Miramar Mining Corporation
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AMEX : MNG

Miramar Mining Corporation

June 09, 2005 08:35 ET

Miramar Intercepts Outstanding Widths & Grades in Step-out Drilling at Madrid

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 9, 2005) -

Results include 11.5g/t Gold over 66.5m (or 0.34 oz/ton over 218 feet) in 100m Step-out hole

Miramar Mining Corporation (TSX:MAE)(AMEX:MNG) today announced results from a further 23 holes drilled to upgrade and expand the resources within the western portion of the Madrid deposit at its Hope Bay Project in Nunavut. Two holes were drilled to test exploration targets. The remaining 21 drill holes were designed to improve Miramar's understanding of under drilled portions Madrid and to begin stepping out beyond the limits of previous drilling. Also reported are four holes from the Doris deposit.

The most outstanding result in this program was obtained from drill hole 05PMD328, which intercepted 11. 5g/t gold over 66.5m at a depth of approximately 275m below surface. "This is the best hole drilled at Hope Bay to date and in combination with other drilling at Madrid, in particular hole 04PMD274, strengthens Madrid's potential to become a major gold producer on the Hope Bay belt." said Tony Walsh, President & CEO.

While geologic interpretation is on-going, the estimated true thickness of this new intercept is at least 60m. Hole 05PMD328 is a 100m step out from a 2004 hole that intercepted 9.8g/t over 64.2m, suggesting potential for significant dimensions to this good grade, exceptionally thick portion of the Madrid deposit. These intercepts are indicators of further resource additions within the Madrid deposits at relatively shallow depths.

One of three known districts that comprise the Hope Bay Project, Madrid (11km of favourable structure identified to date) contained more than 3 million oz of gold prior to the 2005 drilling in approximately 2km of strike length.. The 2005 drilling is focused on the western portion of the Madrid deposit, 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 will examine production levels of 200,000 oz of gold per year immediately following the proposed high grade Doris North mine.

Gold mineralization at Madrid consists of disseminated to stock work sulphide replacement mineralization which is similar to a number of deposits that 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.

"This expansion of the widest, highest grade portion of the Madrid deposit is very exciting," said Tony Walsh, "Today's results demonstrate that there is excellent potential to add to the substantial resources already defined at Madrid. In addition, the in-fill drilling continues to advance the upper portions of the Madrid deposit towards standards suitable for inclusion in a feasibility study evaluating the potential for sustained significant gold production from the Hope Bay belt."

Highlights of the last drill results are provided below, and complete results are attached.



Hole From To Core Gold Grade
ID (m) (m) Length (m) (g/t)
--------- ---- ---- --------- ----------
05PMD316 380.1 392.9 12.8 5.4
Including 380.1 386.0 5.9 8.3

05PMD324 280.5 284.0 3.5 14.7
And 324.0 328.0 4.0 14.1

05PMD328 417.0 483.5 66.5 11.5
Including 417.0 457.6 40.6 11.7
Including 418.0 438.0 20.0 12.1
Including 441.0 457.6 16.6 13.7
Including 449.0 457.6 8.6 21.5
Including 462.0 483.5 21.5 13.3

05PMD331 178.0 195.6 17.6 8.5
Including 178.0 184.0 6.0 12.2


TECHNICAL INFORMATION

Madrid Deposit

The Madrid deposit is the largest of the three gold deposits on the Hope Bay belt and has contributed more than three million new ounces of gold to Miramar's resource base over the past four years as a result of the thicknesses of the mineralized zones, which are typically 20-30m and locally in excess of 60m thick.

Gold mineralization at Madrid consists of disseminated to stock work sulphide replacement 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 Naartok zone is one of these mineralized zones that comprise the Madrid mineralization. The work program completed in the first half of 2005 at Naartok portion of the Madrid deposit has focused on a better definition of this mineralization and increasing the confidence in the grade distribution within the resources, prerequisites for upgrading a significant portion of these resources to the indicated category and inclusion in a feasibility study.

