Read Report - Nuinsco Resources Limited

30
2005 ANNUAL REPORT
(e)
Cameron Lake
The Cameron Lake project consists of one mining lease encompassing 979 ha, contiguous mining claims totalling
3,728 ha and mineral patents at Rowan Lake of 95.7 ha. The surface rights to the Rowan lake property were sold
in 2005. A NI 43-101 compliant report and resource estimate was completed. During the mid-1980s, approximately
$24,000,000 was spent on the project by a former shareholder to develop the property by ramp to the 860 foot level.
(f)
Minago
The Minago project consists of two mining leases, ML-002 (247.23 ha) and ML-003 (176.85 ha), and ten mineral
claims encompassing 1,324 ha. The project is 100% owned by the Company. During 2005 Nuinsco conducted
significant data verification and validation program that included drilling a series of five holes collared to support
and confirm the historic drill hole data, resampling of historic drill core and vetting, and correction and digitization
of historic data. A single drill hole was also collared to assess extensions to the nickel mineralized rock that
comprises the main Nose Deposit which hosts the resource. A 43-101 compliant report and resource estimate was
also completed.
(g)
Prairie Lake
The Prairie Lake property consists of 600 ha of mineral claims. No work was conducted by Nuinsco during 2005
and the carrying value of the property was written off. A third party is conducting diamond exploration on this
property under an option agreement.
(h)
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 completed the expenditure of $500,000 required to become vested with 50% of the project (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. As a result, Nuinsco has elected to not
participate in the ongoing program and is accepting dilution on those portions of the project on which work has
been conducted. The carrying value of $537,000 was written off in 2005.
(i)
Other
Other properties include Muriel Lake which consists of seven contiguous claims comprising 825 ha. During 2005
a program of line cutting and ground geophysics was conducted over a portion of the property. The claims
encompass base metal showings with copper and zinc mineralization. Late in 2004, a ground geophysics survey
identified anomalous trends. Some of these were investigated during 2005 with a prospecting and sampling
program. More work is required to complete the assessment of the property.
5 BUILDINGS AND EQUIPMENT
2005 2004
Accumulated Net Book Net Book
Cost Amortization Value Value
Buildings $ 20,700 $ 17,600 $ 3,100 $ 3,400
Equipment 247,900 210,400 37,500 46,800
$ 268,600 $ 228,000 $ 40,600 $ 50,300
NOTES TO FINANCIAL STATEMENTS