Miramar Mining Corporation

Miramar Mining Corporation

January 07, 2005 17:21 ET

Miramar Reports Results From Deep Drilling in Madrid Area of the Hope Bay Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MIRAMAR MINING CORPORATION

TSX SYMBOL: MAE
AMEX SYMBOL: MNG

JANUARY 7, 2005 - 17:21 ET

Miramar Reports Results From Deep Drilling in Madrid
Area of the Hope Bay Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 7, 2005) - Miramar
Mining Corporation (TSX:MAE)(AMEX:MNG)

Proceeds from Bluefish Sale Received and Placed in Reclamation Trust for
Con Mine

Miramar Mining Corporation (TSX:MAE)(AMEX:MNG) today announced the
results of its November drill program completed on the Naartok deposit
in the Madrid area of the Hope Bay project which was announced October
20, 2004. Miramar also announced the deposit of the proceeds from the
sale of the Bluefish power plant into reclamation trusts for the Con
Mine.

During November 2004, Miramar planned a four-hole step out drilling
program testing for potential to extend the Naartok mineralization in
the Madrid area to depth 150-200m beyond previously completed drill
holes. Only three holes of this campaign were completed; one hole
deviated beyond its tolerance and was abandoned. The other three holes
were successfully completed to target depths and all three encountered
widespread alteration and mineralization somewhat similar to that
encountered at shallower depths, but generally less intense and with
lower gold values. It would appear that these drill holes passed the
other side of a major structure or perhaps passed into less favourable
stratigraphy, resulting in lower grade gold values.

"Overall, the November drill results are disappointing," said Mr. Walsh.
"These holes appear to have crossed some form of geologic boundary that
is less favourable for gold mineralization. It is important to keep in
mind however, that these results do not take away from the tremendous
potential of the Naartok mineralization and the Madrid deposit in
general. The successes of 2004, where drilling has doubled or perhaps
even tripled the extent of the Naartok mineralization will give us
numerous targets to pursue in 2005 as the Naartok mineralization still
remains open in a number of directions.

Miramar views the Madrid area, particularly the Naartok zone, as having
the potential for a large scale open pit/underground operation. "We
believe the Madrid deposit can make a major contribution to the eventual
development of Miramar as a significant gold producer," said Mr. Walsh.
"The tremendous potential of the 11km 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."

The Madrid deposit is the largest of three major gold deposits that
contribute resources at Hope Bay. Resource estimates reported at the end
of 2003 contained an indicated resource of 565,000oz of gold at a grade
of 4.9g/t and an additional inferred resource of 1,886,000oz of gold
also at a grade of 4.9g/t. These estimates exclude the impact of the
drilling reported during 2004 that significantly increased the extent of
the known mineralization.

Gold values encountered in the November drilling are tabulated below.



Hole-ID From To Core Length Gold Grade
(m) (m) (m) (g/t)
-------- ----- ----- ----------- ----------
04PMD284 401.4 401.8 0.4 6.0

04PMD285 469.4 470.0 0.6 19.3
And 720.5 721.1 0.6 47.4
And 723.3 724.7 1.4 15.9

04PMD286 471.0 484.0 13.0 1.7
And 508.0 509.0 1.0 7.5


Bluefish Sale

Miramar also announced that it's wholly owned subsidiary, Miramar Con
Mine Ltd., has received the C$10 million proceeds from the sale of the
Bluefish hydroelectric generating plant near Yellowknife

As announced April 7, 2003, the Bluefish hydroelectric power plant
outside Yellowknife was sold to Northwest Territories Power Corporation
(the "Power Corporation") for consideration that included a cash amount
of $10 million payable on December 31, 2004. The $10 million was
received December 31, 2004 and placed in reclamation security trusts set
up to fund the abandonment and restoration of the Con Mine site, which
satisfies the security deposit obligations of Miramar Con Mine Ltd.
under its water licence for the Con Mine renewed effective July 30, 2000.

"The receipt of proceeds for the sale of the Bluefish hydroelectric
power plant provides that funds are set aside towards the abandonment
and reclamation of the Con Mine site," said Tony Walsh, Miramar's
President & CEO.

Miramar Con Ltd., as required by the Water Licence issued under the
Northwest Territories Waters Act, had provided a letter of credit for
$1.5 million as security for site reclamation. Upon deposit of the $10
million Bluefish proceeds into the reclamation security trusts on
December 31, 2004, DIAND has released Miramar Con Mine Ltd. from its
obligation to maintain a letter of credit under the water licence.

Permitting

On December 14, 2004 Miramar announced that the Minister of the Indian
and Northern Affairs Canada (INAC, formerly DIAND) had accepted the
report of the Nunavut Impact Review Board (NIRB) issued in August, 2004,
recommending that the Doris North project should not proceed on the
basis of the current application. NIRB's report to the Minister
identified five areas where additional information was required.

Miramar is nearing completion of the work required to address the issues
of concern to NIRB and anticipates making a new application to NIRB for
approval of the Doris North Project within the next few weeks.

Quality Assurance

The technical 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.

Miramar Mining Corporation

Miramar is a Canadian gold mining company that controls two of the
largest undeveloped gold deposits in Canada: the Hope Bay and Back River
projects in Nunavut. The Hope Bay project extends over 1,000 sq. km. and
encompasses one of the most prospective undeveloped greenstone belts in
Canada. At Back River, Miramar has an option to earn a 60% interest in a
property package that encompasses the George and Goose Lake gold
deposits.

Miramar's goal is to build an intermediate gold production profile
through the sequential development of its Arctic assets. Miramar
believes its objective of intermediate producer status can be achieved
through the development of the high grade Doris North deposit to
generate cash flow to pay for the mining infrastructure and fund the
subsequent development of a bulk tonnage operation at Madrid and a
satellite mining operation at Boston. Miramar's goal 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. In parallel with these development activities,
Miramar plans to expand resources on the belt through the expansion of
the known deposits and discoveries of new ones.

Any options for extending and expanding the life of the Doris North
operation would be subject to the successful completion of additional
drilling, economic studies and permitting procedures.

For more information on Miramar Mining Corporation and its projects,
visit our website at www.miramarmining.com.

To view the attached map please use the following link:

http://www2.ccnmatthews.com/database/fax/2000/mae0107.pdf

Forward Looking Statements

Statements relating to exploration work at the Hope Bay and Back River
projects and the expected results of this work and statements regarding
the plan to place the proceeds from the sale of Bluefish into a
reclamation security trust upon receipt from Power Corporation and the
sufficiency of funds to complete the abandonment and reclamation of the
Con Mine site 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,"
"satisfies," "potential," "goal," "objective," "prospective," and
similar expressions, or that events or conditions "will," "would,"
"may," "can," "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: the
possibility that actual costs of abandonment and reclamation could
exceed current estimates and exceed the amount of funds set aside in the
reclamation security trust, 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 if management's beliefs, estimates or opinions, or other
factors, should change.

This news release has been authorized by the undersigned on behalf of
Miramar Mining Corporation.

Anthony P. Walsh, President & CEO


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Miramar Mining Corporation
    Anthony P. Walsh
    President & CEO
    (604) 985-2572 or Toll Free: 1-800-663-8780
    (604) 980-0731 (FAX)
    Email: info@miramarmining.com
    Website: www.miramarmining.com