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October 16, 1997
(Executive Council)

Premier Tobin encouraged by new prospect in Labrador

Premier Brian Tobin commented today on drilling results released by Donner Resources Ltd. late yesterday for the South Voisey's Bay Project, located approximately 90 kilometres south of the Voisey Bay Deposit.

"The preliminary drill results from the exploration being completed on the South Voisey's Bay Project is positive news for mineral exploration in the province," says Tobin. "I am encouraged by the new showing of mineralization which is in a similar geological setting to the Voisey's Bay Project. The test results show high grades of nickel, copper and cobalt mineralization found in a narrow intersection (1.1 metres) in one drill hole."

Premier Tobin cautioned that it is too early in the exploration phase to determine whether the mineralization showing is of economic significance. "While these results are important, the company is still in early stages of exploration and much further exploration is required to determine whether the showing has the potential to be economical," says Tobin.

Tobin added the results are positive for the mining industry in general and should result in further exploration in Labrador. "The discovery of Voisey's Bay has encouraged unprecedented exploration in Labrador. In 1996, $91 million was spent on exploration in Newfoundland and Labrador, compared to between $12 and $20 million spent annually prior to the Voisey's Bay discovery. Our province now ranks fifth in Canada for the amount of exploration expenditures. Combine the province's geological diversity with an active Geological Survey Program, continued current levels of exploration and I believe additional economic mineral deposits will be found in the province - ultimately resulting in increased mining activity."

Teck Exploration Ltd., Donner Resources Ltd's partner, is continuing to manage the ongoing drilling program at the new discovery. Premier Tobin says he looks forward to hearing about further results from the drilling program.

Contact: Heidi Bonnell, Premier's Office, (709) 729-3564.