BASE METALS SPECIAL — Voisey’s Bay juniors are down but not out

The rise and fall of Cartaway Resources (CWA-A) after no more than a hint of nickel mineralization was found in core from one of its Labrador properties has definitely dampened the spirits of the scores of junior companies that flocked to the region hoping to emulate the success of Diamond Fields Resources (DFR-T), discoverer of the Voisey’s Bay nickel-copper-cobalt discovery. But with program funding already in place, all of the key players have returned for another kick at the can.

Cartaway remains active in Labrador, though results from the last three holes drilled on the Cirque property, 80 km north of Voisey’s Bay, were as disappointing as the first three. All three holes were drilled from the same site, 100 metres west and 50 metres south of the site used for the first three holes.

Hole LBN-4 encountered 16 zones of net-textured-to-massive sulphides varying from 1.5 to 20 metres in length. Assay results included 8 metres of 0.25% copper, 0.23% nickel and 0.1% cobalt; 5.1 metres of 0.44% copper, 0.28% nickel and 0.12% cobalt; and 2.38 metres of 0.4% copper, 0.25% nickel and 0.13% cobalt. Hole LBN-5 hit 7 zones of net-textured-to-massive sulphides with generally lower assay results, while Hole LBN-6 intersected two short intervals of low-grade mineralization before hitting barren anorthosite.

Cartaway is planning to drill a seventh hole from the floor of the cirque on the property (the first six holes were drilled adjacent to the rim of the cirque) to test a large electromagnetic anomaly.

Just east of the Cirque property, Canadian States Resources (CSRS-C) has completed six holes on its 1514M claim block. Two of the holes intersected nickel-copper-cobalt mineralization up to 4 metres in width. The best results were in Hole 96-2, with very short mineralized intervals of up to 0.28 metre grading 0.89% nickel, 0.35% copper and 0.14% cobalt. The results were disappointing in that they did not compare with results from the 1995 program.

Five kilometres to the north, on Canadian States’ 1558M claim block, ground geophysical work has revealed a large anomaly, which will be among the targets on the property to be drilled over the summer.

Drilling will begin shortly on several joint-venture properties in the Tasinouk Lake area shared by Dentonia Resources (DTA-V), Dragoon (DGN-V) and Borneo Gold (BNO-V), and drills are already turning on the nearby Consolidated Viscount (CVR-V) property.

Consolidated Viscount spokes- man Thomas Byrne says the Cartaway situation has not forced the company to abandon its plans in Labrador, “It has just made it tough in the market for us. People are a bit skittish.” Drilling has begun on the Puttuaalu Brook joint-venture property of Noront Resources (NOT-V) and Indocan Resources (IDCN-O), situated 15 km west of Canadian States’ 1514M claim block. Indocan plans to drill a minimum of 610 metres to test three coincident electromagnetic-magnetic anomalies.

Robert Salna of Indocan (previously with Canadian States) says his company, too, has felt the market chill resulting from Cartaway’s disappointing assay results, but it is nonetheless proceeding with this summer’s exploration program.

Plans are being drawn for a comprehensive surface exploration, surveying and drilling program on Noront’s joint-venture property with Golden Trump Resources (GTZ-V) in the Okak South area.

Columbia Yukon Resources (CYR-A) reports that drill core from Hole 2 on the ML1506 property near Alliger Lake has been re-assayed, and some increases in metal values have been reported as a result. The highest grade of mineralization, found at the base of a long sulphide intersection in Hole 1506-2, was 2.78 metres averaging 0.67% nickel, 0.63% copper and 0.12% cobalt. Other strong cobalt values were found in Hole 1506-3 (0.14% over 0.83 metre, 0.13% over 1.03 metres), Hole 1506-4 (0.13% over 0.49 metre) and Hole 1506-5 (0.12% over 0.64 metre).

Donner Resources (DRZ-V) has begun drilling its South Voisey’s Bay property.

Donner’s geological team believes that nickel occurrences found on the property last season may be part of a lower-grade “halo” surrounding zones of massive copper-nickel-cobalt mineralization. Preliminary work on the property identified a 15-km-long belt of nickel occurrences and geological anomalies associated with a complex series of olivine gabbro sills and intrusions.

Layfield Resources (LAY-V) has granted to Donner an option to earn up to an 50% undivided interest in 1,066 of its mineral claims in the Voisey’s Bay, Harp Lake and Okak Bay areas of Labrador. Upon Vancouver Stock Exchange approval, Donner will pay Layfield the sum of $10,000 and spend $200,000 on exploration by July 31, 1996. Donner will also issue to Layfield 200,000 common shares.

Donner has also entered into an operating agreement with Swannell Minerals (SNL-V), Labrador International Mining and Pallaum Minerals (PLM-A) (collectively known as the Labrador Nickel Syndicate) whereby Donner has agreed to conduct $250,000 worth of exploration work on the syndicate’s Adlatok River 2 property. The operating agreement will consist of the use of Donner’s camp, personnel and equipment, as well as the sharing of information.

For International CanAlaska (ICA-V), Labrador exploration will focus on five key properties, all of which may be ready for drilling this summer.

At the VBE1 and VBE2 properties, just east of Diamond Fields’ main discovery property, CanAlaska will explore surface sulphide showings that appear to have a deeper source than aerial surveys could reveal. In conjunction with joint-venture partner Columbia Yukon, a ground geophysical program is being conducted on VBE1 and VBE2, with a summer drill program as the objective.

CanAlaska awaits word from Falconbridge (FL-T) regarding a possible deal involving these two properties, CanAlaska reports.

On CanAlaska’s Webb claim groups, adjacent to Diamond Fields’ Kiglapait Mountains property, surface showings outlined in 1995 will be followed up in 1996 with a geophysical program.

Two claim blocks in the Okak Bay region exhibiting pervasive nickel-copper-cobalt mineralization will receive further development, culminating in a summer drill program if warranted.

On the Umiakovik property, 40 km due west of Voisey’s Bay, CanAlaska joint-venture partner Consolidated Magna Ventures (CMV-V) discovered significant areas of coincident magnetic and electromagnetic anomalies last season, which will be followed up this summer.

Magna has begun ground follow-up work on Block 5, its joint venture with First Western Minerals (FW-V). An airborne survey revealed seven distinct electromagnetic conductors on the property.

Sulphide mineralization, from which assays are pending, has been found on Block 9, also a Magna-First Western joint venture. Field crews will continue to work on both Blocks 5 and 9, and several of the partners’ other claims, including some diamond drill work.

Absolut Resources (ALR-A) has started ground geophysical work on Block J, 15 km south of Voisey’s Bay. Follow-up drilling on Absolut’s Block I is planned for early July.