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