HURON BRUCE MINES LIMITED Statfc^Lt^Fi Ur &UUKUC AWU Arri-It-A Nun U) F Unud *

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o. |.ropo:;u:i to nj..;iid the run? l s to bo rai:;ol by the rale of treasury sharer, offered horeun !©;r to carry out i©haM! J of 1 hi: rcoon-r.uiKlatioii;- of tfr.©ll. ©?rim- Gralnm, Ph.D., referred to in h J y Jk;ort to tho Ccrjx.ratjon. ria tec! May 10, 3971, n;; amended by letter dated Kay #, I©/©/l, on it.-, property at P.liw-nor Additicr.al Tovn.ship.

DAVIDSON A COMPANY (Ui,-.1 ..vrltor) on behalf of Chesapeake Limited. The Underwriter win purchase sufficient trcaoury shares of tho Corporation to net the treasury a minimum of frLOO, 000, the number of shares in no event to exceed 200,000 shares, and the price per share, in no event to be less than fifty (500cents per share, ;.ro to bo determined in consultation with the Canadian Stock foch/in.*/.! and in accordance with the requirements of the Canadian Jtock Exchange tho night prior to tho lifting of tho Corporation©s chares for trading through tho facilities of the Exchange. Tho Underwriter ny bc nad;! to realize a profit in an ar.c-©Jnt to t.he differei.:-e bctv/rcn the jtr.ice paid for ouch sh-©ire:-. .©i:iJ thu pr.ic©j -;{ v.©h.icfi raid i-.hare.1; are sold to the The U.©uicruTiUr ujll offer tih/iren }-urcli--ir;cd by it fer ya.lc t;ir©. ©.;;li the facjjj©ieo of the Can.v.-iian 5(oci: l-^.chan^o at tin: curr:i.t ri-irxct jn©icc at the tir-.c of off^rin^ r-ubjoct to cor.ij;]yiur: ©..i! h t IKS i:,-ix:!.ur: offuririf. price. OK T;H: ^AID v::n li: OF C;;TAR:O. i ;n:. FOH O:;LY. ;,© Pi;!©.r-or.i:r;

Ovc-r ©..ho in-,©, tlir©-e ri-::1 h-; *...; jc ra -i, -o of the Corj©Oiv;t.:on©s r.h?irci; h©i:; ti.-cn (.©j: Tii:-:::©-: . i:

!!©V).i:.r;i f.- C x j-any , Tliv ^t ;©-. A;ti,ii..;c :;i.c,©i Vest, Tin. .t., i.© Ti)(f.;i[i© l, r©.-it.-irio Toronto 3, co^Tiw!:;-.;-! -; .\f;:.::T AIJD Run.s Gnnc-r-il Tru:.t of C:in ui \ 90V Ibrrh.v.t.-r Blvd. Mont r o J , i .-uoboc IK) r.KrUiHTJK:©. ^K-©J-ll.-©.I©.KW Oi( :;i:!Jl.A!i AUTIiOHlTY I II CANADA HAS [M A I©A;:;KI) urn:.1 TIN: MI:;IT:© n;1 TI:I. :;H:ii!t]©:-i!-: WAY HKI©HJ-r:i.NTATlo:.© TV.) Till; CO.W-XIfY l:© A:.© ()Fi-!-.r.©:;K. fllKT©ft ti©lf.fcf&V.f&P O NT K N T li

Q v PACK HISTORY AND UU3IMK:i3...... l ACQUISITION OK rKOPHtTlKS FOH SHARE.} AND CASH...... 1-5 OFFERING...... 5. l USK OF fROCKEDS. t- ...... ©. . . 5-6 l DESCRIPTION OF CAPITAL STOCK...... ©. . . . 6 1 CAPITALIZATION. B! ...... , ...... 6 2 ESCROWED SHARES...... f 7 PRINCIPAL HOLDERS OF SHARES...... 7 DIVIDENDS...... ©...... 7 l PURCHASER ©S STATUTORY RIGHTS OF V/n.HDRAV/AL AND RESCISSION...... 8 t PROMOTERS...... 8 MANAGEMENT...... 84 9 © REMUNERATION OF DIRECTORS AND SENIOR OFFICERS...... ,. ,. ,. . . . . 10 i PRIOR SALES...... K) INTER) ST OF MANAGFttEOT AMU OTHERS IN MATERIAL TRANSACTIONS...... 10 l M AT Ma A L CONTRACTS...... , ...... 10 6 H AUDITORS, TRANSFER ACKWS AND REGISTRARS...... H f OTHER MATffilAL FACTS...... H ; FINANCIAL STATI-KEWrS...... 12 - 18 \ j- CHITIFICATK OF THE COMPANY...... 19 ). CiiKTIFICATK OF THIi: UKD/m.TaTl-H...... i 19 j AND ini:;iw:;s

Huron Bruce Mlm-:i Li ml tod (hereinafter referred to as the "Corporation") wan incorporated under the prov.l-.5ons of ©Die Corporations Act o f tho Province of Ontario by Letters Patent date,) i.h,; ;-Hth day of February, l©X©6, a:* a public •s t:or| oration. The head office 4)f l h" Corporation ir. -jituate at Suite ftll?, H 5 Hichmorxt Street West, Toronto l, Ontario, .S1'".;'"..:. Reference is mde to UK- heading "History of Property" hereunder regarding former production from the Cor j oration©:-, property at Plxurjner Additional Town ship. The Coi-j)oration, at the present time has no underground plant or equij-ment on the property although it lias a number of shafts described in detail hercuiyJcr.

ACQUISITION OF RtOPWTIF.G FOF( SUMtF^ AKD CASH

j*lujrjner Additiom] Towyhip, Sault Sto. v t-jarin Mining Dlvirion,

By agreement dated January 11, 1966, made between the Corporation and Alco-Bruce Mines Liiiutod, 112 Ilirch Street, Sault Ste. Karie, Ontario, tho Corporation acquired from Alco-Bruce Wifios JJlmi tod Lots l to 8 in Concessions II, III, IV, V, partr, of Lots l to 8 in Concession VI p.nd Lots l to U i n Concussion VII (Cuthbcrtr.on Location) and Lots l to 8 Concessions II, IV V, and parts of lots l to 8 Concession V.I (Keating Location) sltxiate in Plummer Additional Tcc.vnship in the Sault Ste. Marie Mining Division of Ontario, in consideration of the issue and allotment to Alco-firuce Kines Limited of ^0,000 shares in the capital stock of the Corporation on the basis of 10? ee and ?0^ placed in escrow subject to release only on the written consent of t;ie Board c f Directors of the Corjxsration and of the Ontario Securities Commission. Al^o-Bruce Mines Liinited was acting on its own behalf and on behalf of Messrs. Francis Patrick I©.cGuire, P.O. Box 33, AJax, Ontario, Samson Frederick Huxter, 6 FxJvard Street, Aj,ix, Ontario, Clarence F. Hewitt, L jl* Burlington Avenue, Burlington, Ontario, and Archibald Durnside IvhiU-L©iw, 11 Yorkleigh Avenue, Weston, Onvirio. The cnly person having a greater than 5/^ interest in Algo- Bmce Mines Limited ir; V.©illiam F. Martz, who acted as Trustee for the share holder:-, of that Corporation, who ,irc mainly resident in the Detroit aro, none of whom is connected with any of the principals of the Corporation. The said Algo-Brace Mines Linited hay been inactive for many years. Subsequently, the Corporation was advdscd that certain claims against the property had been made by Ma l agawaten Mining Company Linited, an Ontario corporation, wholly ov/ni©d by Donnis O©connor, 1346 Indianwood Road, Lake Orion, Michigan, and Elizabeth S^indorson, (Administratrix of the Estate of Raymond N. Rond.) ariu, after prolonged negotiations, in order to avoid litigation, a/reed to settle the claims of Mala©*,awatch Mining Company Limited by the issue and allot ment of 100,000 free and 50,000 escrowed shares to the said Dennis O©connor and 23,1^0 free and 50,000 escrowed shares to tho said lulivtabnth Sanderson, represent ing p.-©.orient for money;: spent by them in connection with the property. Thn Corporation nov; ha:; clear title to the said patented ndain/r rights covering 9,000 acres and t.o patented surface right;; covering 12 acres. As j;art of the settlement with I-ialag©ivMtch Mining Company LirrAtf-d the Corporation co:ivt:yr;d t)ie surface rights only of the whole of Lot i, Concession II in the Cuthbertson location, the .souUu-r]y jvart. of lot l, Concession IV in the Keating Location and all the French Inland.;, save McKay Island and French ©aland, lying in front of the Cuthbertson Ixjeation, to tho said Dennis O©connor. ' '"''L; -' .'" - * ' •5S IliiiisiX-SiL The property craplel.ely © mbraco;: the original Hmco Hi no in Plummer ©Additional Township in the :iault .©©.t-:. Jtirie Mining Division of Ontario and ir. located jO© m il*-:; cast of .©©nvilt ;©.t.o. M/iri©- at tho Ton ri of Uruco Minou on the C. P. t;ti]v7.iy and lUj-.hway 17 on tho l.©orlh Chann©tl of 1/iko Huron ary.l iy rwdiDy *mi accr;r,..*blo by road, rail .Mid boat. The above Highway and C. P. Hailway r.rosr. Uu: property.

The prof)f:2iy i:; divided into the north, south and main (l) vein/, with the litter vein beinc, r.ubdivid©-d into the Copper liiy and V/ellinf.ton nections, the Taylor Section and the Oniee Section. The oricin.©il Bruce Mines was operated as the fir.it Ccpper Mine an northern Ontario during r.evcral periodr, between lB/,6 and 1921. In 186.V the West Canada Mini ne Comjviny acquired the Wcllinnton, Bruce and Taylor sections and mined them extensively until 1876 when a scries of misfortunes culminating in a cave-in in the Copper Bay section forced the owners to discontinue further operations of the mines.

Between 1898 and 19H the property was .acquired by two English Corporations in succession but only spasmodic raininc operations were conducted during thin time,

In 1914 the Mond Nickel Company acquired the property and from 1916 to 1921 it was mined larccly for quartz and flux. After 1921 mining was discontinued as the Mond Nickel Company became part of the Intcrnatioaal Nickel Company of Canada which consequently became owners of the Bruce Mines.

In 1941 an option to purchase the property from the owners war. obtained by Ventures LU1. Mining Co. and several sections of the property were geologically mapped and geophysically surveyed fo}lov;ed by a program of surface diamond drilling conducted by FrobiL-hc.-r i-^xploration Co.v.pany Limited. The results of the surveys are reported to have been inconclusive and the option was allov;ed to be terminated.

In 19^J*, a 12,000 acre tract of land comprising the Keating and Cuthbertson location was purchased fron the International Nickel Company by the R. N. Bond interests of New York but wry little exploration v/ar, carried out by this organization apnrt from sorr.e diamond drilling v:hich was reported to have been dono on several outlying mineral occurrences which are located within the tracts of land but not nr-ar the immediate vicinity of the Bruce Mines.

During the history of this property most of the production camo from the No. l vein which was mined in four sections along a length of 8,000 feet and between depths of 155 to 550 feet. The total production was 500,000 tons mor. t of which was mined from th" northwest nn;i of the vein in the Copper Hay and Wellington sect.jonr.. About 133,000 ton.; v;ore sent to Sudbury for flux by the Mond l.©ickel Company bctv/ecn 1916 and ]9iO.

