Miramar Reports Encouraging Results from Goose Lake Drilling, Back River Project
June 30 2004 - 1:01AM
PR Newswire (US)
Miramar Reports Encouraging Results from Goose Lake Drilling, Back
River Project - Drilling of Shallow Mineralization Returns Good
Grades & Widths - VANCOUVER, June 30 /PRNewswire-FirstCall/ --
Miramar Mining Corporation today announced encouraging drill
results for 24 holes completed at the Back River project, where
Miramar has the option to earn a 60% interest from Kinross Gold
Corporation. The Back River Project includes the George and Goose
Lake gold deposits in Nunavut, which are geologically similar to
the nearby Lupin Mine. "Miramar views its option on the Back River
project as providing the possibility for another production
platform for Miramar, in addition to our Hope Bay project," said
Tony Walsh, Miramar's President and CEO. "These results confirm the
potential of the Goose Lake deposit to host a significant, near
surface, good grade gold resource, which remains open to expansion,
and illustrates the potential for significantly higher grades in
the fold apex or hinge at the property." Miramar is focussing its
efforts on improving the definition of the wider, higher grade
hinge zone and on the larger tonnage potential in the fold core.
The results highlighted below and the complete results attached
illustrate the potential of these areas to host a significant, near
surface, good-grade gold deposit. A significant summer drill
program is currently being planned. Highlights of Goose Lake Drill
Results -------------------------------------- From Core Gold
Hole-ID Target (m) To (m) Length (m) Grade (g/t) 04GSE001 Fold core
195.5 207.1 11.6 7.2 04GSE008 East limb 66.8 77.0 10.2 8.0
Including 70.0 76.0 6.0 12.7 04GSE010 Fold core 115.7 123.7 8.0
10.2 04GSE013 Fold hinge 19.5 24.4 4.1 36.5 Including 20.3 22.6 2.3
74.0 04GSE018 Fold hinge 57.4 63.7 6.3 12.0 And 72.3 93.0 20.7 12.4
Including 83.0 85.1 2.1 37.2 Including 87.8 91.8 4.0 24.0 04GSE022
Fold hinge 81.5 82.2 0.7 212.8 04GSE024 Fold hinge 197.0 213.8 16.8
36.3 Including 199.8 205.2 5.4 73.5 Including 208.5 212.7 4.2 48.5
Goose Lake Program ------------------ The Goose Lake gold deposit
is comprised of several banded iron formation units folded into an
anticline, with the apex of the fold forming a hinge zone near
surface. As a result of this folding, the gold mineralization in
the fold hinge is generally enriched and thickened, which makes for
a potentially attractive target with thicker, higher grade
mineralization close to surface. As part of its earn-in
expenditures on the Back River Project, Miramar completed 24 holes
in April and May 2004 for an aggregate of approximately 6,000m of
drilling. Results for all holes are available and almost all holes
intercepted multiple zones of gold mineralization. The objectives
of this program were to provide corroboratory drilling within the
previously estimated resource, and to test the style and grade of
mineralization in and around the fold structure. Drilling targeted
the fold apex, and both the west and east limbs of the north
plunging anticline. Drilling also tested the core of the fold,
where mineralization appears to be more broadly distributed, and
the southern extension of the fold. Drill results are currently
being compiled and interpreted, and compared to prior drilling
results. Preliminary observations by target area are set out below.
