Miramar Mining Corporation
TSX : MAE
AMEX : MNG

Miramar Mining Corporation

May 24, 2005 13:41 ET

Miramar Intercepts Near-Surface, High-Grade Gold in Madrid Deposit at Hope Bay

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 24, 2005) - Miramar Mining Corporation (TSX:MAE)(AMEX:MNG) -

Results include 23.2 g/t over 15.9m and 18.7 g/t over 19.9m within 50m of surface

Miramar Mining Corporation today announced results from 32 holes drilled to upgrade and expand the resources within the western portion of the Madrid deposit at its Hope Bay Project in Nunavut. These drill holes were designed to upgrade the confidence in the areas tested to the indicated category, suitable for inclusion in a feasibility study. Overall, the results met the Company's objectives.

One of three deposits forming the Hope Bay Project, the Madrid deposit contains more than 3 million oz of gold in approximately 2km of strike, out of an 11km of favourable structure identified to date. Particularly encouraging in these results is the identification of wide, high-grade gold mineralization within 50m of surface in the western portion of the Madrid deposit, areas that could be amenable to open pit mining. The western portion of the Madrid deposit is one of three areas targeted for inclusion in a feasibility study for the Phase 2 development of the Hope Bay belt. The Phase 2 study is targeting production levels of 200,000 oz of gold per year immediately following the mining of the proposed high grade Doris North deposit.

"The discovery of wide zones of near-surface, high-grade gold mineralization in the Madrid deposit is very encouraging," said Tony Walsh, Miramar's President & CEO. "The results reported today should ensure that the Madrid deposit makes a valuable contribution toward the Phase 2 feasibility study planned for completion in 2006. This study is focussed on demonstrating gold production levels in excess of 200,000 oz per year following the proposed mining of the high-grade Doris North deposit."

Highlights of the in-fill drilling are provided below, and complete results are attached.



Hole From To Core Gold Grade
ID (m) (m) Length (m) (g/t)
--------- ---- ---- --------- ----------
05PMD288 42.1 67.4 25.3 15.1
Including 51.5 67.4 15.9 23.2

05PMD291 125.6 131.2 5.6 19.6

05PMD293 195.5 207.0 11.5 15.9
Including 197.8 204.8 7.0 25.0

05PMD296 241.0 266.2 25.2 15.3
Including 241.0 260.9 19.9 18.7

05PMD297 310.3 314.0 3.7 59.1
Including 313.4 314.0 0.6 362.0

05PMD299 37.0 43.0 6.0 18.1

05PMD304 220.0 258.0 38.0 6.3
Including 229.9 247.5 17.6 9.7

05PMD308 335.7 341.3 5.6 16.1

05PMD309 111.0 138.8 27.8 5.6
Including 111.0 127.9 16.9 7.2


Madrid Deposit

The Madrid deposit is the largest of the three gold deposits on the Hope Bay belt and has contributed almost three million new ounces of gold to Miramar's resource base over the past four years. This exceptional discovery rate is a result of the good grades and significant thicknesses of the mineralized zones, which are typically 20-30m and locally in excess of 60m thick, resulting in large resource additions as mineralization is extended along strike and down dip. To date, mineral resources have been identified over 2km of strike and to depths of more than 500m, and all areas remain wide open to further increases both in the vicinity of the current resources and along the balance of the 11km mineralized trend identified to date.

The style of mineralization in the Madrid area is sulphide replacement of favourable volcanic rocks in proximity to a major structure. Sulphide replacement deposits have been and continue to be major contributors to Canadian gold production, and include such outstanding deposits as the Dome Mine's Paymaster 36 Zone, Hoyle Pond Mine's 1060 Zone, Kerr-Addison Mine flow ore, and the Holt McDermott & Holloway mines. Each of these sulphide replacement zones is associated with high iron-high titanium mafic volcanics, similar to the rocks hosting the Madrid mineralization and have been or are major centres of gold production. The geologic similarities between Madrid and these other deposits suggest the Madrid area is a highly prospective geologic environment for the definition of a world class gold deposit.

Prior to the 2005 drilling, the Madrid deposit was estimated to contain an indicated resource of 838,000 oz of gold at a grade of 5.5 g/t and an additional 2.6 million oz of gold at a grade of 5.4 g/t in the inferred category, which was a one million oz increase over the year-end 2003 estimate.

Madrid Program

The 2005 work program for the Madrid area has three objectives (1) to in-fill the upper 250m of the western Madrid resource to indicated standards for inclusion in a feasibility study (2) to continue to expand the Madrid resource, building off the very successful 2004 program and (3) to explore relatively poorly drilled sections of the Madrid deposit for new centres of mineralization.