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 volcanic rocks, which are similar to the rocks that host the gold mineralization at Madrid. The geologic similarities between Madrid and these other deposits, mentioned above, suggest that 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 838,000oz of gold at a grade of 5.5 g/t with an additional 2.6 million oz of gold at a grade of 5.4g/t in the inferred category, which was a one million oz increase over the year-end 2003 estimate.

Madrid 2005 Program

The 2005 work program for the Madrid area has three objectives (1) to in-fill the upper 250m of the western Madrid resource (Naartok West & East) with a view to upgrading it to an indicated resource 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.

Considerable progress towards the first objective was announced in a news release dated May 24, 2005. The work reported in this news release was primarily directed toward in-fill drilling of the poorly defined near surface portion of the Naartok East resource, and step out drilling beyond the limits of the current resource. This work was targeted in areas where 2004 drilling returned exceptional thicknesses and grades. The most positive development from this most recent drilling is the extension of the wide, good grade mineralization intercepted in the 2004 drill hole 04PMD274, which intercepted 9.8g/t gold over 64.2m at depths of only 275m below surface. In a 100m step out from this intersection, hole 05PMD328 intercepted 11.5g/t gold over 66.5m, including three higher grade sections separated by lower grade intervals. The style of mineralization in 05PMD328 is very similar to that in 04PMD274 and suggests a trend of higher grade, thicker mineralization. In addition, drilling in the upper 250m portion of Naartok East reduced drill spacing from more than 100m to approximately 50m in critical areas. Historically, Naartok East has returned wide zones of lower grade mineralization with some higher grade intercepts that could not be correlated due to the wide drill spacing. The 2005 in-fill drilling appears to be defining up to three sub-parallel higher grade zones within Naartok East that may enhance the prospectively of this area for inclusion in future economic studies. The recently completed program was primarily directed toward in-fill and resource expansion drilling with most of the exploration drilling planned for the summer program.

Additional drilling is being planned for the summer of 2005 to continue to in-fill and expand the overall resource at Madrid and test selected high priority exploration targets.

Doris 2005 Drilling

Results of the 2005 Doris Central drilling were announced on April 14 and May 9, 2005. Four additional holes were drilled subsequent to these news releases to test for potential extensions to the mineralization down plunge. All four holes intersected quartz veining and mineralization with localized gold values, but appear to limit the potential for significant down plunge extensions to the mineralization at Doris Central.

Highlights of these four drill holes are provided below, and complete results are attached.



Hole From To Core Gold Grade
ID (m) (m) Length (m) (g/t)
--------- ---- ---- --------- ----------
05TDD595 231.5 236.0 4.5 5.6
Including 233.0 235.0 2.0 11.0

05TDD598 199.0 207.2 8.2 6.1
Including 199.0 200.0 1.0 22.1


As previously reported, as a result of the 2005 drilling the bulk of the Doris Central deposit has been drilled off at 25m centers and mineralization was extended into areas outside the previous resource limits, particularly in the southern portion of the deposit. With the completion of this program, new resource estimates are being prepared for Doris Central to permit its inclusion in the feasibility study on the Phase 2 development of the Hope Bay belt.

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, production financing. 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 has already been 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. The analytical method for the gold analyses is gravimetric assay done by TSL Laboratories in Saskatoon, with metallic screen assays for all samples assaying over 20 g/t gold. Check assays are completed by ALS Chemex in North Vancouver.

Assay intervals reported are drill core lengths. Geologic interpretation of drill results is underway. However, it is estimates that true widths would be at least 70-80% of reported core lengths.

