Operations
CASSIAR ASBESTOS

During the year, 1.1 million tons
of ore were mined at Cassiar
from which 86,207 tons of
asbestos were produced (1.35
million tons and 97,827 tons
respectively in 1981). Cash costs
at the mine were lower than
those experienced in 1981 due
to extended mine closures,
reduction of stripping and also
to significantly improved
productivity.

Mineable ore reserves available
from the existing open pit were
recalculated based on present
product prices and resulted in a
reduction in both tons of ore
and waste rock to be removed.
Additional fibre sources remain
under active investigation in the
McDame extension of the
Cassiar lens, retreatment of tail-
ings and the newly discovered
Tanya property, approximately
ten miles north of the Cassiar
mine.

SAN ANTONIO GOLD

Operations at the San Antonio
mine commenced on a con-
tinuous basis in January 1982,
with mining activities restricted
to the upper levels of the mine.
By year-end a total of 86.191
tons of ore had been processed,
and the ore processing plant
and support facilities functioned
according to plan. Ore produc-
tion was approximately 80% of
target levels by year-end, but
grades were disappointing - ap-
proximately 0.14 oz gold com-
pared to projections of 0.19 oz.
Early in 1983, it was decided
that mining operations in the
upper levels of the mine would
continue to be unprofitable and
these operations are scheduled
to be terminated in May 1983.
The feasibility of mining the
lower levels of the mine. where a
higher grade of gold mineraliza-
tion is indicated. will be studied
during the first half of 1983.

During 1982, the original joint
venture arrangement between
the company and New Forty-
Four Mines Ltd. was
renegotiated. Under the new ar-
rangements, the company’s in-
terest in the mine increased
from the original 50% to 100%
with New Forty-Four Mines Ltd.
retaining a 10% net profits in-
terest, payable after the com-
pany has recovered its costs
associated with development
and operation of the mine.
Under certain conditions this
net profits interest could in-
crease to 25%.

LOFTIS COAL

In 1982, production from the
Loftis mine totalled 327,000
tons (226,000 tons in 1981). Min-
ing problems in the first quarter
were overcome and targetted
production levels and produc-
tivity were achieved in the final
three quarters. Unfortunately,
poor market conditions
prevented the mine from
operating at full capacity in the
latter part of the year.

BRINCO OIL& GAS

During 1982, Brinco Oil & Gas
Limited participated in drilling a
total of 30 wells (54 in 1981)
resulting in 17 oil wells (10 in
1981) and nine gas wells (28 in
1981). Of these wells, 21 were
drilled at no expense to the
company, three were wild cat
wells drilled with funds raised
under Brinco’s 1981 Energy Pro-
gram leaving six in which the
company had direct financial
participation.

Crude oil production decreased
from 333 barrels of oil per day
in 1981 to 315 barrels of oil per
day in 1982; however gas pro-
duction increased from 1,910
MCF per day in 1981 to 2,130
MCF per day in 1982.

QUINSAM COAL

The Quinsam coal property is
located 17 miles southwest of
Campbell River on Vancouver
Island, British Columbia, and is
subject to joint venture ar-
rangements with Weldwood of
Canada Limited. Major activities
during 1982 were the comple-
tion of environmental studies
and a feasibility study. A drilling
program was also undertaken to
obtain samples for coal quality
testing. The feasibility study
contemplates an open pit min-
ing Operation producing one
million tons of clean thermal
coal per year.

On February 16, 1983 the
Government of British Columbia
granted Stage I! approval to the
project and announced that a
public inquiry will be held under
the Environment Management
Act at a later date. Since the
granting of Stage I! approval,
the marketing program has been
accelerated.

EXPLORATION

During 1982, Brinco Mining
Limited participated in 18 ex-
ploration projects at an overall
cost of $1.5 million, down from
$1.9 million in 1981, providing
exposure through joint ventur-
ing to exploration activity
costing $5 million overall.
Highlights of the year were the
promising results of work done

under the joint venture with Get-

ty Canadian Metals Limited on
the base metals Dawes Pond
project in Newfoundland; the
location of the promising Tanya
asbestos property, ten miles
north of the Cassiar mine in a
joint venture with Cominco Ltd.
and Exploram Minerals Ltd.; the
discovery of an extensive high
grade silver-lead-zinc deposit
contiguous to a block of land
held under a joint venture with
Amax Exploration Inc., 50 miles
north of Cassiar; and the further
expansion of high grade lead-
zinc-silver reserves at the 20
percent owned Jason project in
the Yukon.

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