The work reported in this news release was primarily directed toward in fill drilling of the near surface portion of the currently defined resource to indicated standards. One positive development from this drilling has been the near surface intersection of high-grade gold mineralization over significant widths. Gold mineralization at Madrid consists of disseminated to stock work mineralization hosted in high iron, high titanium mafic volcanics in areas where the host volcanic strata have been altered to an assemblage of quartz-albite-sericite-dolomite and pyrite. Several zones of these strongly altered rocks are located in the hanging wall of the deformation zone, a regionally significant structure that is a main control on the distribution of the gold mineralization. The winter program at Naartok has focused on a better definition of this mineralization and increasing the confidence in the grade distribution within the resources, prerequisites for upgrading these resources to the indicated category and inclusion in a feasibility study.

Preliminary interpretation of the in-fill drill results suggests that the overall resource should be similar to that previously estimated in the area drilled, with some gains close to surface and some reductions in deeper areas.

Additional drilling is in process, and results for approximately 23 holes are outstanding from both the in-fill and step out portions of the Madrid program, and further drilling is planned for the summer to continue to in-fill and expand the overall resource at Madrid.

Miramar Mining Corporation

Miramar is a Canadian gold company that controls the Hope Bay project, the largest undeveloped gold project in Canada. The Hope Bay project extends over 1,000 sq. km. and encompasses one of the most prospective undeveloped greenstone belts in Canada.

Miramar aims to become an intermediate gold producer through the integrated development of the Hope Bay belt. In order to achieve this goal, while minimizing potential dilution and risk to shareholders, Miramar has developed a phased approach to maximizing gold production from the Hope Bay belt:



Phase 1: Short Term: Develop a small-scale, high-grade, low-cost,
high-return gold mine at Doris North with the objective
of generating significant cash flow, after capital
payback, which would be used to advance the subsequent
phases while minimizing equity dilution. Doris North is
projected to produce 155,000 oz of gold per year for two
years.

Phase 2: Medium Term: To extend and expand production levels by
developing the higher grade, more accessible areas of
the Boston, Doris and Madrid deposits, with a target
production level of approximately 200,000 oz of gold
per annum, generating cash flow anticipated to complete
Phase 3.

Phase 3: Longer Term: To further expand gold production by
maximizing the potential of the very large Madrid
deposit and the remainder of the Boston and Doris
deposits, to generate sustained production estimated to
be in the range of 350,000 to 400,000 oz of gold per
annum.


In parallel with these activities, Miramar intends to continue the exploration programs at Hope Bay to discover new deposits to contribute to a sustained intermediate production profile, while conducting grassroots exploration in cooperation with strategic partners.

Production from Doris North is subject to successful completion of permitting procedures and any options for production from Doris Central, Madrid or Boston would be subject to the successful completion of additional drilling, economic studies and permitting procedures, as well as availability of financing among other conditions.

2005 Hope Bay Program

Miramar's objective at Hope Bay in 2005 is to delineate sufficient resources to support a feasibility study for sustained significant gold production beyond the two-year mine life at the proposed Doris North project in three areas: upper Boston, Doris Central and western Madrid. While the upper Boston deposit is already drilled to standards suitable for inclusion in a feasibility study, additional drilling was required at Doris Central and Madrid to improve resource confidence levels for inclusion in feasibility studies. Programs totalling approximately 29,000m of drilling are well underway and, based on results, new resource estimates will be completed for incorporation into a feasibility study scheduled for completion in 2006. Expenditures on these components of the 2005 program are expected to total approximately $13 million. In addition, approximately $1.5 million will be spent on permitting the Doris North project and community relations, and a further $2.7 million on work related to preparing the feasibility study for Phase 2 development.

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.

Additional Information

Diagrams and tables detailing some of the matters described herein are attached to this news release. If you are missing these, please download this news release from Miramar's website at http://www.miramarmining.com/, to which they are attached, or contact us at the numbers listed below. All other information previously released on the Hope Bay Project is also available on this website.

Forward Looking Statements

Statements relating to exploration work at the Hope Bay project and the expected results of this work and statements regarding the 2005 work program and production strategies 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," "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: 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, 2004 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.

All resource estimates reported in this disclosure are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the United States Securities and Exchange Commission, which permits U.S. mining companies in their SEC filings, to disclose only those mineral deposits that qualify as proven or probable "reserves" because a determination has been made based on an appropriate feasibility study that the deposits could be economically and legally extracted or produced, and, accordingly, resource information reported in this disclosure may not be comparable to similar information reported by United States companies. The terms "resource(s)" does not equate to "reserves" and normally may not be included in documents filed with the Securities and Exchange Commission, and investors are cautioned not to assume that "resources" will be converted into "reserves" in the future.

