Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
42B05NW0048 0016 LEESON 010
REPORT ON
NUDULAMA MINES LIMITED
A REVIEW OF DEVELOPMENT AND RESERVES
WITH
FURTHER DEVELOPMENT PROPOSAL AND COST ESTIMATE
Submitted to NUDULAMA MINES LIMITED
Toronto, Ontario, February 21, 1974 W.F. Morrison, B.Se., p. Eng.
mf-INDEX
SUMMARY
INTRODUCTION
PROPERTY
LOCATION
ACCESSIBILITY, CLIMATE, LOCAL RESOURCES ....
.HISTORY
GENERAL GEOLOGY
LOCAL GEOLOGY AND MINERALIZATION Renabie Mines ,............................Nudulama Mine
l
3
4
5
5
5
6
77
EXPLORATION fi DEVELOPMENT OF NUDULAMA VEIN ZONE
RESERVES OF VEIN MATTERLocated West of Shaft.Located East of Shaft
METALLURGY
CONCLUSIONS
RECOMMENDATIONSDevelopment d Exploration West of Shaft....Development 6 Exploration East of Shaft....Surface Exploration East of Quartz Deposit.
SUMMARY OF RECOMMENDED DEVELOPMENT
Drifting
STAGES OF DEVELOPMENT AND ESTIMATED COSTPhase No . 1Phase No. 2
BIBLIOGRAPHY
1010
11
11
121313
1414151515
1617
19
,^ *^yX^r,r.-S5;p^S
fa^CERTIFICATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
w. F. MO;-:RISQH
iNsorO*^
APPENDIX
Topic
SUMMARY OF RECOMMENDED DEVELOPMENT COSTS fi MINING EQUIPMENT COSTS
Appendix
I
PLANS t, SECTIONS
1. Geology of Renabie and Nudulama Mines, Ontario Department of Mines Preliminary Geological Map No. P492
2. Plan No. lLocation and Property Plan Nudulama Mines Limited
3. Section No. lVertical Longitudinal Section, Nudulama Mines Limited
NUDULAMA MINES LIMITED
REPORT ON
DEVELOPMENT AND RESERVES
SUMMARY
Nudulama Mines Limited has an inactive mine in Leeson
Township located about 130 miles north of Sault Ste. Marie
and 14 miles northeast of Missanabie, Ontario. The mine
Was last operated during the period 1947-1951 to develop a
gold-bearing quartz vein deposit.
Exploration of the deposit by diamond drill holes
from drifts driven in the vein matter on five mine levels
has indicated that a lenticular zone of quartz vein deposition,
averaging 300 feet long by 30 feet wide, probably extends from
surface to more than 725 feet in depth.
The exploration results indicate that the deposit
contains probable reserves of about 500,000 tons of vein
matter which contain 0.146 ounces of gold per ton and
possible reserves of about 104,000 tons containing 0.075
ounces of gold per ton.
A metallurgical test has indicated that 96% of the gold
contained in the vein matter is recoverable by conventional
fine milling and cyanidation extraction.
Renabie Mines Ltd. has mined several orebodies (gold-
bearing quartz vein deposits) which are located between about
1,500 to 5,000 feet west of the Nudulama Mine. The descrip
tions of these deposits indicate that their occurrence is
similar geologically to that of the Nudulama deposit, which
is located approximately in line with the extended strike
of the Renabie "C" Zone deposit. (Reference No. 2).
The Great Lakes Power Company which supplies the
district with hydro electric power at one time supplied
power to the Nudulama Mine. Water for domestic and mining
operations is available within 1,700 feet of the mine. A
truck road connects the mine with Missanabie and thence by
highway connection may be made with Sault Ste. Marie.
Miecanabie is also located on the main transcontinental
C.P.R. line.
Although the exploration results have indicated
that the quartz vein deposit probably extends continuously
from surface to over 725 feet in the mine, it was concluded
that the dimensions and tenor of the deposit between mine
levels should be explored with raises and diamond drilling.
Although it is also possible that the deposit may extend
down plunge to a depth of 1,200 feet below surface,as
indicated by drill hole intersections reported to have
been made on the Renabie-Nudulama property boundary, this
conclusion should be confirmed by drill hole investigation
and drifting below the 5th Level of the mine.
Recommendations include the dewatering and rehabili
tation of the mine, resampling the drifts, exploring any
possible extensions of the mineralized zone with diamond
drilling and underground development both west jind east of
the shaft.
- 3 -
v. \INTRODUCTION
The following report on the
Nudulama Mines Limited was authorized by the Company's
Executive Vice-President, Mr. O. A. Seeber of Suite 401,
25 Adelaide Street West, Toronto, Ontario.
The Company has approximately 1,700 acres of property
and a partially developed vein type gold deposit located
one mile east of Renabie Gold Mines in Leeson Township,
Ontario. The property is accessible by road from
Missanabie, Wawa and Sault Ste. Marie, Ontario.
The purpose of this report is to describe the geology,
mineralogy, exploration and development of the deposit.
The deposit consists of a zone of gold bearing
quartz veins or stringers, deposited in and containing
inclusions of sheared tonalite gneiss. The zone is
usually mineralized with a small amount of disseminated
pyrite. In the report such mineralization is usually
referred to as vein matter. The probable and possible
reserves of vein matter in the deposit are presented in
a tabulated form.
The report presents recommendations for further
exploration and development of the deposit, and its
possible extensions.
Some surface showings of the Nudulana deposit
were examined by the writer in October 1973. The
sources of much of the information contained in the report
Jtf^-*.''"' ;"- 'Ite - '
are the publications listed under "Bibliography" on
Page 19. The report was written in February 1974.
The writer's calculations of tonnage and grades
of vein matter contained in the various reserve blocks
of the deposit were made from the information shown on
the sampling plans of mine drifts which are referred to
'in the quoted sources of information. The writer has
not made an independent calculation of the data regarding
the probable average grade, width, length or tons of vein
matter shown on each plan. However, from a study of the
plans and reports the writer believes the data shown to
be a reasonable estimate of the tons and grade of the
deposit. (See References 4 and 5).
PROPERTY
The Nudulama Mines property consists of 15 patented
claims containing 896.87 acres and 18 contiguous unpatented
claims containing about 800 acres. The patented claims are
S34816 to 34820; 34825; 35127 to 35135; and the unpatented
claims are SSM351619 to 351622; 351635 and 353636; 351643
to 351654. The assessment work on the unpatented claims is
due on July 12th and November 15th of 1974. The title of
the property was ascertained from the Company's copy of
tax payments and mining recorders' receipts.
The writer examined the surface trenches and some
of the veins exposed on the property.
- 5 -
LOCATION-co?^'v Vj-t^B^&ff*^
The claims are located about 130 miles north of
Sault Ste. Marie, Ontario in Leeson and Brackin Townships
of the Sault Ste. Marie and Porcupine Mining Divisions,
District of Sudbury.
The Nudulama Mine is located on Mining Claims
S34818 and S34819, one mile east of Renabie, Ontario.
(See Plan No. 1).
ACCESSIBILITY, CLIMATE AND LOCAL RESOURCES
A gravel-surfaced road leads 12-1/2 miles eastward
from Missanabie,Ontario and the main line of the Canadian
Pacific Railway, to the Renabie Mine. One mile of gravel
truck road extends from the Renabie Mine to the Nudulama
Mine. Missanabie is connected with Highway 101 by 32
miles of all-weather gravel highway. Highway 101 goes to
Wawa and Chapleau, which are connected with Sault Ste. Marie,
Ontario. (See Plan No. 1). The climate is typical of
Northern Ontario. Water and mine timber are readily
available. Hydro electric power is probably available,
as it previously was, from the Great Lakes Power Company
which serves the district.
