WELL THE BAD NEWS IS SOPHIW WASN'T AT THE MEETING.
Everything else is OK by my book. Haven't even read the two NRs that Randy personally put into my hands at the meeting, or the annual report or the other glossy presentation. Just climbed out of my car, and haven;t had time.
Breakup has commenced and we're down to noly two drills running in the NE, on deep probes. No earth shattering news but general ggod spirits all round. God in the form of the Board has granted you wish gentlemen and Margie. All resolutions were comfortably approved. Also RT stated as a fact that the first Diamondex financing will take placed shortly after the split and will consist of a RIGHTS offering to all shareholders because in his opinion they deserve it. Prices can not yet be fixed and even if they could would not be announced.
More later if I get the chance to read it first.
Cheers
P.S Standing room opnly at the meeting
PPS
Winspear/ICL/IRR deal implies aggressive diamond search coming
Winspear Resources Ltd WSP
Shares issued 39,238,388 Apr 28 close $3.79
Thu 29 Apr 99 Street Wire
Also International Riley Resources Ltd (IRR)
Also ITL Capital Corporation (ICL)
WINSPEAR ACQUIRES ANOTHER OPTION
by Will Purcell
Winspear Resources Ltd. announced late yesterday that it had reached
agreement with ITL Capital Corporation and International Riley Resources
Ltd. to acquire an option to earn a 70 per cent interest in their Char
property. The Char, or CJ claims, are located immediately to the east of
the Mountain Province CJ block, or about 50 kilometres to the northeast of
the Mountain Province Kennedy Lake project. The northeastern boundary of
the proposed Great Slave Lake National Park lies approximately 10
kilometres to the south.
ITL originally acquired a 100 per cent interest the property in 1992 with a
small cash payment and an agreement to incur $1-million in exploration
expenses over the following three years. The vendor retained a three per
cent gross overriding royalty.
In early 1993, International Riley acquired a 50 per cent interest in the
claims by agreeing to finance the initial exploration program, budgeted for
$150,000. The remaining $850,000 required to complete the original option
agreement was to be paid for equally.
The required expenditure was completed during the 1993 and 1994 seasons, as
the joint venture completed an airborne geophysical survey, collected till
samples, and did some preliminary drilling. In all, a total of
$1.25-million was spent on exploration in that time.
The joint venture granted Ming Financial an option to earn a 50 per cent
interest in the property during the summer of 1995. To acquire the
interest, Ming was required to fund $4-million in exploration over the next
four years. Less than a year later, the agreement was terminated. At the
time, Ming had acquired a number of similar options in the region, but
terminated them as their priorities had apparently shifted away from
diamond exploration.
The joint venture announced a 1996 program, designed to drill test four
targets at a cost of $500,000. Two of these were on the eastern edge of the
property, the other two were described as being in the central region of
the claim block. In early April yet another option agreement was reached.
Cypango Ventures Ltd. would acquire a 51 per cent interest by incurring
$2-million in exploration expenses over the following four years. Shortly
after this agreement was reached, the drills finally began work.
Within a month of the announcement, the joint venture indicated the four
prospective targets had been drilled, and no kimberlite was intersected.
Cypango subsequently terminated the option agreement in early 1997, again
less than a year after the agreement had originally been struck.
The joint venture entered into yet another agreement during the early
summer of 1997. Archon Minerals Ltd. agreed to conduct an extensive review
of work completed, and to complete a detailed airborne magnetic survey. In
return, Archon would receive a 25 per cent interest in any kimberlite
discovered on the property through this program. The agreement covered a
one year period, and this lapsed last summer, without the successful
location of a kimberlite.
ITL and Riley reached an internal agreement last summer, whereby
International Riley would sole fund a $100,000 exploration program on the
property in return for an additional 10 per cent interest. Effectively, ITL
Capital agreed to transfer the 10 per cent interest for the sake of $50,000
in exploration expenses.
For several years, the joint venture also held an interest in the DC block
of claims which adjoined the CJ property to the east. This property was
abandoned in December 1998 as the results of previous exploration work were
deemed not encouraging enough to warrant further property expenditures.
Two months ago, the companies reached agreement with Inukshuk Capital Ltd.
whereby they could purchase up to two percentage points of the three per
cent gross overriding royalty, at a cost of $1.5-million for each
percentage point. To acquire this right, the two partners agreed to
transfer 50,000 shares each to Inukshuk.
