For the benefit of lukers, here is the text of the announcement:
Darnley Bay Resources Ltd
DBL VSE
September 30, 1998
Falconbridge to Participate in Darnley's Ground Evaluation Program Paulatuk, Northwest Territories
DARNLEY BAY RESOURCES LTD ("DBL-V")
FALCONBRIDGE LTD ("FL,FL.UN-TM;FBDGF,FLBPF-L")
- Falconbridge to Participate in Darnley's Ground Evaluation Program - Paulatuk, Northwest Territories
Leon F. La Prairie, President of Darnley Bay Resources Limited announces that Falconbridge Limited will participate in the Company's ground evaluation program of the Darnley Bay anomaly at Paulatuk on the coast of the Arctic Ocean in the Northwest Territories of Canada.
The Inuvialuit are the indigenous people in the western Arctic. In 1984, they made a land settlement agreement with the Government of Canada. Under that agreement, the Inuvialuit Settlement Region, a large area of the western Arctic, was set aside: Inuvialuit ownership and other rights were established for the region. The Darnley Bay anomaly is in the Inuvialuit Settlement Region. The Company has entered into an agreement with the Inuvialuit that establishes the Company's exclusive exploration and development rights to the anomaly as well as the Inuvialuit rights to participate with the Company.
The planned ground exploration follows an aeromagnetic survey conducted by the Company in the fall of 1997 which revealed near-surface geological and structural features that indicate a very high probability of locating nickel within the mineralized bodies. These features include fault zones and dyke systems with vertical and horizontal movements, numerous magnetic peaks and associated gravity peaks that were discovered in the 1969 and 1991 surveys.
In addition to these features, fourteen discrete magnetic anomalies have been modeled and have geophysical signatures similar to kimberlite pipes that contain diamonds in the Lac de Gras area -
southeast of Paulatuk.
Leon La Prairie, President of Darnley Bay Resources Limited, states that, based upon findings from the 1997 aeromagnetic and previous gravity surveys, geological mapping and regional mineral sampling, there is potential for major deposits of various minerals, and, if economically feasible to extract, the anomaly at Paulatuk should be the future site of significant mining operations.
Mr. La Prairie also announces that Falconbridge Limited will participate in a public distribution by the Company of units of common shares and share-purchase warrants. A preliminary prospectus has been filed and the expectation is that closing will be in October.
The participation by Falconbridge Limited is subject to its due diligence and the approval of the Inuvialuit.
Arctic Mine Development
Re: Excerpts as essentially contained in Falconbridge Limited's 1997 Annual Report
Falconbridge Limited is an international, integrated base metals firm, the second largest producer of primary nickel products, the third largest producer of cobalt and one of the top copper producers in the Western world. It has achieved ISO 9000 certification on process quality and is working on implementation of the new ISO 14000 environmental standards.
Headquartered in Toronto, Falconbridge was founded in 1928. Presently it employs more than 6,500 workers in 12 countries - exploring for, developing, mining, processing and/or marketing its products. Falconbridge, listed on the Toronto and Montreal stock exchanges, is principally owned (49%) by Noranda Inc.
Last December (1997), Falconbridge opened its Raglan nickel/copper/platinum group elements (PGE) mine on Quebec's Nunavik Arctic frontier at latitude 61 degrees North, off Deception Bay,
south of Hudson Strait. Its facilities include a quality accommodation complex for 300 and an 800,000-tonne-per-year capacity ore concentrator and diesel-fueled power plant processing ore from deposits that are expected to last for 20 or more years.
The first concentrate was shipped from a massive storage warehouse adjacent to a wharf on Deception Bay in July of this year when icebreakers had cleared the port and after caribou herds had safely completed their seasonal migration.
Environmental/ecological concerns are central to Falconbridge's commitment to developing profitable, long-life, safe and environmentally responsible operations for the benefit of its shareholders, customers, employees and the communities in which it operates. Its "Codes of Practice" guidelines commit the firm to "acting responsibly in the exploration, development, mining, production, transportation, storage, handling, distribution, use and ultimate disposal of metals, byproducts and wastes", to minimize measurable effects on life, health and the environment and "to protect against known risks or hazards that our products may present."
Effective communications have been critical to these and other of the company's principal community relations goals at the Raglan development - "to ensure that local communities are kept informed so that they may know what the company is doing and feel comfortable about expressing their views".
In 1995, Falconbridge and Makivik Corporation - which oversees the political, social and economic development of the Nunavik territory - signed an agreement dealing with environmental, Inuit employment and contracting issues, as well as profit participation and guaranteed contributions for the benefit of two local communities' and the Inuit of Nunavik. Falconbridge also reached agreement with the provincial government on infrastructure funding, environmental permitting, taxation and training issues.
TEL: (416) 862-7885 Released By: Darnley Bay Resources Ltd. FAX: (416) 862-7889 EMAIL: dbr@darnleybay.com INET: www.darnleybay.com
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This Report Updated by Canstock at 10:17:17 Pacific Time
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Will, what is interesting about this to me is the fact that FL is not not actually optioning the project, they are instead taking an equity position in DBL through their participation in the private placement. DBL still owns 100% of the project, although FL will probably have an option to take a more active role in the project at a future date if the results of the field work warrant it.
Wonder how much of DBL FL will own as a result of their involvement in the private placement.
It would also be interesting to know if FL will be providing geologists for the field program.....I suspect that they probably are.
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