Hope Bay Gold Project - Nunavut

A Joint Venture between Hope Bay Gold Corporation and Miramar Mining Corporation recently acquired the Hope Bay project in Nunavut, which represents the first discovery of a major new Archean greenstone gold belt in Canada since the discovery of Hemlo in 1982 and the Yellowknife belt in 1938. Located some 685 km North of Yellowknife, the Hope Bay Belt is geologically comparable to the other major gold producing regions of Canada. The initial discovery of gold mineralization in 1992 led BHP to acquire virtually all of the Hope Bay belt. Over the subsequent 6 years, BHP expended C$85 million on exploration, including 180,000 meters of drilling, 2.3km of underground workings and a 27,000 tonne bulk sample, as well as extensive environmental and economic studies. Hope Bay Gold and Miramar acquired the Hope Bay property in December 1999 for a cost of C$27 million, considerably less than the C$85 million spent by BHP in exploring the property. They both hold 50% of the project, and share expenses equally. Hope Bay Gold is the manager of all exploration phases and Miramar will manage feasibility, construction and operations. The Hope Bay Joint Venture controls 1,117 sq. km., covering virtually the entire 80 km long Hope Bay and adjacent Elu greenstone belts. We believe that Hope Bay is one of the best-undeveloped gold projects in Canada. Work to date has defined a global resource in excess of three million ounces of gold in three principal deposits, each of which is open to extension along strike and to depth. A C$17 million work program for year 2000 focused on advancing a significant portion of the gold resource to a measured and indicated category. This will provide the basis for initiation of a feasibility study in 2001. The 2000 drill program was one of the largest undertaken in Canada last year, and is a clear indication of our confidence that Hope Bay will develop into a major gold producing district. The majority of the potential mineable areas known to date lie within 350m of surface and would be accessed through a combination of open pit and declines. Currently, development of a 1,800 to 2,000 tpd gold mine producing in excess of 300,000 ounces of gold per year at cash costs below $US200 per ounce is envisioned. In addition, the exploration potential on the 80 km gold belt at Hope Bay is clearly tremendous.