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morrie
FORM 61
Quarterly Report
Incorporated as part of: Schedule A
X Schedules B & C
ISSUER DETAILS:
For Quarter Ended: September 30, 1998
Date of Report: November 2, 1998
Name of Issuer: ABACUS MINERALS CORPORATION
Issuer's Address: 611 - 675 West Hastings Street
Vancouver, B.C. V6B 1N2
Issuer's Fax Number: (604) 682-0307
Issuer's Phone Number: (604) 682-0301
Contact Person: Paddy Nicol
Contact Position: Manager
Contact Telephone Number: (604) 682-0301
CERTIFICATE
The Schedule(s) required to complete this Quarterly Report are attached and the disclosure contained therein has been approved by the Board of Directors. A copy of this Quarterly Report will be provided to any shareholder who requests it. Please note this form is incorporated as part of both the required filing of Schedule A and Schedules B & C.
Steve L. Todoruk "Steve L. Todoruk" 98/09/09
Name of Director Signed (typed) Date Signed (YY/MM/DD)
Douglas A. Fulcher "Douglas A. Fulcher" 98/09/09
Name of Director Signed (typed) Date Signed (YY/MM/DD)
SCHEDULE B - SUPPLEMENTARY INFORMATION
FOR THE NINE MONTH INTERIM PERIOD ENDING SEPTEMBER 30, 1998
1. ADDITIONAL INFORMATION FOR THE YEAR TO DATE (9 MONTHS)
ANALYSIS OF DEFERRED COSTS, EXPLORATION AND DEVELOPMENT:
See the Consolidated Statement of Deferred Exploration Expenditures in Exhibit D to Schedule A hereto.
GENERAL AND ADMINISTRATIVE EXPENDITURES:
See Exhibit B to Schedule A hereto.
A. OFFICE AND MISCELLANEOUS
Admin. and Overhead Charges $ 21,515
Insurance $ 12,464
Secretarial/Clerical $ 12,012
Exploration Documents $ 5,760
Courier $ 5,166
Photocopies/Printed Matter $ 4,333
Report Materials $ 4,197
Office Supplies $ 4,117
Conference Fees $ 1,922
Postage $ 2,082
Computer Software $ 1,552
Subscriptions/Newspaper Ads $ 1,350
Miscellaneous $ 6,948
TOTAL: $ 83,418
EXPENDITURES TO NON-ARM'S LENGTH PARTIES (IN AGGREGATE):
To this date the company has incurred billings from non-arm's length parties of $1,122,699.99 for mineral exploration expenses and administrative services.
2. INFORMATION IN RESPECT TO THE QUARTER ENDING SEPTEMBER 30, 1998
A. SECURITIES ISSUED DURING THE QUARTER
Type of Security Issue Date Issue Type Number of Shares Price Total Proceeds Type of Consideration Commission
NIL
B. OPTIONS ISSUED DURING THE QUARTER
Name Number of Shares Price Expiry
David J. McCue 75,000 $0.35 10 Jul 2003
Andrew Racz 50,000 $0.35 10 Jul 2003
SCHEDULE B - SUPPLEMENTARY INFORMATION
FOR THE NINE MONTH INTERIM PERIOD ENDING SEPTEMBER 30, 1998
(continued)
3. INFORMATION AS AT THE END OF THE QUARTER ENDING SEPTEMBER 30, 1998
A. AUTHORIZED AND ISSUED SHARE CAPITAL
Class Par Value Authorized Number Number Amount
Common NPV 100,000,000 22,815,405 $16,907,546
B. OPTION AND CONVERTIBLE SECURITIES OUTSTANDING
Security Number or Amount Exercise or Conversion Price Expiry
Director & Employee Options 200,000 $0.42 06 Mar 2000
Director & Employee Options 250,000 $0.42 08 May 2000
Director & Employee Options 675,000 $0.42 26 Mar 2001
Director & Employee Options 650,000 $0.42 14 Jan 2002
Director & Employee Options 225,000 $0.42 01 Nov 1998
Director & Employee Options 125,000 $0.35 10 Jul 2003
Share Purchase Warrants 1,750,000 $1.20 29 Aug 1998
Share Purchase Warrants 1,000,000 $4.00 31 Dec 1998
Share Purchase Warrants 500,000 $0.50 15-April-2000
C. SHARES IN ESCROW OR SUBJECT TO POOLING
Number in Escrow last quarter: 0
Less Escrowed shares released: 0
Total shares in Escrow: 0
Subject to Pooling: NIL
D. DIRECTORS OF THE COMPANY
Steve L. Todoruk
Lawrence D. Barr
Douglas Fulcher
Ken Thorsen
SCHEDULE C
MANAGEMENT DISCUSSION & MINERALS PROPERTY UPDATE
On behalf of the board of directors, I am pleased to report on the Company's activities for the third quarter ending September 30, 1998.