HISTORY
From 1945 to 1947 the Nudulama gold deposit was
explored by surface trenching and diamond drilling. Between
1947 and 1951 the deposit was further explored and developed
underground from a vertical shaft sunk to a depth of 1,065
- 6 - .. ,
-J
feet, and by diamond drilling from drifts mined in the
vein zone on five levels between surface and 725 feet.
Underground development was carried on until 1951 when
the mine was closed and allowed to fill with water.
Since then it has remained inactive. During this period
there was no production from the mine, except vein matter
mined in the drifts which now remain stock piled on surface
at the shaft. The development was carried on by the pre
decessor companies, Dulama and Ladulama Gold Mines Ltd.
Prom 1947 to 1970 the neighbouring Renabie Mine
produced 3,000,000 tons of ore averaging .21 ounces of
gold per ton.
GENERAL GEOLOGY
The general geology of the region around Renabie and
Nudulama Mines is shown on Ontario Department of Mines
Preliminary Geological Map No. P492 included with this
report. (Reference No. 2).
The rock formations in the southwest corner of Leeson
Township largely consist of greenstones intruded by grano
diorite or tonalite gneiss or massive granite, all of
whic! are cut by dykes of diabase. (Reference No. 1).
The greenstones consist of meta-basalt with an
associated group of meta-ash flow rocks which are presumed
to overlie the meta-basalts. The major area of granitic
rocks adjoins the eastern edge of the volcanic rocks.
Most of the granitic rocks are foliated granodiorite or
tonalite. Dykes of quartz diabase and lamprophyre
- 7 -
cutting the earlier rocks and quartz
strike about N 20* W. (Reference No. 2).
The strike of the country rocks is arcuate, curving
from northwest in the southern part of the area to north
east in the northern part of the area. Within the volcanic
rocks, dips and schistosity range from vertical to 60* W.
The strike and dip of foliation in the granitic rocks
generally conforms with the trends in the volcanic rocks.
(Reference No. 2).
LOCAL GEOLOGY AND MINERALIZATION
RENABIE MINES
Four ore zones occur at the Renabie Mine within
1,500 to 5,000 feet west of the Nudulama Mine. The ore
zones consist almost entirely of mineralized quartz or
quartz lenses conformably enclosed in schistose grano
diorite. Individual orebodies in the ore zone are thick
lenses or pipes of quartz, up to 200 feet in length, 50
feet in width, and about 500 feet in depth, which plunge
about 50 0 to the west. Some orebodies occur at a depth
of 2,475 feet. The Renabie quartz deposits occur in a
zone which has a length of about 3,000 feet, from the "R"
zone at the west to the "C" zone at the east.
NUDULAMA MINE
The Nudulama quartz deposit located 1,500 feet
east of the Renabie "C" vein zone, is a lenticular
zone of quartz veins and stringers mineralized with small
'-!"': ; ',
ffi?,.
- 8 -
amounts of pyrite, galena, molybdenite, pyrrhotite, ^
chalcopyrite and gold. The quartz deposition occurs
in a zone of sheared and silicified tonalite and in
places greenstone. The quartz frequently contains
inclusions of tonalite. In the report such collectively
mineralized quartz and host rock will be referred to as
vein matter. The lenticular quartz deposit is cut about
midway by a diabase dyke, 120 feet in width, which strikes
northwest and dips steeply southwest. On surface the
quartz lens has a length of about 200 feet on the west
side of the diabase dyke and 300 feet on the east side
of the dyke. The quartz lens strikes about E-W from
surface to the 2nd Level at 275 feet and N 60 0 - 75 0 W
from the 3rd Level to the 5th Level at 725 feet from
surface. The dip of the quartz lens on the west side of
the diabase dyke is south, ranging from 80 0 near surface
to 67 0 on the 4th Level at 575 feet in depth. In the
underground workings where the lenticular quartz zone
lies entirely west of the diabase, it has a length of
400 feet, a width of from 10 to 50 feet, and plunges
S 85 0 W at 50 0 . (See Section No. 1).
On the east side of the diabase the quartz deposit
strikes about N 80 0 W and dips south at about 750 .
EXPLORATION AND DEVELOPMENT OF THE NUDULAMA '/BIN ZONE
PAST DEVELOPMENT
The Nudulama vein west of the diabase was developed
on surface by trenching and diamond drilling. A three-
compartment vertical shaft was sunk to a dpeth of 1,065
feet and seven mining levels were established at elevations
of 150, 275, 425, 575, 725, 875 and 1,025 feet below the
shaft collar. The vein zone has been delimited on the
first five levels with drifts and flat diamond drill holes.
On the 2nd Level, steep inclined holes were also drilled
t'o delimit the zone above and below the level on 50-foot
sections. The exploration has outlined a vein zone of
400 feet in length and 950 feet in depth on the 50* plunge
of the zone between the surface and 5th Level.
It was reported that two holes diamond drilled by
Renabie Mines near the Renabie-Nudulama property boundary
intersected a mineralized zor^ at a vertical depth of
1,200 feet from surface. The intersections contained
1.1 oz. of gold over 10.0 feet and .08 oz. of gold over
30.0 feet. (See Section No. l and Reference No. 3).
RESERVES OF VEIN MATTER
Depending on the extent of delimitation the following
blocks of vein matter have been placed in the category of
probable or possible reserves. (See Section No. 1).
BLOCKS LOCATED WEST
Reserve Category Block
[ A[ t B
Probable l[ c[ I Dt l E
Total Probable
OF DIABASE DYKE AND
Vertical Depth Located
0.0 to 50.0
50.0 to 212.5
212.5 to 350.0
350.0 to 500.0
500.0 to 650.0
SHAFT
Average Grade Au. Oz/Ton
.100
.230
.144
.100
.135
Average Width Feet
16.0
26.1
26.0
21.6
44.5
Length Feet
210
243
280
420
365
'•'v.' i'Y*.-.'' "•,
- ' "
Tons In Block
14,000
86,000
84,000
113,000
202,000
ii^^^.'V^y^gg||i'^^^s^H;: '- - v -'^-:^ I^BbHI••••?4i' '--':-:^r'.^
, . . ./- -','' : V;^
Oz. Au. In Block
2,320
19,780
12,096
11,300
27,720
ii
MilSiPPipfe'S
M! ^
A to E 0.0 to 650.0 .14f 30.6 499,000 72,966
Possible I F 650.0 to 750.0 .075 29.7 420 104,000 7,800
BLOCKS LOCATED EAST OF DIABASE DYKE AND SHAFT
Category
Possible
Block
I GI[ H[ l I
VerticalDepthLocated
0 to 100
0 to 100
0 to 50
AverageGrade Au.Oz/Ton
.110
.371
.260
AverageWidthFeet
27.7
16.1
10.5
LengthFeet
100
60
85
TonsIn Block
22,000
11,000
3,700
Oz. AU 1In \Block
2,420
3,710
962
* *: . - 1
\ ^ ' .'V. "v, vJ - i-f ' t .' J
^L ̂ 'Sy
ra^lV- ,...- .f.v.- -,'^.iS.v?',V-" ^iKglj'r^-'f.
The total tonnage of vein matter calculated for the
above blocks is considered to be less than it actually is
due to the fact that the depth of ore in the blocks was
measured on a vertical plane instead of on the dip plane
at the vein zone, which dips at 650 to 80 0 .
