Darrell Greer
Northern News Services

RANKIN INLET (Mar 10/99) - The Keewatin Region received a boost of economic hope this past week when WMC International Ltd. announced it had updated the estimate of the inferred mineral resource of the Wesmeg Gold Project following its 1998 drilling program and now shows a substantial increase of more than 50 per cent in resources at the site.

The project, a wholly owned subsidiary of WMC, is within the Meliadine West Joint Venture area located 20 kilometres north of Rankin Inlet. The Australian-based WMC presently has a 56 per cent interest in the joint venture, with Canadian companies Comaplex Minerals Corp. and Cumberland Resources Ltd. each having a 22 per cent interest.

The updated estimate now shows the inferred mineral resource of the Wesmeg Gold Project, comprising the Tiriruniak, Pump, Wolf and F zones is 23.7 million tonnes at 8.5 grams per tonne at a three grams per tonne cut-off grade.

WMC completed 36,000 metres of diamond drilling in 146 drill zones to test the extensions and continuity of the four priority deposits in 1998. All four targets are located within a four-kilometre radius and are open for continued expansion. The new estimate saw an increase to 6.5-million ounces of gold from the previous mark of 4.04-million ounces.

Cumberland Resource Ltd. president Glen Dickson said the company is extremely pleased with the announcement, confirming the Meliadine West project as Canada's premier undeveloped gold project.

The company anticipates that during 1999, WMC will continue to advance the project and is currently shipping supplies to the site in preparation for the 1999 drilling season. To date, WMC has spent more than $34 million on the project.

"Although we were always optimistic, if somewhat guardedly so, about the Meliadine West project, this announcement comes as a very pleasant surprise," Dickson told the xxxKivalliq News this past Friday.

"We're comfortable these numbers can be supported by the industry's standard of calculation and we're comfortable with our feelings that there's even more resources to be found in that region. Personally, I've always been a big believer and positive about the potential in that belt."

Although WMC is the operator of the site, Dickson said people in the Keewatin Region should be extremely pleased with the announcement and said the new numbers bode well for the long-range plans of the site, pending the completion of a feasibility study.

"This definitely goes a long way in ensuring the long-term economic viability of the site," said Dickson. "These studies were done at today's market and show that an economically viable site can be developed, even at today's low market.

"We've been very pleased with the support we've received out of the Kivalliq Region and Nunavut in general. We're very encouraged with the attitudes we've witnessed there."