Falco expands Labrador nickel hunt

Falconbridge (FL-T) and Donner Minerals (DML-V) have entered into an agreement to explore for Voisey’s Bay type nickel-copper-cobalt deposits in Labrador outside of the Voisey’s Bay and South Voisey Bay areas.

Under the deal, each of the partners have agreed to each spend at least $200,000 annually for two years. The two will also equally share any properties acquired.

Falconbridge will act as operator of the joint venture under the direction of a management committee made up of a representative from each of the companies. The committee will oversee all exploration programs and property acquisitions.

Falconbridge will have the right to treat and market any production for the joint venture. Donner and Falconbridge both have a right of first refusal to purchase all or any part of the other company’s interest in any property acquired.

As part of a 1997 agreement, Teck Cominco (TEK-T) has a right to acquire 50% of Donner’s interest in any deposit discovered and developed by Donner in Labrador by funding Donner’s share of feasibility costs and arranging Donner’s share of production financing.

Falconbridge and Donner are also part of another agreement inked last September. Under that deal, Falconbridge can earn a 50% interest in the entire South Voisey Bay Project by spending $23 million on exploration.

Earlier last year, a deal was struck to consolidate ownership of some of the project area. SVB Nickel (SVBN) was formed by the pooling of 100% interests 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). 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 Ventures 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.

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.