Iqaluit (Apr 04/05) - Miramar Mining Corporation may have to undergo a new environmental assessment for its Hope Bay gold project. Regulators in Nunavut say the latest information filed by the Vancouver, B.C.-based firm about its Doris North Project was inadequate.

Last August, the Nunavut Impact Review Board (NIRB) asked Miramar to rework its preliminary proposal for Doris North.

It had concerns in five areas: a wildlife monitoring plan, water management strategy, alternatives for tailing disposal, issues surrounding effects on fish habitat and socio-economic impacts.

The company filed an updated project description in January, but it's raised other questions.

Mike Atkinson, manager of land-use and environmental assessment with the Nunavut Department of the Environment, wrote on Feb. 23 to NIRB executive director Stephanie Briscoe that the previous review of this project highlighted a number of substantial flaws in the environmental impact statement prepared by Miramar Hope Bay Limited.

"The submission of new information by (Miramar), in the five key deficient areas, is likely to impact and produce changes to other areas of the project design," wrote Mike Atkinson, manager of land-use and environmental assessment with the Nunavut Department of Environment to NIRB executive director Stephanie Briscoe.

"The further review of this project may require the submission of a new draft environmental impact statement."

Federal agencies - Natural Resources Canada, Health Canada and Department of Indian Affairs and Northern Development - also appear to have problems with Miramar's latest proposal.

Letters to NIRB outline federal concerns over handling of explosives, impact of the project on country foods and air quality and whether or not it contravenes parts of the Nunavut Land Claims Agreement.

Miramar's manager of investor relations Nicole Copley said the company is not overly concerned with the comments made by government officials.

"They weren't comments to us. They were comments to NIRB," she said.

A lot of parties may think there are deficiencies in the updated report but Briscoe said those deficiencies should be addressed in an actual environmental statement, something she expects the company to do.

Miramar intends to spend approximately $13 million on drill programs at Hope Bay this year.

In addition, approximately $2 million will be spent on permits for the Doris North project and community relations. A further $1 million will be spent on work related to preparing feasibility studies.

As a result of its 2004 exploration program, more than one million ounces were added to the Madrid resource, part of the Hope Bay belt, during 2004.