San Antonio Gold SAN ANTONIO GOLD Under joint venture arrangements with Lathwell Resources, covering the San Antonio gold property in Manitoba, Lathwell expended in the order of $600,000 on the property under a program designed to permit exploration at depth. The joint venture has now been terminated. Quinsam Coal Project QUINSAM COAL PROJECT The Quinsam coal project is managed by Brinco under joint venture arrangements with Weldwood of Canada Limited. The report resulting from the public inquiry held in the fall of 1983 was made public in May of 1984. The inquiry commission members were unanimous in their conclusion that the mine and its related facilities could be built and operated without harm to the environment, providing the necessary surveillance, mitigation and reclamation procedures are followed. They also stated that the various required permits and licences could now be prepared and issued. The major area of activity pursued in 1984 was environmental work related to procuring permits and licences, engineering and marketing studies. The world steam coal export market increased to 104 million tonnes in 1984, up from 85 million tonnes in 1983, and a further increase of 11 million tonnes is expected in 1985. Of this increase, 7 million tonnes is attributable to the Asian area, one of Quinsam’s major market opportunities. However, prices remain depressed, reflecting excess production capacity in the major exporting countries and the recent currency devaluations by both South Africa and Australia who supply over 50 percent of product delivered to the steam coal export market. On the other hand, prices on the west coast of North America for steam coal have remained firm due to increases in the cost of inland freight. As a result the west coast market has become of more interest to Quinsam. Given the rapid increase in demand for steam coal in the export market, real price increases are considered likely in the next few years. The start-up of the Quinsam project must await this improvement to ensure an adequate return on capital required to build the project.