HERE IT IS...
DONNER RESOURCES LTD. ANNOUNCES SOUTH VOISEY'S BAY PROJECT UPDATE
VANCOUVER, Oct. 29 /CNW/ - Donner Resources Ltd.
VSE Symbol: DRZ
Donner Resources Ltd. (''Donner'') provides the following summary of
progress on the South Voisey's Bay Project in Labrador. The 1997 drilling
program is approximately 50% complete. Previously issued results are discussed
at greater length within this release.
Background and General Results
------------------------------
In early 1995, Donner acquired extensive claim holdings in an area of
Labrador now referred to as the South Voisey's Bay Project located about 90
kilometres south of the Voisey's Bay nickel deposit. The company subsequently
entered into option agreements with 13 other junior exploration companies to
acquire additional land holdings in the project area that now totals about
1,500 square kilometres. At present, Donner's joint venture partners include
Aranlee Resources Ltd., Birchwood Ventures Ltd., BMA Mining Corp., Curion
Ventures Corp., Cypress Minerals Corp., Essex Resources Corp., Latitude
Minerals Corp., Layfield Resources Inc., Major General Resources Ltd.,
Mandorin Goldfields Inc., NDT Ventures Ltd., Northern Abitibi Mining Corp.,
and Thistle Creek Resources Inc. Figure 1 shows the property outline of each
of these joint ventures. Areas held by unrelated third parties are shown in
white and are not included in the list of participants.
During 1995 and 1996, Donner carried out extensive preliminary
exploration in the South Voisey's Bay area and defined several large gabbroic
intrusions containing low but significant copper, nickel and cobalt values.
Based on the geological similarities with the Voisey's Bay area, Teck
Corporation ('Teck') entered into a Participation Agreement with Donner and
agreed to act as contractor for the 1997 program.
The main objective of the 1997 program has been the evaluation of those
areas known to be underlain by the prospective gabbro intrusions. More
detailed reconnaissance mapping was completed over the entire project area and
detailed grid mapping was conducted over all areas of known gabbro. Ground
magnetic and electromagnetic surveys were conducted over geophysical anomalies
detected by previous airborne surveys. Detailed ground gravity surveys were
completed over all areas of known gabbro using a differential global
positioning system for control. To date, thirty-two holes totaling 7,447
metres have been drilled on selected targets throughout the project area. By
mid-December, drilling should total close to 14,000 metres.
Results to date have significantly enhanced the potential of the project.
Mapping and drilling clearly indicate that the gabbro bodies are layered
intrusions very similar in character to the rock hosting the world-class
Voisey's Bay nickel deposits. An upper member of coarse-grained gabbro is
underlain by a finer grained member of layered, olivine gabbro
(''troctolite'') varying in thickness from 10 to 100's of metres. At least
two intrusive centers are recognized and possible feeder systems have been
identified in both these areas. Disseminated magmatic sulfides are often
present near the base of the lower member as are, less frequently, narrow
bands of massive sulfides, sometimes with significant nickel and copper
content as in previously released hole 97-67. The rocks intruded by the
layered gabbro are sulfide-rich, graphitic gneiss. As indicated by previously
released hole 97-75, high-grade intervals of massive sulfides can occur
locally within this gneiss in proximity to the lower contact of the layered
intrusions. Well-developed breccias are present locally, adjacent to both the
upper and lower contacts of the layered intrusions. The basal portion of the
intrusions often contains abundant fragments of wall rock gneiss. Based on
information from Voisey's Bay and other nickel deposits elsewhere in the
world, these features indicate considerable potential for significant
accumulations of nickel, copper and associated metals.
The main areas of layered intrusion are referred to as the Northern
Gabbro Area and the Southern Gabbro Area. The Northern Gabbro Area includes
the Donner / NDT / Latitude joint venture, the Donner / Northern Abitibi joint
venture, the Donner / Major General joint venture, the Donner / Thistle joint
venture and claims owned 100% by Donner. The Southern Gabbro Area includes
parts of the Donner / Cypress joint venture, the Donner / Curion joint venture
and claims owned 100% by Donner.
Northern Gabbro Area
--------------------
Within the Northern Gabbro Area, Teck has completed detailed geological
mapping, 141 line kilometres of ground magnetics and Maxmin surveys, 285 line
kilometres of gravity surveys and 31 drill holes for a total of 6,746 metres.
Geological and geophysical data were used to identify targets for drill
testing. The gravity data outlined a strong anomaly which extends along the
western part of the Donner / NDT / Latitude joint venture, continues northeast
onto the Donner / Northern Abitibi joint venture and extends from the west to
the east onto the Donner / Major General joint venture. At least in part,
this anomaly indicates a pronounced increase in the thickness of the layered
intrusion and may indicate potential for a feeder system, a favorable site for
accumulation of massive sulfides.
Diamond drilling within the Northern Gabbro Area has been carried out in
three main areas:
- Seven holes are completed or drilling in the western part of the
Donner / NDT / Latitude joint venture and on adjoining ground owned 100% by
Donner. The initial holes in this area were drilled as stratigraphic holes to
test the thickness of the layered intrusion. Subsequent holes were drilled to
test parts of a large gravity anomaly associated with the junction of a
possible feeder system with the main body of layered gabbro. Anomalous but
subeconomic metal values are present associated with intervals of disseminated
sulphides and local narrow sections of massive sulphides. More significantly,
the layered intrusion reaches a thickness of more than 400 metres confirming
proximity to a possible feeder system, a favourable site for significant
nickel-copper sulphide mineralization. Drilling in this area continues.