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 costs and results of this work and statements regarding the 2005 work program, the proposed feasibility study, 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," "aims," "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. Accordingly, resource information reported in this disclosure may not be comparable to similar information reported by United States companies. The term "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 disclosure uses the term "inferred resources". While this term is recognized by Canadian regulations concerning disclosures by mining companies, the U.S. Securities and Exchange Commission does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of the "inferred resources" will ever be upgraded to a high category. Under Canadian rules, estimates of "inferred resources" may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that part or all of an "inferred resource" exist or are economically or legally feasible.

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



Miramar Mining Corporation
--------------------------
Assay Results for Madrid Area to Accompany Press Release Dated
June 9, 2005

---------------------------------------------------------------------
Hole-ID Area From (m) To (m) Core Length (m) Gold Grade (g/t)
---------------------------------------------------------------------
05PMD316 West 380.1 392.9 12.8 5.4
---------------------------------------------------------------------
Including 380.1 386.0 5.9 8.3
---------------------------------------------------------------------
Including 390.5 392.0 1.5 7.4
---------------------------------------------------------------------
And 504.1 505.1 1.0 26.0
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD317 East 120.8 125.4 4.6 5.4
---------------------------------------------------------------------
Including 120.8 122.7 1.9 10.4
---------------------------------------------------------------------
Including 205.1 205.9 0.8 7.2
---------------------------------------------------------------------
And 218.6 221.5 2.9 5.5
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD320 East 210.0 211.5 1.5 3.2
---------------------------------------------------------------------
And 229.1 254.6 25.5 2.6
---------------------------------------------------------------------
Including 233.0 234.0 1.0 6.0
---------------------------------------------------------------------
Including 241.0 244.5 3.5 6.1
---------------------------------------------------------------------
Including 253.0 254.0 1.0 7.3
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD321 West 57.5 57.8 0.3 42.9
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD322 119.6 120.7 1.1 4.1
---------------------------------------------------------------------
And 128.8 129.8 1.0 3.9
---------------------------------------------------------------------
Including 163.6 164.1 0.5 7.4
---------------------------------------------------------------------
Including 169.1 169.7 0.6 7.3
---------------------------------------------------------------------
Including 176.2 177.3 1.1 6.7
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD324 East 183.3 185.0 1.7 17.6
---------------------------------------------------------------------
And 219.5 221.0 1.5 5.3
---------------------------------------------------------------------
And 227.0 238.0 11.0 4.3
---------------------------------------------------------------------
Including 232.5 235.5 3.0 8.2
---------------------------------------------------------------------
And 264.0 273.0 9.0 5.2
---------------------------------------------------------------------
Including 264.0 267.0 3.0 10.3
---------------------------------------------------------------------
And 280.5 284.0 3.5 14.7
---------------------------------------------------------------------
And 288.0 291.0 3.0 3.8
---------------------------------------------------------------------
Including 288.6 289.7 1.1 7.6
---------------------------------------------------------------------
And 324.0 328.0 4.0 14.1
---------------------------------------------------------------------
Including 327.0 328.0 1.0 45.4
---------------------------------------------------------------------
And 335.0 341.8 6.8 3.4
---------------------------------------------------------------------
Including 336.0 337.0 1.0 9.1
---------------------------------------------------------------------
Including 341.0 341.8 0.8 9.1
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD325 East 51.5 62.3 10.8 2.5
---------------------------------------------------------------------
And 130.5 131.0 0.5 7.2
---------------------------------------------------------------------
And 153.5 156.0 2.5 6.7
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD326A East 245.4 246.1 0.7 4.1
---------------------------------------------------------------------
And 260.4 265.7 5.3 3.3
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD327 East 87.3 90.5 3.2 4.2
---------------------------------------------------------------------
Including 87.3 89.0 1.7 6.4
---------------------------------------------------------------------
And 170.5 174.5 4.0 4.3
---------------------------------------------------------------------
Including 170.5 172.0 1.5 5.3
---------------------------------------------------------------------
And 199.0 204.0 5.0 3.1
---------------------------------------------------------------------
Including 202.0 202.7 0.7 6.3
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD328 East 417.0 483.5 66.5 11.5
---------------------------------------------------------------------
Including 417.0 457.6 40.6 11.7
---------------------------------------------------------------------
Including 418.0 438.0 20.0 12.1
---------------------------------------------------------------------
Including 441.0 457.6 16.6 13.7
---------------------------------------------------------------------
Including 449.0 457.6 8.6 21.5
---------------------------------------------------------------------
Including 462.0 483.5 21.5 13.3
---------------------------------------------------------------------
Including 464.4 465.7 1.3 127.6
---------------------------------------------------------------------
Including 473.0 482.0 9.0 11.5
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD329 East No significant assays
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD330 East 271.0 272.0 1.0 26.0
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD331 East 131.0 134.0 3.0 6.5
---------------------------------------------------------------------
Including 131.9 134.0 2.1 8.9
---------------------------------------------------------------------
And 167.6 170.5 2.9 7.7
---------------------------------------------------------------------
Including 168.0 169.0 1.0 15.7
---------------------------------------------------------------------
And 178.0 195.6 17.6 8.5
---------------------------------------------------------------------
Including 178.0 184.0 6.0 12.2
---------------------------------------------------------------------
Including 187.0 195.6 8.6 7.4
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD332 East No significant assays
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD333 East No significant assays
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD334 East 169.6 173.0 3.4 3.0
---------------------------------------------------------------------
And 176.0 189.5 13.5 2.6
---------------------------------------------------------------------
Including 177.5 179.0 1.5 5.7
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD335 Exploration Assays Pending
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD336 East 271.0 273.5 2.5 4.7
---------------------------------------------------------------------
And 336.6 346.0 9.4 5.4
---------------------------------------------------------------------
Including 338.0 340.0 2.0 13.4
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD337 Exploration 105.1 107.5 2.4 6.1
---------------------------------------------------------------------
And 149.8 154.5 4.7 5.3
---------------------------------------------------------------------
Including 149.8 151.7 1.9 10.1
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD338 West 23.0 24.3 1.3 2.8
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD339 West No significant assays
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD340 East 33.0 34.5 1.5 3.3
---------------------------------------------------------------------

