Hiya People-- 'A Report to NBL Shareholders' (lengthy, but here goes!):
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New Blue Ribbon Resources Ltd.
Report to Shareholders, Management Discussion
Quarter Ended October 31, 1998
New Blue Ribbon Resources Ltd. has achieved its first goal in Alberta where
the majority of our land holdings have been closed and fully paid to earn
up to 100% ownership. The company is on schedule with all projects since
the last letter to the shareholders on September 30, 1998. We have made
some very notable developments since then including a joint venture with
New Claymore Resources Ltd. to drill the Cox property, two key property
acquisitions, and a $250,000 private placement financing. These recent
developments have placed the company in an excellent position to discover a
diamond bearing kimberlite and making us a significant contender in the
Alberta Diamond Play.
On Novemeber 20, 1998, the company announced that is had amended its
agreement with New Claymore Resources on the Erda prospect to include in
the agreement an option to New Claymore to earn a 50% interest in the
23,000 acre Cox property. The Cox and ERDA properties are contiguous and
encompass approximately 83,000 acres. They are located immediately south of
Lesser Slave Lake along the Northern part of Swan Hills, a bedrock
topographic high similar to Buffalo Head Hills and the Birch Mountains
(Legend block). The properties include an area with known bedrock exposures
and relatively thin overburden. A 200-m line spaced high-resolution
aeromagnetic survey outlined eight (8) discrete total field anomalies with
magnetic relief of up to 55 nT on the Cox property. In addition, several
more subtle secondary targets were identified. Twelve (12) secondary
targets were identified on the adjoining ERDA prospect. Recent inspections
of Seismic data surrounding T1 showed strong evidence for a kimberlite
pipe, specifically, the complete breakup of Cretaceous markers, a definite
near surface amplitude anomaly, and the carrot shape in the upper data. The
recent joint venture with New Claymore Resources has deployed a field crew
to conduct a ground geophysical program to prepare for drilling on the Cox
Property in January 1999.
To earn this interest, New Claymore has paid the company $25,000 and must
expend $225,000 in exploration on the Cox property, $75,000 of which must
be spent by March 31, 1999. New Claymore will act as operator. As
additional consideration for its right to acquire a 50% interest in the Cox
property, New Claymore will amend and release the company from having to
pay an additional $25,000 and issue 75,000 shares, as well as perform
$225,000 worth of exploration work on the Erda property.
On October 26, 1998 the company announced our key acquisition, the "Little
Legend" with Grizzly Gold Inc. whereby the company can acquire an 85 per
cent interest in the Little Legend property in northeastern Alberta. The
acquisition has put us in the hottest area in the Alberta Diamond Play. The
Little Legend property encompasses 23,040 acres and is located within the
central portions of Montello's Legend property. The property is in the
middle of a Diamondiferous kimberlitic field recently discovered by the
Montello-Redwood-Kennecott joint venture. Kimberlite pipes have been
discovered within a couple of kilometers of the property. The joint venture
continues to drill just off of the property's borders. High-resolution
aeromagnetic data shows a number of discrete anomalies on the property,
similar to those of known kimberlites in Alberta. A ground program
consisting of ground truthing the anomalies and exploring possible outcrops
on the property will commence in January 1999.
As consideration for the company acquiring the Little Legend property, a
cash payment of a total of $200,000 will be paid to Grizzly Gold Inc.,
payable $10,000 immediately as a non-refundable deposit, $40,000 within 72
hours of receipt of Vancouver Stock Exchange approval to this transaction,
however, no later than 30 days upon the company's receipt of data, $75,000
on or before the first anniversary date of the agreement and the remaining
$75,000 on or before the second anniversary date of the agreement. As
further consideration, the company shall issue to Grizzly Gold Inc. 200,000
shares at $0.24, issuable as to 100,000 shares within 72 hours of receipt
of Vancouver Stock Exchange approval to this transaction, 50,000 shares on
or before the first anniversary date of the agreement and the remaining
50,000 shares on or before the second anniversary date of the agreement. In
addition, a bonus will be payable pursuant to this transaction wherein the
company will issue to Grizzly Gold Inc. a further 400,000 shares, 200,000
shares upon the discovery of a kimberlite on the properties and a further
200,000 shares upon the kimberlite being diamondiferous with diamond counts
of 20 carats per 100 tonne or greater on the property.
On October 26, 1998 the company also announced it had entered into an
additional option agreement with Grizzly Gold Inc. whereby the company can
acquire an 85 per cent interest in the Chris property near Calling Lake,
Alberta. The Chris property encompasses approximately 46,000 acres and is
contiguous with the company's Pelican Mountains, North Slope, and Sandy
Lake properties. Collectively, the company now holds approximately 450,000
acres in the Pelican Mountains - Calling Lake area.
