Market speculation pushes Miramar

Junior company Miramar Mining (VSE) has once again become the subject of market speculation over its 49% owned Bruner project, also known as the Paymaster properties, in Nye Cty., Nev.

Common shares of the company rose from the 80 cents level in mid- September to the more recent $3.75 on widespread speculation that the deposit is of the same nature and will take on the proportions of the Round Mountain mine.

The Bruner project is being explored by Newmont Exploration, a unit of Newmont Mining (NYSE), under a joint venture agreement requiring Newmont to put up all exploration funding until 1991. Miramar’s financial obligation is limited to US$245,000 per year. Newmont describes the project as “an exploration property with encouraging results.”

The recent activity is somewhat reminiscent of previous market action. After the option deal with Newmont was announced in late 1988, Miramar’s share price increased from the 80 cents level to a high of $2.65 on market speculation of Newmont’s exploration results. When the promised results didn’t appear, the market did an about- face and retreated back to 80 cents by mid-1989.

In mid-December Miramar released a summary of exploration activity done by Newmont. Underground channel sampling from the old workings of the Duluth mine returned 164 samples taken from the upper and lower levels. The summary noted that previous mining concentrated on three nearly parallel north-trending fault zones dipping at 65-75 degrees to the west.

Channel samples were taken perpendicular to the structure and varied from one to 10 feet in length. From these samples, 85 assayed greater than 0.01 oz. gold per ton and 24 assayed greater than 0.05 oz.

Miramar indicates that Newmont is conducting a mapping and sampling program in the area of the old Paymaster mine and is planning further drilling in the spring.

Assays were also released from a drilling program in the area of the Duluth mine. Results released to date are as follows, with one further hole pending: InterceptWidthGold Hole(ft.)(ft.)(oz./ton) BRU16 0- 15 150.014 45- 50 50.058 50- 80 300.015 120-130 100.013 BRU17 0- 20 200.027 20- 75 550.007 75-100 250.025 165-170 50.030 BRU18 40- 45 50.075 490-505 150.027 BRU19 75-2151400.036 including 100.388 230-300 700.016 BRU20 0- 75 750.011 BRU21405-420 150.010 BRU22no significant intersects BRU23no significant intersects BRU24 0- 10 100.012 255-3901350.016 including 400.036 BRU25185-205 200.054 BRU26125-140 150.014 160-225 650.085 305-320 150.012 345-355 100.025 395-400 50.026 BRU27 95-115 200.069 115-120 51.284 135-150 150.052 150-155 51.806 170-175 50.026 190-220 300.018 485-490 50.033