BAKER LAKE, Nunavut Cumberland Resources has upped this year's spending commitment to $10.5 million on its Meadowbank gold project. The money will be used to complete a feasibility study and mine permitting requirements. Over 16,000 m of infill drilling is also planned.
There are five known gold deposits on the Meadowbank property. Preliminary estimates completed last year indicate the project could produce 250,000 oz Au annually at a cash cost of US$166/oz. The mine might have an eight-year life and be primarily an open pit producer. The property had proven and probable reserves of 5.5 million tonnes grading 5.44 g/t Au plus measured, indicated and inferred resources of over 18 million tonnes with close to 3 million contained ounces. New reserve figures are expected in the second quarter of 2003.
The ore is non-refractory and recoverable by C-I-P methods.
Cumberland's investor relations department is headed by Joyce Musial at 604-608-2557.