Inco Ltd. is crowing about the exploration drilling results at its integrated mining operations in Greater Sudbury that show mineral extensions to known ore-bodies.
"These are the results of drilling projects that we've been carrying on since last year," said Inco spokesperson Cory McPhee.
At the Copper Cliff South Mine, exploration drilling has confirmed the exploration potential of two high-grade nickel, copper and platinum group elements. At the Creighton Mine, high-grade nickel, copper and platinum group elements mineralization has been discovered.
Inco also announced significant ore discoveries in Thompson, Man. and at Voisey's Bay.
McPhee said Inco will continue to drill, make new calculations and firm up the results announced.
This gives us a lot of options for the future, he said.
Sheldon Yip, an analyst with Research Capital Corp., was quoted in The Toronto Star this week as saying Inco was clearly making an effort to put their best foot forward while the industry's takeover drama continues.
"It's part of the on-going strategy to show there is a great deal of value in the company and to show the potential for more synergies with Falconbridge, especially in Sudbury," Yip said.
McPhee defends Inco's decision to go public with the exploration results.
"Our chair Scott Hand has been very public on that. He thinks our share price is very undervalued. Having said that, a lot of the potential and the synergies that are available in Sudbury are only available under a one-management structure and that would be the combination of Inco and Falconbridge," he said.
"This is pertinent exploration news, it's not as easy as saying, 'this is just to boost our stock.' Anything that we do we hope has a positive impact on our stock but that wouldn't be the sole factor in releasing these results."
McPhee added that the discovery of more mineralization in the Sudbury Basin can only be good for the local economy and Inco's future in Sudbury.
"We have a resource like the Sudbury Basin that we've been mining for 100 years, and we're continuing to find new sources of mineralization because ore in a non-renewable resource - once you mine it it's gone. The only way a company can continue to operate is by finding new sources of ore," he said.
"It gives us a lot of options for future development."
In a letter to Inco's CEO written June 19, Greater Sudbury Mayor David Courtemanche invited Hand to address city council on the proposed friendly-merger of Falconbridge at an upcoming meeting.
The letter reads, "The citizens of this city are excited by the encouraging prospects for our community's future made possible with the combination of Inco and Falconbridge. At the same time, however, we are concerned about the future of Inco, and of the merger, given the competing bids on the table."
The mayor also composed a letter to federal Industry Minister Maxime Bernier to request an urgent meeting to discuss the merger and seek the support of the Canadian government.
The takeover issue was raised by Timmins-James Bay MP Charlie Angus on Parliament Hill yesterday.
"The industry committee had brought forward a unanimous recommendation to Industry Minister Maxime Bernier to make sure that the federal government didn't just allow Xstrata to walk away with Falconbridge while Inco was marred in regulatory processes over in Europe," the MP told Northern Life.
"(Bernier's) position is to sit on the fence and wait meanwhile the window of opportunity for him to act is winding down. If Inco remains caught up in this European regulatory review, there's a very real chance that Xstrata's going to be able to walk away with Falconbridge."
"This is not about us endorsing one bid over another, we need full due diligence to make sure that any sale of Falconbridge is in the best interests . . . of the communities."