In the Copper Bay and V.Vllington section:; the No. l vein war. mined for a length of ?,500 feet and to a maximum depth of 550 foct producing ore with an average grade of 3 percent copper. Tn the Taylor ,©ihaft section located 2,/tOO feet southeast of the ©.\VIlington :;- ction Uio vein way drifted on for 2,300 feet on tho l Ji*? foot level and stop©-U above, the 65 foot level. Tho average grade of car samples v.-ar. recorded a:; :i. 95 p©Tcont copp-r. The Pructs No. l Hine where tho rir.-.t mining v/ar, carried out on the soulhca: tern ont of tho No. l vein ia located 900 font from UK* Taylor shaft drift. Incomplete rocord:: indicate that this :;eotion was mined for a length of 2,500 foot and to proU©ibly 300 foct in depth." , - . , A .©knith Vein nyr.tf-n Jocatrd 500 JYot r-.OMthwf.it of tlu: No. 3 Voln h-©ir; mined to A :-,h:iJ3ow depth-at ^^^-v-r©© © © - - © ©: © ©- ©interval:, a)on;; a di:tlnncn of©nlKmt©ont- © mlln.: ©©^Y©Y. i A North Vein lo-at-d .-.boni. ;y,00 f-ot nortlx-ist of UK: Hrucu Ko. 3 Mine Inr. been explored fvr n ]i-n,©;Lli of 1,CXX) f.:.:t l y r.urfaco pit:;, tlvimond clriiljn^ and ri r.h©ift to 75 feet from which no 3M.nra.l work war. dotv.-. Mo:?t of the rcjjort-.-d infoiTi-itio:i on th©.- early di-vc3ojra©!nt and mining of the. variour. veir.-; w UT: property h-uvo been thoroiif,)i]y studied by two ncnior officer:; of th(; Corporation. Tho Taylor ^haft worhinps have recently been inspected and nvipjv-d by Ont-irio Dcjiirt-ment of Mincy pcrr.onnel and a re.port on I their finding:; i K \)ein^ prepared.

The Corporation acquired 9,000 acres of the property an aforer.aid in January of 1V66 and recently has be(;un to rehabilitate certain portions of the property. Dy letter n^rccn©ont dated April 6, 1970, Gotiie Diamond Drilling Id.nd.tcd agreed to dc\;ater the Taylor Shaft and the Cave areas at its ov.-n cxpenr.c and the Corporation agreed to allow Cone to retain 75^ of the net profit that it realized ©from any recoverable mineral as n result of leaching the ore in solution in the mino water. Dy September 1970 it was report by Go:r.e that it had dev/atercd all underground workings and had rehabilitated certain timberr. and ladders but that it was not proceeding v.dth the project of leaching ore from mine waters uince this had proven to be uneconomic. The net cor.t of operations by Gome at that time had been in excess of .^20,000 and it was agreed to employ Gome to continue the rehabilitation of thu r.haft including washing down on its. walls and the drifts on G©j foot and 165 foot levels so that a thorough cxojrdnation could bc carried out. Dy agreement with the Corporation dated November 20, 1970 Com? has agreed to perform boring and diamond drilling work on the property of a runinu-n of 5,000 lineal feet at a cost to the Corporation of .1)5.00 per foot. To the end of April ten nholes have been drilled for a total of 2,030 feet. In the Taylor Area of the Hine timbers at the second level station have been replaced. The first or 65 foot level has been surveyed by transit and the second level has been surveyed east of the shaft for 550 feet. A base line has been surveyed from the r.h:.ft east for 3,500 feet and the under ground workings tied in with this bar.e line. The only persons holding a greater than 5/^ interest in Go:nc© Diamond Drilling Limited .©ire - B.C. Church, 29 Kndicott Terrace, Welland, Ontario, who is the president and general manager of Gonie and w! is also a director of the Corporation; F.G. Church, 1A Westdale Avenue, Welland, Ontario and P..A. Maclean, Fonthill, Ontario.

The Corporation© , consulting enr.lnncr, R.Hruce Grah .n, Ph.D., P.Eng. in his report ot the Corporation dated May 10, 1971 as amended by letter dated May 26, l ha:; reconim©-nded that exploratory work be conducted on the ruin vein and the :;outh vein in the form of a program of induced polarization along the strike length of 10,000 feet to tent for new vein:; and sulphide enriched jortion:, of known veins above tho 100 foot horii-.on and a diamond drilling program to test certain favour able r.octionr. below UK- l.li-ut of penl.ration of the induced jjolar i nation studies. These recommend;.tion;-, will bo carried or.l in iv,-o phases a:; follows: .©lK I

- t nn

The strike extension of the vein from a shaft ra r. t for 1,500 feet to be drilled at 150 foot interval:! at th 150 horh-.on involving 2,000 feet of r M on

Th(! Prnce Ho. ] .'Sfrtion should bo tested along th" length of 2,000 feet nt the 300 foot horizon it l JO fuol intervals to l.e:;t downward ami lateral extension in the old workinr:i m?- as wo) l ns tin- extension of tin- vein tr the rar.t involvjnf, 5,300 Tf.-rt of diamond drilling.

Cor.t inoludin/© contingency allowance of .t-5,650 would amount to y ~; approximntftly ;^.© i-.V/©,

j/--- ©.N © :©.© :s. . SK II

An induced polarization survey is to bc conducted with th.o contingency for 5,000 feet of diamond drilling.

Copper ftiy and Wnllinnton SnctJonr. Tho strike length of 2,000 feet is to be drilled at 150 foot intervals on the 500 f -jt horizon to test the extensions to the northwest and the southeast involving 8,^00 feet of diamond drilling. South Vein ; This vein should be tested from Highway No. 17 west along strike 1,500 at the- 150 for foot horizon by wholes 150 feet apart involving 8,;tOO diamond drilling. feet of

Cost including a contingency Allowance of $10,500 would amount aproximately $13^,000. to

This program will involve a toU©l of 22,700 feet of diamond drilling which, along with the induced polarization, will amount to an expenditure of Sl96,000 with the above contingencies. Mr. Graham reports that a visual examination of the Taylor Shaft workings discloses the presence of chalcopyrite mineralization amounts in varying along the length of the drift. Minor amount-; of bornite chalcocite and have also been reported but it is Mr. Graham©s opinion t.vo minerals that these arc probably the result of surface waters altering the chalcopyrite in the underground workings. The sulphide ndnerali nation occurs in milky quartz-carbonate veinr. and it is preJominatelv course grained with :;ome finer aggregate:;. The sulphides have hr;n introduced .-Qaig fractures These .in the vein quartz. fractures are imrked by a finely commin©ited dark material chlorite. possibly f^.ie In the Taylor ©ilia f t the vein is typically richer in copper the darker chlorite when; rich fractures and bloches arc bent developed in the milky v/hi to quart-/, of the In the past little development has been carried out in advance mining. Tho of Mono I©ompnny drilled three yholes in the Wellington .Section, two wholes in the central jvirt of the imin vein and five vholen in tho vein bit the results nouth of the drilling ir. not known and this work in of no 4: va]uo. Tho norUi vein :inrl norUwnnt rxlcusinn of ihi* Ktin vein taw: h*-cn dr3)lwl to a jimit^l jxt©-nt fcy KmMrli©T l.? miti-i|. Drilling is rurr©-ntly lx- carrif-d out in Uu- Taylor .".IT t i on l*y Como aryl the; n^.iiUr. roiiTJrra thr împ from Ihr ]Vj foot .K.v.-) . )n.\.rrvi-:; in thi:; arra ar*.- (piot©Î in Ontario Dî of Minr-r. Mi nora] Hiv.ovrci:©:. Circular Ko. l;1 , Page 53, ar; b*-inr. AO.CXO loiv.j avt:r.©ij©,inj; 3. t1?© copjx-rr abov-- i.h©,- 1^ foot )f-v*-1.

A fu]3 copy of Mr. Crah un©f. n:jort il.-ited Hay 10, IV©/I a:. by 3 "t t ©.T of May /.©^, 3971, i:; .ivai )al.)]o for inspection on th-s |*iblir. of the Ontfirio IJcruriticra Co:ntniu:iion. OFFERING Sv© The Corporation h.is entered into an Agreement dated June H, 1971, as amended by Letter Agreement dated July 2V, 1971, with Davidson tt Company, 25 Adelaide Street Wust, Toronto, Ontario (Davidson) acting on behalf of Chesapeake Limited, Suite 231/*, /,01 Day Street, Toronto, Ontario (Chesapeake) whereby Davidson ha:; agreed to underwrite sufficient, oharea- in the capital stock of the Corporation to net the treasury a minimum of $100,OCO, the number of shares in no event to exceed 200,000 sh-ircs, and the price per jharc. in no event to be lens than Fifty (50^) cents per share, arc to be determined in consultation uith the Canidian Stock Exchange and in accordance with the requircmcnta of the Canidian Stock Exchange the night prior to the listing of the Corporation©s shares for trading through the facilities of the Exchange. Dav.ick-cr, will ofi©cr sh©irca j.-urchasr.d V.y it for :.a3c; .-©a c i.Vi t of t! i o Slock iv.ch-.nf.c -it the current r.irKot liic ofJ©eriii,- uub.©.ccl. to CO.T,; ,ly.in{-. \:it;i tiic r;ixirar:i offeririg- p.-Leu. o;;;; c; Tib ::,Mr. i-MAiu;.: \:i}.]. lin cri©E.ii-!) KD;C :-..©,j.r; IM r;ti :©j;ovj:.j;, Or o:r;A!,io. THIS r;;o::n;cT^ i:; ATI o." iron.-n c:;i.y. Tho only persons hoDdirr a 5/S o) creator interest in Davidson are: J. C. Labbott, 22 Edenbridco Drive, Jr.lington 675, Ontario; Jalab Securities Ltd., 22 F/ifinbridf.c Drive, Islington 675, Ontario; D.R. Dattelo, ".©cadowlr.ndo", H. R. i!2, Caledon, OnUrio; A.V Castlcdinn, 650 Kcenin Avenue, Ottawa, Ontario; H. C Brewster, 19 Boancr Avenue, St. Catherines, Ont.; tor Securities Ltd., 19 Bc.iir.cr Avenue, St. Catherine."!, Ontario; G. A Wiley, 28^ Riverside Drive, Toronto 159, Ontario R. A. Marccllo, 58 Morgandalc Crescent, Agincourt 752, OnUrio; R.V/. lAoody, 78 The Kinfsway, Toronto, 590, Ontario; and -Davidson Sccviriticn (Toronto) Lioitod

The only person holding a 5.©j or greater jntorcat in Chesapeake Li mi t od au Jcaro:; Uarclay Co:ul, l\©lk HusatOl HiDl Road, Toronto, Ontario.

Thnro arc no :;ub-unJorv.T.itin/©. or sub-option agrer-nonts.