METALLURGY
An investigation of the vein matter from Nudulama Mines
Ltd. was carried out for the predecessor company, Dulama Gold
Mines Ltd., by Nepheline Products Limited in June 1949.
Their report states that "the highest extraction of gold from
the sample of low grade ore (.140 ounces per ton) was
obtained by grinding in water and aerating the pulp for
eight hours with 8 Ib. of Ca (OH) per ton of ore prior
to cyanidation for 48 hours." This method achieved a
gold recovery of 96.43%. (See Reference No. 7).
CONCLUSIONS
Surface and underground development of the Nudulama
Mine has indicated that west of the shaft a gold-boaring
quartz deposit extends from surface to a vertical depth
of more than 725 feet. However, the vertical continuity,
dimensions and grade of the vein matter between mine levels
requires investigation to determine what actual reserve
tonnage the quartz deposit contains.
Based on the lower average gold content of the
725-foot level it could be concluded that Jdle. grade off ~ ..- - .
/V-: .......'. \,r,,,,... M
^.' '
/ v vein matter may decrease in the lower parts of the quartz
deposit. However, the diamond drill intersections, made
at 1,200 feet in depth on the projected plunge of the vein
from the 725-foot level, indicate that this should not
become a definite conclusion. {See Page 9 and Reference 3).
The possibility of the quartz deposit extending undiminished
to this depth requires investigation by diamond drilling
below the 5th or 725-foot level.
More investigation is required of the possible
extension of that part of the deposit located immediately
east of the shaft and diabase dyke. The possibilities of
more remote extensions of the vein zone are well protected
by patented and unpatented claims which cover a strike
length of about two miles.
The metallurgical test indicates that gold in the vein
matter is recoverable by a conventional milling and
cyanidation treatment.
A feasibility study should be made before deciding
to bring the mine into production. This should be
commenced at the completion of Phase I of the following
recommended exploration program.
RECOMMENDATIONS
The following program is recommended for further
exploration and development of the Nudulama gold mine:
- 13 -
FURTHER EXPLORATION AND DEVELOPMENT WEST OF
It is recommended that the extension of the*TJe13osit
below the 725-foot elevation be explored by diamond drilling
from a cross-cut driven from the west end of the 5th Level
drift. If the drilling indicates the continuity of the
deposit to the 6th and 7th Levels, these levels should be
explored by drifting on the vein matter and diamond drilling
from the drift walls on sections spaced at 50-foot intervals.
The continuity of mineralization between all levels
should be explored by driving raises in the vein matter from
the 7th level to surface. Holes should be drilled from the
raises to explore the dimensions of the deposit between
levels.
FURTHER EXPLORATION AND DEVELOPMENT EAST OF THE SHAFT
The quartz deposit immediately east of the shaft
should be explored at vertical depths of 275 and 575 feet
below the shaft collar by diamond drilling from surface
along a strike length of 1,000 feet or more. Providing
an extension of the deposit to those depths is indicated,
diifts should be driven in the vein east of the shaft on
the 2nd and 4th Levels.
SURFACE EXPLORATION EAST OF THE QUARTZ DEPOSIT
Any possible lateral extensions of the mineralized
zone to the east ore well covered by mining claims for
a distance of about two miles along the extended strike
of the Nudulama gold-bearing quartz deposit. A group of
18 unpatented claims located on strike will require
-
- 14 *
assessment work to be completed by mid-July and November
1974. It is recommended that a grid system of picket
lines be established and that the claims be geologically
and possibly geophysically surveyed. A known mineralized
zone located in the south part of the claim group should be
investigated by trenching and diamond drilling if necessary.
SUMMARY OF RECOMMENDED DEVELOPMENT
The recommended program of exploration will require
dewatering and rehabilitation of the mine workings and the
following development work:
DIAMOND DRILLING
Location
Below 5th Level West
On 6th and 7th Levels West
From Raises to Surface
Type of Core
AQ
E
E
From Surface - East of Shaft BQ
CROSS-CUTTING
LocationDimensions of Face in Feet
From West End of 5th LevelDrift 8x8
From Shaft on 6th and 7thLevels 8x8
Total Footage
1,700
850
1,200
5,250
Total Footage
150
100
- 1 5 -
mDRIFTING
LocationDimensions of Face in Feet
From Shaft West on 6th Level 8x8
From Shaft West on 7th Level 8x8
From Shaft East on 2nd Level 8x8
From Shaft East on 4th Level 8x8
motal Footflqe
850
850
500
1,000
RAISING
Location
From 7th Level West to Surface
Dimensions of Face in Feet
5x5
Total Footage
1,400
SAMPLING
It is recommended that:
1. The new drifts on the 6th and 7th Levels
west and 2nd and 4th Levels east be face
sampled after every drift round.
2. The present drifts above the 5th Level be
checked with back samples taken at 25-foot
intervals.
3. The raise faces be sampled after every
raise round.
4. The muck from every round of the drifts
and raises be sampled.
t^J&V/'';':"/'.'";" '.v :' .'
STAGES OF DEVELOPMENT AND ESTIMATED COST
It is recommended that thr above overall^Jrogram of
mine rehabilitation, exploration and development should be
carried out in two phases as follows:
PHASE NO. I
Recommended Developmentand Related Operations Estimated Cost*
1. Purchase and installation ofsurface mining equipment $139,500.00
2. Dewatering mine workings 23,000.00
3. Rehabilitating Shaft 26,000.00
4. Rehabilitating drifts on 1stto 5th mine levels 5,000.00
5. Resampling 1st to 5th Leveldrifts and assaying 2,500.00
6. Cross-cutting from 5th Level westdrift for diamond drill stations 22,500.00
7. Diamond drilling below 5th Level-ost from cross-cut 9,350.00
8. Raising on the vein zone from 5thLevel to surface 75,000.00
9. Diamond drilling in raises betweenlevels and assaying 6,100.00
10. Surface diamond drilling east ofthe shaft and assaying 45,000.00
11. Operation and Maintenance 15,000.00
12. Supervision and Labour 20,000.00
13. Administration 15,000.00
14. Miscellaneous 10,000.00
15. Material 2,000.00
16. Allowance for the contingency ofescalating costs 84,050.00**
3500,000.00
m*:** The contingency amoxont has been inclb4SElfiB^allow for
the expected continuing escalation in the cost of material and labour, it will also serve as a reserve fund to cover items of equipment not included in present estimates, but which may become necessary to facilitate the operation.
PHASE NO. 2
Recommended Development and Related Operations Estimated Cost*
1. Drifting and cross-cutting on 6th and 7th Levels west of shaft
2. Raising on the vein zone from 7th to 5th Level
3. Drifting on 2nd and 4th Levels east of shaft
4. Sampling of drifts and raises and assaying
5. Diamond Drilling from drifts, sampling and assaying
6. Operation and maintenance
7. Supervision and Labour
8. Administration
9. Miscellaneous and contingencies
10. Materials
$255,000.00
30,000.00
225,000.00
6,500.00
20,000.00
15,000.00
20,000.00
15,000.00
20,000.00
1,000.00
5607,50^.00
* Some calculations of the estimated costs of recommendeddevelopment are shown in Appendix I of the report. Mortother costs are based on the estimates for the development
- 18 ~
of tho Quebec Sturgeon River Mines Limited, Bachelor Lake property, which is now going on. As this develop ment is believed to be similar in scope with that proposed for the Nudulama Mine, the use of their estimates is considered to be permissable. (See Reference No. 6).
Respectfully submitted,
Toronto, Ontario, February 21, 1974.