The areas discussed are illustrated on the diagrams that accompany
this news release. Internal Resource and Hinge Area: Drilling
generally encountered similar widths and grades to those previously
defined. Mineralization is strongest in the fold hinge area, as
illustrated by hole 04-GSE-024 (which intersected 36.3 g/t over
16.8m), where there is increased quartz veining & thickening of
the iron formation. Fold Limbs: Mineralization encountered on the
west and east limbs of the fold generally consisted of sulphide
replacement of magnetite in oxide iron formation with secondary
quartz vein associated gold mineralization. Values returned are
comparable to previous results and demonstrate the persistence of
the gold mineralization in the limbs. The western limb has been
tested with more holes than the eastern limb and, overall, appears
to be better mineralized. Fold Core: Mineralization within the
centre or core of the fold tends to occur as quartz veining in
sedimentary greywacke units, peripheral to the banded iron
formations that host the majority of the gold resource. Portions of
this style of mineralization have returned a number of intercepts
with good grade and widths, but little is included in the current
resource. Hole 04-GSE-001 was drilled to test this mineralization
35m below a hole drilled in 2000 (00-GO-07, which intersected 15.1
g/t gold over 17m). Hole 04-GSE-001 returned multiple intercepts,
including 7.2 g/t gold over 11.6 meters. Strategy Miramar's
objective at Back River is to double the resource at Goose Lake,
where the presence of the fold significantly increases the grade
and thickness of the gold mineralization, which could provide the
critical mass for a development decision. The nearby George Lake
deposit might provide satellite mill feed if a process facility is
developed on the Goose Lake deposit. Miramar hoping to sequentially
develop the Hope Bay belt from an initial high grade operation at
Doris North, which is currently in the permitting process, which
would serve as the processing and infrastructure centre for the
belt. Miramar is currently conducting programs to determine the
potential of the Boston deposit to extend the operating life and
the potential of the Madrid deposit to expand production. "We see
the Back River project as providing the possibility for another
production platform for Miramar," said Mr. Walsh. "Development of a
mine at Back River in addition to the options being evaluated for
Hope Bay could propel us into the ranks of intermediate gold
producers." All of these options for extending and expanding the
mine life would be subject to completion of additional drilling,
economic studies and permitting processes. Both the Back River and
Miramar's Hope Bay projects benefit from relative proximity to
tidewater, allowing seasonal ocean access for the movement of heavy
equipment and bulk supplies. This provides a significant financial
advantage to the development of any mining operations at these
locations versus long winter road or air supported operations. Back
River Project ------------------ Miramar is currently earning a 60%
interest in the advanced Back River Project, which is comprised of
six property packages, the most important of which are the George
and Goose Lake areas. Previous estimates of mineral resources
prepared for prior owners total 2.0 million ounces of gold,
comprised of an indicated resource of 1.4 million ounces of gold at
a grade of 9.8 g/t and an inferred resource of 0.6 million ounces
of gold at a grade of 9.9 g/t gold. Miramar is working to validate
and expand the previously estimated resource through a combination
of drilling, geologic modelling and data re-compilation. Miramar
Mining Corporation -------------------------- Miramar is a well
financed Canadian gold miner that controls two of the largest
undeveloped gold deposits in Canada. The Hope Bay project in
Nunavut is owned by Miramar, extends over 1,000 sq. km. and
encompasses one of the most prospective undeveloped greenstone
belts in Canada. Miramar also has an option to earn a 60% interest
in the prospective Back River Project in Nunavut, containing the
George and Goose Lake gold deposits. Miramar's objective is to
build an intermediate gold production profile through the
sequential development of its Arctic gold assets. The planned goals
in the implementation of this strategy include: 1. Development of a
mine at Doris North to commence production during 2006, generating
cash flow to pay for the mining infrastructure and to fund the
continued exploration and development of the Hope Bay belt. 2.
Demonstrate the potential of the upper portions of the Boston
deposit to support an extended operating life within two years,
with an interim report within one year; 3. Show an expanded
production scenario through the development of a large scale open
pit/underground mining operation in the Naartok-Perrin area at
Madrid within two years; 4. Advance the Back River project to
identify further production opportunities within two years; 5.
Continue the exploration programs at Hope Bay to expand the known
deposits, such as Boston to depth and Madrid, and to discover new
deposits to support a sustained intermediate production profile,
while conducting grassroots exploration in cooperation with
strategic partners. Miramar's concept is to have Doris North as the
infrastructure centre for the entire Hope Bay belt, minimizing the
capital requirements and optimizing the return on future
development areas. Quality Assurance The information in this news
release has been prepared in accordance with Canadian regulatory
requirements set out in National Instrument 43-101 and reviewed by
John Wakeford, P. Geo. Vice-President, Exploration for Miramar
Mining Corporation. Additional Information Diagrams and tables
detailing some of the matters described herein are attached to this
news release. If you are missing these, please download this news
release from Miramar's website at http://www.miramarmining.com/, to
which they are attached, or contact us at the numbers listed below.
