Miramar hits targets

Vancouver — Despite the temporary suspension of the Con autoclave, Miramar Mining (MAE-T) expects to exceed 2002 production forecasts at its operations at Yellowknife, N.W.T.

The recent second quarter saw the Con and Giant mines produce 25,791 oz. gold at a cash cost of US$197 per oz., compared with 36,760 oz. at US$255 per oz. in the year-earlier period.

Suspension of the autoclave accounts for the shortfall. In mid-March, the roof of the building containing the plant that produces oxygen to operate the autoclave collapsed, forcing the suspension. In the meantime, free-milling operations continued with 14,015 oz. of refractory gold-bearing concentrates stockpiled during the quarter. The autoclave resumed operation on in late June.

The Con contributed 65,994 tonnes grading 14.61 grams gold per tonne in the 3-month period; Giant added 16,027 tonnes at 14.3 grams gold. Ore from both mines was processed at the Con mill.

“The Yellowknife operations performed exceptionally well, driven by higher-than-expected grades at both the Con and Giant mines and lower operating costs,” says Miramar President Anthony Walsh. “Overall, we are well on-track to surpassing our 2002 production forecast.”

The company’s yearly production forecast stands at 130,000 oz., with cash costs coming in under US$240 per oz.

In mid-July, the company inked a 3-year collective agreement with its mill employees. Workers will see annual pay rises of 7%, 5% and 3%. With the labour issue solved and the price of gold picking up, Miramar plans to extend the operating life of its Yellowknife operations through to the end of 2004. The plan calls for the gradual conversion to a fully refractory operation as free-milling reserves become depleted at the Con. In 2003 and 2004, Miramar expects production to fall to 90,000 oz., with cash costs rising to US$255-260 per oz.

Meanwhile, Miramar intends to advance the Hope Bay project in Nunavut. In June, the company completed its merger with Hope Bay Gold, consolidating the companies’ 50-50 ownership of the project, situated 865 km north of Yellowknife.

Hope Bay shareholders overwhelmingly approved the amalgamation and received 0.263 of a Miramar share in exchange for each share held. Miramar issued 39.5 million shares to Hope Bay Gold shareholders and now sits with 105.6 million shares outstanding.

Cashed-up after a $30-million financing, Miramar is in the midst of an aggressive drill campaign aimed at advancing the Doris deposit to production, as well as testing new targets. Hope Bay’s property-wide mineral resource stands at 4.3 million in situ ounces. Measured and indicated resoures total 3.4 million tonnes grading 15.4 grams gold per tonne, equivalent to 1.7 million oz., with an additional 6.7 million tonnes in the inferred category.