The Story of Voiseys Bay, Labrador, Canada - The Auction - (Part 2 of 3)

Mining & Minerals - Evaluations / Other Metals

Date posted: 11/08/15

The hit at diamond drill hole #2 of 33 metres of massive sulphides turned Voisey Bay from caribou pasture to one of the most exciting stories in the mining world. The discovery of massive sulphides with hole #2 brought increased attention to the former diamond play. However, the stock price did not really explode until the assays came in... 2.23% nickel, 1.47% copper and 0.123% cobalt. Diamond Fields traded in December 1994 at $13.50 per share, up from $4.65 just a month prior. The company doubled down on drilling, but up until January, 1995 they hit nothing after hole #2. The price declined to $11. However, it was in February 1995 that the results for holes #7 and #8 were released and they were some of the most significant holes for the entire project. The holes were in the Ovoid, which would soon be a famed and ultra-rich section of the Voisey Bay discovery. Hole #7 was 104 metres long and had 3.9% nickel, 2.8% copper and 0.14% cobalt. Hole #8 was 111 metres long and had 3.7% nickel, 2.78% copper and 0.13% cobalt. This propelled the stock price to $20 in February 1995. Continued exploration of the Ovoid revealed a bowl-shaped orebody lying just below surface. This deposit had surface dimensions of some 800 metres by 350 metres and extended to depths of about 125 metres. More nickel from Ovoid came in every month and the stock price continued to rise. At this point, Diamond Fields could no longer fly under the radar. Major mining could not just watch as one of the greatest base metal deposits in the world blossomed outside of their influence. Three major mining companies vied to get in on the action.Teck, at this time, the Canadian diversified mining company Teck had nine mines in operation and a reputation as a swift deal maker. Inco and Falconbridge also arrived... read on. http://www.visualcapitalist.com/the-story-of-voiseys-bay-the-discovery-1-of-3/