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May 22, 1998
(Mines and Energy)


Minister pleased with mineral exploration planned for 1998

Charles J. Furey, Minister of Mines and Energy, says he is pleased with the level of mineral planned for the province for 1998 in spite of current depressed prices for metals and the difficulties in obtaining funding for exploration. "I am pleased with the level of exploration planned for 1998. Exploration is an essential component in the development of our resources," says Furey. "It leads to the discovery of new resources and, in turn, results in the generation of new wealth through new investment, employment and business opportunities in the province's primary engine of growth."

"Mineral exploration expenditures for the province in 1998 are forecast to be $50 million. It is estimated that $40 million will be spent in Labrador with most of the exploration programs directed toward base-metal targets," says Furey.

Several exploration projects being undertaken in the province are briefly outlined.

Labrador

Donner Minerals Ltd./ Teck Exploration Ltd. and their joint venture partners will complete a $14.8 million exploration program on its Voisey's Bay South property located 90 km south of Voisey's Bay. Planned exploration activity includes drilling, regional and detailed-gravity surveys, downhole pulse-electromagnetic geophysical surveys and geological mapping. Assay values of 1.13% nickel, 0.78% copper and 0.20% cobalt over 15.7 metres have been released. Three drill rigs are presently operating under the field supervision of Teck Exploration who are acting as general contractor during the 1998 season.

Voisey's Bay Nickel Company Ltd. completed a GeoTem airborne geophysical survey in early 1998. The survey further outlined and defined exploration potential both in the immediate area of the Voisey's Bay and the Kiglapait Mountain claims. In addition ,5 drill rigs are presently active in the immediate Voisey's Bay deposit area. Total expenditures will reach $20 million.

Leader Mining International Inc. entered into a joint venture agreement with Celtic Minerals Ltd. and Jilbey Exploration Ltd. on their Voisey's Bay properties located just west of Voisey's Bay. Leader has completed a compilation and will complete airborne and ground geophysical surveys including gravity and audio magnetotelluric to delineate drill targets.

Cartaway Resources Corporation/International CanAlaska Resources Inc. completed magnetic and large-loop time-domain electromagnetic geophysical surveys on their SVB-1 property, 7 km south of the Donner/Tack exploration site. The surveys were designed to evaluate two airborne magnetic conductors.

Copper Hill Corporation in joint venture with First Labrador Resources Ltd. will drill test its Dart Creek property located 5 km southwest of the Donner/Tack venture. Values up to 0.39% nickel, 0.22% copper and 0.10% cobalt have been reported.

Newfoundland

Buchans River Ltd. has a 100% interest in 563 claims around the former high-grade Buchans Mine in central Newfoundland. A compilation and till geochemical program is ongoing west of Buchans. Drilling is planned for mid-1998.

Celtic Minerals Ltd. and joint venture partner Jilbey Exploration Ltd. will complete further compilation work, geophysical surveying and drilling on its Hungry Hill base-metal property in central Newfoundland. Grades of 3.06% zinc, 20.9 g/mt silver and 0.8 g/mt gold over 10.84 m have been released.

Altius Minerals Corporation will complete geological, geochemical, geophysical and some drill surveys on its Shamrock, Lockport, Victoria River, Wild Cove, Moose Head, Tom Joe and Big Arm base and/or precious metal properties, central Newfoundland.

Noveder Inc. outlined a significant electromagnetic conductor on the Cabot Property north of Baie Verte. The conductive zone extends over a distance of 600 m, to either side of a copper showing discovered by PNL Ventures Ltd. in 1997. Drilling is planned.

10324 Newfoundland Limited completed a gravity survey, some trenching, a limited bulk sampling and drill program on the Ronan barite deposit, Port au Port Peninsula. The deposit is being investigated for its suitability as a offshore drilling mud.

Midatlantic Minerals Inc. completed a drill program in early 1998 to further define the Aquatuna limestone and dolomite deposits on the Port au Port Peninsula. The project could see limited production in 1998 or 1999.

Leeson Resources Inc. is conducting a program designed to further test the Fischells salt deposit near St. Georges. The Fischells deposit is estimated to contain more than a billion tonnes. Drilling operations have been temporarily suspended.

Burin Minerals Ltd. plan to complete a 28,000 m drill program to further define existing fluorspar reserves at the Blue Beach North and Tarefare No. 2 deposits at St. Lawrence, Burin Peninsula.

Major General Resources announced a substantial agreement with Rio Algom Exploration Inc. on its Green Bay, Newfoundland base metals project. The agreement encompasses close to 600 claim units owned or controlled by Major General. Rio Algom may earn a 50% interest in the properties by making exploration expenditures of $2 million and cash payments to Major General totalling $285,000 over a four year period. Rio Algom completed an airborne geophysical survey in early winter. Ground surveys will follow in favourable areas to search for new drilling target areas which may host large VMS type deposits.

Contact: Tara Laing, Communications, (709) 729-4890

1998 05 22 4:50 p.m.


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