USE OF PROCEKDS

The Corporation proposes to r.pcnd the aum of .^62,000 out of the fund:; rai.ot.©d by the r.alo of the underwritten nhirer; referred to under the holding "Offorinp." to carry out Phase J of the recommendation..; of H. Bruce Graham, Ph. l)., Kng. in his report to thi; Corporation dated Hay 10, 1971, a; amended by letter of May 26, 1971. . " ' ; ' "'' , ' y' '"V^tf i * HCTON BRUCE MINES LIMltED ^i*k 1 , (Incorporated under the laws of Ontario) i -. . •'••••:.A- ^ M^.©^©©^ - , . -,- . .:--,^v:.^:-,- . -/- ". ; , - j -^ :-© ^ : ;: ©^*"V:©!©©©"*|; ; * ",.*©r BALANCE SliKET AND PRO FORMA BALANCE SHEET ftm - P|R^.m?:-;X- AS AT MAY 31, 1971 ASSETS Pro Forma I m^fca- Balance Balance Sheet Sheet (Note 1) r Current Wft+V :- . . Cash $ 8,785 $ 108,785 |te Short terra deposits 50,000 50,000 -© 58,785 158,785 Deposit on diamond drilling program (Note 4) 3,000 3,000 i :!© i Mining property (Note 3) 75,000 75,000 r- Deferred exploration expenditure 89,717 89.717 : -.^. t ©i -. LIABILITIES Current l Accounts payable and accured charges $ '3 23,518 $ 23,518 ;* ? SHAREHOLDERS© EQUITY 3- Capital stock (Note 2) Authorized m\ i 5,000,000 shares of $l each Issued 2,071,013 shares 2,071,013 2,071,013 i Loss: Discount 1,777,322 ©.777. 322 i 293,691 To be issued 100,000

,i 293,691 393,691 DEFICIT 90,707 90,707 202.984 302,984 i jt k Approved by the Board: i \ Director ^ s i 12 rL, i . i^ . (i- y /' /S-Y-f-SJS'-l^ Director t - -•i BDWH MUCK Ml Mrs LIMITED

MOTES TO rlHANCIAL STATEMEKfS

MAY 31, 1971 Pro Forma Balance Sheet The pro forma balance sheet, after financing, gives effect to the issue and sale of shares of capital stock of the Company to an underwriter for a . Minimum of $100,000 cash. 2. Capital Stock (a) By agreement dated June 11, 1971 as amended by agreement dated July 27, 1971, an underwriter has agreed to underwrite sufficient shares In the m- capital stock of the Company to net the treasury a minimum of $100,000. The number of shares, in no event to exceed 200,000 shares, and the price per share, in no event to bc less than Fifty (50c) cents per my*.*'. share, are to be determined in consultation with the Canadian Stock Exchange and in accordance with the requirements of the Canadian Stock Exchange the night prior to the listing of the Company©s shares for © -ading through the facilities of that Exchange. (b) As at May 31, 1971, capital stock consists of:

Shares Capital Di scount Issued for Mining property 750,000 750,000 $ 675,000 Cash 857,005 857,005 698,800 Services 240,848 240,848 202,678 {Settlement of claims against the Company 223.160 223.160 200.844

2,071,013 $ 2,071,013 $ 1,777,322

(c) At ©lay 31, 1971, a director held an option on 100,000 shares of capital stock at 20 cents per share exercisable on or before May 26, 1973. 3. Mining Property Patented mining rights covering approximately 9,000 acres and S patented surface rights covering approximately 12 acres in i the Township of Plummer Additional, Sault Ste Marie Mining Division, Ontario, acquired for 750,000 shares of capital stock valued by the directors at 10 cents per share $ 75,000

4. The Company has made a firm commitment for a minimum of 5,000 feet of diamond dr. ling on its mining property. At May 31, 1971, approximately 3,560 feet of drilling had been completed at a cost of $22,656.

The Company has deposited $3,000 to be held against the f* .al invoice on completion of the drilling contract. ©©if. HVRCJl MUCE MIKES tIMlTED STATEKENT OF DEFICIT TOR THE PERIOD FROM INCORPORATION FEBRUARY 28, 1966 TO MAY 31, 1971

wx-:^ftSiXW-'-y?.: M-% ^' months Throe sonthi February 28, 1966 to Yeara ended February 2JL ended ended 1971 May 31, 1971 Kay 31, 1970 February 1968 1969 1970 {Unaudited), It©^©l 28. 1967 ______of the $ 52,135 $ 12,628 17,979 45,782 $ 52,135 $ 85,956 16,875 3n expenditure A, 840 5,351 5,487 6,353 33,821 4,751 expense 7,788 st the Cor.pany *ettit-d by the issue of ;223iUO shares of capital r.©S teck valued by the directors at 10 cents 22,316

52,135 ? 85.956 $ 90.707 $ 69,010 Balance, end of the period 12,628 $ 17,979 3 45.782 HURON BRUCZ MINIS LIMITED STATEMENT OF DEFERRED EXPLORATION EXPENDITURE FOR THE PERIOD FRCM INCORPORATION FEBRUARY 28, 1966 TO KAY 31, 1971

Three Thre* February month* ronchs 28, 1966 - ended Balance ended to Years ended May 31, May 31, May 31, February February 28, 1971 1971 1970 (Unaudited) 28. 1967 1968 1969 1970 ••MMM——H1971 6,158 $ 7,175 $ 629 5 681 $ 14,643 $ 1,921 775 768 4,416 4,669 4,393 16,942 4,404 18,903 4,414 23.31/ 7,478 13,7?8 21,256 fees and expenses 2,374 4,706 7,080 2,128 2,569 4,697 1,065 1,065 717 717

1,921 $ V75 6,926 $ 11,591 $ 36,181 ? 32,323 $ 89,717 $ 4,404

- MINES LIMITED ©. © ©- " ; *©.*.^ |^fflfflp^Bl©:©^S © © HURON BRUCE

EXPENDITURE t K j l^p^; f^ STATEMENT OF ADMINISTRATION FEBRUARY 28, 1966 TO MAY 31, 1971 g| |m- FOR THE PERIOD FROM INCORPORATION

Three r.onth* Three r.onths ended February 28, 1966 If|^^V! ~ffV ended Februi y 28 ended May 31, 1970 Jfl to Years ipnfe 1969 1970 1971 May 31, 1971 lunaudictd} Mj&tt^©m . . February 28, 1967 1968 © JEfte©-^: $ 3,000 5 3,000 $ 12,000 5 5 12,000 IP-Supervisory services $ 3,000 5 3,000 © 500 KjOire|t6rs© ^ees - 820 1,266 2,390 728 702 E&vef; 924 © 958 400 pj©Constilting fees 350 553 553 570 421 35 ^Office expenses 282 248 1,200 450 jp|,©;KetdTpffice services 15,383 1,902 4,000 i^fY f recessional fees Sf".- 723 331 fees l-:©;©J!©;©©)©.-©-1©.1 © 1 Transfer© v©© agency 658 419 |;\;© Shareholders information and report 1,114 1,134 897 138 ^Telephone snd sundry © 284 1,145 m HURON BRUCE MINES LIMITED stATfc^lt^fi ur &UUKUC AWU Arri-it-A nun u) f unud * . , . . © ,. ©

FROM INCORPORATION FEBRUARY 28, 1966 TO MAY 31, 1971 , HBwKltfSfsP-©©©-- © FOR THE PERIOD liHfs©^dSP©SW©MPti^ - :r;:- © " : February Thrte tvinths (, Three conths ^^^^^^^1© :©- 28, 1966 raÔTî©Hffc© to ended ended February 1968 1969 1970 1971 May 31, 1971© Kay 31, 1970 28, 1967 (Unaudited) Ki!li^©f.feiSlfcil©i^&r : KMii©iUsê of capital stock 30.CCO $ 705 5 $ $ 5 80,500 S 77,000 5 flll*l^!?r cash 35,270 35.270 ||Pip:.l©44:For services and expenses 2,900 , BfcfeM": 3,605 115, 770 , 77,000 65,270 fefevUv^,©. fl^pplication drilling ^|||;De?osit on diamond 3,000 l©pW?i;v©*;.fSjitcgr6n 36,181 32,323. 4,40i : Deferred exploration expenditure 1,921 775 6,926 11,591 steî. 6,353 33,821 4,751 16,875 Ifp/-;;^ Adftinistration expenditure 4,840 5,351 5,487 l^^©iK©© Organization expenses 7,788 14,549 6.126 12,413 17,944 73,002 37,074 21,27* ©^J !-.^K- fffiif^Îcctease (decrease) in working 43,991 B^©v©tipicti (10,944) (6,126) (12,413) (17,944) 42,768 39,926 Vorkir.g capital deficiency Mf :/ (29,483) (47,427) (4,65V) (47,i27) Lf^:.©/ : beginning of the period (10,944) (17,070) capital (deficiency) Hl^: ©forking (47,427)5 (4,659) 5 35,267 5 (3,436) . |v©"vA: ©.end of the period ? (10,944)5 (17,070)5 (29,483)5

P; - Kember of shares issued for 200, CCO *©*(- - - - . 7,005 515,000 335,000 ,,i;:;,,;:-; .Casn 226,348 226,348 If l. Services and expenses 14,500

. - fei •—".i.., ,-#i*l* ,s Tho forc©f.olni; constitute:; full, true and plain di:;clo:i©iro JJP^-©-f? wteHai;fa©t:l-h rnlaUn/t:©to: 11 ir :;oeuritlori ©of f nml ))y thi:v jiiirixl Uy Tlu- .Scc\ir.i (.i*.1 :; Act, 3.©X^, and UK: rcf.nlationn tli©- s^S'-;-H^VV"

DAT)©D thi:; 27th d.iy of July, 197.1.

y /t c ©-f -4*7 K' F. ?. McGuirr- Y/. K. Morrinon Chiof Kxecut/ivfj Officer Director

A. B. Vfliitclaw B. G. Church Chief Financial Officer Director

To tlio best of our knowlwlf.o, information and belief, the forocoinp, con^tilntcu full, truo and plain discloourw of oil material facts relating to the socur.ities offered by this Pro:;pcctur, as required by Tho Securities Act, 1966, and the regulations Uicreun-Jcr.

DAVIDSOIJ t*. COMPANY

Per: KK. ; f i^lf ^-'fif If

^--,——— ...i •••••••l*i tuessweeee ea i e PLUMMER ADDITIONAL 020

l\. I/nice. Uritliiun itiitl Associates \ Ai l fs*":-':'' -• ^3S,:;v. /Miniiijl YftiiiMilltinl*

;jS"f'.-": ~ - 54 Ol. Itcnn.inl* AWIIUC loronlo 317, Onl.iriu May 26, 1971 rt-v f.''.'. Mr. A.B. Whitclaw, Q.C. Huron-Bruce Miner, Limited, Ste. 61?, 35 Richmond St. West, Toronto, On t. Dear Mr. Write!nw: R e-Kur^n-Srucp Explcratlon Program In my report on the property of Huron- Bruco Mines Limited, Dated May 10th, I97J-, I presentee1 an exploration program with a total estimated cost of ^196.000.00. In view of the fact that exploration is currently underway, the recommendations in the report should be carried out in such a way that full advantage can be taken of previous work with regard to continuity of results. Since the Taylor section has been drilled as far east as the Bruce section it naturally follows that the program recommended for the Bruce section be carried out. Similarly, sir.co the Taylor section has been drilled east from the Taylor shaft, the program recommended for the Taylor section west of the shaft should then follow. In this way the program will be carried out in a systematic manner and the continuity of work in progress will be assured. When this is completed then the other recommendations should follow. Two exploration phases are thus indicated and are outlined below. Phase I Program recommended for the Taylor section involving 2,000 feet of diamond drilling. roccnvnended for the Bruce section involving 5,300 foot of diamond drilling. Cost inn]udinrj a contingency allowance of .*-5,650 is ?6l,ooo . say ?62,OCO. ^*Vi*-.45i-''''y'•VT2*":*V'V.-^' "5""1 **PKiWv*J?'*VQ"V*"^1 "-'-.'tf-'i i"- - . - - -- ' -- l^^l^f ^;.!"';;v" # " " .-. ; -O! ;; J '- |(liuron-i5ruco Minon p.2) '-^' : ": Phase -ir •• :v '-— ;:;: "•^'•^""••v:' '-.^:':":^.;- ; -;- '^' :;'-^:.:V'j

Induced Polarization survey, contingency for 5,000 of diamond drilling. Program recommended for the Copper Bay and Wellington sect.lons involving 8,400 feet of diamond drilling. Program recommended for the South vein involving 2,000 feet of diamond drilling. Cost including a contingency allowance of ^10,500 is 3134,000. You v;ill note that the contingency total is different than in the report. This is due to the ?act that by dividing the program I tool: different percentage allowances for contingencies.

