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Gold/Mining/Energy : Donner Minerals (DML.V) -- Ignore unavailable to you. Want to Upgrade?

To: VAUGHN who wrote (3129)	1/30/1998 4:13:00 PM
From: VAUGHN	Read Replies (4) \| Respond to of 11676

To All Had a good chat with our associates at DML this morning and can pass along the following: 1. Two reasons for the apparent delay in putting out the review summary of 1997 exploration. 1. Harvey Keats has been in Hog Town for the past three weeks reviewing in detail all the field results of the 1997 season with the Teck and DML Exploration Managers, and, 2. There have been extensive additional meetings, (still ongoing), with JV partners Exploration Managers, reviewing their findings and opinions, and what they now suggest should be done on their respective properties in 1998. 2. As a result of Harvey's review, there appears to be a far more in depth and technical company focus on what was found, and where the company's and JV partners $$ ought to be spent and when. 3. As a result of the latest analyses, a number of JV partners are more willing to belly up with more exploration $$ than they originally had budgeted. 4. In a few cases, DML is negotiating other arrangements with those who's pockets may not be as deep. 5. Not wanting to quote numbers, there appears to be "rumblings from Teck" not unsupported by DML management, that the 1998 exploration budget should be "increased considerably" from the previously announced $5,000,000 . This is where some of the JV negotiations are dwelling. 6. DML Management and Teck having completed their detailed review, and are still very strongly of the belief that the bulk of their time and $$ should be spent on the NAI and CYP claims in 1998. 7. There is also a lack of geophysical data on an area of the Major General claims adjacent to some very prospective data and geology on the NAI claims. It is proposed to conduct gravity and geophysical surveys to follow up on some observed geological trends with possible drilling if results are favourable. 8. There was also a personal wish expressed by one of the parties I spoke to for the Lab and Pallium properties to be perforated. 9. Apparently Teck is the one, impatient to get back onto SVB, but its DML, and some JV's, dragging their respective feet. DML is concerned over the "burn rate" of working there this time of year. There is a perception that since Teck has deep pockets, they are not as sensitive to field costs as DML and some JV's are. Simply put, a $1 goes farther in April or May than it does in Feb. or March, and DML wants to stretch their budget as much as possible, at least that's their position. 10. If DML gets their way, don't expect drills to be turning until late April at the earliest despite the fact that its been -5 in Goose Bay for a week now. If Teck gets theirs, expect drilling earlier. Reading between the lines, I got the impression that there is some hard ball being played and some quid pro quo being sought for DML's support of the earlier start. 11. DML couldn't say for sure but 1997 Summary should be out within two weeks and 1998 Plans should still be out before PDAC. 12. The vast majority of the 1997 program budget was spent on geophysical work and as you know, only 44 holes were punched. Apparently, there is a resolve at Teck that the 1998 budget should reverse that pattern and the majority should be spent on drilling. 13. DML and Teck have also been in heavy negotiations with the Newfoundland Government about their onerous drilling regulations. As you know there is a three week permitting approval period and every hole has to be permitted. Teck is apparently attempting to negotiate some area drilling permits for the NAI and CYP ground if not for the whole play. This would eliminate the time delays and allow Teck to move the drill more quickly according to their field results. Considering the market's treatment of Teck's stock along with everyone else's, it just could be that they are looking at SVB to renew interest in 1998. As you know, they are considered to be largely a gold play, unlike Falconbridge or Inco, so they need a good story like everyone else. Lets face it, there isn't a better story than SVB this year unless its Western Copper. With the attention heaped on DML at the Vancouver show last week, and the press they have received since, there seems a corporate sense that they are the flavour of the day, and to some degree this may be being leveraged. Regards