March 03 - CYP.VSE - Corporate Update - March 1998
From: Silicon Investor Daily News: Subject 17869
Cypress Minerals is an aggressive junior exploration company whose principal asset is its South Voisey's Bay Joint Venture (SVBJV) in Labrador with Donner Minerals Ltd. Teck Corporation is the operator for the SVBJV and holds the right to earn one half of Donner's 62.5% working interest in the overall project. Cypress holds a 37.5% interest in 785 claims in three separate claim blocks covering portions of the central, south-central and southeastern parts of the SVBJV.
The SVBJV is located on the southern margin of the Nain Intrusive Complex. The region contains the largest concentration of troctolite outside of the Voisey's Bay discovery area to the north. Troctolite is the host rock for Inco's rich magmatic sulphide occurrence at Voisey's Bay, one of the richest base metals finds in history. Previous work on the SVBJV identified a series of gossan zones stretching for over 15 kilometers across the central part of the joint venture area, the largest of which, Mineral Hill, occurs on Cypress property.
Massive sulphide mineralization has been reported from areas near the margins of olivine-bearing gabbro intrusions and within complex, olivine-bearing, gabbros dykes and sills - a geological environment that is highly analogous to Voisey's Bay.
Teck completed four holes on the Cypress property in the fall of 1997 where the first two were stopped in sulphide mineralization at 701 meters because of limited drill capacity. These holes will be extended in the Phase Two program, which is scheduled to begin in the spring of 1998. After a short interval of hanging wall gneiss at the top, hole no. 1 intersected a thick sequence of layered olive gabbro right through to the base of the hole. The last eighteen meters contained 1-5% disseminated sulphides, possibly indicating proximity to the basal contact with gneiss, a key stratigraphic level for massive sulphide occurrences.
Geological mapping, coupled with gravity data, suggests the existence of a funnel-shaped body beneath the target area. A strong curvilinear gravity anomaly extends for over 4.5 kilometers north-south along the boundary between part of the Cypress/Donner joint venture and ground owned 100% by Donner. This anomaly is interpreted as the possible feeder or throat of the funnel-shaped layered intrusion. To evaluate this important target, a series of holes are being drilled across the strongest part of the gravity response.
Teck is presently compiling and evaluating data from the 1997 exploration on the SVBJV. This year's exploration budget is expected to rise considerably, given the high expectations for making a significant base metals discovery on the SVBJV.
Cypress will be the largest direct stakeholder in its portion of the SVBJV after Teck earns its one half interest in Donner's share of the joint venture.
The Chief Executive Officer of Donner Minerals, David Patterson, was recently appointed to the board of directors of Cypress Minerals. The appointment reflects the close relationship between the two companies and their collective resolve to see the SVBJV develop into a production situation that will rival the Voisey's Bay discovery to the north. |
