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.