---------------------------------------------------------------------
05PMD341 East 11.0 20.5 9.5 3.2
---------------------------------------------------------------------



Miramar Mining Corporation
--------------------------
Assay Results for Doris Central Area to Accompany Press Release
Dated June 9, 2005

---------------------------------------------------------------------
Hole-ID Zone From (m) To (m) Core Length (m) Gold Grade (g/t)
---------------------------------------------------------------------
05TDD595 233.0 236.0 3.0 8.7
---------------------------------------------------------------------
Including 233.0 235.0 2.0 11.1
---------------------------------------------------------------------

---------------------------------------------------------------------
05TDD596 149.0 149.9 0.9 6.7
---------------------------------------------------------------------
And 183.0 185.5 2.5 5.5
---------------------------------------------------------------------
Including 184.6 185.5 0.9 7.8
---------------------------------------------------------------------

---------------------------------------------------------------------
05TDD597 No significant assays
---------------------------------------------------------------------

---------------------------------------------------------------------
05TDD598 199.0 201.0 2.0 13.0
---------------------------------------------------------------------
Including 199.0 200.0 1.0 22.1
---------------------------------------------------------------------
And 204.8 207.2 2.4 9.5
---------------------------------------------------------------------
Including 206.0 207.2 1.2 17.1
---------------------------------------------------------------------


Please note: There are 4 maps available on CCNMatthews' website available at the following links:

http://www2.ccnmatthews.com/database/fax/2000/maemap1.pdf

http://www2.ccnmatthews.com/database/fax/2000/maemap2.pdf

http://www2.ccnmatthews.com/database/fax/2000/maemap3.pdf

http://www2.ccnmatthews.com/database/fax/2000/maemap4.pdf

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