CANMINE TO RESUME BINCO NICKEL EXPLORATION
LONDON, ONTARIO--
Canmine Resources Corporation (TSE Symbol: CMR) will immediately
resume nickel exploration on the BINCO Nickel Project, located
northeast of the Thompson Nickel Belt in Manitoba. This belt is
one of the largest nickel producing regions in the world.
Canmine's decision is based on a number of positive developments
for the project, illustrating its world-class potential for major
new nickel discoveries. As well, nickel prices are showing a
strong resurgence as economic recoveries continue in Asia, Europe
and South America, and global demand for nickel increases (nickel
prices are up to $US2.90 per pound from a 1998 low of about
$US1.74 per pound).
Significantly, the geologic map of Manitoba and Canada is now in
the process of being re-drawn as a direct result of Canmine's
initiative on the BINCO Project. A new report published by
Manitoba Energy & Mines (titled "Re-examining the Northwest
Superior Province Margin") suggests the major geological trend
which the Thompson Nickel Belt is situated on extends through
Canmine's BINCO holdings as opposed to previous interpretations
dating back to the 1950's. This report, based on sophisticated
mapping and age dating, is supported by Geological Survey of
Canada (GSC) aeromagnetic data published in 1996-97. Canmine
acquired a significance ground position (named "BINCO") following
publication of the GSC data. Canmine then provided data to
Manitoba Energy and Mines for further study.
The economic implication is that Canmine may own the
"undiscovered-half" of one of the largest nickel producing belts
in the world. Canmine mineral rights extend for 200 kilometres
north-east of Thompson and currently comprise some 120,000
hectares.
INCO has recently conducted a large-scale helicopter supported
claim staking program adjacent to the BINCO Project, and has
involved Nuinsco Resources Limited as a joint venture partner on
101 claims. Canmine has recently supplemented its exploration
team with the addition of consulting geologist W. Peredery,
Ph.D., P.Eng., who worked with INCO for 32 years in nickel
exploration. Canmine's Senior Geologist, W.S. Ferreira, P.Eng.,
formerly worked for Falconbridge Limited and is responsible for
the original BINCO model, as well as previous Canmine cobalt and
nickel discoveries.
The next phase of exploration will be a high-definition airborne
geophysical survey over an area of particular interest to Canmine
geologists. This area has structural similarity to the area
surrounding the Thompson orebody. Canmine has recently raised
$1.2 million in flow-through financing at market prices by
private placement. Drilling is to follow the airborne survey.
Other announcements are pending in relation to Canmine's recently
announced acquisition of a state-of-the-art hydrometallurgical
cobalt extraction plant and refinery in Cobalt, Ontario. Upon
completion of this transaction and start-up of cobalt operations,
Canmine will join a select list of fully integrated base metal
producers in Canada (exploration through to refining), and will
become North America's only primary cobalt producer. Similar to
nickel prices, cobalt prices have also strengthened since the
beginning of the year.
London, Ontario, August 18, 1999
On Behalf of the Board, Edward L. Ellwood, President
London (519)858-4000 Website: www.canmine.com
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