information provided by the company. Deficiencies addressed included: consideration of alternative tailings impoundment, wildlife monitoring, water quality and management strategies, and socio-economic impact assessment.
Miramar is optimistic about its ability to meet NIRB’s requirements. The supplemental data requested, for use in a new application to the board, is being compiled and will be submitted as soon as feasible.
The decision will affect the Doris North production schedule by delaying it from the planned 2006 start date.
The company’s Doris North project is expected to become the first new gold mine developed in Nunavut since the territory was created in 1999.
Gold mineralization at the Doris deposit is of typical Archean greenstone style, occurring in quartz vein systems within folded meta-volcanics. Doris North is a near-surface zone of high-grade-gold-bearing quartz veins, folded to create an anticlinal-hinge structure. The Doris deposit contains a measured and indicated resource of 763,000 tonnes grading 23.9 grams gold per tonne, plus inferred resources of 1.7 million tonnes of 14.7 grams gold.
Miramar has 152 million shares outstanding. Investors sold off the issue on the announcement of NIRB’s negative recommendation, down over 23% or about 35, at presstime, to the $1.13 per share level on high volume of almost 4 million shares.
The stock touched a 20-month low in reaction to the board’s decision.
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