Yours truly,

R. Bruce Graham

RBG-.c eeie PLUMMER ADDITIONAL 030

r REPORT ON PROPERTY OF HURON-BRUCE MINES LTD. . PLUMMER ADDITIONAL TOWNSHIP SAULT-STE-MARIE MINING DIVISION L ONTARIO j

Toronto, Ontario, R. Bruce Graham, Ph.D., P.Eng, May 10th, 1971. R. Bruce Graham and Associates,Ltd. C O K T E NT 3 '^#

4uessweee6 ae t e PLUMMHR ADDITIONAL 030C SUMMARY I . INTRODUCTION 1 LOCATION AND FACILITIES 2 PROPERTY 3 HISTORY 4 GEOLOGY 7 STRUCTURE 9 ECONOMIC GEOLOGY II No. l Vein 11 Copper Bay and Wellington Section 12 Taylor Section 13 Bruce Section 17 The South Vein 18 The North Vein 19 NATURE OF MINERALIZATION 22 ORIGIN OF DEPOSITS 22 PRODUCTION 25 RESERVES 26 SUMMARY OF WORK BY HURON-BRUCF MINES LIMITED 27 CONCLUSIONS 23 RECOMMENDATIONS 30 Copper Bay and Wellington Section 30 Taylor Section 30 Bruce Section 30 South Vein 31 REFERENCES 32 SUMMARY

The Huron-Bruce Mines Limited property includes the old Bruce Mine which was the site of the first copper mine to be operated in Canada. Between 1846 and 1921 total tonnage mined is estimated at between 400,000 and 500,000 tons with a grade of between 2j6 and 4i^ copper. The production was obtained from 3 quartz vein systems in a diabase sill. The veins are characterized by their persistent lengths, 1,000 to #,000 feet, and persist ence of copper mineralization which in places occurs along lengths of 2,000 feet or more. Mining widths were in the ! order of 5 to 6 feet with local sections attaining widths of 12 to 18 feet. o Tn spite of the production record, very little exploration has been carried out. The three vein systems have a ;ombined length of 11,400 feet. Less than half this length has been explored in any way and where- work has been carried out, it has been to relatively shallow depths, mainly 300 to 400 feet in the most productive areas and less than 100 feet elsewhere. The origin of the veins is related to late hydro thermal solutions evolving from the same source as the diabase sill and structurally controlled by the Worthington and Palideau Island fault systems. In view of the estimated grade of past production, the persistence of the veins and associated copper mineral ization, as well as possibilities at depth, a systematic exploration program is recommended at an estimated cost of ^196,000.

0! '•f'r-"

Kf''^^'^'^\~**'''i~i\'--.

REPOirr OF PROPERTY OP r/URON-DRUCE MINES LTD. PLI'/MDER ADDITIONAL TOWNSHIP *3.A SAULT-STE-MARIE MINING DIVISION ONTARIO

INTRODUCTION

The following report describes the history, geology and copper deposits of the Hurpn-Bruce Mines Limited Property. The results of recent work are sunroar- ized and a program is recommended to further assess the property. ; At the time of the writer's visit in early April, 1971* only the second level at the Taylor shaft was access ible. This and bed rock exposed in road cuts in the immed iate area of the Taylor shaft and the south Voin were ex amined. Very few of the mining rocor.ls from the early days of production have sirvived, consequently the writer has had to rely on descriptive reference material listed at the end of the report.

i . - /i'*1J)[''' ".f-rw;v^F^Mg mm' .y s *-

LOC/ITIOH AMn.KAC.1.1-' ''IFS

The tovm of Bruce Miner, lies in the couth central portion of the property, on the north channel of Lake Huron. Sault Ste. Mario lies thirty miles to the west. Sudbury lies 146 miles to the oast. Bruce Station on Lot 4 Concession IV, Cuthbertson location, is serviced by the Canadian Pacific Railway. Tele phone service is available and the main hydro-electric take- off is at Sault Ste Marie. Water supplies are adequate for any mining operation. The company does not own any mininc equipment or bujildinr s. Highway l? connects Sault Ste. Marie, Bruce Mines and Sudbury. Concession roads make most portions of the property easily accessible. Docking facilities aro located in the harbour at tho town of Bruce Mines. PROPF-nTY

'rho Uuron-Druce Mines Limited property includes the major portion of the Keatinc and Cuthbertson locations in Plummer Additional Township, in the Sault Ste. Marie Mining Division of .Ontario, It consists of Lots l to 8 in Concessions 11, 111, IV, and V and parts of Lots l to 3 in-Concession vi and Lots l to 4 in Concession V'l, Cuthbertson location and Lots l to S in Concessions 111, IV, V, and parts of Lots l to 8, Concession VI, Keating location. This property comprises approximately 9,000 acres. HT.STORY

The Huron-Bruce Minos Limited Property includes the o. iginal Bruce Mines which was the first copper producer in Canada, Mining took place from tho Bruce, Taylor, Well ington and Copper Bay sections. A summary of ths history of the mining operations in the above mentioned areas has been given in a report by D. V.'. Sullivan, dated February 17th, 197C'. This portion of his report is extracted below. Between 18^ and 1864, The West Canada Mining Company leased the Welling and Bruce No.l sections and discovered the Taylor, (Bruce No, 2 section). Later they acquired these sections and the Keating location : of 6,000 acres, on which the Copper Bay section is located. Under the direction of John Taylor and Sons of London, England, this company extensively mined all the.se sections until 18?6. .; ::Up to this time in the history of production from the Bruce Mines, the mining method U'-ed by the contract miner:, had been one of high grading tho ore bodies underground and selectively sorting high grade from the ore after it had been sent to the sorting floors located on surface. These methods of operating the mines had been a necessary part of the early mining operatbrs policy of shipping unconcentrated lump ore to copper smelting plants j .\ Cornwall, England, States. and the United

In an effort to eliminate these expensive and wasteful methods of operating, an attempt was made in 18?2 to employ tho Henderson extraction process of recovering the copper from the ore. However, although this proved to be a very suitable process of recovery, the use of the method proved to be uneconomical owing to the high coe;to of the reagent required in its use. After this attempt to reduce costs had proved unsuccess ful the ovmci i decided to operate the mines as a salvage m:-as. B *. *-

oporati^ a. An a consequence tho increased us** of high grading r.iothodo and the curtailment of development mining caused the collapse of the most productive part of the Copper Bay section of the mine, vhich conse quently bee-anw Ki.own as the "Bis Cave" area of the mine workings, and resulted in the immediate closing down of all other areas of operations. This succession o** calamities so discouraged the owners that in 1876 they decided to discontinue any further operations of the mines. In 1898 Bruc* Minos was purchassed by an English company which inst illed a /tOO ton per day concentrating mill. However, at- underground development had been neglected during the foregoing salvage operations and as their present preliminary development had not boen adequate, they found it impossible to supply the mill with enough ore to maintain profitable production. Consequently, when tl.R mill was destroyed by a fire in 1902, they decided to close the mines and eventually allowed them to flood. In 1905i the locations were once more acquired by an English Company who under the direction of Mr. H. J. Carnegie Williams de-watered and thoroughly examined the old west workings. However, although the results were encouraging, they were followed by only spasmodic min5.ng operations, which wore soon terminated in 1908. To this stage in the H story of exploration of Bruce Mines, underground exploration was extremely limited and was confined largely to the immediate area of the current mining operations to facilitate immediate production requirement rather than to build up the ore reserves or exploro the possibility of extensions of the ore deposits laterally and to depth. There is no record a*-, hand of how or when the South Veil, was discovered or developed. In 19H tho Mond Nickel Company : squired tho Bruce Mines and the Kcating and Cuthbertson Locations. From 1916 to 1921 they mined tho westerly sections of the deposits largely for quartz to be used for blast furnace linings and the fluxing of their sulphide ore. They closed the mines down in 1921 when, according to their reports, all payable ore had been exhausted. It m.oy bo significant, however, that about this time the Mond ?Clckcl Company bcca*no part of the International r1:*.'??-. ti-l . i'f ',-. Nickel fio:r.|-.-my of Canada, who consequently became the owncra of the Drucc* Mines. In May 1941 an option to purchase Keating and Cuthbertson locations and the eld Bruce Minos Property from th International Nickel Company o-. Canada was a* ranged by Mr. Ben Meen for the Ventures Ltd. Mining Co. In the summer and fall of 1941 1 surface explor ation and mapping was carried on by thoir subsidiary exploration company, Frob.i ".her Exploration Company Limited, under the direction of Professor S. E. Wolfe. Several sections of the property wore geologically mapped and gcophyoically surveyed. This work was followed by a program of surface diamond drilling under the direction of Mr. T. Denton. It is under stood that none of the drilling was done in the area of the old mine workings but that one hole was drilled to teat the possible northwest extension of the Copper Day section. It has been reported that the results ,.ore inconclusive and consequently the option from International Nickel was terminated. In 1944 the 12,000 acre tract of land comprising the Keating and Cuthbertson locations were purchased from the International Nickel Company by the R. K. Bond interests of New York Very .little exploration was carried out by this organization in the Bruce Mines section of the prop erty. Some diamond drilling was reported to have been done on several outlying mineral occurrences *aich are located within the tracts of land but no c near the immediate vicinity of the Bruce Mines. In 1965 the southerly 9,000 acres of the Keating and Cuthbertson Locations were purchased from the R. N. Bond estate by Messrs. F. P. McGuire and S. Huxter. No,extensive surface exploration has been carried out to date by the present owners of the Locations. H^i^; i.r. ,v . ; ' . iif'B®- ':

Tl:o bedrock fonr.aticns in the area .•.-.ro all 1 ProteProterozoic in ago and, are tabulated below. PRECAMBRIAN PROTEROZOIC KEY'EEIIAV.'AN

:, -1 Diabase and Quartz Diabase Intrusive Contact HURONIAN COBALT GROUP Lorrain Formation: Quartzite, siltstone, greywacke, conglomerate. Gowganda Formation: Conclomerate, quartzite, , greywacke. Unconformity BRUCP: GROUP Serpent Formation: Quartzite, conglomerate, arkose Bruce and Espanola Conglomerate, limestone, Formations: greywacke. Mississagi Formatic i: Quartzite, conglomerate.

A diabase sill underlieb ihe southern portion of the property.i This s ill contains the copper-bearing quartz veinsvein? that were mir.ed in tho past. It terminates ^ mile east of the western boundary and extends 16 miles to the cart. The horizontal width is variable but on tho property C. mft®rto;f j;:Wi- v 6

is in the order of l to 1^ miloa. Concentrically surr ounding the oill on tho north and west sides arc Truce limestone, graywacke and conglomerate succeeded by the Serpent formation which to the north and west is un- conformably overlain by the Gowganda formation. Under lying the sill in the southeast part is Mississagi '-t: quartzite. A second narrower diabase sill crosses the property in the northern portion.

C i.:i^ ;' ^••k^CO iV" * ^BiE^'"^ ' -"©

IIP ifc'V;-,^".'-; .^'./- .'' jf'SCiS' vi #fi'- ' " ' STRUCTURE ^••', j^v- ^-y ; .v;-.- A well developed pattern of strike faulting 5?iiv 'S'i*'~ ' trending slightly south of east is present. The most

1 1 v ' -^ ' important of those is the Murray fault v;hich has been \ ^ ". ^h V "' " traced east through Sudbury and beyond. It lies approxi *:j/--, mately one-half mile north of the northeast corner of the i\'. Huron-Bruce property, A second strike fault sub-parallel r;; to the Murray fault passes through the property two and f 1- one half miles north of Bruce Mines. A third fault, is believed to pass under St. Joseph channel about li miles \ © south of Bruce Mines. It is referred to as the Palideau \ Island fault. \ Q •:-v A set of northwest faults is also present. \i ! -j . These apr oar to be complements -y to the f--ult pattern j : represented by the Murray fault , f-'i Little or no folding of importan e has been ;'-.; recognized in the general area of Bruce Mines except in \ the vicinity of the town itself where the dips of tho \ formation surrounding the west nose of the diabase sill indicates an anticline. However the distribution of the formations adjacent to the diabase sill east of the nose \ indicate that this bar, the form of a drag fold caused by tho Palideau Island fault. If sue1 is tho case, 1 ":\is •j fault has an apparent loft-handed lateral movement. .5-;! C s

^"•; i'.i .".-.'V ; ',' T.1 ' .\'' -" 10

The Bruce Mines quarts vein syst&n parallels the same direction as tho axir. of the drag fold and al*o that of the Mu* ay fault, nystom. The veins exhibit the charactorintics of a tension structure such as sharp but irregular walls, rubble filled sections cemented vi ';h quartz and a lack of shearing adjacent to the walls. It thu:; appears that the structure controlling the Bruce Mines vein system is due to axial plam tension as a result of drag folding along the-Palideau Island fault. Jointing is well developed in the sill in various directions but there is one set that parallels the vein system. !-'!*** *S*.1 IV- VJ* .t ****'''k * .-- r * - 1*tfi, ' ; '. !.^'^S.

