Miramar Mining buys half of Hope Bay gold project

Miramar Mining (MAE-T) has gained a half-interest in the Hope Bay gold project in Nunavut from Cambiex Exploration (CBX-T).

Miramar will act as operator during the feasibility and development phase, whereas Cambiex will manage the exploration work.

In return for its half-interest, Miramar paid Cambiex an initial US$13.3 million and is required spend $2 million on work programs over the next six months. In addition, Miramar must arrange for third-party financing (no less than 60% of the total funds) to bring a mine into production.

Miramar also operates the Con gold mine in Yellowknife, N.W.T., and recently acquired the nearby Giant, previously owned by now-bankrupt Royal Oak Mines.

“The acquisition of Hope Bay adds substantial value to Miramar’s northern assets,” says company president Anthony Walsh. “Hope Bay is one of the best undeveloped gold projects in Canada, with more than 4 million oz. gold in resources already defined.”

In early 2000, a 25,000-metre phase of surface and underground drilling will attempt to advance portions of the Boston and Doris deposits to the measured and indicated category.

Currently, inferred resources at Hope Bay consist of:

– 5.7 million tonnes grading 13.1 grams gold per tonne, equivalent to 2.4 million contained ounces, in the Boston deposit;

– 2.1 million tonnes of 17.8 grams gold, or 1.2 million contained ounces, in the Doris Lake deposit; and

– 5 million tonnes of 4.3 grams gold, or 690,000 contained ounces, in the Madrid deposit.

Miramar hopes to have a final resource estimate completed during the third quarter of 2000, to be followed by a feasibility study and permitting work, if warranted.

“Combined, the Con mine and the Giant mine assets are anticipated to increase Miramar’s gold production to approximately 130,000 oz. per year and reduce cash operating costs to under US$260 per oz.” says Walsh.

In addition to extensive exploration at Hope Bay, Miramar plans to explore the Con and Giant properties. The work will be jointly funded by the federal and territorial governments, with Miramar matching funding to a maximum of $500,000 per year.

Two exploration targets are outlined at the Con — one just below the current workings and one immediately to the south. Targets at the Giant mine are being assessed.