Results enhance Voisey Bay discovery

The latest results released by Diamond Fields Resources (TSE) show improved grades over the first phase of drilling at the Voisey Bay

nickel-copper-cobalt discovery on the northeastern coast of Labrador.

The best hole in the first phase, 94-02, intersected 2.23% nickel, 1.47% copper and 0.123% cobalt over 71 metres and sparked a staking rush in the region surrounding the discovery. Diamond Fields’ initial drilling focused on the western area of the Voisey Bay geophysical anomaly. The current phase is aimed at testing the eastern extension of the anomaly, where it widens and forms an ovoid shape.

Two of the recent holes, 95-07 and 95-08, returned values described as “outstanding” by mining analyst Jonathan Challis of C.M. Oliver, who added that Voisey Bay “could easily prove to be a much larger and commercially more significant orebody than Raglan” (currently being readied for production by Falconbridge in northern Quebec).

Hole 95-07 intersected 104.3 metres (from 19.5-123.8 metres) grading 3.93% nickel, 2.84% copper and 0.14% cobalt, while 95-08 returned an equally impressive 110 metres (from 20-131 metres) of 3.71% nickel, 2.78% copper and 0.13% cobalt.

Hole 94-05 returned 41 metres of 1.73% nickel, 0.99% copper and 0.08% cobalt, while 95-06 failed to intercept the main sulphide body. Results are still awaited for three more holes, two of which intersected significant thicknesses of massive sulphide mineralization.

“We are already looking at a comparable tonnage to Raglan,” said Diamond Fields director Richard Garnett.

Based on work to date, the wine-glass-shaped massive sulphide body has rough dimensions of 450 metres in length by 250 metres at its widest point. Drilling has shown the massive sulphide is more than 110 metres thick within the east-central area of the massive sulphide body.

At press time, work on the property was halted by a protest involving members of the Innu community from Davis Inlet, who served Diamond Fields with an eviction notice, citing environmental concerns. The Innu have land claims in the area, as do the Inuit. However, Diamond Fields was assured by the Newfoundland government that its rights will be protected while these land claims are being negotiated. Meanwhile, Diamond Fields hopes to sit down with Innu leaders and discuss their concerns and the possibilities the project holds for people of the region. “We hope good sense will prevail,” Garnett said.

The Innu protest has garnered widespread publicity, particularly now that shareholder Robert Friedland has taken a more active role in Diamond Fields. Friedland was a former president of Galactic Resources, which operated the Summitville mine in Colorado. Environmental problems of a serious nature forced the closure of the mine, and led to the bankruptcy of Galactic. Friedland said he realized the Summitville issue would

resurface when he took on the post as co-chairman of Diamond Fields. He insists, however, that his role will be strictly financial.

“I won’t be the one operating or building a mine at Voisey Bay,” Friedland told The Northern Miner before he headed off to Singapore to work on another venture, First Dynasty Mines. “This project will likely end up being taken on by a major, such as an Inco or a Falconbridge.”