••' ' -- Vv*; ft;'^'^ CKQI.OCY

The T-'ain feature of economic intorec* on the Huron-Brum property 's the Bruce Mine vein system. The veins of the eye tern arc characterized by their per ' sistence along strike for considerable lengths, For ex ample the No. l vein has a strike length of approximately g,000 feet, the south vein 2 ,JVOO fr.et and the north vein 1,000 feet. While regionally following the strike of the Murray fault system, in detail their strike is sinuous and irregular with local braiding and horse-tailing par ticularly at the extremities. Dips are steep to vertical. Pits, shafts, drifts and stopcs occur at various places along the vein system. Reports on the results of this work are in many places conflicting. The following summary io restricted to those features in which there is general accord. N6. l VEIN The early workings on the No. l vein have been carried cut in three separate areas which from the north west to southeast are referred to as the Copper Bay and V.'olli- gton section, the Taylor Shaft section and the Bruce section.

C •T'.'i.wr'i*^.^.",-^. . ^iTi.^y-'r -* v, ''•--^n;^K:;- f^S1'^^.'*- •' '"'. -t'' 12 ""M v:V ^••••^?;^"

per B.-iy and V/ollington Section- The vein on the Copper Day ai:d Wellington Section strikes N. 30O V. and dJps essentially verti cally. Thi;; represents a sharp bend to the north from the N. ?0 W. strike .tf the central pai*t of the No. l vein. Tlie northwest end of the vein narrows rbruptly in the limestone at the diabase contact. -* -'-: This section has be^n followed, mainly by under ground workings and eight shafts for a'lengU; of 2,000 feet. The Copper Bay portion has been opened to a depth of 5^0 feet and the Wellington to a depth of 25C feet. A second vein referred to as the No. 2 vein C branches away from the No. l vein near the north end and parallels it to the south for about 1,200 feet before merging with i o again. Over most of this length the two veins are separated by 100 feet of diabai.e but at its widest point the separation is about 150 feet. The section along which most of the mining was carried out consists of a length of l,COO feet with a reported average width of 5^ feot and an average copper content of 3-3^- The gold content is report- d to be negligible, mainly in the order of 0.015 oz. per ton although samples containing 2.5 oz. per ton have been reported.

Near the points of juncture of the No, l and K .

No, 2 veins maximum widths of. 12 to^-18 feet have been reported. , A section of the mine collapsed in 1#75 at the northerly junct..^n of the No. l and No. 2 veins, lesulting complications of mining inhibited further de velopment and little work was ^arried out belcw the 400 foot level. The Mond Nickel Company circa 1920 to 1922 and Frobisher Limited in 19/0 carried out a limited diamond drill program on strike northwest of tho vein. This drilling established that the diabase dips under the sediments at 24O to the north. A quartz stringer zone section in greywacke was intersected on strike . c 900 feet to the northwest of the Copper Bay section. The intersection occurred between 304 feet and 314 feet in the drill hole at a vertical depth of approxi mately 200 feet. The best assay obtained was 2.8# copper over 1.75 foet. No hole was drilled to intersect the underlying diabase at this point. The Taylor Section Proceeding south and east from the southeast end of the Welding Section of the No. l vein there is a drift covered length of 2,300 feet to the Taylor shaft. Work at the Taylor shaft shows the vein to be sinuous with the strike varying from 95O to 105O and a vertical dip. ' It has been opened up to a depth of 155 fRet through th6 shaft. Two levelo have beon opened, the 65 foot level and the 155 foot level. On the former 220 feet of drifting was carried out west of the shaft and 300 feet east of the shaft. On the latter 100 feet of drifting was carried out to the west and 1,980 feet to the east. Some stoping was carried out on the first level. The section west of the shaft was stoped along a length of 130 feet to a maximum height of 40 feet. To the east a stope 200 feet long with a maximum height of 46 feet was mined. Most of this work was carried out by the Mond Nickel Company who also took down backs on the second level from the shaft for 650 feet to the east to a height of 12 feet in preparation for mining. They shipped this and ore from the Copper Bay and Wellington Sections to Coniston for flux. No records are available indicating the average grade shipped from the Taylor section. However sampling by the Mond Nickel Company along various lengths at 10 "W foot intervals gave the following results. From 85 feet east of shaft east for 530 feet, 1.94# Cu for an average width of 4.02 feet. From 15 feet east of shaft east for 407 feet, 1.97^ Cu for an average width of 4.15 feet. :- .. '., ..i. 15 '- ; - - ' ^ .'I?;'•vVii^.' , ''' l ' ; J .' '.. "i.*5 . VT

Other sampled sections returned the following, measured east from the shaft: 451 to 616 feet, 1.6l# Cu, width 4.1 feet, 929 to 939 feet, 1.2# Cu, width 3.#7 feet, 1177 to 1275 feet, 1.32# Cu, width 4.0 feet, 1275 to 1413 feet, l.?8# Cu, width 4.2 feet, 1460 to 1500 feet, 1.98^ Cu, width 3.5 feet, 1710 to 1890 feet, 1.86# Cu, width 4-7 feet. !'li The Taylor shaft workings were unwatered by the Huron-Bruce Mines Limited in the fall of 1970. They carried out a program of chip sampling under the supervision of Gome Diamond Drilling. These results for the first 800 feet have been reported as follows: O to 200 feet, 2.11# Cu, width 4.41 feet, 200 to 400 feet, 2.49^ Cu, width 4.04 feet, 400 to 600 feet, 2.39# Cu, width 5.8 feet, 600 to 800 feet, 0.64^ Cu, width 4.04 feet, A visual examination of the drift confirms the presence of chalcopyrite mineralization in varying amounts for the remaining length. Thy results -jf this sampling indicates thp presence of a scries of shoots separated by low-grade material. A systematic program of diamond drilling is currently being carried out on the Taylor section. The re- oults of this work to the end of April are tabulated below. î®M^BI"Sx' Z:*-"? 'l r: . ,,..,,^ ,, x;1, , ;. ; v,.-^-...;,;,;,^.,, 'V? .^;:/ ,;; .' ;-.-.- r -^f ^:^:^®Mm®®® i : ' - ••'••- '-^^' ••^\i:-:-^:^--:^^'-: :s ;^-^f^^^:^^m -f ~,'.-f : -: -'/-' - ':,'-.v".'-. '.-•'." , i A " - "' -" .* ''- .''"4"'*''-'?^ :i- . ; - i'.'- ' '.-' - . . -.'- -' '"' - - . ., . ••. - . '. '- 1 ! : H.-" - 1, •'••'., -; '•..jXI'V •j-j1 Aiîv-j'Jy^.Â^''^^^-'"- V ' , "' ' - ; ' ' i . ',- '' - - ,":- ^ .' ' :. '' : - : -.-' '.' : ; -\ .'•''•••t •'••'•i •..-.-i','** y-. ' -1 '. : ' ' - . ' "' - *'-.. . LOCATION HOLE DIP VERTICAL CORE PERCENT COMMENTS ; NO. OF DEPTH OF LENGTH COPPER • ' HOLE INTER- FEET SECTION FEET The nearest back samples 350 ft. are respectively 1.1J& Cu^ |f; :- - east of and 5.1S& CuA.4 (M) or ! '^ J\: | ': ^'.'A' shaft 71-1 45 54 4.5 4.25 2.09^ Cu/4.11 , 3.8^ Cu/ 5' (o) ;r' ; rpi'.*'"-; 350 ft. '.' i- east of 71-2 60 190 6.2 4.98 A second quartz vein was i j,^;'-- '. shaft cut 8 feet south of the ''fc; - ' main vein. This assayed t lv ~- v r 0.69J6 copper for a core 3 J'.r:. , W length of 4.5 feet. Two i"- ; i samples from the inter ; '^ :; : ^ vening section assayed 1 i * . 0.256 copper over 6J feet P-' l and 0.3^ copper over 5 l feet. i 600 ft. ' c; east of 71-3 45 93 8 2.65 The nearest back samples shaft are respectively 1# Cu/ : t 2.2' and 3.1^ Cu^.V(M) ' i or 1.15& Cu/3' , 0.445& Cu *- /2.3 f (G)

. c; 600 ft. 71-4 600 275 3.1 0.24 The nearest back samples ! f . east of are respectively ifi Cu/ shaft 2.2' and 3-1^ Cu^.4'(M) or 1.1J6 Cu/3 1 i Q.44% Cu f /2.3' (G) i i 860 ft. 71-5 450 92 1.1 not re- east of followed ported No drift assays ; shaft by 1 ft. (low grade) of lost core. 860 ft. 71-6 600 273 0.6 no No drift assays east of narrow sample (low grade) shaft quartz stringers 1100 ft. .71-7 450 61 4.5 3.39 Nearest back sample, east of 2j6 Cu//,'. (M) ; shaft

•H

••'. -t -. \ ;. .", - ^f|j'f'!;,^j^";*:'*r i**-*';"" ; v ~-r-".'::j'--'.-'":'*,y.sv s^Y,.KA""fm\^*y^\'.'*,^^i±^Y*{'f-,ifai 17 . ^ LOCATION HOLE DIP VERTICAL CORE PERCENT COMMENTS ^ NO. OF DEPTH OF LENGTH COPPER HOLE INTER- FEET SECTION ' FEET 1100 ft. 71-S 600 205 3.7 0.70 Nearest back sample, east of 2fi Cu/4'. (M) shaft 1350 ft. 71-9 65 2.6 2.55 These two intersections east of 87 1.3 2.60 occur in a quartz stringer shaft zone. The first inter section corresponds to th main vein and was inter sected for a core length of 10 ft. The second lies 15 ft. to the north and was intersected for a cor* length of 7 ft. Nearest back samples are 3.0# Cu/ 5.3' and 0.7# Cu/5.5 1 (M) 1350 ft. 71-10 600 214 5.1 1.68 east of o shaft

Note.;. (M) refers to Mond sampling, (G) refers to Gome sampling.