Mineral Property Update
Argentina Properties
Following the success of the Phases I and II diamond drill programs at La Manchuria project in April 1998, geologists at Abacus spent the Argentinian winter months writing reports and planning the next round of drilling in Argentina.
The report summarized that every one of the 14 completed drill holes intersected some degree of anomalous gold and silver mineralization. This drilling has been carried out in an an approximate 800 metre by 400 metre area, a majority of which have been drilled along a 250 metre trend crossing trenches I and II. This zone is considered open to depth and along strike, in both directions. Mineralized intervals in this zone include LM98-2 which returned values of 58.05 metres grading 6.53 g/t gold and 22.3 g/t silver; LM98-9, 8.7 metres grading 24.88 g/t gold and 11.3 g/t silver; LM98-10, 9.65 metres grading 1.82 g/t gold and 449.8 g/t silver; LM98-11, 14.4 metres grading 5.10 g/t gold and 56.7 g/t silver; and LM98-12, 43.5 metres grading 1.27 g/t gold and 22.8 g/t silver. Hole LM98-12 is the southerly most hole drilled to date along this trend.
The next Phase of drilling will be directed at expanding the zone of mineralization crossing trenches I and II and will consist 15-20 holes, each approximately 100 metres in length. This proposed program is expected to begin in the 4th quarter and will be funded by a recently announced $1,000,000 private placement with Canaccord Capital Corp. This financing is expected to close by mid-November.
Alaska Properties
The proposed underground program at the Niblack Project has been postponed until 1999. The postponement was due to the delay in attempting to close the US $3,000,000 convertible debenture financing announced earlier this year. The permits received in late June to conduct exploration will remain in good standing. The permits allow for 1,200-1,500 metres of underground workings and road construction from tidewater to the portal. In addition, 5,000-6,000 metres of underground diamond drilling will be completed. The goal of this program is to expand downdip mineralization of the drill inferred resource presently defined at Niblack's Lookout Mountain. The current resource at Niblack is 2,780,000 tons grading 2.77 g/t gold, 35.5 g/t silver, 1.71% copper, and 3.22% zinc.
Portuguese Properties
On October 7, the Portuguese Institute of Geology and Mines granted formal approval of the Ferragudo Mining Concession to Ferragudo Mining of Portugal (a joint venture company representing Abacus Minerals and Phelps Dodge Exploration Corporation). Under the terms of the Contract with the Portuguese Ministry, Phelps Dodge has thirty days to submit a exploration program proposal to the government.
Phelps Dodge's exploration program will be designed to identify and test the best geologic targets. This will be pursued by comprehensively reviewing all available data and re-logging pertinent drill core, conducting a lithogeochemical program, and reconstructing the geological and structural setting which reflects the most advanced knowledge of the Iberian Pyrite Belt. Surface mapping, soil geochemistry, and ground and gravimetric surveys are also planned. Generated targets will be ranked and the most favourable ones will be tested by a 2,000 metre diamond drill program.
The Ferragudo project is 3.5 km away from the Neves Corvo Mine, considered to be one of the world's richest and highest grade volcanogenic massive sulphide deposits. It also contains exceptionally high tin values. Two of the more significant ore bodies include 38,000,000 tons grading 7.6% copper of which 4,300,000 tons grade 2.5% tin and 47,000,000 tons of 6.2% zinc.
Significant Events and Transactions
In October, Abacus secured financing for continued exploration at it's La Manchuria Project. The company signed a Letter of Engagement to raise gross proceeds of $1,000,000. Canaccord Capital Corp. will place up to 5,000,000 units at $0.20 per unit. Each unit will comprise of one common share and one-half common share purchase warrant. Each Common warrant is exercisable at $0.25 for a period of two years from the date of closing to acquire one common share.
In August, the contract with Dunhill International Communications Corp. expired and was not renewed due to budgetary constraints. Dunhill was providing Abacus with investor relations and communication services.
Related Party Transactions
Abacus Minerals Corporation conducts a majority of its exploration activities through an exploration services contractor in which two directors are principals. For the nine months ending September 30, 1998, the company paid that contractor $904,410.88 for exploration work on the Niblack Project, La Manchuria Project, and the applied for Portuguese concessions, and $116,349.06 to reimburse office and administrative costs. In addition, the company owes that contractor $61,997.81 for exploration work and $39,942.24 for office and administrative costs.
Investor Relations Activities
Over the past three months, Abacus employees have conducted investor relation activities through it's internet website and through mailings to prospective shareholders.
As mentioned earlier, the investor communications contract with Dunhill International Communications Corp. expired in August. Abacus would like to thank Dunhill for their hard work and wish them well in future endeavors.
Sincerely,
ABACUS MINERALS CORPORATION
per:"Steve Todoruk"
Steve L. Todoruk, P.Geo
President
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