This from our fav. brokerage......a little upbeat for a change.
HEADLINERS
DONNER MINERALS (DML : VSE : $0.98 : Issued 26.0M; 32.0M f.d.)
NORTHERN ABITIBI MINING (NAI : ASE : $0.67 : Issued 25.6M; 31.8M f.d.)
The last scheduled hole of 1997 drill program (97-96) in South
Voisey's Bay has yielded an average grade of 1.13% Ni, 0.78% Cu, and
0.20% Co over a 15.7 m interval. The massive sulphide intercept
represents the thickest interval of nickel mineralization reported to
date outside of the Voisey's Bay deposit itself. At metal prices of
US$2.80/lb. Ni, $0.80/lb. Cu, and $15.00/lb. Co, the gross value per
ton is US$135.68, with Co representing nearly half this value.
Current spot Co prices are in the US$24.00-25.00/lb. range, but our
longer term outlook for Co is bearish, thus we have employed a
discounted figure in the above calculation.
Although certainly the most encouraging hole to date reported from
SouthVoisey's Bay, the near-term performance of the shares of DML and
NAI could be surpressed as the Ni/Cu grades on their own fall shy of
expectations and economic thresholds. As well, the specifics
regarding the 1998 program have not been finalized, and we believe it
unlikely that drilling will resume until later in to Q1. Thus,
immediate follow-up on these results will not occur.
The DML/NAI joint venture forms part of the South Voisey's Bay
Project, located 90 km south of Inco's Voisey's Bay deposit. Hole
97-96 is located 200 m southwest of Hole 97-75 (1.1 m interval of
massive sulphides within the basement gneisses grading 11.8% Ni and
9.7% Cu), and 470 m west of Hole 97-67 (grades ranging from 1.4-1.9%
Ni and 0.8-1.6% Cu). Hole 97-96 encountered the massive sulphide
mineralization from 184.3 m to 200.0 m at the base of the olivine
gabbro/troctolitic intrusion.
We believe, for speculative accounts only, that on any further price
weakness accumulation is warranted as Hole 97-96 significantly
enhances the potential of the property to host a large body of
Ni/Cu/Co mineralization. Given Teck Corp.'s back-in option in to
properties held by DML, NAI thus offers better leverage to this
project. DML offers better leverage to the overall South Voisey's Bay
exploration program, which encompasses several joint ventures. The
DML/NAI joint venture is held 50/50. Teck may earn 50% of DML's
interest by completing a feasibility study. (Graeme Currie -
Canaccord Research).
MARKET MOVERS (Previous day's closing statistics)
Donner Resources DML 2,198,850 .98 -.73 Assays from last hole
of 1997 season fall shy of expectations. No indication on timing of
follow-up program.
Cypress Resources CYP 2,117,900 .25 -.06 End of 1997 drill
program in S. Voisey's Bay. |