The acquisition of this option by Winspear suggests the company is
increasingly aggressive in its search for new diamond projects. This option
agreement would presumably be transferred to Diamondex, should Winspear
shareholders approve the proposed split in the company. Under the terms of
the option agreement, Winspear must spend $2-million on exploration by the
end of 2001, and transfer $75,000 and 75,000 shares to ITL and Riley. As
operator of the project, Winspear will conduct a detailed electromagnetic
survey commencing in May, and undertake a till sampling program later this
year.
The very thinly traded ITL Capital Corp. closed at seven cents on April 26.
International Riley traded in the 10 to 15 cent range most of last fall,
before climbing to a recent high of 50 cents in mid March. The stock last
traded at 30 cents on April 27. Meanwhile, the very active Winspear
Resources closed up 10 cents to $3.79 yesterday.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
Winspear reviews NWT exploration results
Winspear Resources Ltd WSP
Shares issued 39,238,388 Apr 28 close $3.79
Thu 29 Apr 99 News Release
Mr. Randy Turner reports
Winspear Resources would like report on its exploration projects in the
Slave Province of the Northwest Territories.
Hilltop Project
The Hilltop project covers an area of approximately 265,000 acres that is
owned 100 per cent by Winspear. This property adjoins the southwest corner
of the Camsell Lake property and is situated about 180 kilometres northeast
of Yellowknife. In addition, scattered claim blocks totalling 90,000 acres
within the Hilltop project boundaries are held under a joint venture with
SouthernEra Resources Ltd. in which Winspear has an 80 per cent interest
and is operator.
Exploration during the summer of 1998 found several promising indicator
mineral trains, some of which are associated with kimberlite fragments. A
program of ground geophysics and diamond drilling was commenced during the
winter/spring of 1999 in an attempt to find the source of these kimberlite
indicators. A total of 1,904 metres of drilling was completed to test 14
geophysical and indicator mineral targets. Although no kimberlite was
intersected in these drill holes, a follow-up till sampling program is
planned for the summer of 1999 to better define the area containing the
indicator mineral trains and to test new ground that has been recently
acquired. In addition to this work, a detailed airborne geophysical survey
comprising about 5,100 line kilometres was undertaken over that part of the
property that was staked in late 1998. A total of about 14,000 line
kilometres of airborne geophysics has now been completed over the combined
Hilltop and Cache properties.
A total budget of $1.5-million has been established for the Hilltop area in
1999.
Carat Project
This project area is situated about 350 kilometres northeast of Yellowknife
and covers an area of about 94,000 acres. The property is held through a
joint venture agreement with Tyler Resources Inc. in which Winspear has the
option to earn a 70 per cent interest and is operator. This property
adjoins the northeast corner of the BHP-DiaMet block on which the Ekati
mine is situated. It also adjoins the east boundary of the Tanqueray/Mill
City property on which SouthernEra is presently earning an interest. To
date, a detailed airborne magnetometer/electromagnetic survey totalling
3,900 line-kilometres has been completed and 400 till samples have been
taken over the Carat property. Evaluation of results obtained from these
surveys has identified several areas on which follow-up sampling work will
be undertaken during the summer of 1999. A diamond drill program will
follow should results warrant.
The exploration budget for this property is $500,000.
Other Areas
Winspear is actively pursuing other opportunities in the Slave province and
elsewhere.
Management is pleased with exploration results obtained on these properties
to date and intends to maintain an aggressive exploration program on these
and other properties that it may acquire for their diamond potential.
Mr. Turner also reports
Winspear Resources would like to issue a progress report on results of the
continuing 1999 winter/spring exploration program in the Snap Lake area of
the Camsell Lake property in the Northwest Territories. The Camsell Lake
property is situated approximately 220 kilometres northeast of Yellowknife,
NWT.
Diamond Drill Program
The objective of the diamond drill program was to define to feasibility
standards approximately five million tonnes of kimberlite and to outline
the potential for an additional three to five million tonnes. Winspear
believes these objectives have been met. MRDI Canada, a Division of H.A.
Simons Ltd., will begin working on a revised tonnage estimate based on this
winter's drill program. Results are expected in June of this year. At the
present time, two drills are being prepared for drilling on the north shore
of Snap Lake. This program will extend through spring breakup and is
expected to be completed in late June.
