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

To: Just G who wrote (3763)	4/27/1999 10:04:00 AM
From: Tim Van Leeuwen	Read Replies (1) \| Respond to of 5821

Here is the Post article....not sure if it has been posted yet. Nuinsco's share price falls on new drilling results But company says all the right signs are there Sandra Rubin Financial Post Chris Bolin, National Post / Douglas Hume, CEO of Nuinsco: still hoping to hit the main ore body. Nuinsco Resources Ltd. took another beating yesterday as disenchanted investors sheared more than 21% off its market value, despite new drill results the company called "encouraging." The market reaction is a clear sign of just how tough the climate has become for Canada's junior explorers. But it's just the latest bump for Nuinsco, which was the centre of a small frenzy earlier this year after initial exploration results suggested it had discovered a massive nickel deposit in northern Quebec, comparable in grade to Voisey's Bay. Speculation sent Nuinsco's stock up to $3.47 in March from 22¢ in December, prompting more than 50 juniors to stake claims in the Lac Rocher region. The brief love affair turned chilly three weeks ago after followup drilling failed to show significant sulphides -- a key indicator of base metals -- leading to speculation that the ore body could be smaller than first believed. Analysts said yesterday's results from 19 new holes confirmed that view, sending the shares down 18¢ to close at 67¢. "The results are disappointing from the market's perspective because the market was expecting high-grade massive sulphides," said an analyst who asked not to be identified. "That's what they got in the first hole and the market tends to expect companies will be able to replicate the first results." Doug Leishman, senior mining analyst at Yorkton Securities Inc., said: "The potentially economic mineralization appears to be confined to one small area that's been relatively well-tested with drilling. I think the selloff was justified." But Nuinsco's president challenged that view, saying the initial discovery hole showing an impressive 10.8% nickel proves there is a rich ore body. Douglas Hume, chief executive of Nuinsco, said the deposit was interrupted by a geological fault, leaving the company stabbing around trying to locate where it picks up. "We've consulted with all the best nickel experts in the business and their advice is that the deposit we found initially couldn't possible exist in isolation," he said in an interview. "They said there should be more of that rich material someplace nearby, that there's got to be a feeder that brought this stuff in." John Kilburn, an analyst with Goepel McDermid Securities Ltd., doesn't agree that the early results prove anything about the presence of an economic ore body. But he finds yesterday's results encouraging.