W. F. Morrison, D.Se., P. Eng,
BIBLIOGRAPHY
The following sources of information have been referred to in the preparation of this report:
Reference Number Title and Author
Structural Geology of Canadian Ore Deposits. Canadian Institute of Mining and Metallurgy -A Symposium Description of Renabie Mine by E. L. Bruce, 1948 pp 436, 438.
Preliminary Geological Map No. P492 - Ontario Department of Mines. Geological Compilation map and report on Renabie Mines, Nudulama Mines and Adjoining Properties. 1966-1967.
Memorandum in Nudulama Records regarding diamond drill holes on the Renabie-Nudulama property boundary by A. B. Baldwin, geologist, who examined the Renabie logs of the drill holes in 1960.
Report on Dulama Gold Mines Ltd, 1949 by C. O. Stee and R. J. Isaacs, mining engineers, including ore reserve calculations, plans and sections.
Drift Plans of Nudulama Mine levels showing geology, sampling locations and assays. Prepared under the supervision of P. S. Cross, P. Eng and H. Michie, P.Eng., 1950 and 1972 respectively.
Development Proposals for Quebec Sturgeon River Mines Ltd. Two reports by K. C. Wilson, P. Eng., 1973.
Investigation of Gold Ore from Dulama Gold Mines Ltd. by Nepheline Products
Ip^r-M0;,^v;:CERTFCATE
I William F. Morrison of 2219 Kennedy Road, Agincourt, Ontario, do hereby certify:
1. THAT I graduated in 1938 as a Bachelor of Science from the University of Manitoba and have practised as a Mining Geologist for more than 30 years;
2. THAT I am a member of the Association of Professional Engineers of Ontario;
3. THAT this report is based on a personal examination of the surface trenches of the Nudulama Mine made during October 1973, and a study of the company records and other geological reports listed in the bibliography of the report;
THAT I have no personal interest nor do I expect to receive any interest directly or indirectly in the property of Nudulama Mines Ltd., referred to in this report, or in the securities of any company which may acquire the property.
W.F. Morrison, B.Se., P. Eng.
Toronto, Ontario, February 21, 1974.
APPENDIX I
SUMMARY OF RECOMMENDED DEVELOPMENT COSTS
Type and Location of Development Size Footage
Cost $ Total Per Foot Cost $
DIAMOND DRILLING
Down from 5th Level West x-Cut AQ
Horizontal from Drifts on 2nd and 4th Levels E E
6th and 7th 'Levels W E
Horizontal and Inc uind from Raise betweer Levels E
Surface East of Shaft BQ
CROSS-CUTTING
From West End of 5th Level Drift 8' X 8'
Fram Shaft Station 8' X 8'
DRIFTING
West from Shaft en 6th Level 8' X 8 1 o.i 7th Level 8' X 8'
Ea.it from Shaft on 2nd Level b 1 X 8' on 4th Lovel 8' X 8'
RAISING
From 5th Level to Surface 5' X 5'
From 7th Level to 5th Level 5' X 5 1
1,700
2,000
2,000
1,200
5,250
150
150
850 850
500 1,000
1,000
400
5.50
4.50
4.50
4.50
8.50
150.00
150.00
150.00 150.00
150.00 150.00
75.00
75.00
9,350.00
10,000.00
10,000.00'
5,400.00
44,625.00
22,500.00
15,000.00
127,500.00 127,500.00
75,000.00 150,000.00
75, 000. CO
30,000.00
^^^ff^'M^^:-''
•'''^•' '
' "i-P*'^**- " '- •^"-'tL j'^ ' ''V'v^ \.-^*i^-i; -T-K''*,-' ,-,, - - - '-''^K&jm*. '-- ,:;S?#s?-ff^rv-.:,-::^?' '* :- : ' : - '••f-{ -: ' -' -V-, . . . '•j/,-- f-': . -- --"- - .v\ "' * ' " ' ' " ' ' '
*ft?fe :v ." TYPE OF f^ EQUIPMENTfe-'-:*j,,.,.^- : .itft-' HoistSi" '"r
'•^'•'•- ' ' '??t Ropesrft)v -
: Compressors
Cages
Sheaves
PiimnR
-. • '••-. - -
APPENDIX I
ESTIMATED COSTS OF
NUMBER OF UNITS
1
3
2
2
2
3
" ': -.'. - ' ;' " ' '
cont'd
MINING EQUIPMENT
COST PER UNIT
560,000.00
1,500.00
35,000.00
750.00
500.00
3,000.00
'•'•- "vv - 's-J-t?'~y*' IX- ;..;,'; '',v\ ' ''f/- -' ' ' " '
' ' - . :~ ~' '- - '"-: '', :
TOTAL COST
560,000.00
4,500.00
70,000.00
1,500.00
1,000.00
9,000.00
Electric Power Generator 20,000.00
20,000.00
- - No. l mint l oeotton
property bourffery
NUOULAMA MINES LTD-
LEESON TOWNSHIPSBI32 \55I*48
PLAN .SHOWING LOCATION OF PROPERTY MINING CLAIMS AND GOLD MINES
scote 1 *2640Leeson Two
6IC22 331*55 MMM
:ft* 2/31974 roaw^.--
42B05NW0042 0016 LEESON 020
. -.1', ,s '"
No Securities Commission or similar authority in Canada has in any way passed upon the merits of the securities offered hereunder and any representation to the contrary is an offence,
NUDULAMA
Head Office Suite :908jr.
330 Bay Street, Toronto, Ontaj-io.
NEW ISSUE
Five Hundred Thousanvalue.
shares without par
Price to Public
Per Share $1.05
Agent's Commission
$0.03
Proceeds to Company (1)
$1.02 (2)
(1) .Goulding, Rose d Turner Limited, as agent of Nudulama Mines Limited (hereinafter referred to as the "Company") will offer 500,000 shares of the Company. There is no assurance that all or any of the shares to be offered hereunder will be sold. All moneys received from subscriptions will be held in trust by a licensed trust company and, if at least $420,000 is not received from subscriptions within ninety (90) days from the date of the issuance of the receipt for this Prospectus by the Ontario Securities Commission, all moneys will be returned to the sub scribers without deductions. If $420,000 is raised the offering will continue during such period until all 500,000 shares are sold to the public. Subscriptions will be received subject to rejection or allotment in whole or in part and the right is reserved to close the subscription books without notice.
(2) Before deduction of expenses of issue estimated at $10,000.00.
PURPOSE OF OFFERING
The purpose of the offering is to provide the Company with sufficient funds to pay its operating expenses and to carry out the exploration and development programmes recommended by its consulting geologist. Reference is made to the captions in this Prospectus under the headings "History and Business" and "Property".
The shares of the Company have traded on the over-the- counter market in the Province of Ontario at a high of $1.38 and a low of $0.25 over the last 90 days.
The offering price was determined by consultation between the Company and the agent named herein.
THESE SECURITIES ARE SPECULATIVE.
GOULDING, ROSE E. TURNER LIMITED, 11 King Street West, Toronto, Ontario.
Prospectus dated April 2, 1974.
