Thorunn Howatt
Northern News Services

Yellowknife (Apr 03/02) - Gold production gleamed at Con and Giant mines last year even though gold prices didn't peak over $300 per ounce.

The owner of the mines, Miramar Mining Corp., isn't quite in the black but it cut its net losses sharply in 2001.

Five years ago the company's shares were valued at about $6. That's when an ounce of gold was worth nearly $350. But since then gold prices took a dive and Miramar wasn't getting what it hoped for the Yellowknife gold. Miramar's shares have been hovering at about $1.50.

Although Miramar isn't getting a lot of money for its gold, the company is mining a lot of the precious metal. It increased production because of the addition of Giant Mine to its Yellowknife Con Mine operations. Miramar bought Giant in 1999 and the mine produced for part of 2000 and all of 2001. Together the mines are expected to have less than five years of life.

Miramar lost $5.9 million, or 10 cents a share, in 2001, compared with a loss of $43.4 million, or 76 cents a share, in 2000. For the fourth quarter in 2001, Miramar lost $1.4 million, or two cents a share, up slightly from a quarterly loss of $1.2 million, or two cents a share, in 2000.

The company enjoyed annual revenues of $55.8 million last year compared to $52.7 million in 2000. The 2000 loss included a $37.2-million write-down on asset disposals and other charges.

"During 2001, our Yellowknife operations delivered excellent results, producing approximately 130,000 ounces of gold at cash costs of $256 US per ounce," said Miramar's president and chief executive officer Tony Walsh. The groundwork is laid for further improvements in 2002, he said.

"These results allowed us to generate positive cash flow from mining operations during the last three quarters of 2001, despite the low gold price," he said. "Continuous efforts to maximize benefits from our operations in Yellowknife have resulted in us not only exceeding our targets for 2001 but also have allowed us to maintain our balance sheet strength which should enable us to support our ongoing activities to enhance shareholder value."

The 2002 outlook for the mines' operations is a production level slightly higher than 125,000 ounces of gold and for cash operating costs less than $240 US per ounce.