Falconbridge Options 50% Of SVB Project For $23 Million
9/7/01
DONNER MINERALS LTD ("DML-V") NORTHERN ABITIBI MINING CORP
("NAI-V") MAJOR GENERAL RESOURCES LTD ("MGJ,MGJ.UN-V") PALLAUM
MINERALS LTD ("PLM-V") FALCONBRIDGE LTD ("FL-T") CYPRESS
DEVELOPMENT CORP ("CYP-V") NDT VENTURES LTD ("NDE-V") RCOM
VENTURE CORP ("RCO-V") CURION VENTURES CORP ("CUV-V") TECK
CORP ("TEK.A,TEK.B-T") - Falconbridge Options 50% Of SVB Project For $23
Million
Harvey Keats, President of Donner Minerals Ltd., is pleased to announce that
together with its majority owned subsidiary SVB Nickel Company Ltd. ("SVBN"),
Northern Abitibi Mining Corp. ("Northern Abitibi"), Major General Resources Ltd.
("Major General") and Pallaum Minerals Ltd. ("Pallaum"), Donner has entered into
an option earn-in agreement with Falconbridge Limited, whereby Falconbridge
can earn a 50% interest in the entire South Voisey Bay Project by spending $23
Million on exploration.
The ownership of SVBN is as follows: Donner Minerals Ltd. 76.69%, Cypress
Development Corp. 11.36%, NDT Ventures Ltd. 6.55%, Rcom Venture Corp.
4.20%, Curion Ventures Corp. 1.20%.
The South Voisey Bay Project is comprised of the following properties: 1) Twenty
licences covering about 549.5 km2 held 100% by SVBN with the exception of a
37.5 km2 portion in which Pallaum has a 25% interest (the "SVBN Property"); 2)
One licence covering about 39.5 km2 owned 52.41% by Donner and 47.59% by
Northern Abitibi (the "Donner/Northern Abitibi Property"); 3) One Licence covering
about 35.5 km(2) and owned 52.06% by Donner and 47.94% by Major General
(the "Donner/Major General Property").
The SVBN Property, the Donner/Northern Abitibi Property and the Donner/Major
General Property, ("the Combined Property") is centered 75km west of the
Labrador Sea coast, 90 km south of Inco's Nickel-Copper-Cobalt deposits at
Voisey's Bay.
Falconbridge has the option to earn a 50% participating joint venture interest in
each of the three Properties (the "Option") for a period from September 1, 2001 to
December 31, 2006 (the "Option Period") by incurring the following expenditures
on exploration and related work ("Expenditures") on or before the end of the
Option Period: 1) In order to vest its 50% interest in the SVBN Property,
Falconbridge is required to incur $14,000,000 of Expenditures on the SVBN
Property. 2) In order to vest its 50% interest in the Donner/Northern Abitibi
Property, Falconbridge is required to incur $5,000,000 of Expenditures on the
Donner/Northern Abitibi Property. 3) In order to vest its 50% interest in the
Donner/Major General Property, Falconbridge is required to incur $4,000,000 of
Expenditures on the Donner/Major General Property.
In order to keep the Option in good standing, Falconbridge will incur a total of at
least $2,000,000 of Expenditures on the Combined Property on or before
December 31, 2002 and $2,000,000 in each of the subsequent calendar years
during the Option Period on the Combined Property. Falconbridge may abandon
its Option on one or more of the Properties or parts thereof at any time during the
Option Period. Falconbridge will be the operator during the Option Period. A
management committee will be formed comprising all of the parties to develop
and finalize all exploration programs.
Teck Corporation is also a signatory to the agreement discussed above and
retains its right to earn 50% of Donner's interest in any deposits discovered and
developed on the Combined Property, after adjusting for Falconbridge's 50%
interest in the property. Teck can earn this interest by funding Donner's share of
feasibility costs and arranging Donner's share of production financing.
As part of Donner's continuing efforts to build a strong working relationship with
the Innu Nation, Donner and Falconbridge are close to finalizing agreements to
address environmental and archaeological issues and Innu business and
employment opportunities at South Voisey Bay.
Falconbridge and Donner believe that the South Voisey Bay project is a
high-quality Nickel-Copper-Cobalt exploration project that will require a strong
commitment over the next few years. Falconbridge and Donner will dedicate to
the project an experienced exploration team with expertise in nickel deposits,
closely integrating geology, geophysics and geochemistry. Deep-seeking
geophysics will be very important to the South Voisey Bay Project. Falconbridge
has been using a number of innovative geophysical methods specifically
designed to find massive sulphide nickel in Sudbury, Raglan and elsewhere
worldwide. Advanced geophysical methods integrated with expert geological
knowledge of magmatic systems and nickel deposits are assets that
Falconbridge will bring to this project in order to find an ore body at South Voisey
Bay. Falconbridge will also bring its expertise in developing and operating mines,
smelting, refining and marketing Nickel, Copper, Cobalt and Platinum Group
Metals. Falconbridge is focused on profitably growing its nickel business and is
interested in discovering and developing new supplies of nickel sulphide ore in
Canada. This will be an important exploration project for Falconbridge.
Archaeological work will begin immediately and starting in early October,
Falconbridge will carry out gravity and deep-seeking EM, together with geological
mapping and re-logging of drill core. Falconbridge will then review and integrate all
exploration data over the winter in order to plan and carry out a substantial drill
program next spring. TEL: (604) 683-0564
Harvey Keats, President, FAX: (604) 602-9311
Donner Minerals Ltd. Toll Free: 1-800-909-8311 E-mail: donner@bed-rock.com
Web: donner-minerals.com |