4aB05NWe042 8816 LEESON 020C
TABLE OF CONTENTS
. : V.'J^ ; . . /y': : '"f v.l
History and Business
Property
Offering
Use of Proceeds
Capitalization
Escrowed Shares
Directors and Officers
Principal Holders of Shares
Remuneration of Directors and Senior Officers
Interest of Management and Others in Material Transactions
Prior Sales
Material Contracts
Dividends
Auditors
Transfer Agent and Registrar
Purchaser's Statutory Rights of Withdrawal and Rescission
Financial Statements
l
l
4
5
5
7
7
9
9
8
8
10
10
10
11
11
12
Certificates 20
HISTORY AND BUSINESS
Nudulama Mines Limited (hereinafter called the "Company") was incorporated, with the objects of a mining and exploration company, under The Companies Act of Ontario by letters patent, dated December 2, 1944, with the name Dulama Gold Mines, Limited. Supplementary Letters Patent were issued dated May 20, 1948, increasing the authorized capital. Under Supplementary Letters Patent, dated.May 29, 1950, the name of the Company was changed to Ladulama Gold Mines, Limited and the authorized and issued capital of the Company consolidated on a one (1) for two (2) basis and the authorized capital increased. Under Supplementary Letters Patent dated March 31, 1953, the name of the Company was changed to its present name, the authorized and issued capital consolidated on a one (1) for two (2) basis and the authorized capital increased to 4,000,000 shares.
The Company owns 15 patented mining claims in Leeson Township, District of Sudbury, Ontario, upon which in excess of $700,OdO has been expended in carrying out prospecting, exploration and development work prior to 1951. Due to the price of gold at that time further work was not then warranted'and the workings allowed to flood. The Company, by staking, has acquired an additional 18 unpatented mining claims in Leeson and Brackin Townships, in the Porcupine Mining Division, Ontario, which adjoin the 15 patented mining claims.
With the recent advance in the open market price of gold the Company arranged a private placement to net the treasury $120,000. For further particulars reference is made to the captions under the heading "Prior Sales". Using these funds the Company has undertaken a complete review of all its records, reports and data on prior work carried out on the above properties to determine the structure and extent of the ore zone in order to undertake a aetailed exploration and development programme.
For particulars of the above properties, past work, reserves and the recommendations of the Company's consultant, William F. Morrison, B.Se., Consulting Geologist, reference is made to the heading "Property".
PROPERTY
The following is a summary of parts of the report
- 2 - .:. . -' ;
dated February 21, 1974, by William F. Morrison, B.Se., P.Eng., Consulting Geologist, a consulting geologist retained by the Company. Copies of this report are on file with the Ontario Securities Commission and are available for inspection in the public file of the Ontario Securities Commission and at the head office of the Company.
The properties consist of 15 patented mining claims containing 896 acres and 18 unpatented mining claims containing about 800 acres. The patented mining claims are numbered S34816 to S34820 inclusive, S34825 and S35127 to S35135 inclusive. The 18 unpatented mining claims are numbered SSM351619 to 351622 in clusive, SSM351635, SSM351636 and SSM351643 to 351654 inclusive. All the mining claims are in good standing and the only require ment to keep the patented mining claims in good standing is the payment of taxes. Assessment work on the unpatented mining claims is due on November 15, 1974 in respect of mining claims numbered SSM351619 to 351622 inclusive, SSM351635 and SSM351636 and on July 24, 1974 in respect of mining claims numbered SSM351643 to 351654 inclusive. No surface rightu are owned by the Company.
Location and Accessibility
The mining claims are located in Leeson and Brackin Townships, in the Sault Ste. Marie and Porcupine Mining Divisions of Ontario, which are approximately 130 miles north of Sault Ste. Marie and 50 miles east of Wawa, Ontario. The Nudulama mine is located on Mining Claims S34818 and S34819, one mile east of Renabie, Ontario.
The properties are accessible by gravel road from the Renabie mine which is situate on adjoining claims and which can be reached by gravel road from Missanbie, Ontario. Missanabie is connected to Highway 101 by 32 miles of all weather gravel highway and from there to Wawa, Chapleau and Sault Ste. Marie, Ontario.
Development
The property is developed by a three-compartment vertical shaft to 1,065 feet from surface and seven level stations have been established at elevations of 150, 275, 425, 575, 725, 875 and 1,025 feet below the shaft collar. The partially developed gold bearing zone has been tested'by drifts and flat diamond drill holes on the first five levels including steep in clined holes drilled above and below the 2nd level on sections located at 50 foot intervals.
- 3 -
The results of this work have indicated a mineralized zone vrest of the shaft with a length of some 400 feet. Although no definitive work is recorded for the area below the 725-foot level, it is understood that diamond drilling carried out by the neighbouring Renabie mine on its side of the property boundary indicated the possible depth continuity on the westerly plunge of the mineralized zone.
The main zone west of the shaft is cut by a diabase dike about 120 feet in width from another zone east of the shaft. The latter zone has not been tested by underground work but there is a modest attribution of tonnage for three blocks in this area to a vertical depth of 100 feet. These blocks vary in length from 60 to 100 feet and an average width varying from 10.5 feet to 27.7 feet.
From 1947 to 1970 the neighbouring Renabie mine produced 3,000,000 tons of ore averaging .21 ounces of gold per ton.
Estimated Reserves
Based on available data from former work, it is estimated the deposit on the west side of the shaft contains probable reserves of 500,000 tons averaging 0.146 ounce of gold per ton to a vertical depth of 650 feet or 50 feet below the 4th level. There is a further 104,000 tons classified as possible in the interval between 650 feet and 750 feet averaging 0.075 ounce of gold per ton but this block has not been as extensively explored and developed as the blocks'above 650-foot horizon.
The blocks comprising the probable reserves vary in length from 210 feet {at a depth of 50 feet from surface) to 420 feet (for the area between 350 to 500 feet from surface) and from 16.0 feet to 44.5 feet in width, the latter dimensions averaging about 30 feet in width.
Abutting the diabase dike east of the shaft, the three blocks of possible tonnage contain a total of about 36,700 tons, -similar in grade to that of the main zone west of the shaft.
Metallurgical test has indicated a 96% recovery of the gold was economically possible by conventional milling and cyanidation extractions treatment.
ip^m^^' f H-'^"-r - :
Costs and Recommendations
A detailed summary of the costs of the recommended exploration and development v;ork is set out in Mr. Morrison's report. It is recommended the work be carried out in two (2) phases and detailed costs of each phase are set forth in Mr. Morrison's report. The estimated total cost of Phase I is $500,000 and the monies raised from the sale of shares offered under this Prospectus, together with funds on hand, will enable the Company to complete this phase. The recommendations for Phase I include diamond drilling possible extensions of the known zone and other showings on the property and then dewatering and rehabilitating the mine, resampling the drifts, raising on the ?.one from the 5th level to surface and other incidental work. Any funds not spent on Phase I may be applied to work recommended under Phase II in the said report.
OFFERING
The Company has entered into an agreement as ofMarch 26, 1974 with Goulding, Rose f, Turner Limited (the "Agent"), 11 King Street West, Toronto, Ontario, whereby the Agent will offer for sale to the public in the Province of Ontario 500,000 shares without par value of the capital of the Company at a price of ^1.05 per share. The Company has agreed to pay a commission to the Agent of $0.03 for each share*'sold, provided that a minimum of $420,000 including commissions is received from subscriptions for shares. The offering will commence on the date of issuance by the Ontario Securities Commission of its receipt for this Prospectus which qualifies such shares for public distribution. The agreement provides, subject to the concurrence of the Company, for the appointment of sub-agents, who may offer shares at the same price and on the same terms, including terms as to the deposit of funds in trust.
Under the agreement Crown Trust Company, has agreed 'to act as trustee for the Company and for all subscribers. All monies received from subscriptions for shares offered under this Prospectus will be held dn .trust for the trustee and paid over to the Company only if and when a total of $420,000 has been received from subscriptions. If such amount has not been received within 90 days from the commencement of the offering, all funds will be returned to subscribers without deduction of any kind and without interest. If $420,000 has been sub scribed within such time, the trustee will pay the funds from
•W&A'-' " - 5 -
p*"'.K .'vl subscriptions to the Company and to the Agent to the extent'fi,''.. that commissions have been earned and the offering will v continue during the offering period until 500,000 shares have
been sold to the public or the 90 day period expires.
