We’re okay, Miramar says

In order calm nervous investors, the mining company behind the Doris North gold project near Cambridge Bay said last week that they don’t expect construction costs for the mine to be higher than expected.

The announcement, made by Miramar Mining Corp. president Tony Walsh on March 25, comes as a reaction to news that a larger gold mining project in Nunavut was suffering inflated expenses that will delay mine construction for at least a year.

Earlier in the month, Cumberland Resources Ltd. blamed rising steel, concrete and fuel costs for their decision to wait another year before developing the Meadowbank mine. Cumberland brass hope the extra time will help them deal with a $150 million jump in unanticipated construction expenses.

After the news of the delay, Cumberland stocks plunged 25 per cent. Miramar took a 13 per cent hit.

However, Miramar’s executive assured investors that the cost of the Doris North project, 160 kilometres southwest of Cambridge Bay, will not “deviate significantly” from their original plans. The company still estimates they will need $39 million Cdn. to get the proposed mine up and running.

Miramar chief executive Tony Walsh said his company didn’t face the same market pressures as Cumberland, because the Doris North venture has gold reserves lying closer to the surface than at Cumberland’s Meadowbank site. Miramar’s announcement brought stock prices back by about one cent per share.