NUNAVUT - Vancouver-based CUMBERLAND RESOURCES plans to spend $3.9 million on exploration at its 100%-owned Meadowbank gold project. A two-phase program, including 9,000 metres of diamond drilling, is planned. Drilling will focus on increasing gold resources and reserves at the recently discovered Cannu zone and other targets along the local trend.
The Cannu zone is a high-grade, near-surface area of mineralization discovered in the fall of 2005. It may be a 350-metre northern extension to the reserves defined for the proposed Portage open pit. The best core sample assayed 31.81 g/t Au over 4.10 metres. The longest intersection was 14.83 metres averaging 10.37 g/t Au.
Cumberland has completed a bankable feasibility study for the US$235-million Meadowbrook mine. The company is currently in the permitting process and negotiations for bank financing. If the permits are received early this year, the mine could begin producing in 2008 from three open pits. Over the life of the mine, a production rate of 330,000 oz/year at a cost of US$201/oz is planned. The deposit has proven and probable reserves estimated at 21.32 million tonnes at 4.2 g/t Au, or 2.89 million oz. There are 22.19 million tonnes grading 4.8 g/t Au in the measured and indicated categories.
The latest Meadowbank technical report is posted at www.CumberlandResources.com.