Doug Ashbury
Northern News Services

NNSL (Apr 12/99) - Vancouver-based Cumberland Resources has hiked its Meadowbank resource numbers by 15 per cent, the company revealed.

Meadowbank, 100 per cent owned by Cumberland and located about 70 kilometres north of Baker Lake, says the resource now stands at 1.73 million ounces of gold.

Measured resource is 142,000 ounces while indicated resource is an additional 1,069,100 ounces. Inferred resource is 519,500 ounces. Total measured, indicated and inferred is 1,730,600 ounces.

"The next step is culmination of prefeasibility," Cumberland senior vice-president Kerry Curtis said.

Prefeasibility, as well as the study of economics of open-pit and underground development at Meadowbank, are to be completed next month.

"If positive, we'll go to feasibility study."

If all goes well, Cumberland's Meadowbank project could be in production in late 2002.

This week, Cumberland is commencing drilling to further improve resource quality and quantity.

The latest resource evaluation was done by MEDI Canada, a division of H.A. Simons Ltd., and is based on diamond drill data from the 322 drill holes outlining the four closely-spaced deposits (Third Portage, Bay Zone, Goose Island and North Portage) at Meadowbank.

The high degree of definition, as outlined by combined percentage of measured and indicated resources, is very positive for a project at this stage, Cumberland said.

Cutting of the assays (30 grams per tonne at Goose Island and 45 grams per tonne at Third Portage) has produced a low-risk resource for the pre-feasibility study. It also identifies high-grade areas within the deposits which represent opportunities for increasing grade as definitionis done, the company said.

"Cutting" provides the company with a lower-risk resource and is a way to predict what the mill would yield, Curtis said.

Cumberland is measuring Meadowbank's "uncut" gold resource at 2 million ounces.

Cumberland's other Nunavut interests include a 22 per cent stake in the Meliadine West project and a 50 per cent stake in Meliadine East.