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

Anthony P. Walsh, President & CEO

To view the attached maps please click on the following link:

http://www2.ccnmatthews.com/database/fax/2000/mae0524.pdf



Miramar Mining Corporation
Assay Results for Madrid Area to Accompany Press Release
Dated May 24, 2005

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Hole-ID Area From To Core Length Gold Grade
(m) (m) (m) (g/t)
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05PMD288 Naartok West 42.1 67.4 25.3 15.1
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Including 51.5 67.4 15.9 23.2
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-----------------------------------------------------------------
05PMD289 Naartok West 60.5 62.0 1.5 11.2
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And 76.0 81.6 5.6 5.9
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Including 79.7 81.6 1.9 10.5
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And 92.0 116.0 24.0 4.4
-----------------------------------------------------------------
Including 99.0 100.5 1.5 12.1
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Including 103.8 106.0 2.2 8.7
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Including 109.0 111.6 2.6 9.9
-----------------------------------------------------------------

-----------------------------------------------------------------
05PMD290 Naartok West 75.0 85.9 10.9 3.0
-----------------------------------------------------------------
Including 77.0 78.5 1.5 11.1
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And 124.0 124.9 0.9 9.5
-----------------------------------------------------------------
Including 124.6 124.9 0.3 22.1
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And 135.8 137.5 1.7 8.3
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Including 135.8 137.2 1.4 9.8
-----------------------------------------------------------------
And 187.6 188.1 0.5 5.4
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05PMD291 Naartok West 86.5 91.7 5.2 3.3
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And 102.5 104.0 1.5 3.6
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And 117.4 118.0 0.6 11.2
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And 122.0 134.4 12.4 9.6
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Including 125.6 131.2 5.6 19.6
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05PMD292 Naartok West 100.6 101.1 0.5 11.8
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And 120.0 126.0 6.0 5.2
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Including 124.0 124.5 0.5 29.0
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And 132.5 134.0 1.5 11.8
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And 137.0 138.5 1.5 5.6
-----------------------------------------------------------------
And 177.8 183.7 5.9 5.3
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Including 177.8 178.3 0.5 40.3
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05PMD293 Naartok West 175.1 175.6 0.6 23.9
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And 195.5 207.0 11.5 15.9
-----------------------------------------------------------------
Including 197.8 204.8 7.0 25.0
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05PMD294 Naartok West 256.4 256.7 0.3 9.2
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Including 287.0 288.0 1.0 5.5
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And 308.2 315.4 7.2 4.7
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Including 309.3 309.7 0.4 71.3
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05PMD295 Naartok West 250.2 250.5 0.3 8.4
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And 253.5 255.0 1.5 6.4
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05PMD296 Naartok West 136.7 138.9 2.2 3.9
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Including 138.2 138.9 0.7 6.8
-----------------------------------------------------------------
And 187.0 188.5 1.5 4.4
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And 241.0 266.2 25.2 15.3
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Including 241.0 260.9 19.9 18.7
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Including 265.9 266.2 0.3 15.3
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05PMD297 Naartok West 283.2 286.7 3.5 4.2
-----------------------------------------------------------------
Including 284.2 285.4 1.2 8.2
-----------------------------------------------------------------
And 298.5 300.2 1.7 26.8
-----------------------------------------------------------------
And 310.3 314.0 3.7 59.1
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Including 313.4 314.0 0.6 362.0
-----------------------------------------------------------------
And 355.8 365.5 9.7 2.9
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Including 357.0 357.7 0.7 7.4
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Including 364.8 365.5 0.7 12.4
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05PMD298 Naartok West 86.5 91.5 5.0 6.5
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Including 90.0 91.5 1.5 16.7
-----------------------------------------------------------------
And 111.6 114.9 3.3 4.4
-----------------------------------------------------------------
Including 112.8 114.0 1.2 7.5
-----------------------------------------------------------------
And 148.0 152.5 4.5 4.0
-----------------------------------------------------------------
Including 148.0 149.5 1.5 5.6
-----------------------------------------------------------------
And 161.5 166.5 5.0 3.6
-----------------------------------------------------------------
Including 163.8 165.0 1.2 7.4
-----------------------------------------------------------------
And 169.5 175.4 5.9 4.3
-----------------------------------------------------------------
Including 172.5 175.4 2.9 7.2
-----------------------------------------------------------------
And 178.4 180.5 2.1 5.3
-----------------------------------------------------------------
Including 178.4 179.7 1.3 7.7
-----------------------------------------------------------------
And 206.1 206.4 0.3 3.7
-----------------------------------------------------------------
And 227.0 227.7 0.7 7.7
-----------------------------------------------------------------

-----------------------------------------------------------------
05PMD299 Naartok West 37.0 43.5 6.5 16.8
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Including 37.0 43.0 6.0 18.1
-----------------------------------------------------------------

