Voisey’s Bay might top 150m tonnes

Nickel giant Inco (TSE) pegs the Voisey’s Bay nickel-copper-cobalt find in northern Labrador at more than 150 million tonnes — 50% more than Falconbridge (TSE) had estimated in its bid for the deposit.

In fact, Inco’s director of exploration, Richard Worsfold, says his company used the 150-million-tonne figure to evaluate the assets of Diamond Fields Resources (TSE) when it made its bid, which appears to be on the verge of succeeding.

He says the “potential reserve and resource estimate” figure of 150 million tonnes mentioned in Inco’s proxy circular to its shareholders represents the sum of three amounts, varying in their degree of accuracy and certainty.

These include: first, the 31.5 million tonnes of proven and probable reserves in the Ovoid zone; second, areas of what Worsfold calls the “good drill-indicated volume” of sulphide mineralization which Inco considers a resource; and third, a “projected amount” of mineralization in areas with little or no drilling as of yet.

“We have developed confidence in our projections,” Worsfold says. “We’ve projected ahead of the known indicated resource since last June, and we still carry a projected tonnage in that 150 [million-tonne figure].” He adds that while Inco has estimated the ratio of drill-indicated to projected mineralization, the company has decided to withhold the estimate for the time being. Assays from Hole 244, which was collared 500 metres east of the bulk of the Eastern Deeps drilling, were among the factors leading to Inco’s estimate; Worsfold notes that those assay results were made public the same day Falconbridge announced its estimate of 100 million tonnes.

He also points out that on the main Voisey’s Bay claim block alone, there are several troctolitic prospects that raise the potential of Diamond Fields’ Labrador claims beyond that of the extensions of the main Ovoid zone, which has thus far received most of the attention. And beyond the main block, to the northeast, lie several other claim blocks with showings of sulphides in troctolite, notably those covering the vast Kiglapait layered intrusive complex.

>From that perspective, Worsfold says, “we feel that, with time, we will add to that [150 million] tonnage and, moreover, that it will prove to have been a conservative estimate.”

Meanwhile, Diamond Fields Co-chairman Robert Friedland has passed on the opportunity to join Inco’s board of directors.

The acquisition agreement between Inco and Diamond Fields states that the latter company’s board can designate two individuals to Inco’s board to represent holders of the new Class VBN shares. While the Diamond Fields board resolved to designate Friedland and Jean-Raymond Boulle, Friedland indicated to the board that it was his intention, for personal and business reasons, to forgo a seat on the board in favor of Executive Vice-President Edward Mercaldo.

Both Inco and Diamond Fields have scheduled shareholders meetings for May 22, in order that shareholders may vote on Inco’s takeover bid.