NNSL (Jan 12/98) - Despite abysmal gold prices, Cumberland Resources Ltd., a Vancouver-based junior mining company, will move its Meliadine West property project to the next step.

Cumberland said $7.2 million has been budgeted this year on advanced exploration and engineering programs at Meliadine West.

The property is located just 15 kilometres north of Rankin Inlet.

Some $5.9 million has been budgeted for a pre-feasibility study at Wesmeg, part of Meliadine West, the company said.

"We're of the opinion gold prices will not stay down forever," Cumberland president Glen Dickson said.

He said the company could be two or three years away from production.

Dickson also said the company has a lot going for it logistically. Proximity to the coast is a major plus.

The Wesmeg study is expected to be completed by April. If all goes well, budget increases for definition drilling at Wesmeg.

The company has budgeted $1.2 million to $2 million for other parts of the Meliadine West property, among them Arseno, VG, and Maggot lakes.

Cumberland said based on exploration success over the last two years and 1998 funding, that a world-class gold source is emerging at Meliadine West.

Meliadine West is near Rankin Inlet.

The Meliadine West project is 56 per cent-owned by Australian company WMC International, 22 per cent by Calgary-based junior Comaplex Minerals Corp. and 22 per cent by Cumberland. WMC International is financing costs through production.

Cumberland has a 100 per cent stake in the Meadowbank property, located about 120-kilometres northwest of Baker Lake.