Bruce Section The Bruce section is the easterly continuation of the Taylor workings, the two being separated by 130 feet of untested ground. In spite of this being the first mining operation on the property, the least is known about it. l f! jli t l! H 18

The records concerning the main characteristics, the tenor, width and dimensions of the veins are very in complete. The deepest workings of this section are thought to bo in the order of 300 feet. The main vein in this section is characterized by horse-tailing and off shooting veinlets which penetrate the walls on each side of the main veins. Old workings may be traced along this section for a strike length of 1,500 o feet. The vein system is arcuate with a strike of 100 at o the west end, curving to 145 at the east end. The eastern end of this system is exposed in an old rock quarry near the shore of the lake. The South Vein SO Tho South Vein system is located midway between the Wellington and Taylor Sections about 400 feet south of the No. l vein. Its presence is indicated in outcrops, stripping and pits along a length of 1,400 feet. Rather than being one continuous vein, it consists of a rather discontinuous and branching vein system across widths of 5 to 20 feet. The possible continuation is exposed 400 feet to the southeast and has been traced by discontinuous outcrop for an additional 600 feet. Some of these veins are exposed in a rock cut on highway No. l?. The veins here are in the order of l to li feet wide, contain appreciable chalcopyrite and usually occupy the core of a fine grained gabbro dyke 19 Npi&V''ifi^r^;1^"^?' ;-'-'-; m*,-:/- with chilled contacts against the coaroo (-.rained diabase. to ;- There are &K"-ffi--' - no separate records indicating whether '|fi;: ; ' : W-: ' or not there hss been production from tho couth vein. fer..:- . Judging from the. size of the open cuts northwest of highway No. l? it is quite likely that some production was obtained. At least seven holes were drilled through tho south vein by the Mond Nickel Company but the results of this work are not known. The North Vein Tho North Vein lies 2,500 feet northeast of the Bruce Section. It strikes at The first reported work is that a shaft was sunk on the vein to a depth of 75 feet in 1868 but little or no lateral mining was carried out. Open cuts and pits can bo observed on the vein for a strike distance of about- 1,000 feet. Much of the dunp material from these old workings are reported to appear to be of ore grade and in some cases, high gradr-. Seven hcles were drilled through this vein along a strike length of 1,200 feet by Frobisher Ltd. The results of this v.'or]' are sumnaricf.-d bolow. f ; t T ;"';; ,'.^.\;;';'*;'''^ :, , ;.,: - •-r'jy*;*. ?:" ' y '.' '' : .. '- " ' ' pp?piIff-?-*'1'- fvv.V -i " . ! - ,- ''::- * ' ' ' -;". - ' .y •--.{- i-1" .;.; 4;::?lff^f8f ,- -;! .- -. " f^-^ f M.;; 20

** LOCATION 110I.F. VF.KTJCAI, CORF. NO. DF.rru OF Ll^CTH COPPER IMTKH- FEKT SF.CTJON FF.I-.T ^^^ East end 6 36 1,4 0.27 A90 ft. east 3 llfi 1.2 l.Oo of hole 6 1.6? 590 ft. east not 1.2 2.43 of hole 6 indicatod li 1.09 o! 8 2.57 700 ft. east 2 104 to 147 stringer negligible of No. 3 zone values 790 ft. west not 5.0 of No. 6 indicated 1?2 1.1 007 090 ft. west 1 165 0.5 1.23 of No. 6 137 1.0 1.23 113 1.1 1.42 1190 ^f t. east 7 97 - 5 2.53 of No. 3 Assay results from the dri"* 1 cere were disappoint- i' ,; in view of the material visible on the dumpG , However it should be noted that the drill core recovery was reported to be poor. ""V "' "-'A ' ' '- ' ' ' - ' . " '' '"- * ' ' ' ' : n'1 ' "' " '- ' " " ''" '•'li''" ~ ';'.'* :,'?}\i i. it' ' •. . - - ' -. ' -~ f ,",* .It*. ,?. ,- . IP ,: 'l ' - 21 . ' ,: . -.- ' f'; p* KATORE OF MINKRALIZATION

The sulphide mineralization occurs in milky quartz- carbonate 'f-'l,^ veins. It is predominately coarse p -.- - ' grained with seme finer aggregates. The sulphide consists PiiwAt^. of chalcopyrite with some pyrite and less pyrrhotite. f|; : Minor amounts of bornite and chalcocite have been reported. •K- - T - (•• : :. The writer has observed bornite undergro'imd in the Taylor i'" shaft section. This appears to be a coating on chalcopyrite. •jj-. " No bornite or chalcocite were noted in the drill core and these two minerals are probably the result of surface

1 i waters altering the chalcopyrite in underground workings. l The sulphides have been introduced along fractures i C./ in the vein quartz. These fractures are marked by a finely comminuted dark material, possibly fine chlorite. In the - Tayl shaft, the vein is fpically richer in copper where these darker chlorite rich fractures and blotches are best developed in the milky white quartz of the vein.

j j *

; .

i"' — — .— .-, . — -— - — -~,. . ...~ ...~ , -...-,,. . .. - . —- . — - ...... -. -.- — ------, . -— . — --. - — .--. -* , - .— .-,-,.. . .*... -. — .. If,: r :- feiX'v ':- i og.

A characteristic feature of tho Taylor Section and also of o:pnr;uvor. of the couth vein In the road cut on Highway 17 is that the veins occu,.y tho corn of fine grained gabbro dykes. These dykes commonly have chilled edges but locally sharply gradational contacts have been observed, particularly in holes 71-7, 7l-# and 71-9, 1,000 to 1,360 feet east of the Taylor shaft. Much of the vein has the appearance of a rubble zone with frag ments of dyke and of /5ase cemented by quartz and car bonate. Incipient brecciation in the gabbro dykes where the contacts are gradational has the appearance of plastic deformation in contrast tc the sharply outlined fragments of thi diabase. The dykes arc not everywhere present along the veins but they only occur associated with the veins. Locally, near the veins, the feldspar adjacent to the fractures in the diabase has been altered to a brownish colour. On surface outcrop, a faint grain or liniation parallel to the strike of the veins has been developed. Thin is due to tho presci: t of ^ inch thick elongated segregations of chlorite. The above features are ur:ed as criteria that !( can bo iisod to jrovldu n hy^otiv^r-U; for the urigin of thor.o win:;. It is vo^tulatvd that tho diabase was in truded from a ri-servcir at dvpth through a oeries of vertical or noar vertical feeders and spread out later ally to acsuinu its sill form. Faultiiv, occurred shortl. thereafter wh*n only the more hydrous fraction in the cill remained in a fluid or ^.~.is tic state, au ic suggested by tho oriented chlorite segregations, and the sill assumed its drag folded form adjacent to the Palidcau Island fault. Axial piano tension in the drag fold producer' the fracture system nov; occupi'-d by the veins. Products of later differentiation from the res ervoir v.'ere introduced into these fractures. These wore motivated by the o tresses- which formed the Palideau- V.'orthington fault system. The first differ* itiatc was the fine grained gabbro which was injected into tho wider fracture but not into sections where tho fractures v;ere tight. Who.ro the dykes she gradational contacts is whore the sills wero hottest in the area adjacont to tho feeder sones from the underlying reservoir. Continuing strain relearo reopened the pro- existing fracture zones, so:no of which wore occupied by . the dyker- and extensive brecciation took place. The more tenuous quartz-carbonate solutions wero thon introducod ift'; s; ff*/.-'" and finaO BEfit1' ~ -'.- . ~ i E&'c..''. During these latter i PT/:; - stages, feldspar underwent a brownishbrown is alteration along fractures in and near the veins. n The deposition of the sulphide mineralization If: was controlledcontr by the thermal gradient which decreased laterally from the feeder sources. Little was deposited in the vicinityvJ of the feeder channels, becoming more *'- ^ w abundant laterally w?.thin the thermal range of deposition. •;- ; Thus a sfr •i Thus a shoot like mode of occurrence is indicated con '4 trolled byt the thermal gradient and number of feeder zones.

1 1 :

r :

i 1

il \: ^1 5 i i: f.-..-- ...... - .... 'if

: l m * PRUD'JCTION

Thorn arc no accurate records of total product ion from tho Pruco Mines. Various sources havo placc-1 the total production between 400,000 and 500,000 tons. Between 1850 and 1#?6 some 9.&50 tons of copper was produced. Since hand cobbing as well as milling was employed the actual grade of ore mined is not known. However various calcul ations have been given indicating a gradn of between 3 and 4^ copper. The most specific records are preserved by Mond Nickel in their operation between 1915 and 1921. During thir; period they mined 156,304 tons averaging 2.15^ copper. Most of this was from the Copper Bay and YJellington sections. At most only a few thousand tons was derived from the Taylor shaft area. In addition to the above, 34,#46 tons of tailings averaging C. 8??' copper were removed. 26

RESERVES

During the operating period of the old Bruce Mines little development was carried out in advance of mining. It is probable that at no time were there any appreciable reserves in advance of developed ore. Except for some drilling carried out by Mond in 3 holes along the no-thwest extension of the Wellington section, in two holes 300 feet apart in the central part of the main vein and five holes along 900 feet in the central part of the south vein, no other work has been carried out along extensive stretches of the vein system. Sinco the results of the Mond drilling is not known and cannot ! C be assessed in today's economic context, this work is of no valuo. The north vein and the northwest extension o:C the main vein has been drilled to a limited extent by Frobisher Limited. Drilling is currently being carried out in the i Taylor Section. These results essentially confirm the results 'of sampling from the 155 foot level. Reserves in this area are quoted in Ontario Department of Mines Mineral Resources circular No. 12, page 53 as being 40,000 tons averaging 1.8# copper above 155- foot level. nt'-a^'*'-;Y5^P?^ 27

.su;-r'..\iiY OK VOIIK DY HUROS-DRUCF. MTJJKS

The con pony has unentered the Taylor under ground v.'orkin&o. Timbers at the second level station have been replaced. The first or 65 foot level has been surveyed by transit .^.nd tho second level has bem surveyed east of the shaft fer 550 foet. A baseline has been sur veyed from the shaft east fer 3)500 feet and the under ground workings tied in with this baseline. To the end of April, 10 holes had been drilled for a total of 2,0^0 feet. COrOLUSTOHS

(1) The long oporating life of the Bruce Mine lo demonstrative that it was an economically viable oper ation with inwriw pr-riods of shutdown caused by cave- i5 ins, fire and depressed economic conditions. Crado of ore mined was in the order of 2 to I& copper. (2) Production vms from throe vein systems. If the structural control is due to axial plane tension, 3 many other veins could be present. The fact that r copper-beariii.; veins are present between the main systems supports this hypothesis and indicates the possibility that additional more substantial veins couXd be present in drift covorod areas. (3) Old reports stating that copper mineralization persists along lengths of 2,000 feet or possibly mo e has •j 1 i been confirmed by recent work carried out by Huron-Bruce Mines Limited. (k] Less than half of the Bruce vein system has been tested by diamond drilling or underground workings. Little work has been carried cut to test their strike extensions, (5) Existing workings arc relatively shallow, mainly above the AOO foot horizon in the Copper Bny and Wellington npctionr., where most of the mining was carried out in the '•9 rast, abovo the 300 foot horizon in the Bruce Section and l 29

above tho 65 foot horizon in the Taylor section. Conse quently little is known of conditions at depth. (6) Swells in tho voins of between 12 and 18 feet are present and othcra could bo found cither in untrm ted sclents of the vein system or adjacent tc or benaatb.-.the old worJcings. 30

RECQMMEl.'PATIOKS'

A program of geophysics and diamond drilling is rcconune-ndcd to asso.'B the potential of the Huron-Druce Minos Limited property. The geophysical program should conto ct of an induced polarisation survey covering both the Main Vein and the South Vein along a strike length of 10,000 feet. This program is designed to test for new veins and sulphide enriched portions of known veins above the 100 foot horizon. The diamond drill program is designed t.o test certain favourable sections below the limit of penetration of the induced polarization survey in the following areas. Copper Bay and Well j n r. ton Sections The strike length of 2,000 feet to be drilled at 150 foot intervals on tho 500 foot horizon to test the extensions to the northwest, the southeast and the mine workings at a depth Taylor Section The strike extension of the vein fro-;i the shaft east fer 1,500 feet to be drilled at 150 foot intervals at the l^O foot horizon. Bruce Section The. Bruce No. l Section should bo tested along a length of ?,OOG foct at the- 300 foot horizon at 150 foot 31- intervals to toct downward and lateral extensions in the old worlongr. as well ao the extension of the vein to the oast. 3out,h Vein The South Vein should bo tested from Highway l? west along strike for 1,200 feet at the 150 foot horizon by holes 150 Ceet apart. The total drilling required for this program ic 17,700 feet. In addition, a contingency of 5)000 feet of diamond drilling should be provided to follow vp favourable results indicated by the induced polarization survey. The cost of thic exploration program is estimated as follov;s:

Induced Polarization Survey t- 8,000.00 including chai, ing and picketing 22,700 feet of diamond drilling, including supervision, engineering and assaying at ^7-50 per foot 170,250.00 Contingencies . 17,750.00 Total ^196,000.00

Toronto, Ontario R. Brvu? ., P.Eng. May 10th, 1971. R. Bruce GraK Ltd. *??J^®?.V'^V^'J*V".rft'.'W^^^^ 3^:# t^M^l^W^- i.';-^ ^v^^t

R F, P E R R N GR S

Deposits near the North Shore L alio Huron, Annual Report Ontario Department of Mines, by K. S. Moore Volume 3tf, Part 7, 1929.

