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Gold/Mining/Energy : Gallery Resources (Alberta GYR) -- Ignore unavailable to you. Want to Upgrade?

To: Robert J. Mifsud who wrote (1249)	5/25/1998 2:52:00 PM
From: Kent C.	Read Replies (1) \| Respond to of 1829

1998 Summary Gallery Resources Limited of Vancouver, BC Holds a 100% interest in nine separate claim blocks in the Voisey's Bay and Voisey's Bay South areas of Labrador. The nine properties, referred to as Okak Bay, Cabot Lake, Sango Bay Southwest, Notakwanon River, Flowers River, Sango Brook, Harp Lake 1, Harp Lake 2 and Voisey's Bay South (VBS) are all located in or around the rich Voisey's Bay Nickel-Copper-Cobalt-Sulphide Deposit discovered by Diamond Fields Resources in the Fall of 1994. All properties, with the exception of Okak Bay and Cabot Lake, are also located around the Voisey's Bay South Discovery of Nickel -Copper-Cobalt mineralization made by the Teck Exploration-Donner Minerals Joint Venture in 1997. The Voisey's Bay Deposit (VBD) and the VBS mineralization are hosted in rocks belonging to the Nain Plutonic Suite (NPS) and are sited along a major geological structure, the Abloviak Shear Zone (ASZ), a deep crustal penetrating structure which marks the boundary between two tectonic provinces. All properties with the exception of the Harp Lake and VBS properties are located in the NPS and spatially close to the ASZ. The VBS and Harp Lake 1 and 2 properties are located in the Harp Lake Intrusion a large layered mafic intrusion containing numerous base metal showings and correlated with rock units in the Voisey's Bay and Voisey's Bay South areas. The discovery of the Voisey's Bay Ni-Cu-Co deposit represents one of the most significant Canadian finds of the last 40 years and sparked a major claim staking rush which resulted in 14.25 million acres of ground being staked. Gallery Resources, an early participant in the staking rush, successfully acquired the strategic properties, excluding Voisey's Bay South, on the basis of 1) geochemically anomalous concentrations of Ni-Cu-Co mineralization encountered during regional surveys conducted by the Newfoundland Department of Mines, and 2) a geological setting similar to the VBD area. The VBS property was staked in the fall of 1997 during a staking rush which followed the discovery of high grade Ni-Cu-Co mineralization at Voisey's Bay South by Donner Minerals and Teck Exploration. During the winter of 1995-1996 Gallery Resources commissioned a combined Helicopter-Borne Magnetic and Electromagnetic Survey over the properties as a Phase 1 exploration approach in determining the potential for Voisey's Bay type mineralization. (This type of Airborne Geophysical Survey has been adopted by all companies active in Labrador as the first phase of planned exploration programs). A total of 2236.4 line kilometers of survey was completed by Aero Surveys Inc. of Richmond Hill, Ontario giving complete coverage over the eight properties. Airborne Surveys have not been implemented over the VBS property but Geological Survey of Canada magnetic surveys show a distinct belt of magnetic anomalies through the property. During the Airborne Surveys a significant, circular magnetic anomaly was identified on the Okak Bay Property. Although not showing an electromagnetic response this magnetic anomaly has implications for a mineralizing event which has been confirmed by Hole OK-M1 drilled in the fall of 1997 to a depth of 1498 metres. This hole intersected a significant 62-metre (205 feet) mineralized zone containing low grade Ni-Cu-Co-Silver-Gold mineralization. The Okak Bay Property has a high potential for the discovery of concentrations of economic mineralization as indicated by an off hole electromagnetic anomaly outlined during a borehole UTEM (electromagnetic) survey completed on Hole OK-M1 in November, 1997. The Harp Lake 2 Property contains a strong Horizontal Loop Electromagnetic (HLEM) anomaly outlined during a ground geophysics survey completed in September, 1997. This anomaly coincides with mineralized surface showings and a rusty gossan zone detected during earlier ground truthing surveys. Diamond drilling carried out in November 1997 failed to intersect the conductive source of the HLEM anomaly. Low grade Ni-Cu-Co and Zinc mineralization intersected in holes drilled into the nearby gossan zone did confirm the presence of extensive mineralization over a width of 68 metres (225 feet). Also the trace of the HLEM conductor axis is flanked by a pronounced magnetic low. The significance of this geophysical (magnetic) response is that it can be caused by an "edge effect" produced by a dense body of massive sulphide mineralization The 1998 field work program will mainly consist of ground geophysical surveys and diamond drilling programs designed to carry out further testing of the mineralized zones outlined in 1997. The field work will also include first phase ground truthing surveys of the new properties staked since last fall and aggregating a total of 679 new claims covering 33,950 acres. These new strategic acquisitions at Harp Lake 1 (439 claims), Voisey's Bay South (124 claims) and Okak Bay (116 claims) strengthen Gallerys land position and expand its opportunities for new discoveries.