Miramar Mining Corporation

Miramar Mining Corporation

February 25, 2005 08:00 ET

Miramar Reports One Million Ounce Increase in Gold Resource in Madrid Area at Hope Bay




FEBRUARY 25, 2005 - 08:00 ET

Miramar Reports One Million Ounce Increase in Gold
Resource in Madrid Area at Hope Bay

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 25, 2005) -

Madrid Remains Open to Expansion, Focus shifting to Prioritizing
Development Strategies

Miramar Mining Corporation (TSX:MAE)(AMEX:MNG) today announced new
resource totals for the Hope Bay belt that incorporates new estimates
for the Madrid deposit. Using the same cut-off grades as in 2003, more
than one million ounces have been added to the Madrid resource during
2004. These new resource estimates provide the critical mass of ounces
that should allow Miramar to shift its focus from exploration to
developing strategies for production beyond the two-year scope of the
Doris North project. The Boston and Doris resources remain unchanged as
there are no material changes resulting from 2004 activities.

"We believe that the Hope Bay project remains one of the largest, best
grade undeveloped gold project in Canada and still has tremendous
upside, as demonstrated by the magnitude of the resource increases in
the Madrid area during 2004," said Tony Walsh, Miramar's President &
CEO. "These new estimates illustrate the tremendous potential of the
Hope Bay belt to continue to add gold resources as the existing Madrid
resources remain wide open to expansion. Further, at Madrid almost all
of these resources are contained within just 2km of strike of an overall
11km trend identified in the Madrid area. With 2.1 million ounces of
measured and indicated resource at Hope Bay and another 4.3 million
ounces of inferred resource, we are shifting our emphasis from
exploration to evaluating development options that will bring us closer
to our goal of achieving intermediate producer status."

Hope Bay Resources

The following table sets out the year-end mineral resource estimates for
the Hope Bay project.

Hope Bay Project Mineral Resource Estimates to December 31, 2004
(Includes Mineral Reserves at Doris North)

Category/Deposit Tonnes Gold Grade Contained Gold
---------------- ------- ---------- --------------
(000's) (g/t) (000's oz)
------- ----- ----------
Measured & Indicated Resources
Boston 1,387 15.4 687
Doris 763 23.9 586
Madrid 4,703 5.5 838
Sub-total Measured &
Indicated Resources 6,853 9.6 2,111

Additional Inferred Resources(1):
Boston 2,574 10.9 901
Doris 1,675 14.7 795
Madrid 14,959 5.4 2,602
Sub-total Additional
Inferred Resources(1) 19,208 7.0 4,298

(1)Inferred resources are in addition to measured and indicated

The increase in gold resources is primarily a reflection of successful
exploration initiatives in 2004 that were focussed on growing the Madrid
deposit. At Madrid, the contained measured and indicated ounces of gold
represents a 48% gain over the 2003 total, while the inferred ounces
have increased by 38% over last year to total 2.6 million ounces. No
changes were reported in the mineral resource at Doris as there was no
new drilling or at Boston as the in-fill drilling did not materially
change the current resource interpretation and the successful deep
drilling is too wide spaced to allow resource estimates to be prepared.
The 2004 contained ounces of gold noted above represents an 18% increase
in the overall Hope Bay total for 2003.

Madrid Resource Details

The updated resource estimates for the Madrid area at various cut-offs,
taking into account all of the 2004 drilling, are summarized below.

Madrid Resource Estimates at Various Cut-off Grades
as of December 31, 2004

Category & Cut-off Tonnes Gold Grade (g/t) Contained Gold (oz)
------------------ ------ ---------------- -------------------
2.0 g/t cut-off
Indicated 8,468,095 4.16 1,133,010
Inferred 27,053,092 4.08 3,552,172

3.0 g/t cut-off
(Base Case)
Indicated 4,702,983 5.54 837,747
Inferred 14,959,085 5.41 2,601,522

4.0 g/t cut-off
Indicated 2,840,963 6.91 631,055
Inferred 8,719,067 6.82 1,912,186

Development Outlook

Miramar's objective for producing gold at Hope Bay has always been
longer than the two year mine life at the proposed Doris North project.
The resource additions at Madrid in 2004 enable Miramar to focus on
developing a strategy for the phased development of the belt. With a
high number of intercepts returning thicknesses in excess of 25 meters,
Miramar views the Madrid deposit 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. "Our objective is to
demonstrate that the substantial resources and considerable thicknesses
of mineralization in the Madrid area should be sufficient to provide a
high level of sustained gold production, with average grades enhanced by
blending in higher grade material from the Boston and Doris deposits."

