Miramar expands Hope Bay mineralization (May 18, 2004)

Vancouver — Drilling by Miramar Mining (MAE-T) has expanded the gold resource at the Hope Bay project in Nunavut.

The latest results indicate a significant increase in gold grades at the Naartok zone, part of the Madrid deposit.

The program has expanded the Naartok resource to the northeast and northwest at gold grades higher than those previously reported. At last report, Naartok had an indicated resource of 1.56 million tonnes grading 5.4 grams gold per tonne, plus an additional inferred resource of 2.72 million tonnes averaging 4.1 grams gold.

The westernmost zone of the Madrid deposit, Naartok is about 6 km from the proposed Doris North mill. Plans call for an open-pit operation.

Highlights from drilling include hole 258, which intersected 35.8 metres averaging 7.8 grams gold per tonne, including 14 metres of 12.7 grams gold, and hole 262, which returned 43.9 metres of 6.3 grams gold, including 4.2 metres of 13.6 grams.

Four holes drilled on the Rand zone, which is also part of Madrid, extended the mineralization 200 metres farther in depth at similar grades.

Miramar also completed three deep holes on the Boston deposit, to test for mineralization south of, and below, the existing resource. All holes intersected wide zones of alteration and quartz veining with localized gold values. The highlight was hole 298, which cut 5 metres averaging 9.9 grams gold, including 0.75 metre of 44.8 grams. This intercept is about 900 metres below surface.

The Boston drilling is now moving north toward the main resource — part of an effort to upgrade the resource.

The Hope Bay project consists of more than 1000 sq. km on the Arctic coast, near Bathurst Inlet, Nunavut. The project consists of three deposits, Doris, Madrid and Boston, which have a combined resource of 5.4 million oz. gold. Permitting is under way at Doris (northern portion), with production anticipated for late 2005.

Miramar has 157 million shares issued on a fully diluted basis.