Northern Abitibi's 1998 annual report
Northern Abitibi Mining Corp NAI
Shares issued 27,755,028 Feb 15 close $0.14
Tue 16 Feb 99 Company Review
Mr. Glen Harper reviews the company
1998 Annual Report
The main focus of the company's exploration activities in 1998 was the
South Voisey Bay project. Property maintenance work was conducted on the
company's portfolio of gold and base metal projects in Quebec.
Donner Minerals Ltd., the company's 50 per cent joint venture partner, is
operator of the South Voisey Bay base metals project. In May a major
diamond drilling campaign to test several strong geophysical anomalies
commenced. These anomalies were associated with diamond drill hole
SVB97-96, which in December of 1997, intersected a 15.7 metre core length
of massive sulphides assaying 1.13 per cent nickel, 0.78 per cent copper
and 0.20 per cent cobalt. The initial six holes drilled during May and
June, selected to offset the mineralization in SVB97-96, failed to locate
any significant intersections of sulphide mineralization. Detailed pulse
electromagnetic geophysical surveys were then started to identify massive
sulphide mineralization. Further drill targets were established based on
survey results and diamond drilling recommenced in September. Thin layers
of massive sulphide mineralization were intersected that seem to account
for some of the geophysical anomalies. Drilling continued until the end of
November without intersecting any economically significant thickness of
massive sulphide mineralization.
Poor results from the 1998 drill campaign had a negative effect on the
share prices of all South Voisey Bay project participants. During the
1998-1999 winter months the exploration data will be reviewed and
interpreted by exploration staff of Northern Abitibi, Donner and Teck Corp.
to develop the 1999 exploration program and budget. These recommendations
should be available from Donner by April 1999. Northern Abitibi will
determine its 1999 participation at that time.
In September 1997 Northern Abitibi entered into an agreement to settle its
legal dispute with International Mining Company S.A. with regard to an
option and joint venture agreement. Northern Abitibi had agreed to finance
exploration to earn a 50 per cent interest in a large diamond and gold
property in Guinea, West Africa. Before this option agreement could be
finalized, IMC entered into a similar business relationship with Hymex
Diamond Corp. Northern Abitibi took legal action to enforce its contract
and in late 1997 a business solution to the problem was negotiated with
Hymex. The company agreed to terminate its claim in return for the
reimbursement of its expenditures on the Guinean property and payment of
500,000 shares of Hymex. During 1998 Hymex agreed to pay Northern Abitibi
$25,000 (U.S.) per calendar quarter as an extension fee while awaiting the
finalization of the agreement with IMC. The current extension terminates on
Dec. 31, 1998.
The company owns a strategically located group of claims in the Val d'Or
gold camp, the Siscoe property, formerly known as the Roy property. Most of
this property lies beneath Lac De Montigny with exploration conducted
during the winter months when the lake is frozen. In September the property
was optioned to Beaufield Consolidated Resources which has since conducted
an airborne geophysical survey. Beaufield currently plans to test the
property's gold potential with a diamond drill program scheduled for the
winter of 1999.
In March Northern Abitibi closed the private placement with its parent,
Golden Rule Resources, issuing 2,800,000 units at 72 cents.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
