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Gold/Mining/Energy : Nuinsco Resources (NWI) -- Ignore unavailable to you. Want to Upgrade?

To: Kent C. who wrote (1095)	3/1/1999 6:34:00 PM
From: Brumell	Read Replies (1) \| Respond to of 5821

The following appeared in today's Daily Letter from Canaccord Capital. _____________________________________________________________________ With the number of juniors now holding ground in the Lac Rocher area, the focus on the next phase of drilling by Nuinsco is heightened. Any positive results will enhance the potential for an area play materially to be fueled to the next level. It is our understanding that road construction is progressing at a rate of about 3km per day over the 27 kms accounted for in the budget. All of the required drill and camp equipment is being advanced along the road as daily road construction advances. We understand that Bradley Brothers Drilling has been let a contract for a minimum of 15,000 feet of drilling, initially employing two rigs at the discovery zone. A third rig will be used to test targets elsewhere on the property. This drill program is open-ended contingent on results. We understand that drilling is now expected to resume no later than March 8. We will continue to monitor the road progress to ensure that this date is attainable. Initially, the first two drill holes are planned 50 m step-outs and are to be drilled as vertical holes to depths of between 500 and 600 feet. If drilling resumes prior to the above date, assays could possibly be available prior to the end of the 1999 PDAC in Toronto. Nuinsco could be sitting on a substantial discovery but as yet there is insufficient evidence to support this statement and in particular we require further drilling information to define the size of the Ni/Cu bearing chamber. What is clear is that a speculative bubble has formed based on the grade and thickness reported in hole LR 99-1, in a very favourable geologic environment. Despite its sharp run-up and revised market capitalization of $137.5M, the shares provide enormous speculative potential. We continue to rate the shares a SPECULATIVE BUY as this prospect currently provides all the right requirements to fuel speculative interest in the discovery and in the potential to develop an area play. It is still very early in the exploration of this target, thus the risks remain high and the share price is expected to remain volatile. An updated list of juniors holding ground in the area will be published tomorrow in the Daily Letter.