Production on target
Company estimates 130,000 ounces from Con and Giant

Doug Ashbury
Northern News Services

Yellowknife ( Mar 01/00) - With an improved gold price, less hedging by some big gold producers, and European central banks limiting gold sales, Miramar Mining Corporation appears well- positioned in the medium term.

Last week, the company announced it will produce 130,000 ounces of gold from its Yk operations which include Con and Giant mines at an annualized cash cost of under $260 US per ounce. Gold is trading around $290 US an ounce. Con will produce 100,000 ounces annually and Giant the remaining 30,000. The company has begun trucking ore from Giant to Con for processing.

"I am very pleased by the performance of the Con mine since operations resumed in 1999," said Tony Walsh, Miramar president and CEO. The 11-month strike at the Con mine ended in May 1999.

"The operation has exceeded our expectations during this start-up period and the outlook for 2000 and beyond as a result of the Giant acquisition is very positive," he said.

As of Feb. 22, some 7,000 tons of ore with a grade of .33 ounces per ton were broken underground with about 3,000 tons brought to surface.

"We expect that production levels and costs forecast for the last nine months of 2000 will be maintained for at least another two years, that is annualized production rate of 130,000 ounces per year with cast costs under $260 per ounce," said Brian Labadie, Miramar senior vice-president of operations. This year, cash costs are expected to come in around $265 US an ounce.

Con, in its most recent financial results, reported cash costs of $269 US per ounce.

Cash costs have dropped substantially over the past few years. According to the 1998 Royal Oak annual report, cash costs were $270 US per ounce that year, and down from $304 US and $357 US in the previous two years.

Miramar shares traded at 88 cents mid-day Monday, up 10 per cent, but well below the 52-week high of $1.29. To increase gold reserves at Con and Giant mines, Miramar will spend about $1 million on exploration at the two sites this year.