USE OF PROCEEDS
If all 500,000 shares offered by this Prospectus are sold, the net proceeds to be received by the Company are estimated at approximately $500,000 after deducting the agent's commission and other expenses of this offering, including legal, engineering and auditing estimated at approximately 510,000. If only the minimum to satisfy the conditions of the trust referred to on the cover of this Prospectus are subscribed for, the net proceeds would be $398,000 after deduction of commissions and estimated expenses of issue. The proceeds from the sale of the shares will be used to pay the costs of carrying out, to the extent funds are available, the programmes referred to under the captions under the heading "Property" and for general corporate purposes.
No part o t the proceeds is to be advanced in any way to other companies or individuals except to the extent necessary to enable the Company to implement and complete the programmes as set forth in this Prospectus and any amendments thereto, nor will any proceeds be used to invest in securities other than the securities in which insurance companies may invest under the provisions of the Canadian and British Insurance Companies Act (Canada).
CAPITALIZATION
The capital of the Company is divided into
- 6 -
4,000,000 shares without par value. All shares issued by the Company rank equally as to dividends and rights on liquidation or winding up. Each issued share carries the right to one vote at annual and general meetings of the shareholders of the Company. There are no conversion or redemption rights. The shares presently outstanding are not subject to any call or assessment and the shares offered hereby, when issued and sold as described in this Prospectus, will not be subject to any call or assessment.
Information as to the number of shares issued and outstanding is summarized below. The dollar amounts in parentheses represent the respective aggregate amounts for which such shares have been or are to be issued.
Designation Number of Author- Securities ized
Shares With- 4,000,000out ParValue
Number Out standing as of December31, 1973, date Number Out- of Balance standing as Sheet contained at date of in Prospectus Prospectus
3,100,000 3,500,000
Number Out standing if all securities being issued are sold- - -.
4,000,000
(The aggregate consider ation for the 4,000,000 shares cannot exceed
$4,000,000) C$2,397,755.75) C$2,517,755.75) C$3,042,755.75(i)
(i) This figure reflects the sale of 500,000 shares, without deduction of commissions, which assumes the offering will be successful in entirety. If only 400,000 shares are sold the total number of outstanding shares will be 3,900,000 having an aggregate dollar value of $2,937,755.75, without deduction of commissions.
The directors of the Company have passed a resolution increasing the authorized capital from 4,000,000 shares without par value to 5,000,000 shares without par value but the required shareholder confirmation has not at this date been given. The above increase will not take effect unless at least two-thirds of the shareholders at a general meeting confirm the directors' resolution and application for amendment of articles to the authorities is filed and the required fees paid.
JJ
- 7 -
ESCROWED SHARES
There are no shares held in escrow.
DIRECTORS AND OFFICERS
The names and home addresses of the directors and officers of the Company, the positions held by each of them and their respective principal occupations during the last five years are as follows:
Position
President and Director
Secretary- Treasurer
Address
Prescott Highway, Ottawa, Ontario.
7 Robingale Drive, R.R. S2, Seagrave, Ontario.
Executive Vice- President and Director
35 Widdicombe Hill, Weston, Ontario.
Director 173 Dunwoody Drive, Oakville, Ontario.
St Occupation
H. D. Lee Snelling, President, Prestech Associates Limited
Gordon L. Moore, Mining Executive, President, Mindecon Limited from February, 1971, prior thereto at M. J. fioylen Engineering Offices
O. A. Seeber, Self-employed as a mining consulting geologist, previously Vice-President of Exploration, Northgate Exploration Limited from January l, 1969 and prior thereto at M. J. Boylen Engineering Offices
Alan H. Curren, President, A.H. Curren Insurance Agenoirs Limited from March, 1972, prior thereto managing organization of estate planning department of Reed Shaw Osler Limited, prior to May, 1970, General Agent for National Life Assurance Company of Canada
y : - ,- : , i-~yx/ ;i ' - - v -- ' ', r y* : - *''' - 8 -
Director 459 St. Clements Ave.,Samuel Hughes,Toronto, Ontario. Insurance Salesman
representing Crown Life Insurance Company.
Director 36 Juniper Crescent, Frank VI. Voisin,Kitchener, Ontario. President, Voisin
Developments Limited.
PRIOR SALES
400,000 treasury shares of the Company were sold to The Coniagas Mines, Limited on January 17, 1974 at $0.30 per share pursuant to Section 19(3) of The Securities Act of Ontario.
INTEREST OF MANAGEMENT J 'J OTHERS IN MATERIAL TRANSACTIONS
Reference is made to the-captions under the heading "Material Contracts", "Principal Holders of Shares" and "Directors and Officers". Mr. O.A. Seeber, is a director and officer of The Coniagas rf .nes, Limited, Suite 401, 25 Adelaide Street Most, Toronto, Ontario. Mr. H,D.L. Snelling is a director of Quebec Sturgeon River Mines Limited, Suite 401, 25 Adelaide Street West, Toronto, Ontario, of which The Coniagas Mines, Limited is an insider by virtue of holding in excess of 251 of the outstanding shares.
A letter agreement/ dated January 17, 1974, has been executed wherein certain persons including P.W. Voisin, a director, have agreed, for a term not exceeding 3 years, to vote shares beneficially owned by him and in his capacity as a director in respect of certain corporate matters including, (i) for an increase in the authorized capital to 5,000,000 shares; (ii) against an amalgamation or consolidation; (iii) against the Company entering into a management contract; (lv) against the sale of any interest in the Company's mining properties; and (v) for a right of first refusal to Voisin
o- 9 ~
Developments Limited, 301 Village Road, Kitchener, Ontario, to purchase from the Company a number of shares on the same terms as to price as other shares may be offered equal in value to $100,000 on the first private placement of shares by the Company. The remaining directors of the Company and The Coniagas Mines, Limited have signed undertakings to comply with the fore going. The holders of the equity shares of Voisin Developments Limited are: F. W. Voisin, his wife, Gladys R. Voisin, and James E. Gray, 41 Forest Hill Drive, Kitchener, Ontario.
REMUNERATION OF DIRECTORS AND SENIOR OFFICERS
No direct remuneration has been paid to any director or E nior officer of the Company as such but Mindecon Limited, Suite 908, 330 Bay Street, Toronto, Ontario, a corporation in which Mr. G.L. Moore, the Secretary-Treasurer of the Company, is the principal shareholder, provides bookkeeping, office and administrative services to the Company at a rate of 5150 per month. There is no present intention to pay any remuneration to officers or directors aa such.
PRINCIPAL HOLDERS OF SHARES
The number of shares of the Company owned of record or beneficially, directly or indirectly, by each person or company who owns of record, or is known by the issuer to own beneficially, directly or indirectly, more than 10% of the out standing shares of the Company:
Name Class Type Number of Percentage ofand of of Shares ClassAddress Security Ownership Held____ .....^..-.^....^^^
The Coniagas Common Directly, 400,000 11.4Mines, Limited, shares with- beneficialSuite 401, out par and of25 Adelaide value recordStreet West,Toronto,Ontario.
To the knowledge of the Company the only individuals
tix* " - ' - 10 - ; - . ' ' -holding a greater than 5% interest in The Coniagas Mines,
db Limited is G.W. Armstrong, R.R. g2, Orono, Ontario.
The percentage of outstanding shares of the Company beneficially owned, directly or indirectly, by all directors and senior officers, as a group is 9.6%.