Summary Report on The Survey and Geological Work on the Bruce Mine Property during the Summer of 19M by' Professor S. E. Wolfe.

Report on Bruce Mines by W. K. Woods, September 15, 1955.

Geology - Bruco Mines - Ontario by M. J. Frarey 1961 Geology Survey of Canada Map 32 -- 1962

The Ontario Department of Mines Mineral Resources Circular No. 12, 1969.

Report on P^perty of Huron-Bruco Mines Limited, D. W. Sullivan, Feb. 17, 1970.

I-V L; ' ' " '' ' '' "' ' ' -' - '' " . -'-' -. - -' '- *' .' -' "'s' ;^',rH ^,v,,;.,,.,,. ,, .C.R. R-T, I F. I C A T E ':.-...,. : .'. j'.,. .'.'. :,!;i:lX

I, R. BRUCF.'GRAHAM, of tho City of Toronto, .in the County of York, Province of Ontario, hereby certify: 1. That I an a Geologist and reside at 5^ St. Leonardo Avenue, Toronto, Ontario. 2. That I received my technical training at the University of Manitoba B.Se., and University of Toronto, M.A. and Ph.D. (Guol). I have been practising my profession as Geologist for over 20 years. 3. That I am not ?:n officer of the Company; and that I have no direct or indirect interest whatsoever in the mining claims, the subject of this report, nor have I any direct or indirect interest in the securities of t.ie Company, nor do I expect to receive any direct or indirect interest 'n the securities or property of the Company. ^ --i . That the accompanying report is based on a visit to the [; property April 5 to 7, 1971 and on the following: Moore, K. S.; Deposits near the North Shore Lake Huron, Annual Report Ontario Department of Mines, Volume 3# t Part ?, 1929. Wolfe, S. E. ; Summary Report on The" Survey and GeoDogical V/ork on the Bruce Mine Proi rty during the Summer of 19A1. Woods, W. H.; Report on Bruce Mines, September 15, 1955- Frarey, M. J. Geology - Bruce Mines - Ontario 1961 Geology Survey of Canada Map 32 - 1962. The Ontario Department of Mines Mineral Resources Circular No. 12, 1969. Sullivan, D. W.; Report on Property of Hurori-Bruce J^iines Limited, JS*Hrr-A2, 1970.

DATED at Toronto this 10th day of May,

R. BRUCE ., P.Eng. Consul tl f mt-'S, tuessweees ea i e PLUMMER ADDITIONAL 040

DEC 22 1970 l RESIDENT GEOLOGIST it.' i- '',- SAULT STE. MARIE

B. fi P O H 2- O N P BB o p s a T Y: ' O P

HU^ON - BRUCE XIN2S LIXIT2D

PKJiSCSa ADDITIONAL TOVJNSHIP

SAULT ST2 :.^ai2 MINING DIVISION

7*0 '-S'C^s laat^i '*- \

/^r^^.f A, ^•^••"""•"•ii rvm. m.' fV

, 1970

S SM*-l 54=3 ^iffeX.''-^'.-.-;'.-..-^-'"-'©© -: lip- R K F E K E S C B S m* fl.7.3.

1. North SUoro of Lako Huron by W, H. Collins Geological Survey of Canada Koiaoir J.Vj, 1925 Suasary Report on Tho Sarvoy and Goolo^lcul Work on tho Sruco Hino Prcporfcy during tho SuTi'sor of 194-1 by Frofosoor 6. L. Uoli'e.

2. Tho North Shor o of I.al:o Huron by C. W* y.ni;;ht Ontario Bureau of Kino o, 1915 Twonty-I'ourth Annual noport Voluao 2* Part l* i-agcs 231 to 23?,

3. Tiio Ontario Dspnrttf'jnfc of Ilin.co Mineral liosourcoo Oivculr.r Uo. IP, 1969.

The Structural Ooclo; Mia-ilan Oi*c Sywpooiura. Volueo -- 1957.

Geology - Pruco i'inco - Ontario by ?5. J. Frovoy 1 r/oolojjy Survey of Canatln l-'-.-p 32 - 19

Dcponits near t'do I'orth fihoro I.rlio Huron j Annual iicporu t.'srct'vio .'Xp;;i'tvont of 'li.'jojj* i)y i:.* .S. I'ooro Volur-o .Vi, Part 7, 1929. '

7. Journal of Cv.ii:-.'.-:Li\'.i rii'.j^i; Institute i Voltr.'.o 10, 1907.

??* u^olc.^y f;f t!ic Co:!.r:ti-y /-.rot^d Truce I'ine by ii, f1. Iivj-tll a.jc ?i:uo i^'onx.'j Gyolo^lo/il iSiLWuy ^f C r5?.''a !1u ' innry .vorjoi'b

Cnt.'-rto Pop rtront of .-'.tnoG, V l^PO, -,-.-o V7. H S P O R T ON P R O P 2 H T1 Y - O-F

HURON - H3UC3 MINES LIMITED

I N

PLUHM2H ADDITIONAL TOWNSHIP

SAULT ST2. MARIE MIX-ISO DIVISION

i - O X T: A E I O ~

The property of Huron-Bruce Mines Liaited surrounds the original Bruc.o .Mine that was: discovered in l3Lr6 and which was the fi:*st. copper, producer in Northern Ontario.

The property covers the ir.ajor. portion of the Keating Location and Cuthbertson Location in Plummer Additional Tov.T.ship and surrounds the Town of Bruce. Kin-is, 30 miles east, of Sault Ste. K'arie. on Highway l?, z consists of 9,000 acres. It1 has been operated and explored at intermittent periods frora iBVo up to 1921. Very/-limited exploration has; been carried on since 1921 which consisted cainly of geological mapping and Halted diamond drilling in the mid 19^0' s.

It is important, that all -known occurrences of copper on the property be. thoroughly reviewed and explored where: warranted, particularly in vi-ew of the increasing deaand for copper, as indicated by the rising price per pound for this'netal..

In the central or Taylor Section there is •reported to be ^0,000 tons of copper bearing sulphides averaging 1.8^ copper above the 155 - foot level (Ontario Department..of Mines-M. H. Circular No. 12, 1969). This tonnage, was developed but not. cined above the 155 - foot level.

It is recc.~~er.ded -hat exploration be carried out in two Phases as follows: F"AS" -" ^ i s recommenced that the Taylor Shaft, be dewatered to the 155 - foot level ar.d the copper zor.3 examined and sampled.- Diamond drilling is- also recommended to explore the area between the level and surface. PHASSII Should the exploration in Ph&se I bo encouraging, then a lar(,a scale. pro^rasso of exploration should bo carried out which should consist of tho following: (1) Geophysic.il surveying to search for parallel I: zones and extension Of the Copper Bay Section where it appears; to extend northwest beneath the Huronian limestone. (2) Diamond drilling in the Taylor Section along strike; to the northwest and southeast; and deeper, drilling below the 1?5 - foot; level. Drilling may be. warranted on geophysical targets. (3) Rehabilitate, the Taylor Shaft. fra Ik sampling in Taylor Shaft on the 155 — foot level..

The property completely embraces, the original Bruce Xine in Pluencr Additional Township in the Sault S'ce. L-'Jarie Mining Division of Ontario. It covers a major portion of the Keating Location and Cuthbertson Location ir. t'r.3 Township.

It consists- of Lo'cs l to 8 in Concessions II. Ill, IV, V, parts of lots l to 8 in Concession VI and Lots L to ^ in Concession VII (Cuthbertson Location) and KB ? S R S N C S S ; N.T.S. M J/5

•W'i- v-4^. 1. North Shore of Lalce Huron by -W. H. Collins ,-- Geological Survey of Canada Meraoir. 1^3* 1925 Sucnary Report on The Survey and Geological Work on the Bruce Mine. Property during the Summer of 19^1 oy Professor S.-E. Wolfe.

2. The North Shore of Lalce Huron by C. W. Knight. Ontario Bureau of Mines, 1915 Twenty-Fourth Annual Report -Volune. 24- Part. 1. Pages 231 to 23?.

3. The Ontario Department of Mines. Mineral Resources Circular No. 12, 1969.

4-. The Structural Geology of Canadian Ore Deposits Symposium. Volume No,i, 194-8 and Volune No. 2, 1957.

p. Geology - Bruce Mines - Ontario by M. J. - Frarey 1961 Geology Survey of Canada Map 32 -- 1962

Deposits near the North Shore Lake. Huron, Annual - Henort: Ontario Department of Mines:, by 2. S. Moore Voiu.-r.e- 33, Part. ?", 1929-

7. Journal of Canadian Mining Institute, Volume 10, 1907.

S. Geology of who Country Around Bruce- Mine -by Hi. D. Ingall and Theo Denis. c}eoiogical e Survey of Canada Summary Report: 1904.

9. Geological Survey Canada, Map #1063A, 1953- \ 1C. Ontario Department of Mines, Vol. XXX Part l, 1920, page 77. Lots l to 8 Concession-?. Ill, IV, V and parts of Lots l to S Concession VI debating location)..

LOCATION AND ACCESS Located 30 dies east of Sault Ste. Kario at . thvJ Town of Bruce Mines on the C. P. Railway and Highway 17 on the North Channel of Lake Huron and therefore is readily accessible by road, rail and boat. The above Highway and c. ?. Railway cross the property.

G^KKHAL GEOLOGY

The. entire Huron-Brace, property is underlain by rocks-, of Precambrian age, predominantly Huronia-'i sediments, and later keweenawan intrusive diabase and gabbro. The older pre-Huronian rocks of the Archaean 2ra do' not outcrop within 2p niles of the property and probably do . not occur within 3/000 feet of the surface, in the irrjreciate vicinity of the property. The sedimentary formations underlying the central and southern part of the property are those of the Bruce group and are predominantly quartzites although the Bruce limestone is prominent near the northwestern end of the nine workings. The. northern extent of the property is mostly underlain by Gowganda formation of the Cobalt, group, composed of an interbedded assemblage of conglomerate, arkose, greywacke, silt stone.

S SM-l543 j, and snail acounts of pink and impure

In aost of the southern part of the property, around the old sine workings the underlying bed rock is entirely composed of diabase which, northeast of the nine workings, is in contact: with, and intrusive into the Huronian Bruce, limestone and conglomerate and farther east with Kississagi quartzite.. The diabase, is a greyish coloured, massive, coarse grained rock with a gabbroic texture. It forms most of the core; prominent rock knolls located on the north side ^ the Town of Bruce Mines and the Lake Huron shoreline. I'he diabase is the host rock of the copper sulphides bearing quartz-carbonate veins which forrr.ec the copper ore bodies of vhe past in the area. Later phases of the diabase cut the njain diabase host rock. The quartz diabase intrusive sills cr masses vary in size but r.any are several hundreds of feet thick and gradationaJ ir. composition.

