Miramar mining denies finding a new gold deposit at Giant Mine. - NNSL file photo

Miramar's Yellowknife operations produced 31,250 ounces of gold in the third quarter -- not as much as previously forecast. Initially, Miramar planned to produce 130,000 ounces of gold this year.

Given third quarter results, that's now scaled back a bit, to 125,000 ounces.

The company didn't scale back further because of expectations production will probably catch up in the final quarter, said executive vice-president Stephen Quin.

Con Mine's oxygen plant roof collapsed earlier this year and the company had to store 11,500 ounces of gold concentrate in tanks. Most of it is still sitting there and will undergo production this quarter.

A series of power outages in July also hurt production, said Quin. He explained the processing equipment takes several days to restart once shut down.

"So every power interruption loses us two or three days," said Quin.

Another factor that effected the company's results: Miramar is finding less gold these days in every ton of rock.

Still, third quarter results are spectacular compared to last year. During the same period last year, Miramar had lost $700,000. But thanks to a weakened U.S. dollar and weak equity markets, gold prices have skyrocketed over the past year.

"For more than 100 years, gold has been a safe haven for money when markets have been in turmoil," said Quin.

Both mines will remain open into 2005 -- several months longer than expected. But Quin denied the rumour that Miramar has found another gold deposit at Giant.

"Basically, we're just reworking the mine plan," he said. "We try to push it out a few months whenever we can."

But this extension is likely the last. "It's getting harder and harder to find opportunities to keep it open."