The above percentages are calculated on the basis of the present outstanding capital "of 3,500,000 shares and was determined as at February 20, 1974.
MATERIAL CONTRACTS
The material contracts entered into by the Company within two (2) years are as follows:
1. Agreement made as of March 26, 1974 between the Company, Crown Trust Company and Goulding, Rose fi Turner Limited. (For particulars reference is made to the captions under the heading "Offering").
2. Agreement dated January 17, 1974, between the Companyand The Coniagas Mines, Limited for the sale of 400,000 treasury shares to the latter company. (For particulars reference id made to the caption under the heading "Prior Sales").
3. The Company has entered into a letter agreement, dated February 20, 1974, wherein it has retained the services of a project manager at a monthly remuneration of 51,500.
A copy of each of the foregoing may be examined during normal hours at the head office of the Company during the period of preliminary distribution of the shares offered hereby.
DIVIDENDS
No dividends have been paid to date by the Company.
AUDITORS
Coopers i Lybrand, Chartered Accountants, 145 King Street West, Toronto, Ontario, are the auditors of the Company,
- 11 -
TRANSFER AGENT AND REGISTRAR
The transfer agent and registrar for shares of the Company is Guaranty Trust Company of Canada at Toronto.
PURCHASER'S STATUTORY RIGHTS OP WITHDRAWAL OR RESCISSION
Sections 64 and 65 of The Securities Act of Ontario provide, ' in effect, that where a security is offered in the course of distribution to the public,
(a) a purchaser will not be bound by a contract for the purchase of such security if written or telegraphic notice of his intention not to be bound is received by the vendor or his agent not later than midnight on *;he second business day after the prospectus or amended prospectus offering such security is received or is deemed to be received by the purchaser or his agent, and
(b) a purchase* has the right to rescind a contract for the purchase of such security, while still the owner thereof, if the prospectus or any amended prospectus offering such security contains an untrue statement of a material fact or omits to state a material fact necessary in order to make any statement therein not misleading in the light of the circumstances in which it was made, but no action to enforce this right can be commenced by a purchaser after the expiration of 90 days from the later of the date of such contract or the date on which such prospectus or amended prospectus is received or is deemed to be received by the purchaser or his agent.
Reference is made to the Act for the complete text of the pro visions under which the foregoing rights are conferred.
*r : '
- 1 2 -
NUDULAMA MINES LIMITED
FINANCIAL STATEMENTS
FOR THE FIVE YEARS ENDED
DECEMBER 3 1, 1973 ,
' v"' * ]
13 -
March 26, 1974
AUDITORS' REPORT TO THE DIRECTORS
We have examined the balance sheet of Nudulama Mines Limited as at December 31, 1973 and the statements of exploration and administrative expenses, deficit and source and use of funds for the five years then ended. Our examination included a general review of the accounting procedures and such tests of accounting records and other supporting evidence as we considered necessary in the circumstances.
In our opinion these financial statements present fairly the financial position of the company as at December 31, 1973 and the results of its operations and tho source and use of its funds for the five years then ended, in accordance with generally accepted accounting principles applied on a consistent basis. -
CHARTERED ACCOUNTANTS
TORONTO, Ontario.
- 14 -
NUDULAMA MINES LIMITED
BALANCE SHEET AS AT DECEMBER 31, 1973
ASSETS
CURRENT ASSET
Cash
INVESTMENTS
Shares of mining companies having 'a quoted market value - at the lower of cost or market (note 1)
Shares of other mining companies at nominal value (note 1)
MINING PROPERTIES (note 2)
m
1973 $
397
21,870
2
21.872
186.313
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities
SHAREHOLDERS' EQUITY
CAPITAL STOCK
Authorized ~4,000,000 shares of no par value
Issued - 3,100,000 shares
DEFICIT
6.241
2,397,756
2,195.415
202.341
SIGNED ON BEHALF OF THE BOARD
Uiiicctor
Director
f it' ''•^.AW-x,
FOR
NUDULAMA MIMES LIMITED
STATEMENT OF DEPICT r
FIVE YEARS ENDED DECEMBER 31, 1973
BALANCE - BEGINNING OF YEAR
Add: Administrative expenses for the yearLoss on sale or write down of investments Mining claims abandoned Exploration expenses on abandoned claims Net proceeds from sale of stock subscription
rights
BALANCE - END OF YEAR
1973
4,48086,599
1972 $
1971 $
1970$
2,69721,281
3,4954,6101,6062,863
5,803. 699
1969 $
2,104,336 2,080,358 2,067,784 2,061,082 1,985,183
6,63268,017
496:,220
(2.466)
lM VI
1."- -' ' '
STATEMENT OF
FOR THE
EXPLORATION EXPENSES
AssaysAero-magnometer and spectrometer surveysMaps and blueprintsSurface exploration and camp expenses
BALANCE - BEGINNING OF YEAR
Expenditure on claims abandoned
BALANCE - END OF YEAR
ADMINISTRATIVE EXPENSES
Corporation taxesFiling feesGeneral expenseHead office administrationLegal and auditListing and sustaining feesOffice stationery and printingPostage, telephone and telegraphProperty taxesReports to shareholdersTransfer agents and registrar feesTravellingEngineering fees
Nl'DULAMA MINES LIMITKD
EXPLORATION AND ADMT.NISTRATIVE
FIVE YEARS ENDED DECEMBER 31,
1973$
.
..
.
"
-
-
fm
"
r-^-n
5020
1041,800
500.358
4518129697.300
EXPENSES
1973
1972$
.^."
-
-
—
"
nr-^
5010
1221,800
500.
2515
518137
(480)
-
: ' ' . "•' v ' *',- ' -,-.-1
1971$
^.-
———— ̂-
2.663
2,8632.863
t**^,
5010
111(200)475200.-553
1,307927.
62
.•."••'ii-rt'^'t^v*®.•'^^te^8•••.M^^,,.,^*^,-,^
.•'••- . .'- '--. ^iV'^'-t'*!'-•i,.;;;.. :-;-^'-^.'i •' - ..' - -• 1-*-.'' ;^',i-?J- ..' ' : * '
, ;^;'^
1970$
^..
__ 22
22
2,641
2,863. — Z — .
2.863
10510
52,000
650100
538
6711,264
837100-
•tlfel'1969'^^;' s :--i
10635
382.158
2,841
3.220
6,0613,220 i
2.841 ^ l
1051086
3,000250100
226
6401,4121,001
.-
NUDULAHA MINES LIMITED
STATEMENT OF SOURCE AHD USE OF FUNDS
FOR THE FIVE YEARS ENDED DECEMBER 31, 1973
1973
SOURCE OF FUNDS
Sale of investmentsNet proceeds from sale of stock subscription rights
USE OF FUNDS
Acquisition of mining claims Exploration expenses Administrative expenses
INCREASE (DECREASE) IN WORKING CAPITAL
WORKING CAPITAL (DEFICIENCY) - BEGINNING OF YEAR
Increase (decrease) in working capital
WORKING CAPITAL (DEFICIENCY) - END OF YEAR
1972S
1971 1970
•- :.^^m :,-;'^V- ;w^
1969
3,603
3.603
1,890
4.480
6.370
f2.7671
(3,077)
(2.767)
(5-6*4)
10,220
10.220
2.697
2.697
*Lm(10,600)
7.523
(3.077)
1,515
1.515
3.495
3.495
g-980)
. (8,620)
.(1,980)
(10,600)
361
361
22 5,803
5.825
(5.464)
(3,156)
(5.464)
(8.620)
2,466
2.466
1,606 2,841 6,632
11.079
SL&2)5,457
(8,613)
/3.156)
lM •jl
- 18 -
NUDULAMA MINES LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE FIVE YEARS ENDED DECEMBER 31, 1973
1. INVESTMENTS
Investments - having market values -
Beauce Placer Mining Co. Ltd. Key Anacon Mines Limited
(12,000 shares sold duringthe current year)
Investments - at nominal value -
Con. Harper Malartic Gold MinesLtd.