All other information previously released on the Hope Bay Project
is also available on this website. Forward Looking Statements
Statements relating to exploration work at the Hope Bay, Goose Lake
and George Lake project and the expected results of this work are
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. Forward looking
statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects,"
"plans," "anticipates," "believes," "intends," "estimates,"
'projects," "potential," "goal" and similar expressions, or that
events or conditions "will," "would," "may," "could" or "should"
occur. Information inferred from the interpretation of drilling
results and information concerning mineral resource estimates may
also be deemed to be forward looking statements, as it constitutes
a prediction of what might be found to be present when and if a
project is actually developed. These forward-looking statements are
subject to a variety of risks and uncertainties which could cause
actual events or results to differ materially from those reflected
in the forward-looking statements, including, without limitation:
risks related to fluctuations in gold prices; uncertainties related
to raising sufficient financing to fund the planned work in a
timely manner and on acceptable terms; changes in planned work
resulting from weather, logistical, technical or other factors; the
possibility that results of work will not fulfill expectations and
realize the perceived potential of the Company's properties;
uncertainties involved in the interpretation of drilling results
and other tests and the estimation of gold reserves and resources;
the possibility that required permits may not be obtained on a
timely manner or at all; the possibility that capital and operating
costs may be higher than currently estimated and may preclude
commercial development or render operations uneconomic; the
possibility that the estimated recovery rates may not be achieved;
risk of accidents, equipment breakdowns and labour disputes or
other unanticipated difficulties or interruptions; the possibility
of cost overruns or unanticipated expenses in the work program; the
risk of environmental contamination or damage resulting from
Miramar's operations and other risks and uncertainties, including
those described in the Miramar's Annual Report on Form 40-F for the
year ended December 31, 2003 and Reports on Form 6-K filed with the
Securities and Exchange Commission. Forward-looking statements are
based on the beliefs, estimates and opinions of Miramar's
management on the date the statements are made. Miramar undertakes
no obligation to update these forward-looking statements
management's beliefs, estimates or opinions, or other factors,
should change. All resource estimates reported in this disclosure
are calculated in accordance with the Canadian National Instrument
43-101 and the Canadian Institute of Mining and Metallurgy
Classification system. These standards differ significantly from
the requirements of the United States Securities and Exchange
Commission, and resource information reported in this disclosure
may not be comparable to similar information reported by United
States companies. The term "Resource(s)" does not equate to
"reserves" and normally may not be included in documents filed with
the Securities and Exchange Commission. This news release has been
authorized by the undersigned on behalf of Miramar Mining
Corporation. For further information contact: Anthony P. Walsh
President & CEO Miramar Mining Corporation Tel: (604) 985-2572
Fax: (604) 980-0731 Toll Free: 1-800-663-8780 Email: MIRAMAR MINING
CORPORATION'S BACK RIVER PROJECT Table of Assay Results to
Accompany News Release Dated June 30, 2004
------------------------------------------------------------------
Core Gold Grade Hole-ID From (m) To (m) Length (m) (g/t)
------------------------------------------------------------------
04GSE001 177.6 190.8 13.2 4.6
------------------------------------------------------------------
Including 181.4 187.3 5.9 7.2
------------------------------------------------------------------
Including 190.0 190.8 0.8 14.0
------------------------------------------------------------------
And 195.5 207.1 11.6 7.2
------------------------------------------------------------------
Including 197.0 200.4 3.4 17.5
------------------------------------------------------------------
Including 205.0 207.1 2.1 6.4
------------------------------------------------------------------
Including 211.5 212.5 1.0 5.4
------------------------------------------------------------------
And 245.0 247.0 2.0 6.0
------------------------------------------------------------------
------------------------------------------------------------------
04GSE002 86.4 87.7 1.3 8.6
------------------------------------------------------------------
Including 87.1 87.7 0.6 14.5
------------------------------------------------------------------
And 90.8 92.5 1.7 3.9
------------------------------------------------------------------
------------------------------------------------------------------