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05PMD300 Naartok West 22.0 23.6 1.6 37.5
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And 28.0 31.0 3.0 3.8
-----------------------------------------------------------------
Including 29.5 31.0 1.5 5.3
-----------------------------------------------------------------
And 40.0 40.5 0.5 7.2
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05PMD301 Naartok East 32.6 33.0 0.4 2.9
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05PMD302 Naartok East 57.5 60.0 2.5 3.4
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Including 57.5 58.5 1.0 5.9
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05PMD303 Naartok West 208.2 209.0 0.8 3.1
-----------------------------------------------------------------
And 254.0 261.5 7.5 8.3
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05PMD304 Naartok East 211.5 212.6 1.1 7.0
-----------------------------------------------------------------
And 220.0 258.0 38.0 6.3
-----------------------------------------------------------------
Including 229.9 247.5 17.6 9.7
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Including 250.0 256.5 6.5 6.5
-----------------------------------------------------------------

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05PMD305 Naartok East 43.7 55.9 12.2 7.5
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Including 44.7 52.5 7.8 11.0
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05PMD306 Naartok East 149.3 151.3 2.0 6.6
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05PMD307 Naartok East 65.0 74.7 9.7 2.9
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Including 66.4 67.5 1.1 5.7
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05PMD308 Naartok West 325.5 341.3 15.8 6.9
-----------------------------------------------------------------
Including 332.7 333.6 0.9 5.0
-----------------------------------------------------------------
Including 335.7 341.3 5.6 16.1
-----------------------------------------------------------------
And 345.5 347.3 1.8 12.2
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05PMD309 Naartok East 44.4 45.4 1.0 7.0
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And 48.3 48.9 0.6 20.1
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And 111.0 138.8 27.8 5.6
-----------------------------------------------------------------
Including 111.0 127.9 16.9 7.2
-----------------------------------------------------------------
Including 132.0 133.4 1.4 8.3
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05PMD310 Naartok East 64.7 83.7 19.0 3.0
-----------------------------------------------------------------
Including 64.7 65.1 0.4 5.9
-----------------------------------------------------------------
Including 67.2 67.9 0.7 5.9
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Including 70.3 72.4 2.1 9.8
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05PMD311 Naartok West Abandoned & re-drilled as 05PMD312
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05PMD312 Naartok West 362.7 363.0 0.3 11.1
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And 365.4 366.2 0.8 7.6
-----------------------------------------------------------------
And 371.5 375.4 3.9 5.1
-----------------------------------------------------------------
Including 374.2 375.4 1.2 9.8
-----------------------------------------------------------------
And 379.0 380.8 1.8 5.3
-----------------------------------------------------------------
Including 379.6 380.8 1.2 7.1
-----------------------------------------------------------------
And 411.0 414.5 3.5 5.9
-----------------------------------------------------------------
Including 413.3 414.5 1.2 15.3
-----------------------------------------------------------------
And 442.5 445.0 2.5 8.6
-----------------------------------------------------------------
Including 443.7 445.0 2.5 15.6
-----------------------------------------------------------------

-----------------------------------------------------------------
05PMD313 Naartok East 120.7 150.4 29.7 3.7
-----------------------------------------------------------------
Including 120.7 122.0 1.3 9.5
-----------------------------------------------------------------
Including 130.8 134.0 3.2 5.3
-----------------------------------------------------------------
Including 143.5 148.0 4.5 4.9
-----------------------------------------------------------------

-----------------------------------------------------------------
05PMD314 Naartok East 98.5 110.0 11.5 2.9
-----------------------------------------------------------------
Including 99.0 100.0 1.0 6.2
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-----------------------------------------------------------------
05PMD315 Naartok East 213.0 222.9 9.9 4.7
-----------------------------------------------------------------
Including 214.0 215.0 1.0 9.3
-----------------------------------------------------------------
Including 219.0 222.0 3.0 6.1
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05PMD316 Naartok West Assays pending
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05PMD317 Naartok East Assays pending
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05PMD318 Naartok East 100.3 103.0 2.7 3.3
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Including 101.6 102.2 0.6 7.0
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-----------------------------------------------------------------
05PMD319 Naartok East 107.3 125.7 18.4 4.3
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Including 115.4 122.0 6.6 5.9
-----------------------------------------------------------------
And 143.1 149.0 5.9 4.2
-----------------------------------------------------------------
Including 143.1 145.5 2.4 7.4
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05PMD320 Naartok East Assays pending
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05PMD321 Naartok West Assays pending
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05PMD322 Naartok East Assays pending
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05PMD323 Naartok East 126.5 128.0 1.5 3.0
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