Falco options South Voisey’s Bay

Donner Minerals (DML-V) and Falconbridge (FL-T) have struck a deal over the South Voisey’s Bay nickel project in Labrador.

The nickel major can earn a half-interest in a 624.5-sq.-km package of claims by spending a total of $23 million on exploration over the next five years. With the exception of some work done last year by Major General Resources (MGJ-V) on the Sarah Lake property, the entire South Voisey’s Bay project has been in a state of limbo for more than two years when disagreements with the Innu Nation forced Teck Cominco (TEK-T) and Donner to suspend exploration activities in the summer of 1999.

Earlier this year, there was an effort to consolidate ownership of some of the project area, with the formation of SVB Nickel (SVBN), which pooled 100% of the interests together in some 20 licences covering 549.5 sq. km, with the exception of a 25% interest in a 37.5-sq.-km portion held by Pallum Minerals (pal-v).

The ownership of SVBN is held 76.69% by Donner, 11.36% by Cypress Development (CYP-V), 6.55% by NDT Ventures (NDE-V), 4.2% by Rcom Venture and 1.2% by Curion Ventures (CUV-V).

The South Voisey’s Bay project also includes a 39.5-sq.-km property owned 52.41% by Donner and 47.59% by Northern Abitibi Mining (NAI-V), in addition to 35.5 sq. km of ground held 52.06% by Donner and 47.94% by Major General.

In order to earn a 50% interest in each of the three properties, Falconbridge must spend a total of $15 million on the SVBN package, $5 million on the Northern Abitibi property and $4 million on the Major General licence. Falconbridge is required to spend a minimum of $2 million on the combined properties by the end of 2002.

Teck retains a back-in right to earn 50% of Donner’s interest in any deposit discovered on the combined properties by funding the junior’s share of feasibility costs and arranging its share of production financing.

Donner says environmental and archaeological issues of the Innu Nation are being addressed, along with business and employment opportunities.

Falconbridge will immediately begin archaeological work on the project area, to be followed in early October by geophysical surveys, together with geological mapping and the re-logging of drill core in preparation for a drill program next spring.

The South Voisey’s Bay project is centred 75 km west of the Labrador Sea coast and 90 km south of Inco‘s (N-T) Voisey’s Bay nickel project.