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Gold/Mining/Energy : Northern Abitibi Mining (NAI-ASE) -- Ignore unavailable to you. Want to Upgrade?

To: VAUGHN who wrote (395)	4/15/1998 3:55:00 PM
From: Flea	Respond to of 773

Northern Abitibi Mining Corp - $5.8m budget for Labrador Northern Abitibi Mining Corp NAI Shares issued 22799405 1998-04-14 close $1.74 Wednesday Apr 15 1998 Mr Glen Harper reports Northern Abitibi Mining and Donner Minerals have approved a $5,800,000 1998 exploration program and budget for their 358 claim (5728 hectare) jointly owned base property in the South Voisey's Bay area of Labrador. Diamond drilling in 1997 resulted in the discovery of significant magmatic sulphide intersections carrying high nickel copper cobalt metal assays. 1998 DIAMOND DRILLING The majority of this budget is for a major diamond drilling program, scheduled to begin by the end of April, using two drill rigs. The initial 9,400 metre (30,480 foot) phase of drilling on the NAI property is designed to extend the Voisey's Bay style base metal mineralization discovered in three diamond drill holes in the 1997. 1997 DIAMOND DRILLING The initial discovery of magmatic massive sulphide mineralization in September 1997 in drill hole SVB 97-67 led to an expansion of the 1997 drill program. Drill 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 1997 drill hole SVB 97-75, located about 300 metres northwest of SVB 97-67, intersected very high grade base metals values in what may be a feeder zone to a magma chamber containing magmatic massive sulphides. Drill Hole Interval Ni Cu Co (m) (%) (%) (%) SVB97-75 176.8-177.9 11.75 9.70 0.43 In December the last drill hole in the 1997 program intersected a thick intersection of magmatic massive sulphide mineralization which has been interpreted to be located at the floor of the magma chamber. Drill hole SVB 97-96 is about 200 metres to the southwest of drill hole SVB 97-75 and 470 metres to the west of drill hole SVB 97-76. Drill Hole Interval Ni Cu Co (m) (%) (%) (%) SVB97-96 184.3-200.0 1.13 0.78 0.20 1998 EXPLORATION PROGRAM AND BUDGET The 1998 exploration program and budget is designed to extend the base metals mineralization discovered in 1997 and to test other areas of the property. The project is a 50/50 joint venture, and NAI and DML will finance the 1998 exploration costs equally. All field exploration work will be managed by Teck Exploration under supervision of DML as the operator of the exploration program. The overall budget for the South Voisey's Bay project has been increased to almost $15.0 million, with approximately 40% of the budget devoted to the NAI/DML joint venture property. Phase I of the South Voisey's Bay program will include 20,000 metres of diamond drilling, of which 9,400 metres is on the NAI/DML property. The phase II program, which will be contingent upon favorable results from phase 1, will consist of a further 20,000 metres of diamond drilling. FINANCIAL POSITION Northern Abitibi Mining has $2.1 million in its treasury. In order to finance both phases of the 1998 exploration program and budget NAI has given notice of a proposed private placement of up to 1,000,000 units at $1.74 per unit. Each unit will consist of one flow-through share and one warrant exercisable at $1.74 per share in the first year and $2.00 per share if exercised in the second year. The warrant may be flow-through at the option of the company and the placee. The company has granted incentive stock options to purchase 1,235,000 common shares to directors, consultants and employees. These options are exercisable on or before April 14 2000 at $1.74 per share. These options are granted in accordance with the terms of an incentive stock option plan filed with and approved by the ASE and which was approved by the shareholders of the company at the annual general meeting held June 29 1990.