Donner Minerals Ltd -
Progress at South Voisey's Bay
Donner Minerals Ltd
DML
Shares issued 31,689,657
1998-07-16 close $1
Friday Jul 17 1998
Mr. Harvey Keats, reports
The following is a progress report on phase I of the 1998 South Voisey Bay project. Phase 1, which
began in mid-May, is an integrated geophysical and drill program budgeted at $9.2-million. To date
approximately 35 per cent of the 22,500 metre phase I drilling program (16 holes) has been completed.
The work carried out has resulted in numerous very encouraging developments that have greatly
enhanced the geological model and exploration methods. In the North Gabbro numerous narrow zones
of semi-massive and massive sulphide have been intersected within a pervasive contaminated zone at the
base of a large olivine gabbro. Test geophysical surveys have been carried out over these zones in order
to select an EM survey for the entire project. A Crone low frequency multi-channel pulse EM survey has
been selected to see through the graphite in the upper gabbro and discriminate between any significant
thickness of massive sulphides and the enveloping widely spread disseminated and blebby sulphides
within the basal contaminated gabbro (blanket mineralization). Holes 67, 75 and 96 which all intersected
massive sulphides in 1997, tested similar, though less well defined, EM targets.
The PEM survey which recently began has identified a large and strong 42 channel low frequency
anomaly southeast of the 1997 Northern Abitibi discovery area and on the west side of the Major
General/Donner property where a feeder has been recently interpreted. The area of the anomaly has not
yet been drill tested.
Drilling in the South gabbro has confirmed the presence of multiple sills as well as the possible location
of a second and third feeder zone on the South Voisey Bay property. These feeders are affiliated with
coincident gravity highs defined by 1997 surveys.
Two drills are presently operating on the North Gabbro and one drill on the South gabbro under the field
supervision of Teck Exploration, which is acting as general contractor during the 1998 field season.
Detailed gravity geophysical surveys are under way and regional gravity surveys are scheduled to begin
shortly. PEM surveys will be completed over the North and South gabbros and may cover areas where
the gabbro extends beneath the gneiss. It is expected that the majority of the remaining phase I drilling
will test PEM targets.
NORTHERN ABITIBI/DONNER
A total of nine drill holes totalling approximately 3,300 metres has been completed on the Northern
Abitibi/Donner joint venture. Six holes (98-98, 98-99, 98-101 to 104) were completed in the vicinity of
hole 97-96 to evaluate the extent of the massive sulphide mineralization and the geophysical anomaly
mapped by surface and down-hole EM surveys. Thin intersections of semi-massive and massive
sulphide mineralization at the base of the olivine gabbro unit were encountered. Both 1997 and 1998
drilling has shown that a blanket of disseminated, semi-massive and massive sulphide mineralization
within a contaminated gabbro unit is ubiquitous in this area of the property. Results of the PEM surveys
in this area are expected to discriminate between any significant thickness of massive sulphide and basal
blanket mineralization. The test PEM survey shows the area containing the 1997 massive sulphide
intercepts and the above six holes to be moderately anomalous, however PEM has identified a large
anomaly 600m to the southeast which is highly conductive and has not been drill tested.
Drill holes 98-105, 98-106, 98-108 and 98-111 (in progress) have been drilled to test the gravity
anomalies on the western sector of the property, to establish the nature and attitude of the gabbro-gneiss
contact and to identify possible feeder zones. The gravity anomalies appear to represent a thicker
sequence of gabbro than that identified in the drilling to the east.
MAJOR GENERAL/DONNER
A total of 1,831m has been drilled in three holes (97-92, 98-107 and 98-109) on thee Major
General/Donner joint venture. A fourth hole (98-112) is in progress to test a discrete gravity anomaly.
Hole 97-92 was deepened from 372m to 1097m and remained in gabbro to its termination depth. It has
been interpreted that hole 97-92 encountered a 200m - 300m wide, north-south striking, sub-vertical
feeder dyke. Hole 97-107 was drilled to 547 metres and hole 98-109 was completed at 559 metres. All
three holes were drilled from the same collar location.
