Building …on a Proven Track Record
Chibougamau, Quebec
-
Nuinsco’s 50%-owned
subsidiary CBay has a wealth of valuable assets
in Quebec’s venerable Chibougamau mining
camp. While it’s relatively straightforward to see
the value of a 3,000 TPD mill, a permitted tailings
facility, eight past-producing mines and potential
near-term copper producers Corner Bay, Perch
River and Devlin, it’s a bit tougher to put a value
on exploration ground. To crystallize that value a
systematic program including diamond drilling
is called for, and that’s exactly what Nuinsco
geologists embarked on in 2012.
“
CBay’s assets present an extremely attractive
exploration opportunity,” said Paul Jones, Nuinsco’s
President. “There has been a significant lack of
exploration drilling in the Chibougamau camp by
previous operators. The 2012 program marked the
commencement of the first systematic exploration
program undertaken on CBay’s properties for some
time. Historically, exploration has been heavily
concentrated in the vicinity of producing
mines, while elsewhere exploration
has been discontinuous and localized.
Nuinsco therefore believes that substantial
opportunities for exploration success exist.”
One of the most prospective, and
underexplored, parts of CBay’s land holdings is
Portage Island. Located at the northeast end of
the CBay land package, Portage Island hosts the
past-producing Henderson I, Henderson II and
Portage copper/gold mines and the McKenzie
gold vein. In addition to these past producers,
CBay’s Portage Island claim group hosts numerous
underexplored exploration targets, including the Baie
du Commencement copper/gold zone, Hematite Bay
gold and copper zones and two magnetite bodies
-
the Magnetite North and Magnetite South zones.
Drilling began in late 2012 following the
completion of ground geophysics in October.
The 18-hole, 1,683 metre drilling program tested
Lac Doré Complex Historic Mines
•
Gold
•
4
NWI
:
TSX
Nuinsco Resources Limited
N
LAKECHIBOUGAMAU
CHIBOUGAMAU
CAMP
DEVLIN
CORNER BAY
PERCH RIVER
Kilometres
0
15
10
5
TOWN OF
CHIBOUGAMAU
CBay Properties
Paved Roads
Chibougamau
Val d’Or Quebec City
Montreal
“
“
Perch River and Devlin make sense for CBay because we own
the only mill in the camp and are looking for additional near-
surface copper mineralization with good grade that has the
potential to supplement future production from our partially-
developed, high-grade Corner Bay copper project…”
Location
Quebec, Canada
Ownership
50%
Commodity
Copper/Gold
Project Status
Exploration/Development
CBay Bulks Up
continued from page 1
165,000
tons grading 3.95% copper and inferred
resources of 100,000 tons grading 3.69% copper.
The Devlin deposit, as defined to date, is within
100
metres of surface and no drill holes have
extended beyond 125 metres.
CBay acquired 100% of Devlin for $363,000,
subject to a 2% NSR on total revenue over
$60 million retained by former owners Lake
Shore Gold Corp. (1.1%) and Rio Algom Exploration
Limited, a subsidiary of BHP Billiton (0.9%).
“
Perch River and Devlin make sense for
CBay because we own the only mill in the camp
and are looking for additional near-surface copper
mineralization with good grade that has the
potential to supplement future production from
our partially-developed, high-grade Corner Bay
copper project,” said CBay’s CEO Roland Horst.
“
Both Perch River and Devlin are easily accessible
from the existing road network and our first steps
will be to get a good feel for these projects, what
the potential is and how best to explore to realize
this potential.”
CBay was created in 2011 to advance the
copper/gold mining, processing and exploration
assets located in and near Chibougamau, Quebec
that were jointly acquired by Nuinsco and Ocean
Partners. Chibougamau is a significant Quebec
mining camp with copper and gold production
dating back to the early 1900s.
In addition to Perch River, Devlin and Corner
Bay, CBay’s asset base includes a vast 96,000
acre property position most of which has not been
explored for decades, eight past-producing mines
(
with exploration upside) and a 3,000 TPD mill
and permitted tailings facility.
The past-producing mines in CBay’s portfolio
account for over 75% of the 47.6 million tons of
ore containing 1.6 billion pounds of copper and
3.2
million ounces of gold that have been
produced from Quebec’s Lac Doré Complex.
*
A qualified person has not done sufficient work to classify
the historical estimate as current mineral resources; the
issuer is not treating the historical estimate as current
mineral resources.
Wealth of Assets, Lack of Exploration
Presents Great Opportunity for Nuinsco and CBay
2012
Program Returns Exciting Results from both Known
Prospects and New Discoveries
PORTAGE
S3
HENDERSON 2
HENDERSON 1
BATEMAN BAY
JACULET
COPPER RAND
COPPER CLIFF
CEDAR BAY
SHAFT #3
KOKKO CREEK
QUEBEC CHIB
MERRIL
MAIN MINE
CHIBKAY RAND
OBALSKI
-1000
-2000
-3000
-4000
-5000
5,877,661
T @ 1.61% Cu, 0.028 oz/t Au
15,837
T @ 1.06% Cu, 0.22 oz/t Au
2,692,506
T @ 2.17% Cu, 0.010 oz/t Au
745,189
T @ 1.15% Cu, 0.007 oz/t Au
264,000
T @ 1.74% Cu, 0.080 oz/t Au
3,782,850
T @ 1.57% Cu, 0.091 oz/t Au
951,830
T @ 1.61% Cu, 0.028 oz/t Au
16,620,000
T @ 1.80% Cu, 0.089 oz/t Au
1,200,000
T @ 2.2% Cu, 0.07 oz/t Au
565,000
T @ 2.09% Cu, 0.090 oz/t Au
316,732
T @ 0.37% Cu, 0.18 oz/t Au
1,818,976
T @ 2.23% Cu, 0.045 oz/t Au
6,483,479
T @ 1.60% Cu, 0.041 oz/t Au
8,151,115
T @ 1.77% Cu, 0.114 oz/t Au
245,000
T @ 2.16% Cu
5,877,661
T @ 1.61% Cu, 0.028 oz/t Au
CBay Owned Mines
Lac Doré Historic Mines
Indicated Reserves and/or Resources
Depth mined to date
All Lac Doré Mines
- 47,604,647
T @
1.69%
Cu 2.40 g/t Au
CBay Lac Doré Mines
- 37,142,681
T @
1.75%
Cu 2.80 g/t Au
Corner Bay Resource Calculation
(2%
Cu cutoff*)
Tonnage
Grade
Category
(
t) (% Cu) (g/t Au) (g/t Ag)
Measured
360,000
3.44
0.33
2.92
Indicated
465,000
3.40
0.31
4.32
Total Measured + Indicated 825,000
3.42
0.32 3.71
Notes:
1.
CIM definitions were followed for Mineral Resources.
2.
Mineral Resources are estimated at a cut-off grade of 2.0% Cu.
3.
Mineral Resources are estimated using a long-term copper price
of US$3.50 per pound, and a US$/C$ exchange rate of 1.0.
4.
A minimum mining width of 2 m was used.
5.
A bulk density of 3.12 t/m
3
was used.
6.
Numbers may not add due to rounding.
*
Roscoe Postle Associates Inc. July 9, 2012
Corner Bay