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NWI
:TSX
Nuinsco Resources Limited
Building …on a Proven Track Record
Over 40 years of Exploration Success …and Counting
LETTER TO SHAREHOLDERS
continued from page 1
I am pleased to say that 2010 saw the return of
investors into the junior sector and, more importantly,
exploration companies. I would not suggest that
activity is back to normal levels as financial turmoil
and fragile economies continue to exist around
the globe. However, at some point it will be
recognized that resources are a depleting asset
and exploration is a necessity to ensure supply.
The growth of the Chinese economy cannot be
overstated and the consumption of metals will
only continue to expand as emerging economies
flourish. I can only assume that the events
occurring in the Middle East and North Africa
(“MENA”) region will result in similar increased
demand for durable goods as the region’s overall
standard of living improves. It goes without
saying that what we are seeing worldwide has
never been seen before. We believe that the
fundamentals that support metal prices today
will continue for some time and should bode well
for our business of exploration.
Focus
Enough philosophizing. Those of you who read our
news releases will know that Nuinsco is a growth-
oriented, multi-commodity mineral exploration
company that is focused on world-class mineralized
belts in Canada, Turkey and Egypt. It hardly sounds
like we are focused when you look at all the metals
and all the geographic areas that we are working in.
However, I hope my earlier comments explain this
diversity.
As long as our projects are not being
negatively impacted by spreading resources too
thin, I believe that we should have more projects
rather than fewer. All of our projects are active and
we will continue to work them until we have
a discovery. However, a prudent company must
also recognize when to put the brakes on a project
and readjust its focus. In 2010, we did this with the
Olympian project and previously with Marijane
Lake/Huston Lake. Discoveries are only made by
exploring; by being active on many fronts.
Prairie Lake
(Canada)
During 2010, we completed a significant trenching
program at Prairie Lake, located near Marathon,
Ontario. Unfortunately, results were delayed as the
assay lab was not able to perform at the expected
level. This was rectified and the results of this
program have been released. We also completed
a drill program, the results of which are pending.
The Prairie lake carbonatite is a complex
structure with potential economic values for a
variety of minerals including niobium, tantalum,
phosphorous and rare earth elements. We have
identified several hundred million tonnes of
mineralized material on only a small portion of
the overall property. We are now embarking on
metallurgical studies to establish an economic
method to separate the variety of contained
minerals. Prairie Lake is a very unique and exciting
project, particularly given the ease of access and
its location near infrastructure including road, rail
and power.
Diabase Peninsula
(Canada)
Exploration at Diabase Peninsula, our uranium
project in Saskatchewan’s Athabasca basin,
continues to generate positive results which point to
the potential for high-grade uranium mineralization.
Uranium deposits in the Athabasca basin are small
and difficult to find, but also contain high grades
and are very valuable. In November and December
2010, we completed a drill program, the results of
which were announced in early April 2011. These
results were sufficiently encouraging that we began
another round of drilling. Assay labs continue to be
very busy and this, combined with the complexity
of uranium assaying, can result in reporting delays.
However, as always, we will announce the
results as soon as they are available.
Berta and Elmalaan
(Turkey)
In Turkey, unfortunately very little work was done
on both the Elmalaan copper/zinc VMS project and
the Berta copper/gold/molybdenum porphyry project
during 2010. This is not a reflection on the attractiveness
of these projects, but is a direct result of the difficulty
in funding exploration during the financial crisis,
among other factors. Your board of directors has
approved significant programs for 2011 at both
Elmalaan and Berta and we will proceed to
implement these programs as soon as practicable.
Bukari and Umm Samra
(Egypt)
In early 2009, we visited Egypt’s Eastern Desert and
were impressed with the geology and the historical
mining activity done in the area during Pharaonic
and Roman times. Subsequent participation in the
2009 bid round resulted in winning bids on two
gold concessions – Bukari and Umm Samra. During
2010, we, along with our Egyptian partner, devoted
considerable time to negotiating a concession
agreement with the Egyptian Mineral Resources
Authority (“EMRA”) for the Bukari project. In January
2011, the State Council, the Egyptian government’s
We have the projects
and the dedication of
our people – both rare
resources. We also
have the support of our
shareholders, which is
truly one of our most
valued assets.
Nuinsco is a growth-
oriented, multi-commodity
mineral exploration
company that is focused
on world-class mineralized
belts in Canada, Turkey
and Egypt.
As a result of getting to
know the MENA region
and its people, we expect
to create a new MENA-
focused company with
our Egyptian and Turkish
assets as a starting point.
legal branch, approved the Bukari concession
agreement for presentation to the Peoples’
Assembly (Egyptian Parliament) for passage into
law. Once the concession agreement has been
approved into law it will supersede all the tax laws,
and the project will not be subject to income taxes,
custom duties, sales taxes and all other taxes that
exist in Egypt. The Bukari concession agreement
will form the basis for an Umm Samra concession
agreement.
To date, three surface programs have been
completed in preparation for a full exploration
program as soon as the concession agreements are
approved. Thus far, gold assays from Bukari grading
up to 4.34 oz Au/t have been announced. We look
forward to more exciting news from these projects.
As a result of getting to know the MENA
region and its people, we expect to create a new
MENA-focused company with our Egyptian and
Turkish assets as a starting point. We have
incorporated a subsidiary, NuMENA Minerals
Corp., as a vehicle to move this forward and take
it public when appropriate. We are already
reviewing additional opportunities in Egypt and
other countries in the region to be sure that we
are part of the future in this highly mineralized
and underexplored part of the world.
Chibougamau
(Canada)
A suite of valuable assets, for which the market is
not giving Nuinsco credit, are the former Campbell
Resources Inc. projects in Chibougamau, Quebec. The
Chibougamau Camp has produced ore containing
over three million ounces of gold and 1.8 billion
pounds of copper, and until the financial meltdown
Campbell was on the road to becoming a significant
copper and gold producer. Nuinsco became involved
with Campbell in 2006 because we recognized the
potential of not only the Chibougamau area but,
more specifically, of Campbell’s property holdings.
This is why we supported Campbell for as long
as we could. However, the support that they needed
was too great given the economic circumstances
and we had to protect our other assets during
a very difficult time.
As part of the CCAA process, the Monitor of
Campbell’s assets received a number of opportunistic
and ultimately unsatisfactory offers for Campbell’s
assets. In addition, the complexity of Campbell’s
debt situation made creditors difficult to deal with in
an acceptable manner. Nuinsco and Ocean Partners
Holdings Limited were two of the secured creditors
and we soon realized the need to simplify the structure.
As such, together Nuinsco and Ocean Partners
purchased substantially all of the secured debt of
Campbell, and have made a joint proposal to the Monitor.
We expect to have this resolved in the very near future.
Meanwhile, we have been reviewing all of the
data available on the Chibougamau properties and
will provide a full review of these exciting assets
and a plan to take them forward that will realize
their value for our shareholders.
If you have read this far, you will realize the
magnitude of your Company and its assets. We have
the projects and the dedication of our people – both
rare resources. We also have the support of our share-
holders, which is truly one of our most valued assets.
With your support, and the support of a dedicated
team that keeps us in compliance with regulators
and keeps us running, Nuinsco not only made it
through what was without a doubt one of the most
difficult times in its history, but emerged stronger
than ever. Thank you all.
Sincerely,
René R. Galipeau
Vice-Chairman and Chief Executive Officer