- A series of 14 holes has been drilled in the northeastern part of the
Donner / NDT / Latitude joint venture, the southern part of the Donner / Major
General joint venture and on adjoining ground which is part of the Donner /
Thistle Creek joint venture. This series of holes was drilled to test a
gossan zone at the base of the layered intrusion on the Donner / NDT joint
venture and to investigate geophysical anomalies in the south central part of
the Donner / Major General joint venture. The drill holes in this area were
generally shallow and intersected the basal contact of the intrusion at depths
of between 50 and 200 metres. Narrow intervals of disseminated sulfides and
massive sulfides were intersected and returned anomalous but subeconomic
copper-nickel values. Additional targets in this area will require drilling
in the future.
- A series of ten holes have been drilled in the southern part of the
Donner / Northern Abitibi joint venture. Initially, a fence of four angle
holes was drilled at 100-metre intervals to test a group of electromagnetic
anomalies within the gabbro. The first two and most southerly holes
intersected a narrow zone (approximately five metres) of disseminated sulfide
mineralization immediately above the contact with the basement gneiss. The
third hole (97-67) intersected a significantly thicker zone (approximately 25
metres) of disseminated sulfides including three narrow intervals of massive
sulfide mineralization near the contact with the gneiss. As previously
reported, the massive sulfide intervals assayed 1.93% nickel, 1.07% copper and
0.26% cobalt over 0.65 metres. The final drill hole on this fence intersected
more than 50 metres of disseminated sulfide mineralization immediately above
the contact with the gneiss. Figure 2 is a vertical cross section indicating
the geology of this fence of holes. The attached assay table lists the
intervals and grades for the sulfide zones intersected in hole 97-67. After
completion of the initial drill fence, a second fence was drilled 250 metres
to the northwest consisting of three vertical holes, each 200 metres apart.
This series of holes intersected a similar geological sequence. As previously
reported, the middle hole of this fence (97-75) intersected a 1.1 metre
interval of massive sulfides approximately 13 metres below the base of the
layered intrusion. This zone assayed 11.75% nickel, 9.70% copper, and 0.43%
cobalt. Other holes on this fence intersected disseminated sulfides and
narrow bands of semi-massive sulfides assaying anomalous but subeconomic
values. Drilling in this area continues and significant results will be
reported, as they become available.
South Gabbro Area
-----------------
In the Southern Gabbro Area, Teck has completed detailed grid mapping,
101 line kilometres of ground magnetic and Maxmin surveys, 140 line kilometres
of gravity survey and a single deep hole to a depth of 701 metres. A second
drill hole is in progress. The rock types identified within this area are
essentially identical to those hosting the significant copper-nickel-cobalt
mineralization within the Northern Gabbro. However, geological mapping and
the gravity data strongly suggest a funnel shaped body. A strong curvilinear
gravity anomaly extends for over 4.5 kilometres north-south along the boundary
between part of the Donner / Cypress joint venture and ground owned 100% by
Donner. This anomaly is interpreted as the possible feeder or throat of the
funnel shaped layered intrusion. To evaluate this important target, a series
of several holes will be drilled across the strongest part of the gravity
response. To date, one hole has been drilled, stopping at 701 metres, the
limit of drill capacity.
After a short interval of hanging wall gneiss at the top, the hole
intersected a thick sequence of layered olivine gabbro to the base of the
hole. The last 18 metres contained 1 to 5% disseminated sulfides, possibly
indicating proximity to the basal cont act with gneiss. Assay data and
additional information will be released as soon as received. A second hole
has been collared and is now drilling about 900 metres to the south on the
same gravity high. Several additional holes are planned for this area.
Summary
-------
Results of the 1997 program completed to date are considered very
encouraging. Thick layered olivine gabbro intrusions are present over an
extensive area, at least two intrusive centers have been identified and the
intrusive rocks are very similar in character to those hosting the world-class
Voisey's Bay nickel deposits found in a similar geological environment
approximately 90 kilometres to the north. Broad intervals of disseminated
magmatic sulfides containing anomalous nickel values are present extensively
near the base of the intrusions. Local, narrow intervals of high-grade
nickel-copper mineralization indicate excellent potential for significant
accumulations of rich massive sulfide deposits both in the area of the known
intersections and at untested targets elsewhere within the large project area.
Drilling continues using three machines which are presently located on 1)
100% Donner ground located west of the Donner / NDT / Latitude joint venture,
2) the Donner / Northern Abitibi joint venture and 3) the Donner / Cypress
joint venture. Further results of significance will be made available in a
timely manner.
ON BEHALF OF THE BOARD OF
DONNER RESOURCES LTD.
David Patterson
Chief Executive Officer
THE VANCOUVER STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
BUSINESS/PHOTO EDITORS: A copy of the Donner Resources Ltd. map of the
South Voisey Bay Area Joint Ventures, Figure no. 2 and DDH 97-67 Assay Data is
available by fax by calling Canada NewsWire, Vancouver at (604)669-7764. |
