TO ALL... This DML NR may be of importance to LAB shareholders and
potential shareholders... Please pay attention to the bolded area...
DONNER MINERALS LTD. ANNOUNCES MOBILIZATION FOR $14.8 MILLION 1998 PROGRAM UNDERWAY
VANCOUVER, April 20 /CNW/ - Donner Minerals Ltd.
VSE Symbol: DML
Harvey Keats, President, reports that the Company, as South Voisey Bay
Project operator, has now received budget approval for the 1998 program from
all of its joint venture partners. Mobilization for the $14.8 million 1998
program is well underway and drilling is expected to begin by mid-May.
The program will consist primarily of diamond drilling, regional-style
and detailed gravity surveys, borehole Pulse EM surveys, and detailed
geological mapping. Surveys will further test prospective areas identified in
1997 as well as develop additional targets. As in 1997, work will focus on
areas known to be underlain by prospective gabbro, however, additional surveys
will be completed over adjacent areas where gabbro may occur at shallow depths
beneath gneissic cover rocks. The Program is comprised of two components, a
Phase 1 program consisting of field surveys and diamond drilling, and a Phase
2 program consisting of follow-up diamond drilling.
Phase 1
Phase 1 totals $9.2 million in expenditures and includes $6.6 million for
the initial field programs and diamond drilling as well as a $2.6 million
contingency budget. The initial $6.6 million program will consist of 22,500 m
of diamond drilling, approximately 185 line km of linecutting, 146 line km of
detailed geological mapping and gravity surveys, as well as coverage of 906
claims by regional gravity surveys.
Diamond drilling will test several types of targets including areas of
favorable geology, areas associated with inadequately tested gravity anomalies
which are underlain by prospective gabbro, offhole Pulse EM anomalies detected
during the 1997 program, and areas where significant mineralization has been
identified.
Linecutting, detailed geological mapping and gravity surveys will be
completed over the central portion of the project to provide continuous
coverage between the north and south gabbros as well as cover several
exposures of prospective gabbro between these gabbros. These exposures remain
poorly understood, but may represent erosional remnants or windows exposing
gabbro which may join the north and south gabbros.
Regional-style surveys will be extended outside the established grids to
cover areas beyond the exposed limits of prospective gabbro. Areas requiring
additional gravity surveys include the north and eastern margins of the north
gabbro as well as the west margin of the south gabbro. These surveys would be
effective for identification of thick accumulations of prospective gabbro
beneath overlying gneiss, as opposed to direct detection of near-surface
massive sulphide accumulations. Coverage will be extended to 3.5 to 5 km
beyond the exposed limits of the prospective gabbro using a station density of
400 m.
The Phase 1 contingency budget will be used to conduct (i) orientation
geophysical surveys over mineralized areas, (ii) follow-up geophysical
surveys, (iii) detail surveys of gravity anomalies detected by initial
regional gravity surveys, and (iv) drilling of new targets as required.
Phase 2
Phase 2 of the 1998 program consists of additional drilling for an
expenditure of $5.6 million, which will be undertaken should a significant
discovery be made during Phase 1. Phase 2 doubles the drilling budgets
proposed under the initial portion of the Phase 1 program.
The maximum total proposed budget for Phase 1 and 2 is $14.8 million,
however, Phase 2 expenditures would be conditional upon the success of Phase
1.
Additional Claims Acquired
The Vancouver Stock Exchange has accepted for filing documentation
pertaining to a Letter Agreement dated February 27, 1998, whereby the Company
has the option to acquire from Thistle Creek Resources Inc., the remaining 50%
interest in 317 mineral claims known as the Thistle 2 Claims, located in the
South Voisey Bay Project area. Consideration is 500,000 shares of the Company
in two equal tranches. The first tranche of 250,000 shares will be subject to
a hold period expiring August 16th, 1998, the second tranche will be issued
upon completion of expenditures of $1,000,000 on the Property and filing an
acceptable technical report with the Exchange recommending further work on the
Property. The purchase will give the Company a 100% interest in the Property
subject to a 1% net smelter return royalty retained by Thistle Creek Resources
Inc.
The Company has entered into an agreement with a private individual,
whereby the Company will acquire a 100% interest in a total of 200 claims (the
'New Property') that are contiguous to the South Voisey Bay Project. In
consideration of acquiring the New Property, the Company will issue 50,000
common shares and make a cash payment of $60,000. Upon the completion of
$1,000,000 in exploration work on the Property the Company will issue an
additional 50,000 common shares. The Property is subject to a 2% Net Smelter
Royalty of which the Company has the option to buy back half for $1,000,000.
Advanced Status
The Company is pleased to announce that it was recently granted Advanced
Company status by the Vancouver Stock Exchange.
Stock Options Granted
The Company has granted incentive stock options to certain of its
directors, officers, and employees entitling them to purchase an aggregate of
1,250,000 common shares in its capital stock. These options are exercisable
for a period of ten years at a price of $2.60 per share, being the average
trading price of the Company's shares over the last ten trading days. The
granting of these stock options will be subject to the terms of the Company's
Stock Option Plan which will be presented to its shareholders for approval at
the Annual General Meeting expected to be held in August 1998. The exercise
of these options will be subject to shareholder approval and the Vancouver
Stock Exchange approval of the Plan.
ON BEHALF OF THE BOARD OF
DONNER MINERALS LTD.
Harvey Keats
President
THE VANCOUVER STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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For further information: Harvey Keats, President, (604) 683-0564, Fax:
(604) 602-9311 or Toll Free: 1-800-909-8311, E-mail: donner@bed-rock.com or
Web: donner-resources.com
DONNER MINERALS LTD. has 18 releases in this database. |
