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

To: Buckey who wrote (6699)	8/12/1998 3:09:00 PM
From: VAUGHN	Respond to of 11676

Hello John This on the wire this morning. Interesting in light of SVB elevated Co grades: ***** COBALT IN HIGH DEMAND FROM WERNER LAKE, ONTARIO COBALT PRICES STRONG AGAINST OTHER METALS LONDON, Ont., Aug. 12 /CNW/ - Canmine Resources Corporation (TSE Symbol: CMR) has received significant interest from major buyers around the world for cobalt from the Werner Lake Cobalt Project, Ontario. Cobalt prices have remained strong against the prices of many other metals and the widespread interest shown in cobalt from Werner Lake may reflect a tighter market in this strategic metal. As part of a feasibility study underway, major cobalt refiners or buyers were recently asked to submit indicative terms for the purchase of a proposed cobalt carbonate product from the Werner Lake Cobalt Project. Eight major companies have responded, with additional responses anticipated. Of those received, the average indicative quote was 65% of the free market cobalt price (99.3% grade) and the range was from 50-80%, based on preliminary product specifications provided by the company. Over the past year, Canmine has received interest from potential buyers in Japan, Korea, China, India, Russia, South Africa, Belgium, Switzerland, the United States and Canada. The Lieutenant Governor of Ontario has signed an Order in Council under the Ontario Mining Act permitting the company to export production outside of Canada. A feasibility study is being completed now that an underground exploration program and extensive metallurgical and hydro-metallurgical test work has been completed over the past year. A tonnage and grade estimate is also being completed as a result of this work. Production of a cobalt carbonate product is being considered involving the installation of a hydro-metallurgical plant after first stage milling. Plans are being made to scale-up the mill to 300 tonnes per day. The company is currently responding to companies who have submitted indicative terms and is evaluating the most suitable long-term relationships for the off-take of future production. Despite weakness in the prices of many other metals, cobalt prices have remained firm. The current free market price for 99.3% cobalt is about $US19 per pound, with prices averaging $US19.75 per pound since the beginning of 1997. Data presented at the recent Cobalt Development Institute meetings indicate world consumption has now grown to 31,000 tonnes per year, with an additional 8-10,000 tonnes of new supply required to meet projected consumption by the year 2002. Many proposed mega-cobalt projects around the world that would be competing for sales agreements with the Werner Lake Cobalt Project seem to be experiencing political or other difficulties of late. These difficulties, combined with an already firm cobalt market, bode well for the Werner Lake Cobalt Project. Upon successful start-up, the project would become the only primary cobalt producer in North America. On Behalf of the Board, Edward L. Ellwood, President -30- For further information: Edward L. Ellwood, President, London (519) 858-4000, Toronto (416) 486-5119, Montreal (514) 953-1584, Website: www.canmine.com **** Also saw this: **** Gallery Resources Limited Prepares To Drill at Okak Bay and Harp Lake 2 Business Wire - August 12, 1998 11:55 VANCOUVER, British Columbia--(BUSINESS WIRE)--Aug. 12, 1998-- Gallery Resources Limited (GYR:ASE) of Vancouver, B.C. announces that work is in progress to recommence diamond drilling at both the Okak Bay and Harp Lake 2 projects in Northern Labrador. At Okak Bay drill crews will mobilize this weekend to move the Boyles 56 drill rig to the next drill hole location. The first hole to be drilled will carry out initial testing of the off hole anomaly identified by Lamontagne Geophysics earlier this summer (see press release dated June 24, 1998). Mr. French also reports that the results of further investigations on the mineralized core, drilled last fall has yielded additional positive indicators, these include typical Sudbury textures and the mineralization is confirmed to be primary magmatic sulphides. The drill target at the Harp Lake 2 project is a highly conductive HLEM (horizontal loop electromagnetic) anomaly outlined during a 1997 survey and confirmed by two separate HLEM surveys completed during July. The 1998 surveys have added new information which will assist in directing the planned drilling program. For example, this year's survey detected the conductive zone down to a vertical depth of 460 feet; twice the depth surveyed last year. Mr. French advises that the conductive responses at this deeper level has important implications for the size of the conductive body. It shows that the conductor appears to extend much deeper than originally outlined. He also adds that the responses at this depth are still strong. The company is finalizing a contract with a well-established drill company for a minimum 3000 feet of BQ core drilling. The drill rig is being prepared for mobilization to the property with the objective to start drilling within the next ten days. The company is very pleased with the August start up of the diamond drilling programs on its two major exploration projects in Labrador. Last years drilling program did not start at Okak Bay until early October and at Harp Lake 2 until early November. Therefore, the company feels that it has a much wider window to carry out the necessary drilling which will allow for a more thorough evaluation of the mineral potential at both sites. (SIGNED) Bruce E. Costerd President & CEO FOR MORE DETAILED INFORMATION ABOUT THE COMPANY, PLEASE SEE OUR WEBSITE:http://www.gallery-gold.com OR CONTACT INVESTOR RELATIONS; TOLL FREE CANADA & U.S.A. 1-800-565-7350 ******* Regards