Drilling adds potential to Voisey Bay

Exploratory drilling is expanding the tonnage potential of the Voisey Bay nickel-copper-cobalt project in Labrador.

Property owner Diamond Fields Resources (TSE) says six holes were directed at evaluating the geometry and extent of mineralization on line 500E. This sulphide zone, hosted in a troctolitic body, is described as being 60-90 metres thick and dipping 60-70 to the north.

Results indicate the intensity of sulphide mineralization increases with depth — from moderately disseminated with lenses of semi-massive material in the top 100 metres, to strongly disseminated with thick intervals of semi-massive material containing bands of massive sulphide between 100-250 metres downdip in the most recent holes.

A seventh hole will test the sulphide body on line 500E at downdip depths of more than 300 metres from surface.

“These holes add tremendous tonnage potential to the project,” says Douglas Leishman, mining analyst for Yorkton Securities.

To date, 107 holes have been drilled on the project. A preliminary minable reserve estimate of the ovoid area, where the bulk of drilling has been carried out, is expected to be released shortly by Teck (TSE).

Meanwhile, the recent appointment of Clifford Carson as president of Diamond Fields is fuelling speculation that the company may want to play a key role in further advancing the Voisey Bay project.

Carson is the second person with nickel expertise to join Diamond Fields. The company previously announced the appointment of John Paterson, a metallurgist with 30 years of experience in process operations, as executive vice-president of nickel operations.

Formerly a senior vice-president of marketing for Falconbridge, Carson was responsible for that company’s worldwide sales of nickel, ferronickel and cobalt valued at $2 billion. He says he is “excited” to be part of the development of Voisey Bay, which he expects “will change the face of the world’s nickel industry”.

The recent appointments suggest Diamond Fields is putting together a team that will give it credibility to develop a fully integrated mining operation at Voisey Bay. Leishman predicts Diamond Fields will want to retain control of the project, even if it does make a deal with an industry partner. “I think they will want to direct their own destiny.”

Diamond Fields Co-chairman Robert Friedland has been involved in negotiations with a number of companies interested in the project. Teck has already secured a 10.4% equity interest in Diamond Fields, however suitors Inco (TSE) and Falconbridge (TSE) have yet to make a firm buyout offer.

But that story may be far from over. Says Leishman: “This is not a project the major nickel companies can afford to ignore.”

Diamond Fields Vice-President Edward Mercaldo says the company is still talking with interested parties. “But we are not interested in selling a majority stake,” he added. “It will be a minority interest.”