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NWI
:TSX
Nuinsco Resources Limited
Building …on a Proven Track Record
Cameron Gold Project
ASX:CVY
Coventry
Victory
Directors
Robert Wardell
, Chairman
René Galipeau
, Vice-Chairman
George Archibald
Ed Guimaraes
W. Warren Holmes
Marvin Singer
Dr. J.M. Franklin
Officers
René Galipeau
, CEO
Paul Jones
, President
Alison Sutcliffe
, VP, Finance
and Chief Financial Officer
Sean Stokes
, Corporate
Secretary and VP, Corporate
Affairs
Dr. David Mchaina
,
VP Environment & Sustainable
Development
Margaret Lai
, Controller
Auditors
BDO Canada LLP
,
Chartered Accountants,
Licensed Public Accountants,
Toronto, Ontario
Legal Counsel
Macleod Dixon LLP
Toronto, Ontario
Corporate Information
Transfer Agent
& Registrar
Computershare Trust
Company of Canada,
Toronto, Ontario
Corporate Office
Nuinsco Resources Limited
80 Richmond St. W.,
Suite 1802
Toronto, Ontario
M5H 2A4
Tel: 416.626.0470
Fax: 416.626.0890
Email: admin@nuinsco.ca
www.nuinsco.ca
Investor Relations
CHF Investor Relations
Tel: 416.868.1079
Fax: 416.868.6198
cathy@chfir.com
Annual General Meeting
The annual general
meeting of shareholders
will be held at The Toronto
Board of Trade, 1 First
Canadian Place, Toronto,
Ontario, Wednesday,
June 1, 2011 at 4:00 p.m.
(local time).
Equity Holdings Offer Ability to Finance Exploration
While Minimizing Shareholder Dilution
Toronto, Ontario, Canada
- Without operating
mines, mineral exploration companies typically
finance their exploration activities through equity
financings. Given its wealth of assets, Nuinsco is
in the fortunate position of having the alternative
to minimize financing dilution to shareholders by
crystallizing the value of certain projects by selling
or spinning them off for cash, equity, royalties
or a combination of these. At the opportune time,
these equity holdings can be sold in the market
and royalties can also be monetized to generate
the cash to finance operations and exploration
activities without issuing additional shares in
Nuinsco.
In line with this strategy, Nuinsco currently holds
common shares in two publicly traded companies
- Coventry Resources Limited (ASX:CVY) and
Victory Nickel Inc. (TSX:Ni). These holdings give
Nuinsco non-dilutive financing alternatives that
other exploration companies don’t have.
Coventry Resources
(ASX:
CVY
)
In April 2010, Nuinsco crystallized the value of its
Cameron Lake Gold project (now called Cameron
Gold Project), located near Kenora, Ontario, through
its sale to Coventry Resources. Nuinsco received
total consideration valued at approximately
$12 million comprised of cash, Coventry Resources
shares and a 3% net smelter return royalty.
At March 31, 2011, Nuinsco owned 7% of
Coventry shares.
Coventry Resources is focused on gold assets
in the Superior Province in Eastern Canada.
Coventry Resources’ principal asset is the
Cameron Gold project. Following the acquisition
from Nuinsco, Coventry Resources announced a
recalculated JORC-compliant indicated and
inferred mineral resource estimate as follows:
Grade
Gold
Category
Tonnes
(g/t gold)
(Ounces)
Indicated
4,164,000
3.16
422,353
Inferred
7,148,000
2.54
583,480
Total
11,312,000
2.77 1,005,833
Source: Coventry Resources Limited
In announcing the sale, René Galipeau, Vice-
Chairman and CEO, stated that the transaction
places Nuinsco “in a strong position with the
financial resources to advance its exploration
projects in Canada, Turkey and potentially in Egypt.
We are confident that Coventry will be successful
in executing its plans to advance the project and
expect that Nuinsco’s royalty and equity interests
will appreciate in value as a result of its efforts.”
Coventry Resources also has another gold
exploration asset, the Ardeen Gold Project located
about 110km west of Thunder Bay, Ontario,
which has historically produced about 30,000
ounces of gold and 140,000 ounces of silver
from underground workings, according to
Coventry Resources.
Victory Nickel
(TSX:
NI
)
In 2007, Nuinsco spun off three nickel projects,
Minago, Mel and Lac Rocher, to create Victory
Nickel. Shares in the new company were
distributed to Nuinsco shareholders, creating
immediate value, and Nuinsco also retained
a stake in Victory Nickel. At March 31, 2011,
Nuinsco owned 2.2% of Victory Nickel shares.
