Inco stakes new ground in Voisey’s Bay area

For the first time in years, the Voisey’s Bay region of Labrador is showing signs of life other than caribou herds sweeping by in search of forage.

Local communities are buzzing with news that the government of Newfoundland and Labrador and Inco (N-T) have agreed to get back to the bargaining table to find a way to get the stalled nickel-copper-cobalt project back on track. And the exploration community was heartened to hear that the nickel giant had recently staked 1,001 new claims about 30 km southeast of Voisey’s Bay, encircling the Notakwanon property held by Freeport Resources (FRI-V).

The Vancouver-based junior once held more than 500 claims covering over 130 sq. km in the area, but reduced its holdings to 23 core claims over the last few years. Its remaining claims are proximal to the regional north-northwest striking Churchill-Nain fault.

Brenda Clark, president of Freeport, told The Northern Miner that previous work at Notakwanon included an airborne electromagnetic survey, ground geophysics and prospecting. Field work carried out in 1996 identified mineralization occurring in Nain Plutonic Suite (NPS) leucogabbros and in sulphide-bearing breccias of graphitic Tasiuyak gneiss within Basal NPS gabbroic sills. Preliminary sampling of weathered exposures yielded elevated values of up to 0.17% nickel and 0.56% copper. Clark said additional samples were collected during a property visit a few weeks ago.

In related news, Major General Resources (MGJ-V) has launched an initial three-hole diamond drilling program totalling 1,800 metres on the Sarah Lake claims, which form part of the South Voisey’s Bay project, 90 km south of Voisey’s Bay.

The target is a strong gravity anomaly with a source interpreted to measure 600 by 1,200 metres. Numerous nickel-copper zones were intersected on adjoining ground within an olivine gabbro that underlies much of the Sarah Lake property. Results included 15 metres of 1.1% nickel and 0.8% copper, plus 1.1 metres of 10.5% nickel and 9% copper.

In conjunction with the drilling, Major General is conducting electromagnetic and gravity geophysical surveys at its 100% owned Satellite property, west of Sarah Lake.

The junior holds a 40% interest in Sarah Lake and is the operator of the program. Donner Minerals (DML-V), which holds the other 60%, has elected not to participate. By funding the program alone, Major General has the right to increase its interest in the joint venture.

Donner has focused its efforts on advancing the entire South Voisey’s Bay project and, toward this end, reports that it has entered into confidentiality agreements with a number of major nickel mining companies