Miramar gaining more Hope

Miramar Minings (MAE-T, MNG-X) is continuing to define its multitude of deposits at its Hope Bay gold project in Nunavut and its latest assays have sent the Vancouver-based miner up on the market

In Toronto on May 17 the companys shares rose roughly 7% or 31 to $4.76 on a heavy volume of 3.5 million.

Highlights from its latest program include:

• 33.3 metres, from 18.8 to 52.1 metres grading 12.1 grams gold
• 17.4 metres, from 122.6 to 140 metres grading 6.9 grams gold
• 21.5 metres, from 214 to 235 metres grading 5.3 grams gold
• 124 metres, from 199 to 323.5 metres grading 1.6 grams gold

Those results come from the Suluk deposit, which sits within the larger Madrid System. Madrid is one of four projects that compose Hope Bay, the others being Doris North, Doris, and Boston.

While describing Madrid as the centre of gravity for mineralization at Hope Bay, the company is planning to mine it in the final phase of its development plan. At this point, the plan is to develop Doris North first, followed by Doris, then Boston and lastly Madrid.

The phased approach is being favoured to generate cash flow which will be fed back into development, thus avoiding undue shareholder dilution.

Currently, Miramar has the bulk of its rigs five of six turning at Suluk, with the sixth at the new Boston BN zone.

Miramar says it will add a seventh drill before the end of May.

The company is hoping assays gleaned from all the drilling will bolster the economic study that is underway for Phase II development.

The company also noted that four of the five near surface holes at the Rand deposit which is part of the Madrid system — had visible gold. But, it says, the grades at Rand are generally lower than the other Madrid deposits which include Naartok and Suluk. Drilling continues at Rand and assays are pending.

Of the 26 holes drilled so far this year, visible gold has been present in 19, Miramar says.

Madrid stretches along a 2.6 km trend of altered and mineralized volcanic rocks and is open along strike and at depth. Its indicated resource stands at 3.7 million oz., from an average grade of 3.54 grams gold per tonne. There is another 3.8 million oz. in the inferred category which grades 2.79 grams gold per tonne.

More than 80% of that resource is within 300 metres of the surface, the company says.

In the last four years Madrid’s indicated resources have gone up by 3.34 million oz. and its inferred by 2.95 million oz.

This years drill program targets the entire Madrid system including Suluk, Rand, Naartok East and Naartok West.

The company also reported that it may be able to increase resources at Boston by lowering the cut-off grade from 4 grams gold and using a bulk underground mining method, instead of a medium scale one, and combining open pit and underground extraction methods.