Today, Victory Nickel has four sulphide nickel
projects, including the Lynn Lake Mine which
Victory Nickel has optioned to Prophecy Resource
Corp. (TSX-V:PCY) in return for cash and shares
in Prophecy. Victory Nickel has one of Canada’s
largest sulphide nickel inventories, and is focused
on becoming a mid-tier nickel producer.
With gold and nickel prices trending upward,
Nuinsco is confident that its strategy of using
equity in other companies as one means of
financing will continue to serve shareholders
well and provide the opportunity to effectively
explore its projects in Canada and abroad.
Equity holdings can be
sold in the market and
royalties can also be
monetized to generate the
cash to finance operations
and exploration activities
without issuing additional
shares in Nuinsco.
Forward-Looking Information:
This document contains forward-looking information. All statements, other than statements of historical fact, that address
activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitute forward-looking information. This forward-looking
information reflects the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a
number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such
actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could
cause actual results or events to differ materially from current expectations include, among other things: the possibility that actual circumstances will differ from estimates and
assumptions; uncertainties relating to the availability and costs of financing needed in the future; failure to establish estimated mineral resources; fluctuations in commodity prices
and currency exchange rates; inflation; recoveries being less than those indicated by the testwork carried out to date (there can be no assurance that recoveries in small scale
laboratory tests will be duplicated in large tests under on-site conditions or during production); changes in equity markets; operating performance of facilities; environmental and
safety risks; delays in obtaining or failure to obtain necessary permits and approvals from government authorities; unavailability of plant, equipment or labour; inability to retain
key management and personnel; changes to regulations or policies affecting the Company’s activities; the uncertainties involved in interpreting geological data; and the other risks
disclosed under the heading “Risk Factors” and elsewhere in the Company’s annual information form dated March 31, 2011 filed on SEDAR at www.sedar.com. Currently, Egypt
is experiencing a state of civil unrest and political transition, the consequences of which are difficult to determine with certainty at this time and which may adversely affect the
ability of Nuinsco and its partners to obtain tenure to its Egyptian projects and may negatively affect exploration activities and/or such projects. There is no assurance that future
political and economic conditions in Egypt will not result in the Government of Egypt adopting different policies respecting foreign development and ownership of mineral resources.
Any such change in policy may result in changes in laws affecting ownership of assets, land tenure and mineral concessions, taxation, royalties, rates of exchange, environmental
protection, labour relations, repatriation of income and return of capital, which may affect the ability to undertake exploration and development activities in respect of its properties.
The effect of these factors cannot be accurately predicted. Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or
otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of
future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein. All exploration work is supervised by Paul Jones,
President, who acts as QP under National Instrument 43-101.
•
Strategic Investments
•
GAINING MOMENTUM
continued from page 6
Prairie Lake
Additional metallurgical tests will evaluate producing
a rare metal concentrate.
Nuinsco completed approximately 4,000 m of
diamond drilling and more than 2 km of trenching in
2010 with excellent results. Trench results included
grades up to 1.08% REEs, 6.14% P
2
O
5
, 0.27%
Nb
2
O
5
and 23.7ppm Ta (see news releases issued
March 10 and April 11, 2011).
“This trenching program demonstrates strong
niobium and phosphorus mineralization, with REEs
and tantalum, over significant sampling lengths,
indicating the potential to substantially increase
the scale of the ETMI reported previously,”
Mr. Jones, added. “For instance, the 343.3m long
Raspberry Hill Trench includes a 250m interval
grading 0.117% Nb
2
O
5
and 3.09% P
2
O
5
, while
in the 687m long Grouse Trench a 116.7m interval
grades 0.1% Nb
2
O
5
and 2.42% P
2
O
5
.”
The first diamond drill hole reported (see news
release issued April 15, 2011) further added to the
knowledge base, returning grades up to 0.957%
Nb
2
O
5
and 8.68% P
2
O
5
as part of a 246m interval
grading 0.118% Nb
2
O
5
and 3.41% P
2
O
5
in
addition to REEs and tantalum.
“With interest in rare metals increasing and
world supply tightening, Nuinsco’s Prairie Lake
project is an increasingly important and valuable
asset,” said René Galipeau, Vice-Chairman and
CEO. “We have already delineated a significant
tonnage hosting not only REEs but rare metals,
phosphates and uranium and we have shown that
a high-value concentrate can be produced using
low-cost flotation. The drilling and trenching is
designed to increase the known tonnage
incorporated in the ETMI as well as to help us
better understand the project’s mineralization.”
Printed in Canada using vegetable based inks on chlorine-free paper containing post consumer product and which is 100% recyclable. Project Management and Production: Walter J. Mishko & Co. Inc. Design: Goodhoofd Inc.
Location
Ontario, Canada
Ownership
100%
Commodity
Multiple commodities:
U, Ta, Nb, P, Rare Earths
Project Status
Exploration