Aaoterktire APP nats aaa TT LN LL DT Meet HERE VRDeSE SO NS ly Le ne Sa Sica a a ee Te as oe te ene eee ar ap we PETER JONES — VICE PRESIDENT MINING On May 24th Brinco announced changes in: their management group in order to reduce overheads and match the current level of the Company’s operations. Effective September 1st Hugh Snyder, who is current- ly President and Chief Executive Officer of Brinco Limit- ed, will assume the position of President of Brinco come Limited. Jim O’Rourke, President of Brinco Mining Limited will leave the Company at the end of August and Peter Jones, currently General Manager of the Cassiar Mine Divi- “sion, will move to Vancouver as Vice President—Mining of __ Brinco Mining Limited. Becaus: Brinco Mining Limited currently only has the Cassiar-Operation in production it was felt that the Head - Office-could no longer support-a-full-time Personnel and — ~ Industrial Relations Manager and Bob Langford will also ~ be leaving the Company. Other people also leaving Brinco Mining who were not directly associated with the Cassiar Mine are Jack Lawson, President of Sharondale Corporation (coal min- ~ ing in Kentucky) and Jim Hogan General Projects Manager. At the same time as the above announcement took place it was also announced that Keith Jones presently Production Manager at Cassiar, will become Mine Manager effective September 1, 1984. New school for Dease Lake VICTORIA JUNE 14. The Minister of Education Mr. Jack Heinrich announced today that funding has been allocated for the construction of a new school in Dease Lake and for some snow roofing of teacherages in School District 87 (Stikine). A total amount of $1,832,000 has been allocated for the district. The construction of the school will cost $1,686,000, $95,000 has been allocated for snow roofing and the balance is for the purchase of computer equip- ment and minor renovations within the District. The Chairman of the School Board, Mrs. Sherry Sethen called an emergency meeting of the School Board for June 15th. At that time they plan to start making ar- rangements to get these projects underway. COURT NEWS Court was held in Cassiar on June 14th. The next Court sitting will be August 2nd and will be held in the Good Hope Lake Community Centre. ‘RANDAL HEIKKELA pleaded not guilty to possession of a narcotic. Trial is set for September 27th. SHAWN WHALEN pleaded guilty to not wearing a seat belt, fined $25; pleaded guilty to driving without due care and attention and was fined $200. WAYNE REES pleaded guilty to possession of a narcotic, ‘fined $300 or 21 days, also pleaded guilty to possession of Pcilocybin weve Mushroom) fined $200 or 21 days. Continued on Page 16 s Cassiar Courier the Voice of Cassiar Country JULY 1984 10 cents Brinco Mining hosted the Open Pit Mine Rescue Competition - Northern Division in Smithers June 1 6th. While the Cassiar team did not win, they are to be congratulated for a fine performance. At the awards dinner, Mr. W.C. Robin- ion, Chief Inspector of Mines for B.C., presented the Ryan Trophy to Mr. Keith Jones, . Production Manager 3rinco Mining Ltd. This is the highest award for mine safety i in Canada and i is in recognition of Cassiar’s 1,000,000 ‘man-hours worked without a lost time accident. Brinco Limited Net income for the first quarter of 1984 on an after- tax basis was $5,471,000, after taking into account the re- covery from insurers of $6,079,000 relating to product liability litigation defence costs which had been incurred in previous years. Earnings for the first quarter without such recovery would have been $1,692,000 net of tax, compared to a loss of $2,189,000 for the same period in 1983. The improvement reflects to some extent the re- stocking of inventories by customers. The insurance re- covery and higher fibre sales, together with a reduction in accounts receivable, enabled the Company to reduce long- term debt by $10 million and current indebtedness, net of short-term investments, by $6.6 million. A further modest reduction of debt is expected during the balance of the year. These improvements while significant were not suf- ficient to. permit Brinco Mining Limited to maintain its debt repayment schedule, and the terms and conditions of its loan arrangements continue under negotiation with the lenders. While earnings per share, after allowing for unpaid dividends, were $0.26 for the period compared to a loss of $0.19 per share on the same basis for the first quarter of 1983, the Company remains in a deficit position. Divi- dends normally payable on March 31, 1984 on the Com- pany’s Preferred Shares’ Series A and Series C were omit- ted, and dividends normally payable on June 30, 1984 will be omitted as well. Dividends on these shares are cum- ulative. Because the Company was in a deficit position, the Company was. unable to invite tenders for the redemp- tion of 5% of its outstanding Preferred Shares Series A at the beginning of the year. BRINCO MINING LIMITED Asbestos fibre production from the Cassiar Mine aver- aged approximately 8000 tonnes per month during the first quarter. The snow slide which caused a brief interrup- tion in the mining operation in January, had no significant influence on the normal production rate of fibre. Al- though sales of asbestos fibre from the Cassiar mine were higher than in the first quarter of 1983, fibre prices re- mained weak, reflecting continuing over-capacity on a world basis. . During the first quarter, Brinco Mining Limited enter- ed into an agreement with one of its major insurers under which the insurer has reimbursed this subsidiary for a sig- nificant portion of its past defence costs arising from pro- duct liability litigation relating-to: past sales of asbestos uarterly fibre. The insurer has - undertaken 6 provide funds for the ongoing defence of legal actions based on exposure to asbestos during policy periods. Indemnification of future settlements and judgments remains under discussion. The San Antonio gold mine continues to be held ona care-and-maintenance basis. An agreement has been reach- ed with Lathwell Resources Ltd. under which Lathwell may earn up to a 50% working interest through expendi- tures of $7:5 million on the property over a 4% year per- iod. Exploration work on the property under Lathwell management is expected to commence shortly. BRINCO OIL & GAS LIMITED During the first quarter, six wells were drilled on company lands, resulting in three gas wells, two oil wells and one dry hole. Oil production, averaging 315 barrels per day, was lower than during the first quarter of 1983, while gas pro- duction at 2,200 M.C.F. per day was essentially unchang- ed. The improvement in overall revenue was due mainly to increased prices for oil SHARONDALE CORPORATION Coal markets in the eastern United States have exper- ienced some strengthening with respect to both demand and pricing; however, improvement to date is not suffic- ient to Warrant resumption of mining operations at the Loftis mine in Eastern Kentucky, which has been held on a care-and-maintenance basis since October 1983. QUINSAM COAL PROJECT During the first quarter, the Company continued its environmental, engineering and marketing studies on the Quinsam Coal Project, which is managed by the Company under joint venture arrangements with Weldwood of Can- ada Limited. The report resulting from the public inquiry held in the fall of 1983 was made public on May 14, 1984. The Commission members who conducted the in- quiry were unanimous in their conclusion that the mine and its related facilities could be built and operated with- out harm to the environment, provided the necessary sur- veillance, mitigation and reclamation procedures are fol- lowed. Development of the Project remains subject to avail- ability of an acceptable contract.