Teck calculates resource for Voisey Bay deposit

Diamond Fields Resources (TSE) has released preliminary reserve calculations for the Voisey Bay nickel-copper-cobalt deposit in coastal Labrador.

The reserves, minable by open-pit methods, are estimated at 31.7 million tonnes grading 2.83% nickel, 1.68% copper and 0.12% cobalt, with a total stripping ratio of about 0.36-to-1. Contained within this reserve are 20 million tonnes grading 3.5% nickel, 2% copper and 0.14% cobalt, which would be mined in the early phase of production.

Diamond Fields announced the estimates following its sale to Inco (TSE) of a 25% interest in the deposit for $525 million.

This preliminary figure was calculated by Teck (TSE), which holds an approximate 10.4% equity interest in Diamond Fields Resources.

Teck’s reserve model refers only to the massive sulphide ovoid and the immediately adjacent northwest extension, and is based on drilling from about line 16+00E through line 8+00E.

Drill data from the southeastern extension and west of line 8+00E were not factored into the reserve figure; nor were data that are still pending from drill holes within the preliminary pit outline. Also disregarded were data from a depth currently considered more amenable to underground mining methods.

Diamond Fields has also reported a new discovery, called the Sarah prospect, which is about 6 km northeast of the ovoid.

Samples were taken from a gossanous outcrop more than 500 metres long, which returned values of up to 1.06% nickel. The unit is believed to be the “bottom sequence” of a broad troctolitic unit outlined by airborne geophysics and geological reconnaissance. This prospect, along with several others, is described as very similar in signature to Voisey Bay, with coincident gossan, troctolite, sulphides and anomalous geophysics.

On the corporate front, Diamond Fields’ board has approved a 4-for-1 stock split, subject to necessary approvals. The company retained Credit Suisse/First Boston as financial advisor.

Now that the deal with Inco has closed, Diamond Fields has cash and marketable securities of about $650 million, exclusive of the $25 million contributed by Inco for the feasibility study and further exploration work.