Partners set to bring drills back to South Voisey’s Bay

Northern Abitibi (NAI-V), Donner Minerals (DML-V) and Teck (TEK-T) are gearing up for the 1998 drilling program on the South Voisey’s Bay property in Labrador.

The proposed exploration program consists of diamond drilling, regional and detailed gravity surveys, downhole pulse-electromagnetic surveys and detailed geological mapping. Exploration is scheduled to commence in late April or early May, depending on weather conditions.

The partners have budgeted $3.4 million for the first phase of the project, which will focus on extending the known sulphide mineralization discovered in late 1997. Two rigs will complete 9,400 metres of diamond drilling. A $978,971 contingency budget has been set aside for conducting orientation geophysical and geochemical surveys over mineralized areas, conducting detailed gravity surveys and drilling any new targets.

The second phase will consist of additional drilling, conditional on exploration success in the first phase.

The maximum budget for the portion of the South Voisey’s Bay project area owned by Northern Abitibi has been set at $5.8 million, to be funded equally by Northern Abitibi and Donner.

The field operations will be contracted to Teck, which can earn half of Donner’s 50% interest in the property (Northern Abitibi holds the other 50%).

Exploration this year will be supervised by Donner personnel.

The last hole drilled on the Northern Abitibi-Donner joint-venture property in 1997 intersected 15.7 metres of sulphide mineralization at a depth of about 184.3 metres. Grades averaged 1.13% nickel, 0.78% copper and 0.2% cobalt. The hole hit basement gneiss at a depth of about 200 metres, and was ended at 400 metres.

Previously reported holes include hole 67, which hit three mineralized intervals: 1.73% nickel, 1.64% copper and 0.23% cobalt over 0.3 metre; 1.93% nickel, 1.07% copper and 0.26% cobalt over 0.6 metre; and 1.35% nickel, 0.64% copper and 0.17% cobalt over 0.1 metre. Hole 75 intersected a 1-metre interval grading 11.75% nickel, 9.7% copper and 0.43% cobalt.

Northern Abitibi has raised about $2 million for the 1998 program and is currently investigating alternatives to raise additional funds prior to the start of the exploration program.

Golden Rule Resources (GNU-T) has completed a private placement with Northern Abitibi worth $2 million, bringing its holdings to 8.9 million Northern Abitibi shares and 2.8 million warrants, which combine for about 38% of the company’s outstanding shares, fully diluted.

Elsewhere on the South Voisey’s Bay project, Donner, Teck and Major General Resources (MGJ-V) have planned a $2.5-million exploration program for the Sarah Lake property, just east of the Northern Abitibi-Donner property. Major General holds a 40% stake in Sarah Lake and Donner holds 60%; Teck can earn half of Donner’s interest. Major General is responsible for funding 40% of this year’s work.

Phase one of the 1998 exploration program at Sarah Lake will comprise 4,000 metres of diamond drilling, plus gravity and electromagnetic (EM) surveys. An additional 4,000 metres of diamond drilling is budgeted for the second phase, however, it will be contingent upon favorable results from the first phase.

Data from two holes drilled last year at Sarah Lake, SVB-90 and SVB-92, indicate an eastward thickening of the target troctolite unit. A downhole EM survey on hole SVB-92 indicated a strong off-hole conductor interpreted to be about 100 metres in thickness. Drilling is expected to commence in early May.

Just south of the Northern Abitibi-Donner claims lies a property known as Project 79, held 50% by NDT Ventures (NDE-V), 25% by Latitude Minerals (LTU-V), and 25% by Donner. Teck will manage field exploration and can earn half of Donner’s interest.

About $606,500 has been budgeted for the initial stage of this year’s program, which will include infill gravity and geological surveys. About 1,500 metres of diamond drilling is also planned to test an off-hole, pulse-EM anomaly, as well as favorable sites within a gravity high. An additional $380,500 has been reserved for further drilling, depending on the success of the initial program. NDT will be responsible for funding half of the program, which will get under way in May.