In October 1998, Buffalo Diamonds Ltd. lead by Chet Idziszek, announced the
discovery of a Macrodiamond in the Calling Lake Area. The Pelican Mountains
block is contiguous and up ice of the Buffalo property. Recent analysis of
diamond indicator samples from northern Alberta by the Alberta Geological
Survey identified, among others, two anomalous sites within the immediate
vicinity of the properties. Within the block till sample NAT95-129 (Pelican
Mountains) contained G1 and G10 garnets, while till sample NAT95-126
(Calling River), 25 km southeast of the Pelican Mountains block contained
G2, G5, G7, and G11 garnets. These results provide encouraging evidence for
a diamondiferous kimberlite in the area. The Company anticipates conducting
a 200-m line spaced high-resolution aeromagnetic survey in the first
quarter of 1999.
Consideration for the company acquiring the Chris property, a cash payment
of $10,000 will be paid to Grizzly Gold Inc. $5,000 payable immediately as
a non-refundable deposit and $5,000 within 72 hours of receipt of Vancouver
Stock Exchange approval to this transaction. As further consideration for
the acquisition of the Chris property, the company shall issue to Grizzly
Gold Inc. 150,000 shares, at 24 cents, issuable as to 50,000 shares within
72 hours of receipt of Vancouver Stock Exchange approval to this
transaction, 50,000 shares on or before the first anniversary date of the
Chris property agreement and the remaining 50,000 shares on or before the
second anniversary date of the agreement.
Pursuant to the Little Legend agreement and Chris property agreement, the
company has an option to increase its holdings in the Little Legend
property and Chris property by a further 10 per cent, bringing its total
holdings in these two properties to 95 per cent, upon completing the
acquisition of its 85 per cent interest as noted herein, and paying an
additional $1,000,000 per point for 60 days post positive feasibility
study.
On November 05, 1998, New Blue Ribbon initially announced a private
placement of units at 22 cents to raise $200,000 for exploration of its
diamond properties in Alberta and for general working capital. Each unit is
comprised of one share and a warrant to purchase an additional share at 22
cents for one year. Because of the interest in the private placement it was
increased to a total of $250,000 from $200,000 as previously announced. A
finder's fee is payable.
On October 07, 1998 the company had entered into a consulting agreement
with Oroko Developments, the principal of which is Dan Ozmun, wherein Oroko
Developments will provide investor relation services for the company
commencing Oct. 1, 1998, on a month to month basis for a monthly fee of
$5,000 per month inclusive of all disbursements and taxes, including GST.
Dan Ozmun has been appointed as secretary of the company effective Oct. 1,
1998.
PROPERTY SUMMARY
New Blue Ribbon Resources Ltd. (the " Company") has closed most options to
acquire 100% interest in seven diamond properties, 85% in two properties,
75% interest in one property, and 50% in another. Eight of the properties
(approximately 660,000 acres) are underlain by the Buffalo Head Craton,
which is strategically related to Kennecott and Ashton diamond discoveries
in the Buffalo Hills area. The other properties (approximately 810,000
acres) are located in Northern and Central Alberta and are underlain by
basement terranes favorable for the preservation of diamonds.
Property Interest Basement Approx. Size
(%) Terrane (Acres)
Pelican Mountains 100% Buffalo Head 299,520
Chris 85% Buffalo Head 46,080
Sandy Lake 100% Buffalo Head 46,080
North Slope 100% Buffalo Head 45,000
Little Legend 85% Buffalo Head 23,040
Cox–ERDA JV 50% Buffalo Head 83,040
Slave Lk. (Curion 75% Buffalo Head 115,200
JV)
Wapiti 100% Chinchaga 230,400
Wolf Lake 100% Rimbey 184,320
RIO 100% Thorsby & Wabamun 213,120
Nordegg 100% Thorsby Low 184,320
Total
WORK PROGRAMS
Having at least 11 drill ready targets on two different properties and the
significant Pelican Mountains block, the company expects to spend, combined
with joint venture partners, up to $1,000,000 on exploration for diamonds
throughout Alberta for the upcoming year. The first quarter of 1999 will
see drilling on the Cox Property and an airborne geophysical survey on the
Pelican Mountains block. The second quarter of 1999 will include a ground
geophysical and indicator-sampling program on the Little Legend and Pelican
Mountains blocks with drilling at Little Legend. The third and fourth
quarters, at this time, will be reserved for further drilling, air, and
ground programs.
The company has previously examined the acquisition of four mineral
concessions in Suriname. The status of the concessions as it relates to the
company is currently under review by the management.
New Blue Ribbon Resources Ltd. undoubtedly holds some of the most strategic
lands in the Alberta Diamond Play. While creating an area of interest by
future drilling of the Cox property, we also hold lands in the top two
areas of the play. The Company's focus is to maintain a long-term
involvement in the Alberta Diamond Play.
On behalf of the Board of Directors of
NEW BLUE RIBBON RESOURCES LTD.
Signed
Larry Kryska
President
Edmonton, Alberta
December 31, 1998
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Cheers,
-j
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