Hole 98-107 drilled at -60 degrees to the southwest and hole 98-109 drilled at -60 degrees, at azimuth
080 degrees, both encountered a thickened unit of gabbro before intersecting the underlying gneiss.
Hole 98-107 encountered contaminated and mineralized olivine gabbro, including 0.2m of massive
sulphide containing particularly anomalous concentrations of nickel and copper. Significantly, both
holes encountered several narrow gabbroic dykes, including one 12 metres wide, within the gneiss.
These dykes are interpreted as offshoots from the main feeder identified in 97-92 and possible conduits
for nickel-copper sulphides to the base of the olivine gabbro.
The identification of a feeder and related dykes is an important step towards understanding the South
Voisey Bay project and will help focus the exploration for a significant thickness of massive sulphides at
the base of the olivine gabbro and within the feeder dykes.
PEM has identified a strong anomaly in the southwest corner of the Major General/Donner area and the
adjacent Northern Abitibi/Donner ground, southwest of the 0.2m thick massive sulphide intersection in
98-107.
NDT/LATITUDE/DONNER
To date one hole (97-73), which was originally terminated in gneiss at 391.7m, has been deepened to
712.6m. The hole, which was designed to test for the possible presence of a second olivine gabbro was
terminated while still in gneiss. Additional drilling will be carried out on the joint venture upon the
completion of the PEM survey, which will cover the entire NDT/Latitude/Donner claim block.
CYPRESS/DONNER
A total of 1,438.4M has been drilled during the 1998 program on the Donner/Cypress joint venture in
the South gabbro. Hole 97-79 was deepened from 701.0m to 999.7m and hole 97-91 was deepened
from 311.8m to 1,098.8m. Drilling in hole 97-79 has defined a particularly thick olivine gabbro with
11.5m of heavily disseminated to semi-massive magmatic sulphides near the base. This hole is
immediately west of a prominent gravity anomaly which is interpreted to be a second feeder to the
overlying sills. Exploration of this prospective intrusive complex and related feeder will consist of EM
surveys and follow-up drilling.
The second hole, 97-91, was extended to test a similar, prominent gravity anomaly interpreted to be
potentially associated with a third feeder zone. This hole terminated in gabbro at 999.7m after coring a
complex series of gabbros similar to that encountered in 97-92 on the Major General/Donner joint
venture. The identification of feeders provides a focal point for exploration in the Cypress/Donner joint
venture a. A strong off-hole anomaly has been identified at a depth of 370m, 100m northeast of 97-91.
A PEM survey will be carried out to further define the anomaly prior to drilling.
A third hole, 98-110 (in progress) intersected contaminated olivine gabbro to 95.3m with 7 to 10 per
cent sulphides locally, graphitic paragneiss to 202.1m and a second olivine gabbro to 316.4m,
containing 50 to 55 per cent sulphides over 0.4m within contaminated olivine gabbro. The hole is
currently at 397.8m in graphitic paragneiss and will be continued to explore for a possible third gabbro
unit. Follow-up drilling will depend on assay results and planned PEM surveys in the area.
The Cypress property has now been identified as a geologically complex area, with multiple sills of
varying thickness, as well as interpreted feeders.
DONNER 100 PER CENT
One hole has been drilled and one deepened on ground wholly owned by Donner in the South Gabbro.
Hole 98-100 was drilled to 214.6m to test a geophysical anomaly and encountered pyrrhotite and
graphite gneiss at the basal contact of an olivine gabbro.
Hole 97-98, which was halted in a gabbro at a depth of 700m during 1997, was deepened and
terminated at a depth of 1,151.5m in gabbro. The significance of this deep gabbro is yet to be
determined, however the anomalous thickness of complex gabbro intersected in this hole may confirm
the southern extension of the interpreted feeder adjacent to hole 97-79. Exploration of the property will
continue through the development of geophysical anomalies and additional diamond drilling.
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