South Voisey's Bay progress
Northern Abitibi Mining Corp NAI
Shares issued 22,799,405 Feb 3 close $1.50
Wed 4 Feb 98 News Release
Also Golden Rule Resources Ltd (GNU)
Also Donner Minerals Ltd (DML)
Mr Glen Harper reports
The companies are awaiting receipt of the technical reports for the 1997
exploration program conducted on their jointly owned South Voisey's Bay
claims. Teck Exploration, the contractor for the 1997 exploration program,
has informed the operator that the final reports will be available by
February 23. Upon receipt of the technical reports, the joint venture will
design the 1990 exploration program and budget to further advance the
evaluation of the property.
Northern Abitibi operates as the exploration arm in Eastern Canada for the
Golden Rule Group of Companies. The parent company, Golden Rule Resources
owns 7,197,425 shares or approximately 30.73% of the 23,098,028 shares
issued and outstanding as of December 31 1997. In addition Golden Rule has
subscribed for a private placement of 2,800,000 units consisting of a share
and a to raise $2,016,000 for Northern Abitibi's 1998 exploration programs.
Upon the closing of this placement Golden Rule will own 9,997,425 shares of
Northern Abitibi or 38.6%. Upon the exercise of the warrants this ownership
position would increase to 12,797,425 shares or about 44.6% of Northern
Abitibi.
SOUTH VOISEY'S BAY, LABRADOR
Northern Abitibi 50%
Donner Minerals (Operator) 50%
Teck can earn one-half of this interest
Donner has earned a 50% participating interest in the 358 claims (6,728
hectares) owned by Northern Abitibi in the North Harp Lake area of
Labrador. Donner has named this exploration area the South Voisey's Bay
project. The Voisey's Bay deposits that were discovered by Diamond Fields
Resources in late 1994 are about 90km to the north of this project area.
The Voisey's Bay deposits have reserves and indicated resources reported at
98.7 million tonnes grading 1.85% nickel, 0.99% copper and 0.10% cobalt and
Inco Limited estimates that the property contains an inferred mineral
resource of 160 million tonnes. Inco is currently preparing this
multi-billion dollar project for production in about three years.
During 1996 Donner entered into option and joint venture agreements with a
number of junior exploration companies that had acquired claims to cover
several gabbroic intrusions adjacent to the Nain-Churchill structural break
north of the Harp Lake pluton. This area has regional structures and rock
types similar to the Voisey's Bay region. After consolidating a large land
package to cover the geological areas of interest, Donner entered into a
contractual relationship with Teck to finance exploration and to conduct
exploration of the land package. Teck has the right to participate in the
property interests owned by Donner pursuant to the terms and conditions of
the option and joint venture agreements entered into by Donner with the
property owners in the area. In addition Donner, as operator of the various
exploration programs, contracted the exploration arm of Teck, Teck
Exploration, to design and conduct the 1997 exploration programs and
budgets that were to be conducted by Donner and its joint venture partners.
The option and joint venture agreement negotiated between Northern Abitibi
and Donner allowed Donner to earn a 50% interest in the Northern Abitibi
property by making $50,000 in property payments; issuing 120,000 common
shares of Donner to Northern Abitibi; and financing $360,000 in
exploration.
The initial exploration program on the property was conducted by Northern
Abitibi in 1995 and consisted of airborne geophysical surveys and follow-up
geochemical surveying, geological mapping, prospecting and sampling. The
1995 program identified a geological environment similar to that at
Voisey's Bay. Donner entered into the option and joint venture agreement
with Northern Abitibi in the spring of 1996 and conducted a follow-up
exploration program in the summer of 1996. This program consisted of ground
geophysical surveys and geological work and mapped the suite of intrusive
gabbroic rocks that could host significant base metals deposits.
In 1997 Teck designed and implemented the overall South Voisey's Bay
exploration program for Donner. This integrated geological and geophysical
program was designed to identify the location of the olivine bearing
gabbroic (troctolite) rocks that could host massive sulphide mineralization
that would contain economic levels of nickel, copper, cobalt and platinum
group metals. During the summer of 1997 the geophysical program conducted
on the southern part of the Northern Abitibi claims identified several
diamond drill targets in the area underlain by the gabbroic and troctolitic
rocks and in September of 1997 the initial diamond drill program commenced
to test these targets.
The drilling in September was positive in a geological sense in that
troctolite rocks containing disseminated sulphide mineralization were
encountered. Towards the and of September drill hole No. 97-67 encountered
the first massive sulphide mineralization on the property which when
assayed reported significant base metals values over several short core
intervals.
Hole Interval Ni Cu Co
m % % %
SVB97-67 176.2-176.5 1.73 1.64 0.23
178.9-179.5 1.93 1.07 0.26
180.3-180.4 1.35 0.84 0.17
In October a second interesting diamond drill hole intersection was made in
drill hole No. 97-75 about 300 metres northwest of the initial discovery
hole. This narrow intersection of massive sulphide assayed spectacular high
grade base metals values which further advanced the geological model that
is being used to guide the exploration program.
Hole Interval Ni Cu Co
m % % %
SVB97-75 176.8-177.9 11.75 9.70 0.43
In late November further drilling was begun to test the area of the higher
gravity and magnetic anomalies in the area of the known massive sulphide
mineralization. The last drill hole of the 1997 drill program, drill hole
No. 97-96, encountered a thick intersection of significant base metals
mineralization. This hole is about 200 metres to the southwest of drill
hole No. 97-75 and 470 metres to the west of drill hole No. 97-76.
>From To m Ni Cu Co
m m % % %
184.3 185.8 1.5 1.08 0.82 0.18
185.8 187.3 1.5 1.19 0.65 0.21
187.3 188.8 1.5 1.02 0.78 0.18
188.8 190.3 1.5 0.99 0.74 0.17
190.3 191.9 1.6 1.09 0.96 0.20
191.9 193.4 1.5 1.15 0.78 0.20
193.4 194.9 1.5 1.13 0.70 0.20
194.9 196.4 1.5 1.11 0.80 0.20
196.4 197.9 1.5 1.27 0.84 0.22
197.9 199.0 1.1 1.34 0.75 0.23
199.0 200.0 1.0 1.22 0.66 0.22
The mineralization in this drill hole has given more evidence to support
the geological model. The grade of mineralization appears to be economic as
it contains a total metal value of over $150/tonne using current metal
prices. The grades are remarkably consistent over each sample interval. The
high cobalt grade is particularly of interest at this time. The thickness
is of most importance as it indicates that a large volume of massive
sulphide mineralization can be found on the property.
Early in 1998 an integrated geological and geophysical exploration program
and budget will be designed by the joint venture to further evaluate the
base metals mineralization on the Northern Abitibi claims. This program
will include an aggressive diamond drill program scheduled to begin in the
spring. To date Northern Abitibi has financed about $800,000 on this
project including about $618,000 for the program conducted subsequent to
the fiscal year end.
Over the last few weeks several mining analysts and industry participants
have commented an the similarity of the mineralization encountered on the
property and that of the Voisey's Day deposits. Recent stock market
activity in the shares of both Northern Abitibi and Donner Minerals is, in
the opinion of the companies, a result of the anticipation of the beginning
of the 1998 exploration program which should be under way in April.
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