Thorunn Howatt
Northern News Services

Yellowknife (June 05/02) - The company that owns Con and Giant mines is getting more money for its shares than it has since 1998. It won't mean a lot of changes at the Yellowknife operations but its good news for Miramar's Hope Bay project -- a soon to be gold mine near Bathurst Inlet.

Miramar Mining Corporation, sold $20 million worth of share units last week -- that's 10,000,000 units at a price of $2.00 each.

"This financing gives us the capital required to increase our exploration activities at the Hope Bay belt," said Tony Walsh Miramar's President and chief executive officer.

"We are currently in the planning stages for an expanded summer exploration program at Hope Bay."

Miramar plans to use proceeds of the financing on its Hope Bay project and for general working capital.

Lower production cost, more cash flow

Gold was selling for more than $320 earlier this week -- a price not seen since 1997.

Miramar Mining Corporation has a 100 per cent interest in a 80 kilometre long Hope Bay greenstone belt. Last month Miramar wrapped up a business combination with Hope Bay Gold Corporation Inc.

At the Yellowknife Con and Giant mines, Miramar had better cash flow and earnings because of lower production costs during the first three months of this year.

"During the first quarter of 2002 our Yellowknife operations delivered solid results, producing 31,749 ounces of gold at cash costs of US $240 per ounce generating earnings and positive cash flow," said Walsh. "This solid performance and the small equity financing completed during the quarter, has resulted in a consolidated working capital position of $19.9 million at March 31, up by $3.8 million over year end."

Miramar's world would be rosier if it hadn't been for a roof collapse at the Con oxygen plant. It means even if the company does well in production, it won't be able to mill all of its gold.