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

To: wayne cath who wrote (3288)	2/4/1998 6:16:00 PM
From: wayne cath	Read Replies (1) \| Respond to of 11676

South Voisey's Bay progress Northern Abitibi Mining Corp NAI Shares issued 22,799,405 Feb 3 close $1.50 Wed 4 Feb 98 News Release Also Golden Rule Resources Ltd (GNU) Also Donner Minerals Ltd (DML) Mr Glen Harper reports The companies are awaiting receipt of the technical reports for the 1997 exploration program conducted on their jointly owned South Voisey's Bay claims. Teck Exploration, the contractor for the 1997 exploration program, has informed the operator that the final reports will be available by February 23. Upon receipt of the technical reports, the joint venture will design the 1990 exploration program and budget to further advance the evaluation of the property. Northern Abitibi operates as the exploration arm in Eastern Canada for the Golden Rule Group of Companies. The parent company, Golden Rule Resources owns 7,197,425 shares or approximately 30.73% of the 23,098,028 shares issued and outstanding as of December 31 1997. In addition Golden Rule has subscribed for a private placement of 2,800,000 units consisting of a share and a to raise $2,016,000 for Northern Abitibi's 1998 exploration programs. Upon the closing of this placement Golden Rule will own 9,997,425 shares of Northern Abitibi or 38.6%. Upon the exercise of the warrants this ownership position would increase to 12,797,425 shares or about 44.6% of Northern Abitibi. SOUTH VOISEY'S BAY, LABRADOR Northern Abitibi 50% Donner Minerals (Operator) 50% Teck can earn one-half of this interest Donner has earned a 50% participating interest in the 358 claims (6,728 hectares) owned by Northern Abitibi in the North Harp Lake area of Labrador. Donner has named this exploration area the South Voisey's Bay project. The Voisey's Bay deposits that were discovered by Diamond Fields Resources in late 1994 are about 90km to the north of this project area. The Voisey's Bay deposits have reserves and indicated resources reported at 98.7 million tonnes grading 1.85% nickel, 0.99% copper and 0.10% cobalt and Inco Limited estimates that the property contains an inferred mineral resource of 160 million tonnes. Inco is currently preparing this multi-billion dollar project for production in about three years. During 1996 Donner entered into option and joint venture agreements with a number of junior exploration companies that had acquired claims to cover several gabbroic intrusions adjacent to the Nain-Churchill structural break north of the Harp Lake pluton. This area has regional structures and rock types similar to the Voisey's Bay region. After consolidating a large land package to cover the geological areas of interest, Donner entered into a contractual relationship with Teck to finance exploration and to conduct exploration of the land package. Teck has the right to participate in the property interests owned by Donner pursuant to the terms and conditions of the option and joint venture agreements entered into by Donner with the property owners in the area. In addition Donner, as operator of the various exploration programs, contracted the exploration arm of Teck, Teck Exploration, to design and conduct the 1997 exploration programs and budgets that were to be conducted by Donner and its joint venture partners. The option and joint venture agreement negotiated between Northern Abitibi and Donner allowed Donner to earn a 50% interest in the Northern Abitibi property by making $50,000 in property payments; issuing 120,000 common shares of Donner to Northern Abitibi; and financing $360,000 in exploration. The initial exploration program on the property was conducted by Northern Abitibi in 1995 and consisted of airborne geophysical surveys and follow-up geochemical surveying, geological mapping, prospecting and sampling. The 1995 program identified a geological environment similar to that at Voisey's Bay. Donner entered into the option and joint venture agreement with Northern Abitibi in the spring of 1996 and conducted a follow-up exploration program in the summer of 1996. This program consisted of ground geophysical surveys and geological work and mapped the suite of intrusive gabbroic rocks that could host significant base metals deposits. In 1997 Teck designed and implemented the overall South Voisey's Bay exploration program for Donner. This integrated geological and geophysical program was designed to identify the location of the olivine bearing gabbroic (troctolite) rocks that could host massive sulphide mineralization that would contain economic levels of nickel, copper, cobalt and platinum group metals. During the summer of 1997 the geophysical program conducted on the southern part of the Northern Abitibi claims identified several diamond drill targets in the area underlain by the gabbroic and troctolitic rocks and in September of 1997 the initial diamond drill program commenced to test these targets. The drilling in September was positive in a geological sense in that troctolite rocks containing disseminated sulphide mineralization were encountered. Towards the and of September drill hole No. 97-67 encountered the first massive sulphide mineralization on the property which when assayed reported significant base metals values over several short core intervals. Hole Interval Ni Cu Co m % % % SVB97-67 176.2-176.5 1.73 1.64 0.23 178.9-179.5 1.93 1.07 0.26 180.3-180.4 1.35 0.84 0.17 In October a second interesting diamond drill hole intersection was made in drill hole No. 97-75 about 300 metres northwest of the initial discovery hole. This narrow intersection of massive sulphide assayed spectacular high grade base metals values which further advanced the geological model that is being used to guide the exploration program. Hole Interval Ni Cu Co m % % % SVB97-75 176.8-177.9 11.75 9.70 0.43 In late November further drilling was begun to test the area of the higher gravity and magnetic anomalies in the area of the known massive sulphide mineralization. The last drill hole of the 1997 drill program, drill hole No. 97-96, encountered a thick intersection of significant base metals mineralization. This hole is about 200 metres to the southwest of drill hole No. 97-75 and 470 metres to the west of drill hole No. 97-76. >From To m Ni Cu Co m m % % % 184.3 185.8 1.5 1.08 0.82 0.18 185.8 187.3 1.5 1.19 0.65 0.21 187.3 188.8 1.5 1.02 0.78 0.18 188.8 190.3 1.5 0.99 0.74 0.17 190.3 191.9 1.6 1.09 0.96 0.20 191.9 193.4 1.5 1.15 0.78 0.20 193.4 194.9 1.5 1.13 0.70 0.20 194.9 196.4 1.5 1.11 0.80 0.20 196.4 197.9 1.5 1.27 0.84 0.22 197.9 199.0 1.1 1.34 0.75 0.23 199.0 200.0 1.0 1.22 0.66 0.22 The mineralization in this drill hole has given more evidence to support the geological model. The grade of mineralization appears to be economic as it contains a total metal value of over $150/tonne using current metal prices. The grades are remarkably consistent over each sample interval. The high cobalt grade is particularly of interest at this time. The thickness is of most importance as it indicates that a large volume of massive sulphide mineralization can be found on the property. Early in 1998 an integrated geological and geophysical exploration program and budget will be designed by the joint venture to further evaluate the base metals mineralization on the Northern Abitibi claims. This program will include an aggressive diamond drill program scheduled to begin in the spring. To date Northern Abitibi has financed about $800,000 on this project including about $618,000 for the program conducted subsequent to the fiscal year end. Over the last few weeks several mining analysts and industry participants have commented an the similarity of the mineralization encountered on the property and that of the Voisey's Day deposits. Recent stock market activity in the shares of both Northern Abitibi and Donner Minerals is, in the opinion of the companies, a result of the anticipation of the beginning of the 1998 exploration program which should be under way in April. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com