Read Report - Nuinsco Resources Limited

16
2005 ANNUAL REPORT
collared around the Minago Deposit, totalling
2,600 metres, to verify grade and geology
reported in historic drill holes and to provide
samples for metallurgical testing. A single drill
hole of 410 metres was collared in a separate,
prospective and little explored zone of nickel
mineralization, designated the “North Limb,”
to assess the mineralization there.
All holes drilled in the main Nose Deposit were
near to existing drill intersections to verify earlier
results. Predictably all of the holes intersected the
expected rock types and mineralization. Current
assays results have varied somewhat when
compared to historical results. This may be attributed
to the use of different analytical techniques
and uncertainty as to the exact location of some
historic drill intersections. However, generally
the drilling has confirmed the grade of the
serpentinised, upper portion, of the deposit
which constitutes the bulk of the resource at
Minago as it is currently defined.
Fednor/Halliday In 2004, the Company and
Wallbridge Mining Company Limited entered into
an option agreement with Falconbridge/Noranda
to explore the Abitibi greenstone belt near
Timmins, Ontario. During 2005 Nuinsco and
Wallbridge each spent the $0.5 million required
to become vested with 50% of the property (25%
each). A joint venture was formed in October
whereby Falconbridge, Wallbridge and Nuinsco
would fund 50%, 25% and 25% of expenditures
respectively. Although the program has
identified the source of a number of geophysical
anomalies, no mineralization of economic significance
has been found. Therefore Nuinsco has
elected to not participate in the ongoing program
and is accepting dilution on those portions of the
property on which work has been conducted.
ARTVIN, NEAR BERTA COPPER-GOLD PROPERTY
Data verification and check assaying of historic
core was also conducted in conjunction with
the drilling program. All of this work is part of
an extensive and ongoing evaluation of the
economic viability of Minago. Samples for
metallurgical testing have also been collected
from the 2005 drill core and sent to PRA
Laboratories in Vancouver for processing.
Muriel Lake The property at Muriel Lake consists
of 825 ha in contiguous mineral claims, located
75 kilometres north of Geraldton in northwestern
Ontario. Results from a UTEM geophysical survey
conducted on approximately 30 kilometres of
grid line show two linear responses – a relatively
stronger, continuous, 1,300 metre response in
the north part of the claim group and a shorter,
weaker response underlying the south part of the
property. Subsequently, ground verification and
prospecting was begun to assess the results
of the geophysical survey. These activities were
curtailed because of work restrictions resulting
from forest fire risk. The region is known to host
small, copper-zinc bearing, sulphide showings,
several of which are on strike from the UTEM
anomalies.
Berta The Berta Joint Venture agreement was
signed and announced in a press release on
October 13, 2003. The Berta property is located
approximately 50 kilometres from the Black Sea
coast in northeastern Turkey. During 2004 soil
sampling and mapping programs identified an
extensive copper alteration system of some 15
square kilometres in area. Fieldwork commenced
in mid-April with additional soil sampling on two
areas associated with anomalous copper and
gold values from the 2004 sampling. The new
samples in-filled the pre-existing sample pattern
to better define the anomalies. The sampling
MANAGEMENT’S DISCUSSION & ANALYSIS