Hello All
***CC Morning Coffee***
Mining-South Voisey's Bay Update
Donner Minerals (DML : VSE : $2.18 : Issued 29.1M, f.d. 37.8M)
Northern Abitibi Mining (NAI : ASE : $1.75 : Issued 25.9M, f.d. 31.5M)
Cypress Minerals (CYP : VSE : $0.55 : Issued 19.3, f.d. 20.0M)
Major General Resources (MGJ : TSE : $3.90 : Issued 33.24M, f.d. 40.0M)
It is our understanding that field crews are to be mobilized in early
April for the initiation of the 1998 exploration season in the South
Voisey's Bay project. This project is under the operating
administration of Teck Exploration Ltd. on behalf of the dominant area
player Donner Minerals. Teck holds an option to earn 50% of any of
Donner's interests in the area by completing a feasibility study on
any particular project.
We understand the 1998 budget for the entire region is a two phase
budget with a total success contingent expenditure near $13.0M. Phase
1 includes roughly $6.0M for initial field programs and diamond
drilling as well as a $2.4M contingency budget. The majority of the
contingency budget is for additional drilling based on the success of
the initial program.
Of the initial $6.0M proposed, we understand that it consists of
approximately 20,000 m of diamond drilling. This drilling breaks down
where two projects are to receive the lion's share. These projects
are the Northern Abitibi joint venture on which 9,400 m of drilling is
planned and the Cypress Minerals joint venture on which 3,500 m is
proposed. The budget also contemplates an 1,800 m drill program on
ground held by Major General, as well as drilling on several other
property holdings in the region. Clearly the focus of exploration for
this initial phase will be to follow-up the discovery holes 97-67, 75,
and 96, all located on the Donner/Northern Abitibi 50/50 joint
ventured ground. Those holes yielded as follows:
(table omitted from email version)
It is our understanding that the first set of drill holes proposed
will test what is perceived to be an east/west strike length of this
target area and that the drilling will initially be on close spacing
50 m or less) in order to more clearly define the structural direction
of the host mineralization.
In all, 1998 is shaping up to be a key year for the South Voisey's Bay
project and given the initial results off the Northern Abitibi ground
we consider the speculative leverage for risk accounts to be extremely
high. Since the announcement of drill hole 97-96 in mid-December we
have issued strong SPECULATIVE BUY recommendations for the shares of
Northern Abitibi and Donner as well as for one of the key satellite
players Cypress Minerals. We maintain those recommendations and
intend in short order to provide a more detailed report on the camp
highlighting the key geologic aspects of the project area.
Graeme Currie (604) 643-7405
Andrew Muir (604) 643-7008
Check out the drill map on Major General's web site.
Regards |