A total of 84 drill holes (13,388 metres) has been completed since early
February, of which 21 were drilled to define the sites of the two bulk
sample pits and an additional four holes were drilled on land for
geotechnical purposes. The remaining 59 holes were drilled to further
define the northwest dike. As previously reported, the dike extends 2.0
kilometres in a northerly direction and remains open both to the north and
south. Recent drilling has confirmed that an intersection of potentially
economic thickness of the northwest dike occurs 2.5 kilometres down dip
from the subcrop on the northwest peninsula. The northwest dike remains
open east of this intersection.
There are presently 154 drill intersections on the northwest dike resulting
from the various drill programs since 1997, most of which are from vertical
holes. The average down-hole thickness for all holes is 2.63 metres. There
are 15 contiguous 400-metre-square blocks on which the average thickness
exceeds 2.0 metres. Within these blocks, the 137 drill intersections
average 2.78 metres down-hole thickness. All kimberlite intersections
reported must be corrected to determine true thickness. It is believed that
true thickness will be approximately 90 per cent of reported down-hole
thickness.
As previously reported, the kimberlite dike appears to thin to the west as
is indicated on blocks I-11 and L-11. Based on existing information, the
northwest dike also appears to thin toward the south as indicated by
intersections on blocks I-12, I-13 and I-14. However, a thicker part of the
dike is developed along an axis trending about N60 E centred on the
northeast corner of J-11 and extending about 200 metres on either side of
this axis through blocks J-12, K-13, L-14 and L-15. Over this area, drill
intersections average more than three metres and range up to 5.1 metres.
During the winter program, three holes were drilled in the northeast arm of
Snap Lake to test geophysical anomalies that may have represented a
vertical feeder system for the northwest dike. Two of these holes
encountered kimberlite dike material about 2.8 metres thick while the third
hole, 3.5 kilometres east of the subcrop, failed to encounter kimberlite.
Results of this program will continue to be interpreted with the view to
developing other possible targets that may represent the feeder system for
the northwest dike.
Previous data suggest that the various dikes encountered in the Snap Lake
area may define a cone-sheet structure. While new data obtained from this
season's drilling do not disprove this concept, they have indicated that
while the northwest dike remains gently dipping, it also appears to be
gently warped around the northeast-trending axis along which the thicker
parts of the dike have been encountered to date. Additional information is
required over the Snap Lake area to permit further refinement of
emplacement concepts.
All significant intersections of kimberlite have been submitted for caustic
fusion analyses which are presently in progress. Results will be announced
when all assays are available.
Because of weakening ice conditions on Snap Lake, the drill program will
continue on the north shore with two drills. The initial purpose of this
work is to define the extent of the kimberlite dike in this area at depths
of 300 metres or less and where thickness is similar to that encountered to
date. Holes will initially be drilled on approximately 400 metre centres.
Results of this phase of work will determine hole spacing for the remainder
of the program in this area. In addition, some holes may be drilled to test
the down-dip extensions of dikes found in the southeast part of Snap Lake
during the 1998 spring drilling program.
Bulk Sample
As previously reported, a 6,000 tonne bulk sample has been extracted from
two sites 260 metres apart on the northwest peninsula that adjoin the
eastern boundary of the two pits that were sampled last year. The 200
tonnes sampled from these pits returned a grade of 1.14 carats per tonne
that were valued at $301 (U.S.) per carat. Each of the two samples taken
this year is believed to be approximately 3,000 tonnes. The purpose of this
sample is to increase the confidence level of both the grade and unit value
of kimberlite from the northwest dike. At the present time, the bulk
samples are being put through a primary crusher. Processing of the first of
the samples through the diamond recovery plant will begin in early May. It
is expected that initial results will be available in early June with
preliminary values from both samples available early in the third quarter.
Other
In addition to the drilling program, preliminary site investigations are
planned for June to support more detailed engineering studies that will be
commenced should bulk sample results continue to prove favourable. In
addition, a significant environmental program will continue through the
summer period to ensure that sufficient data are available to support
permits for more advanced exploration/development work programs. In
addition, the company is actively involved in ensuring that Aboriginal
communities potentially impacted by additional work at Snap Lake are aware
of, and have input to, developments in the area.
A limited till sampling program will be carried out in the summer over
parts of the Camsell Lake property on which unusual concentrations of
indicator minerals have been previously obtained.
The exploration program established at the beginning of the year is on
track and all objectives have been met. Management is pleased with progress
being made on the program and looks forward to its successful completion.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
