NUNAVUT – CUMBERLAND RESOURCES of Vancouver has budgeted $3.5 million for the 2005 exploration program on its 100%-owned Meadowbank gold project. Beginning in April a two-stage drilling program is planned to increase reserves.
The Meadowbank feasibility study released in February projects production at 316,000 oz of gold per year beginning in mid-2008. Proven and probable open pit reserves are 21.9 million tonnes containing 2.77 million oz of gold. Mining would proceed at a rate of 2.73 million tonnes/year over 8.3 years. Total cash costs over the life of the mine are estimated to be US$224/oz. The study assumed a long-term gold price of US$400/oz, and an exchange of US$0.75/Cdn$1.00. The start-up date depends on Cumberland obtaining final permits and licences in early 2006.
Drilling results will be posted at www.CumberlandResources.com as they become available.