04GSE003 208.0 208.6 0.6 9.8
------------------------------------------------------------------
And 225.0 225.3 0.3 12.3
------------------------------------------------------------------
And 233.6 234.2 0.6 23.2
------------------------------------------------------------------
And 250.2 252.4 2.2 12.6
------------------------------------------------------------------
Including 250.2 252.0 1.8 15.4
------------------------------------------------------------------
And 264.0 268.1 4.1 4.8
------------------------------------------------------------------
Including 264.0 267.2 3.2 5.8
------------------------------------------------------------------
And 273.4 276.3 2.9 3.6
------------------------------------------------------------------
Including 275.4 276.2 0.8 9.1
------------------------------------------------------------------
And 322.6 332.8 9.9 3.1
------------------------------------------------------------------
Including 322.6 323.2 0.6 13.0
------------------------------------------------------------------
Including 329.5 332.8 3.3 5.7
------------------------------------------------------------------
And 336.6 340.4 3.8 3.7
------------------------------------------------------------------
Including 336.6 338.0 1.4 8.1
------------------------------------------------------------------
And 343.5 344.5 1.0 13.6
------------------------------------------------------------------
------------------------------------------------------------------
04GSE004 64.0 75.0 11.0 4.2
------------------------------------------------------------------
Including 64.0 65.0 1.0 10.9
------------------------------------------------------------------
Including 68.0 69.0 1.0 5.7
------------------------------------------------------------------
Including 73.7 74.4 0.7 20.9
------------------------------------------------------------------
And 89.2 90.6 1.4 5.8
------------------------------------------------------------------
------------------------------------------------------------------
04GSE005 12.0 21.3 9.3 4.5
------------------------------------------------------------------
Including 13.8 14.7 0.9 15.2
------------------------------------------------------------------
Including 17.3 20.2 2.9 5.5
------------------------------------------------------------------
------------------------------------------------------------------
04GSE006 279.2 286.0 6.8 3.4
------------------------------------------------------------------
And 340.1 341.8 1.7 24.9
------------------------------------------------------------------
And 420.7 424.1 3.4 5.7
------------------------------------------------------------------
Including 421.3 424.1 2.8 6.6
------------------------------------------------------------------
------------------------------------------------------------------
04GSE007 33.8 51.0 17.2 3.8
------------------------------------------------------------------
Including 35.0 44.0 9.0 6.1
------------------------------------------------------------------
------------------------------------------------------------------
04GSE008 23.5 30.0 6.5 4.9
------------------------------------------------------------------
Including 26.5 30.0 3.5 7.0
------------------------------------------------------------------
And 66.8 77.0 10.2 8.0
------------------------------------------------------------------
Including 70.0 76.0 6.0 12.7
------------------------------------------------------------------
And 81.5 82.4 0.9 7.0
------------------------------------------------------------------
------------------------------------------------------------------
04GSE009 63.5 66.2 2.7 3.8
------------------------------------------------------------------
Including 65.8 66.2 0.4 18.8
------------------------------------------------------------------
And 74.0 78.2 4.2 6.5
------------------------------------------------------------------
Including 75.0 77.0 2.0 11.2
------------------------------------------------------------------
And 84.0 85.5 1.5 8.8
------------------------------------------------------------------
------------------------------------------------------------------
04GSE010 55.6 59.6 4.0 3.0
------------------------------------------------------------------
Including 57.8 58.8 1.0 7.8
------------------------------------------------------------------
And 92.0 94.5 2.5 16.8
------------------------------------------------------------------
Including 92.8 93.9 1.1 36.0
------------------------------------------------------------------
And 97.6 101.2 3.6 9.5
------------------------------------------------------------------
Including 97.6 99.3 1.7 19.2
------------------------------------------------------------------
And 115.7 123.7 8.0 10.2
------------------------------------------------------------------
Including 115.7 117.9 2.2 28.2
------------------------------------------------------------------
Including 120.2 121.0 0.8 7.3
------------------------------------------------------------------
And 133.0 138.4 5.4 4.7
------------------------------------------------------------------
