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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