As part of its phased strategy for development, Miramar intends to
advance its evaluation of these options in 2005 by upgrading the
confidence level in the Madrid resources. Emphasis will be placed on
further expanding these resources and conducting economic evaluations
for the phased development of all the gold resources within the Hope Bay

2005 Work Program

Details of the 2005 work program at Hope Bay will be announced shortly.
The emphasis of the 2005 work will be to advance a significant portion
of the resources on the Hope Bay belt towards inclusion in economic
studies that support both the extension of the operating life of the
proposed Doris North operation, and the potential expansion of overall
production levels. "Clearly, the Madrid area plays a significant role in
these plans," said Mr. Walsh. "Having defined some very substantial
resources in the Madrid area, we now need to focus on getting these into
studies that demonstrate the economics of these ounces when blended with
the higher grade resources from the rest of the belt, in addition to
continuing to step out and expand the overall resource base in the
Madrid area."


On February 18, 2005 Miramar announced that it had filed its preliminary
project description for the Doris North project with the Nunavut Impact
Review Board. NIRB will determine whether to recommend to the Minister
of Indian & Northern Affairs Canada whether the project will be subject
to a Part 5 review under the Nunavut Land Claims Agreement. Miramar is
committed to working with all stakeholders to strive for success in
permitting the Doris North project.

Quality Assurance

All resource and reserve estimates have been prepared by the Miramar
Hope Bay Limited staff 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. Resource estimation models for the Hinge and Central zones
at Doris and the Madrid deposit were estimated utilizing three
dimensional block model methods, except for the South Suluk and South
Patch 14 areas, which were estimated utilizing a two dimensional
polygonal approach. As reported on February 17, 2003, resource
estimation models for Boston and Doris (excluding the Doris Hinge and
Doris Central zones) were estimated utilizing a two dimensional
polygonal approach. Capping grades were applied as determined by
geostatistical analysis. Cut-off grades for Doris and Boston vary from
5-8 g/t gold, depending on the zone and are detailed in the above
mentioned news release.

Measured resources were estimated only in the Boston B2 Zone where the
resource blocks have been undercut. Indicated resources generally lie
within 25 metres of a drill hole within detail drilled areas and
inferred resources generally lie no more than 50 metres from a drill
hole. The estimates for the Madrid area (except South Patch 14) were
reviewed by Roscoe Postle Associates Inc. in 2003-5, who believe the
estimates are prepared in accordance with applicable regulations. As
previously reported, the resources for Doris Central and Boston were
audited by independent resource consultant Geostat Systems Inc. of
Montreal in 2001. The resource estimates for Doris Hinge, Doris North
and South Patch were audited by independent resource consultant SRK
engineering of Toronto in 2002.

Included within the above numbers are approximately 300,000 ounces at a
grade of 8.4g/t gold that are included in possible pillars for mine
planning purposes. Pillars lie within 30 m of lake bottoms and are
unlikely to be mined without significant economic and permitting
challenges. The regulations for pillars under lakes in Nunavut require
the Mines Inspection Branch to provide a variance for mining within 100m
of a lake bottom. There can be no certainty that such a variance will be

Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral resource estimates do not account for
mineability, selectivity, mining loss and dilution. These mineral
resource estimates include inferred mineral resources that are normally
considered too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There is also no certainty that these inferred resources will
be converted to measured and indicated categories through further
drilling, or into mineral reserves once economic considerations are

Miramar Mining Corporation

Miramar is a Canadian gold mining company that controls Hope Bay, the
largest undeveloped gold deposit 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's goal is to build an intermediate gold production profile
through the sequential development of the Hope bay Project. 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, minimizing overall disturbance 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

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.

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 future 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," "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: 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.

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, and 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.

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

Please note: A map of the Madrid area and Madrid Longsection can be
viewed by clicking the following link:


Contact Information

    Miramar Mining Corporation
    Anthony P. Walsh
    President & CEO
    (604) 985-2572 or Toll Free: 1-800-663-8780
    (604) 980-0731 (FAX)