Including 133.0 135.7 2.7 8.3
------------------------------------------------------------------
And 169.4 172.4 3.0 3.8
------------------------------------------------------------------
Including 170.4 171.4 1.0 6.9
------------------------------------------------------------------
------------------------------------------------------------------
04GSE011 11.0 16.0 5.0 4.0
------------------------------------------------------------------
Including 12.5 13.6 1.1 10.3
------------------------------------------------------------------
And 26.0 28.4 2.4 5.8
------------------------------------------------------------------
Including 27.4 28.4 1.0 10.7
------------------------------------------------------------------
And 31.0 31.6 0.6 9.7
------------------------------------------------------------------
And 38.1 41.0 2.9 4.3
------------------------------------------------------------------
Including 38.1 38.7 0.6 13.2
------------------------------------------------------------------
And 43.9 49.1 5.2 8.4
------------------------------------------------------------------
Including 45.0 49.1 4.1 9.6
------------------------------------------------------------------
And 51.6 54.5 2.9 8.6
------------------------------------------------------------------
Including 51.6 53.0 1.4 15.6
------------------------------------------------------------------
------------------------------------------------------------------
04GSE012 9.5 10.6 1.1 15.0
------------------------------------------------------------------
Including 10.3 10.6 0.3 47.5
------------------------------------------------------------------
And 13.7 18.1 4.4 3.4
------------------------------------------------------------------
Including 13.7 14.5 0.8 11.1
------------------------------------------------------------------
------------------------------------------------------------------
04GSE013 7.1 10.2 3.1 7.6
------------------------------------------------------------------
Including 7.1 9.2 2.1 9.6
------------------------------------------------------------------
And 19.5 24.4 4.1 36.5
------------------------------------------------------------------
Including 20.3 22.6 2.3 74.0
------------------------------------------------------------------
And 29.6 40.0 10.4 5.9
------------------------------------------------------------------
Including 34.1 39.0 4.9 10.9
------------------------------------------------------------------
------------------------------------------------------------------
04GSE014 5.0 10.7 5.7 4.3
------------------------------------------------------------------
Including 9.0 10.7 1.7 9.1
------------------------------------------------------------------
And 17.0 17.3 0.3 10.9
------------------------------------------------------------------
And 22.4 27.1 4.7 12.8
------------------------------------------------------------------
Including 23.2 27.1 3.9 14.9
------------------------------------------------------------------
------------------------------------------------------------------
04GSE015 451.4 454.6 3.2 5.1
------------------------------------------------------------------
Including 451.4 452.3 0.9 15.5
------------------------------------------------------------------
And 477.9 478.5 0.6 11.1
------------------------------------------------------------------
------------------------------------------------------------------
04GSE016 No significant intercepts
------------------------------------------------------------------
------------------------------------------------------------------
04GSE017 159.1 160.9 1.8 4.9
------------------------------------------------------------------
Including 159.1 160.1 1.0 7.7
------------------------------------------------------------------
And 166.2 172.0 5.8 3.5
------------------------------------------------------------------
Including 166.3 167.3 1.0 7.3
------------------------------------------------------------------
And 228.2 230.2 2.0 6.5
------------------------------------------------------------------
Including 234.8 235.6 0.8 10.5
------------------------------------------------------------------
------------------------------------------------------------------
04GSE018 30.8 31.6 0.8 6.2
------------------------------------------------------------------
And 57.4 63.7 6.3 12.0
------------------------------------------------------------------
Including 59.3 60.7 1.4 47.5
------------------------------------------------------------------
And 72.3 93.0 20.7 12.4
------------------------------------------------------------------
Including 73.1 78.0 4.9 12.3
------------------------------------------------------------------
Including 83.0 85.1 2.1 37.2
------------------------------------------------------------------
Including 87.8 91.8 4.0 24.0
------------------------------------------------------------------
------------------------------------------------------------------
04GSE019 110.0 126.8 16.8 4.0
------------------------------------------------------------------
Including 115.5 116.5 1.0 17.0