Beauce Placer Mining Co. Ltd.(shares held in escrow)
MarketNumber value of shares 1973
87,000
292,110
87,000
Book value1973
870 8,700
1972
8,700
70,000 21,000 88.252 103.372
21.870 96.952 112.072
l
l
2. MINING PROPERTIES
In the. Province of Ontario:
15 patented mining claims in Leeson Township, Missanabi Area, Sault Ste, Marie and Porcupine Mining Divisions - at cost
18 unpatented mining claims in Leeson and Brackin Township*, Porcupina Mining Division - at cost
Buildings and equipment -at nominal vt lue
The amounts shown for mining properties represent costs to date and do not necessarily reflect present or future values.
1973 $
1972 S
184,422 184,422
1,890
l l
186.313 184.423
- 19 -(CONTINUED)
NUDULAMA MINES LIMITED
NOTES TO FINANCIAL STATEMENTS
FOR THE FIVE YEARS ENDED DECEMBER 31, 1973
3. SUBSEQUENT EVENTS
(a) During January 1974 the company issued 400,000 shares for $120,000 cash consideration.
(b) The directors passed a resolution increasing the authorized capital of the cnpany from 4,000,000 shares to 5,000,000 shares without par value. This resolution will not take effect until it has been confirmed by the shareholders at a general meeting and application for amendment of articles is filed and the required fees paid.
(c) During March 1974 the company entered into an agency agreement with a registered security dealer whereby the Agent will offer for sale to the public in the Province of Ontario 500,000 shares without par j value of its capital at a price of $1.05 per share and agreed to pay j a commission to the Agent of $0.03 per share for each share sold; l provided that a minimum of $420,000, including commissions, is (, received from subscriptions for shares. The Offering will commence on the date of issuance by the Ontario Securities Commission of its receipt for the prospectus which qualifies such shares for public distribution. The agreement provides for the appointment of sub-agents, who may offer shares at the same price and on the same terms as to the deposit of funds in trust.
Under the agreement Crown Trust Company, has agreed to act as trustee for the company and for all subscriber!. All monies received from subscriptions for shares offered under the prospectus will be held in trust by the trustee and paid over to the company only if and when a total of $420,000 hat been received from subscriptions. If such amount has not been received within 90 days from the commencement of the offering, all funds will be returned to subscribers without deduction of any kind and without interest. If $420,000 has been subscribed within such time, the trustee will pay the funds from subscriptions to the company and to the Agent and to the extent that commissions have been earned and the offering may continue until a total of 500,000 shares have been sold to the public or the 90 day period expires.
The coats of the issue are estimated f t approximately 310,000.
- 20 -
CERTIFICATES
The foregoing constitutes full, true and plain
disclosure of all material facts relating to the securities
offered by this Prospectus as required by Part VII of The
Securities Act of Ontario and regulations thereunder.
DATED the 2nd day of April, 1974.
Chief Executive (Officer. Chief Financial Officer
On behalf of the Board of Directors.
Director - Director
AGENT
To the best of our knowledge, information and
belief, the foregoing constitutes full, true and plain disclosure
of all material facts relating to the securities offered by
this Prospectus as required by Part VII ot The Securities Act
of Ontario and regulations hereunder.
DATED the 2nd day of April 1974^-p- -
^ ~ BURNER LIMITED
The only persons holding a greater than 5% equity'interest in the Agent are: Messrs. E.D. Goulding, J. Hayman, A,C. Turner and D.Friesen.
u^ : *"'4t^-.?
west
.fiQOQ
NUDULAMA ~1
BLOCK B Ton* in Grode
Haight
gold in block
BLOC
ooid
BLOCK D Ton* Grade WidthHeigh
ooid in h tar
BLOCK A Tout
block MOOO *** 230 01 /tor, Wi* 261 ft ntie/ 162 3 ft. gold in block
19780 oz.
K C Tom in block 640OO Grade 144 o* /ton
Width 260 ft. Height 137 5 ft
in block 12096 oz
/in block M3000 /
100 oz./lon f
t 150 M' x x k JIXiV) u t /
~~~~- ~~
in block 14000 t 100 61 /ton x N 16 0 ft. /it 50 ft '
7232O ot. t-i^mim
//
/ / /"~
^ BLOCK
1t BLOCK
x 1
1BLOCK D
/
~V —— rCl 8 LOC7\
BLOCK B ^
, 150 L, \
BLf^K B
r7 275 L.
C
425 L.
X x
T̂. *wr ***"lAvr*--iSSf
fcV.'.V?.',i'"v\"Xvv.c .' .V. VAV* A
ASHvXvTjfe?:-X*^-
i vw vJvS vX X- 1-! ;::-:viiia::H---
i ,-
j , .
" IJTOli,iJ.fi'" liV"jnwpi532GrJTV M l*"' .....,,.(.*. UWlMkftaXfn, -tt - tVi*..*... - .V*** F.*4ilr**-ji(*"*-'**-" ••"••-. .l ***',l *^"'"A"VJ'*"-""'l
3BLOCK c
*ff** iV" V.V.Vi'.V. .'- .V.V. .*. ft} Q, f̂ f-f — .V.V.V.V.VtV,VAV.V.V.'iV.V.vJ HLWCK G
Tons i ri D lock 22000 Grade H O 02. /f onwidih 2 7 . 7 f f.Height l O O f t.
in bloch 2 420at
.5500BLOCK E Ton* in block 202000
Grode 135 or/ton / Wldlh 44 5 x
Height 150 ft. gold I n block 2 7270 oz. /
/ BLOCK F
Tons in b lock '(04000 fir a d* 075 oz/1 on x
Width 29-7 f t. X
Height 100 ft in We c *
7BOOoz.
BLOCK H
Tons in block 1 1000
Grode -371 oz./ton Width |6I ft. Height 1 00 ft gold in block 3 710 oz.
BLOCK ITons in block 37OO
Grode 260 oz. /ion W/dih 10-5 ft. ktttghr 50 ft. gold in b lock 962 oz.
Legend.;.;..v.v....;^...;.A..
r.v,**y,v,v.*.v.v.v.v.v,v.r.v.*|.V."" * V.V.V.V.V.V.'.V." .V.V.i
VA*.VJCCv.V.W*WAWJ^v.'^t-.-.'.v.v.v^mvJ
BIOC K F/
proposed driving from 5th level /X -cot
...Y/AV.Y.V.V.VJ* * ' * - - -W M t t . . . . if••v.;.;-;^vi^;.;-v.7
v Kf^E^SS.
two O D holt* reported drilled by Renabie
l O 6 oi. AU 2 l l oz. AU 300 10
5500'
DO hole completed
D D hole proposed
drift in vein matter boundary of reserve b locks
-^ l ocation of proposed r aises
IOO az. /ton grod* of block* ihown in ounces ^oid p*, ton
NUDULAMA MINES LTD.
VERTICAL LONGITUOINAL E -W SECTION SHOWING
RESERVE BLOCKS- MINE LEVELS AND DRIFTS IN THE QUARTZ VEIN ZONE
6000*
•cai* r* too 1
Section No. l