NUNAVUT - Vancouver-based MIRAMAR MINING reports disappointing results from the recent drilling program in the Madrid area of its Hope Bay project. One of the four holes drilled last November was abandoned, and the other three were completed to the target depth of 150-200 metres beyond previous holes.
The three completed holes encountered widespread alteration and mineralization somewhat similar to that encountered at shallower depths, but generally less intense and with lower gold values. The company said that it appears these drillholes passed the other side of a major structure or perhaps passed into less favourable stratigraphy, resulting in lower grade gold values.
Miramar believes the Madrid area has the potential for a large-scale open pit/underground operation. It is the largest of three major gold deposits that make up the resources at the Hope Bay project on the Arctic coast.
"We believe the Madrid deposit can make a major contribution to the eventual
development of Miramar as a significant gold producer," said Miramar president and CEO Anthony Walsh. "The tremendous potential of the 11-km-long Madrid trend, which remains open to the north and south, combined with the potential to expand existing deposits, bodes well for continued exploration successes."
Resource estimates reported at the end of 2003 for the Madrid deposit contained an indicated resource of 565,000 oz of gold at a grade of 4.9 g/t and an additional inferred resource of 1,886,000 oz of gold at the same grade. These numbers will be revised upward to reflect the results of this year's drill program.
For more information on the company and its projects, visit www.MiramarMining.com.
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