Proposed 1998 budget for South Voisey's Bay project
Donner Minerals Ltd DML
Shares issued 26,161,058 Mar 26 close $2.18
Fri 27 Mar 98 News Release
See Northern Abitibi Mining Corp (NAI) News Release
Mr Glen Harper reports
Northern Abitibi Mining has received the proposed 1998 budget for the South
Voisey's Bay, Labrador project from Teck Exploration - Donner Minerals. The
exploration program proposed by the operator will consist primarily of
diamond drilling, regional-style and detailed gravity surveys, downhole
Pulse Electromagnetic geophysical surveys, and detailed geological mapping,
phase I totals $3,426,398 in expenditures on the Northern Abitibi property
and includes $2,447,427 for the initial field programs and diamond drilling
as well as a $978,971 contingency budget. The initial phase on the 50%
owned Northern Abitibi property includes a 9,400 metre (31,000 foot)
diamond drill program using two drill rigs. The diamond drilling program
will be designed to extend the known massive sulphide mineralization
discovered in 1997, and will also test areas of favourable geology, areas
associated with gravity anomalies which are underlain by prospective gabbro
rocks and off-hole pulse EM anomalies detected during the 1997 program. If
normal weather conditions prevail the drill program should begin by late
April or early May. The contingency portion of the phase I budget will be
used to conduct, (i) orientation geophysical and geochemical surveys over
mineralized areas, (ii) conduct detailed surveys of gravity anomalies
detected by the regional gravity surveys, and (iii) the diamond drilling of
new targets as required.
Phase II of the 1998 exploration program and budget consists of additional
drilling which will be undertaken should a significant discovery be made
during phase I. The phase II budget is designed to allow the diamond
drilling program to progress for an interim period until additional further
1998 exploration program and budgets can be prepared and approved. The
maximum total budget for the Northern Abitibi property for phase I and
phase II is $5,810,851, however, phase II expenditures would be conditional
upon exploration success during the phase I drill program. Northern Abitibi
and Donner will each finance 50% of the expenditures or about $2,905,000
for each joint venture partner. Field operations have been contracted to
Teck Exploration under the direct supervision of the exploration staff of
the operator, Donner Minerals. This $5,810,851 proposal is only for the
exploration program to be approved by the Northern Abitibi-Donner joint
venture. The other South Voisey's Bay project exploration programs and
budgets are currently under review by the respective joint venture
participants.
Northern Abitibi has completed a first stage financing that has raised
about $2,000,000 for the 1998 exploration program and budget and is
investigating alternatives to raise additional funds prior to the start of
the 1998 exploration program.
Golden Rule Resources has completed the private placement with Northern
Abitibi for 2,800,000 units at $0.72. Each Unit consisted of a common share
and a share purchase warrant. Each warrant is exercisable at $0.84 per
share for the first year and $1.00 per share for the second year. Golden
Rule owns 8,995,426 common shares and 2,800,000 warrants or about 38% of
the outstanding shares of Northern Abitibi on a fully diluted basis.
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