Miramar to boost output

With the addition of the newly acquired Giant mine, Miramar Mining (MAE-T) expects to boost total gold production at its Yellowknife, N.W.T., division by 30% to 130,000 oz.

Total cash costs at both the Giant and nearby Con mines are expected to average US$265 per oz. this year, and fall to US$260 in 2001, while operators maintain a combined production rate of 130,000 oz. per year.

Miramar resumed operations at Con in July 1999 after a prolonged labour strike. From July to December, the mine milled 119,539 tons grading 0.35 oz. gold per ton at a total cash cost of US$272.

Con is expected to yield 100,000 oz. gold this year at an average cash cost of US$265 per oz. Proven and probable reserves stand at 1.2 million tons grading 0.34 oz. gold.

The mine’s autoclave was recommissioned late last year to process refractory ore concentrates. By mid-February 2000, it was consistently processing concentrates at the daily rate of 500 tons.

Meanwhile, two exploration targets are outlined at Con — one just below the current workings, and the other, immediately to the south.

At the newly acquired Giant mine, about 7,000 tons of ore have been broken. Initial mining has been restricted to the Supercrest zone, where the anticipated grade is 0.34 oz. per ton gold. The daily processing rate is 300 tons. The ore will be trucked to the Con mill to be treated in the flotation circuit, with the concentrates further processed in the autoclave.

Giant is expected to produce 30,000 oz. gold in 2000 at an average cash cost of US$260 per oz. Proven and probable reserves stand at 228,749 tons grading 0.362 oz. gold, enough for at least two years of production.

Miramar acquired the operation from the Department of Indian Affairs and Northern Development (DIAND) in December 1999 for a nominal sum, plus a $425,000 contribution to the Giant mine reclamation security trust. Previously, the mine was operated by Royal Oak Mines, which went bankrupt.

The deal requires that Miramar sell a portion of the Giant property to the City of Yellowknife. DIAND and the government of the Northwest Territories, in turn, have agreed to finance up to $500,000 in exploration costs, a sum that will be matched by Miramar. Targets are being assessed.

While the company is not responsible for any environmental liabilities related to previous operations, it has agreed to work closely with government bodies to develop a long-term reclamation strategy.