Drill results keep hope alive at South Voisey’s Bay

It isn’t the glittering confirmation of mineral riches that investors has been hoping for — but it isn’t bad.

Nickel grades found in the season’s last drill hole at the South Voisey’s Bay project in Labrador were higher than almost any found in Labrador outside of the original Voisey’s Bay project, but expectations were higher, and the shares of project partners Donner Minerals (DRZ-V), Northern Abitibi Mining (NAI-A) and Teck (TEK-T) fell accordingly.

At a depth of 184.3 metres, hole 96 intersected 15.7 metres of massive sulphides grading 1.13% nickel, 0.78% copper and 0.2% cobalt. It was collared on 50-50 joint-venture ground held by Donner and Northern Abitibi, about 200 metres southwest of hole 75 and 470 metres west of hole 67. Teck, the operator, can earn up to half of Donner’s interests in any part of the 35-by-40-km project.

The hole hit basement gneiss at a depth of about 200 metres and was ended at 400 metres.

Previously, in hole 67, the first of three mineralized intervals averaged 1.73% nickel, 1.64% copper and 0.23% cobalt over 0.3 metre; the second averaged 1.93% nickel, 1.07% copper and 0.26% cobalt over 0.6 metre; and the third averaged 1.35% nickel, 0.64% copper and 0.17% cobalt over 0.1 metre.

Hole 75 later hit a spectacular 1-metre intersection assaying 11.75% nickel, 9.7% copper and 0.43% cobalt.

Donner expects to find further mineralization as it moves toward a large gravity anomaly west of hole 96.

If weather conditions permit, drilling will resume earlier than March 1998.

South Voisey’s Bay is 90 km south of Inco’s Voisey’s Bay deposits and has been divided into two exploration regions — Northern Gabbro and Southern Gabbro. To date, all significant intersections have been hit on the former, along the Abitibi anomaly on ground held by Donner and Northern Abitibi.

Donner and its partners are committed to spending at least $5 million on next year’s program.