*****NEWS RELEASE*******
Budget approval received for 1998 program
Donner Minerals Ltd DML
Shares issued 26,161,058 Apr 20 close $2.90
Tue 21 Apr 98 News Release
Mr Harvey Keats reports
The company, as South Voisey's 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 under way
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
22,500m 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 5km beyond the exposed limits of the prospective gabbro using a
station density of 400m.
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 VSE 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, the remaining 50% interest in 317
mineral claims known as the Thistle 2 Claims, in the South Voisey's 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 16 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.
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's Bay project.
In consideration of acquiring the new property, the company will issue
50,000 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 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 was recently granted advanced company status by the VSE.
The company has granted incentive stock options to certain of its
directors, officers, and employees entitling them to purchase a total of
1,250,000 shares in its capital stock. These options are exercisable for
ten years at $2.60 per share. 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 AGM expected to be held
in August 1998. The exercise of these options will be subject to
shareholder approval.
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