------------------------------------------------------------------
Including 121.6 123.3 1.7 13.6
------------------------------------------------------------------
Including 143.6 144.8 1.2 6.0
------------------------------------------------------------------
And 155.6 157.5 1.9 8.4
------------------------------------------------------------------
Including 155.6 156.6 1.0 14.5
------------------------------------------------------------------
And 167.0 173.2 6.2 10.6
------------------------------------------------------------------
Including 167.0 169.9 2.9 19.9
------------------------------------------------------------------
------------------------------------------------------------------
04GSE020 67.7 69.0 1.3 5.0
------------------------------------------------------------------
And 130.9 131.8 0.9 6.7
------------------------------------------------------------------
------------------------------------------------------------------
04GSE021 117.0 131.8 14.8 4.6
------------------------------------------------------------------
Including 117.0 118.4 1.4 9.3
------------------------------------------------------------------
Including 120.9 123.0 2.1 6.1
------------------------------------------------------------------
Including 128.3 131.8 3.5 9.1
------------------------------------------------------------------
And 137.4 152.3 14.9 3.3
------------------------------------------------------------------
Including 144.3 147.0 2.7 8.2
------------------------------------------------------------------
Including 150.1 151.5 1.4 8.0
------------------------------------------------------------------
And 155.3 166.9 11.6 3.4
------------------------------------------------------------------
Including 155.3 157.0 1.7 7.8
------------------------------------------------------------------
Including 159.1 159.9 0.8 7.6
------------------------------------------------------------------
Including 162.6 163.4 0.8 6.5
------------------------------------------------------------------
And 169.8 174.2 4.4 11.3
------------------------------------------------------------------
Including 169.8 171.7 1.9 23.9
------------------------------------------------------------------
And 176.4 177.3 0.9 10.7
------------------------------------------------------------------
And 181.6 189.6 8.0 8.0
------------------------------------------------------------------
Including 181.6 184.7 3.1 12.0
------------------------------------------------------------------
Including 187.9 188.5 0.6 33.0
------------------------------------------------------------------
------------------------------------------------------------------
04GSE022 80.2 82.2 2.0 74.4
------------------------------------------------------------------
Including 81.5 82.2 0.7 212.8
------------------------------------------------------------------
And 140.6 144.5 3.9 9.4
------------------------------------------------------------------
Including 140.6 141.8 1.2 24.5
------------------------------------------------------------------
And 165.9 171.8 5.9 7.9
------------------------------------------------------------------
Including 169.3 171.8 2.5 17.0
------------------------------------------------------------------
And 178.7 181.0 2.3 6.7
------------------------------------------------------------------
Including 178.7 179.5 0.8 15.8
------------------------------------------------------------------
------------------------------------------------------------------
04GSE023 No significant intercepts
------------------------------------------------------------------
------------------------------------------------------------------
04GSE024 152.6 155.2 2.6 17.3
------------------------------------------------------------------
And 158.0 163.1 5.1 4.7
------------------------------------------------------------------
Including 158.7 161.4 2.7 6.4
------------------------------------------------------------------
And 165.1 169.2 4.1 4.9
------------------------------------------------------------------
Including 165.1 165.8 0.7 15.7
------------------------------------------------------------------
Including 175.3 176.4 1.1 5.3
------------------------------------------------------------------
And 178.7 180.1 1.4 12.7
------------------------------------------------------------------
And 197.0 213.8 16.8 36.3
------------------------------------------------------------------
Including 199.8 205.2 5.4 73.5
------------------------------------------------------------------
Including 208.5 212.7 4.2 48.5
------------------------------------------------------------------
And 218.1 222.2 4.1 3.6
------------------------------------------------------------------
Including 218.1 219.6 1.5 8.1
------------------------------------------------------------------
Intercepts reported at 1 g/t cut-off with a maximum inclusion of
2m. Higher grade sections reported at a 5 g/t gold cut-off.
DATASOURCE: Miramar Mining Corporation CONTACT: Anthony P. Walsh,
President & CEO, Miramar Mining Corporation, Tel: (604)
985-2572, Fax: (604) 980-0731, Toll Free: 1-800-663-8780, Email:
Copyright