~."""r"Ti'"U7i S J. .'.o O j. *J .i—**

The attitude of zhe foraa^ions indicate that they have been folded into a plunging, open anticline which has a northwestern striking axis with 15 degrees plunge. In the area around the r:ir.e workings the diabase .has been sheared, highly fractured and broken into numerous ratifying fracture, so.r.e of which have been filled and have formed ouartz filled fractures, veins and fissures of sulphide sirteraHzed quartr. ' , 0 About two silos north of the cino vorlcir.,33 several faults have boor, defined. (Rof. 1) Socca ijood exposures of tectonic breccia of the Lorrain formation, located in t'r.e northwest part of the property, may nark the location of a sone of intensive' fault noveacnt which - may be part of the Murray Fault. Zone. To the south of the nine is an east west trending fault which passes across Pallideau Island and raay extend into the St. Joseph Channel. The fault; block between these two strong, through-going faults appears to have been elevated by several thousand feet. The vice zone of intensely fractured diabase, which follows the northwest trend of the old Bruce Mines workings, say be a section of a steeply dipping fault sone that is ? a ' tangential subsidiary of the two east west trending zones of the major faults - (Murray and Pallideau Island Faults). Parts of t'r.e fracture systec of the subsidiary fault zone ~ay have been filled with quartz, and carbonate to fore the lode type vein system of the Bruce Mines copper deposits. Other faults, occupied by dikes of younger diabase, have displaced the Bruce Mines veins.

The economic copper, mineralization of the Bruce Xir.os was largely composed of fine to coarse grains of chalcopyrite, scalier amounts of bornite, 'and some chalcocite, ; Theso Dinorals havo been disseminated through a of quarts and calcite v©aich has largely boon deposited as •riosuro type veins occupying fractures In diabase. The quarts-has generally frozen to the diabase walls so that the contacts of the veins are usually well defined. l ?he lodes or fissure vein systems have a northwest strike and a steep southwesterly dip. One group of fissure veins, referred., to as the nain vein, appears to occur fairly continuously along the strike for a distance of 8,000 feet . froa the Bruce section to the Copper Bay section of the old mine workings. In the Copper Bay-Wellington sections che vein system is divided into tv/o parts, the No. l and a Ko. 2 vein which have a parallel occurrence for a length of about 1,300 feet but merge at both PICG. The veins varied in width, but. averaged about 5-5 feet: and the grade of copper also varied in different parts of the vein.

Some reports indicate, exceptional grades in sorje areas but it is probably that these high grade, sections have been mined. C. W. Xr.igh* in his report, to the Ontario Bureau of Mines, Vol XXIV, ?r. l, indicates that the average grade in the northwest section of the main vein was 3*3# copper with SO.T.C sections carrying low gold values,

"here is reported to be, in the Taylor or central portion of the r.e.in vein, ^0,000 tons of copper sulphide reserves that average 1.8J& copper above the 155 - foot level (Ref. 3)*

, -a f* A Q A south vein occurring 500 feet southwest of the ciln vain has been traced by old vorkingc for a d is t c ne G of about one olie.

A north vein occurring 2,500 feet northeast has also been explored by old workings and diamond drilling m- for s. length of about 1,000 feet. (Hef. 2) r xilSTORY AND ECONOMIC G20LOSY

The Huron-Bruce includes the original Bruce Mine discovered in 18^-6 and operated quite, successfully in certain periods froa 18V6 through 1921, although a snail amount of exploration was carried out in the mid 19^0's. It vas the first copper producer in Northern Ontario*.

Most of the production carae froci one main vein known as the No. l which was worked on over ar"length of 80GD feet and it was along this vein that Copper Bay and Wellington 3ec:tions, the Taylor Section and the Bruce. No. l were located. A lesser vein known as the south vein was worked on intermittently.

Production fro.v. these Sections took place at different tir.es between 13^-6 to 18?6 and 190^ to 1921. During this tir.e records show total, production amounted to approximately 500,000 tons of copper ore. The Mond Xickel Company ir.ined about 133)000 tone, of ore, included in the above figure, between 1916 and 1921. This ore was shipped to Sudbury for flux.. i v, , Tho deposit vas nined In f our sections located alone a strike length of 7or:a 8000 feet froa the northwest to the southeast. The tenor and characteristics of these sections of the Bruce Minds deposit are as follows:

The- Cooner Bay and Wellington Sections The No, l vein is a remarkably long one vhich in the Copper Bay-Wellington sections, has been followed by surface and underground ./orkings for a length of about 2,pOO feet. The Copper Bay section has a length of 1,200 feet. It has been opened by a main shaft to -c*~ a depth of s-50 feet and winze.^pf 550 feet. The Wellington sections have a length of 1,3^0 feet 436ar.d ' have been opened through two shafts to a depth of 5^0" feet. In these sections a Mo. 2 vein is located about 100 feet south of the- No. l veir.. It strikes-- parallel to the No. l vein for about 1,200 feet before, merging with it at both ends. These veins are separated by a horse of country rock which at its widest part has a width of about 150 feet. The No. I vein for a length of l,bOO feet had an average width of 5-5 feet and an average copper content of 3*3/^* Overall there was only a small quantity of gold contained which, in t ho V.rellington section, averaged 0.015 ounces pe^ ucn, although samples containing 2.5 ounces per ton had been reported. In the Copper Bay section vhero tho No. l and No. 2 veins had merged, better tenor of ore and greater vidths of vein had been deposited. According to H. J. Carnegie V/illiams, the ore deposit in this section had been of exceptionally high grade for widths of up to 21* feet. Chef. No. 8). Xost of the ore had been of a grade which made it suitable for smelting without any primary concentration being required.

When this section of the vein system was being mined in 1875 nothing was observed which would indicate that the ore deposit would not continue to extend to greater depths. Unfortunately, too -p-apid mining In this high grace part of the cine to produce quick profits caused so much caving of the section that mining operations were abruptly terminated by a serious collapse of the cine workings above the three hundred foot level. It has been reported that * since the collapse this part of the mine workings, known as the "Big Cave", has never been further developed to much below the s-00 foot level. -

The Taylor Section "he Taylor section is located 2,^00 feet southeast of the Wellington section. The Taylor section of the Xo. l vein has been opened for a depth of only Ip? feet through a shaft and by drifts fer a length of about 2,000 feet. There has been scse stoping done to the northwest of the "shaft above tho 75 foot level. The averages of the copper contents and widths of tho voin in tho Taylor section have not boon reported separately, however, the averaging of this section has baen included with tho calculating of fi-' tha overall average for the nines to this point in the voin systea. In an unpublished report cade in about 1890 ; by a Dr. Hatch it has been stated that the averse copper content's.- of the No. l vein in the combined Copper Bay, Wellington, and Taylor sections had been 3*8# over an average width of 5*5 feet of vein matter. The average copper content of the No." 2 vein throughout tho same sections was 2.6^ copper over an average width of ^.12 feet. The vein material had also averaged 0.16 ounces of silver with a trace of gold. (Hef. 2). Another report stated that about half of the vein developed had assayed over 2.0/i copper and ^^Vi,'—*^.*~*XT ' *-V\ that car samples of the d*v-eiop^eiit ore fro:: drift backs 'taken down near the shaft had averaged 2.95/i.

In an Ontario Department of Mines report, Vol. .Cd,' ?t. l, 1920 on page 77, it is stated as follows, "At the Taylor Shaft drifting was continued on the vein on the l?p - foot level until the face was 1907 feet co the southeast of the shaft; opO feet of beck was cut out to a height of 12 feet and rr.ace ready for stoping and than all work was stopped at this shaft on December 30th, 1920." Since no work has been cone underground at the Bruce Mines sir.ce that tise this section of copper sulphides is in slace to this date. Exploration recoa-.ended in this resort is designed to test and chocic this area.

T-:a Sruco Section The Bruce section is located at the origins,! Bruce Xine, (Bruce No. 1), the site of the first raining operations on the deposit. This extension of the No. l vein is located 900 feet southeast of the Taylor section. The records concerning vein characteristics, the tenor, vidth and dimensions' of-the veins in this earlier nined part of the ore deposit are very incomplete. However, it has been recorded that the workings or. the No. l vein in the Bruce section consisted of numerous shafts and openings which had been located alo.;5 strike of the deyos.it for a distance of 2,^00 feet. Uef, 2). In this section of the rr.ine the deposit is characterized -by having off- shooting veir.lets which penetrated the vails on each side of the r.ain veins. The Bruce Mine was divided into the ' '/.'esr Bruce section, consisting of 1,3^0 feet of t'r-e p-f.in vein and its branches, and the ^ast Bruce Section, consisting of two veins of 6CO feet in length which have been refeived to 2.S t 'r.e Trial and 3odr;e veins. The deepest workings of the Bruce section are thought to be about 3^0 feet (lief. 7).

SSM v "'"S South Vein Sic tier' The South Vein system, which has a strike that is parallel to the No. l vein system, is located 500 feet scuthvest of the Wellington section, iarly reports have stated that the old workings on this vein syster. extended fer s. strike distance of over one nile. and that a good grade. had been oincd from this deposit. Kovevor, a aioro i; recent report has stated tho't surface r.atipir;* of t:;0 deposit seess to have indicated that-the vein sections were not. continuous and that only short sections of the depocit wore of aineable grade. The sections were, however, all fairly veil in line, which was a favourable indication that they would extend to a good depth.-

The North Vein System The North Vein system, which is parallel in strike, with the Mo. l vein system, is located about 2,500 feet northeast of the Bruce section. In an early report it was statr.d that in 1868, following surface, work on the deposit, a shaft was sunk on the vein to a depth of 7? feet but that little or no lateral .sining was done. At surface, open cuts and pits on the vein extended for a distance on strike of about 1,000 feet, .-v report, on exploration work cone in 19^1 stated that such of the dursp material f r os those old workings appeared to be of ore grade and in some cases high grade. (Kef. 10). Some diamond drilling was done at this tise to explore the extensions of this deposit. Although the intersections of the vein in seven diamond t drill holes were not of ore grade, it was said that the coring quality of the vein catter was poor so that the re?'ilt did not entirely preclude the possibility of ore being present in the extensions of the vein. Future drilling on this vein night well be done with wire line equipment for good core recovery.. 43 KAULY KIWIX'G ORATIONS AND KXPLOCATION Oy -5foUCa. rCIteS . © ~.;©. - i - "" - . ' '. r * , ' - !, . . - - ' , ' ' ' v . In this report the name "Bruce Miney" has been used to include all the sections of the ore. deposit which have been mined on the above locations. The more important of those are: The Bruce. (Bruce No. 1), The Taylor, (Bruce No. 2), The Wellington and tha Copper Bay (Huron Copper. Bay) sect ions. -

The Cuthbertson Location, a tract; of 6,000 acres of land on which most of the nines, are located, v/as - purchased from the Crown by the Montreal Company in 13^-6. They s'a'nk a shaft, on the Bruce No. l, and rained a small eaount of copper irom this section.

Between 185^ and 1861*-, The West Canada Mining Company leased the Wellington and Bruce No. l sections and discovered the Taylor, (Bruce. A O. 2 section). Later they acquired these sections and the Keating location of- 6,OCO acres, on which the Copper Bay section is located. Under the direction of John Taylor and Sons of London, England, this company extensively mined all these sections until 13?6.

Up to this tir:e in the history of production frcr. the Bruce Mines, the -ir.ir.g .r.ethod used by the centric miners had been one of high grading the ore bodies underground and selectively sorting high grade from the ore after it had been ssr.t, to the sorting floors located on surface.- Those methods of operating the mines had caen a necessary part of the early mining operators policy of " " . l . ; . . , , t - -' - . . ; ! ..:\ -'--, ' - ' - , ' -' . ', ' - ' . *"V •J'".'--L . i V. , f -'' ' ' ' . r- * "-" - ' . • '*' ' . "' '. r v'-' \ V ,.' -.' 1- " -.. - " ". ' ' shipping unconcentrated lump ore to copper smelting plants in Cornwall, England, and the United States,

In an effort to eliminate these expensive, was nade and wasteful methods of operating, an attempt of in 18?2 to employ the Henderson extraction process although recovering the viopper from th3 ore. However, recovery, this proved to be a very suitable, process of owing to the use of the method proved to be uneconomical use. After the high costs of the reagent required in its the this attempt to reduce, costs had proved unsuccessful operation. . owners decided to operate the mines as a salvage, methods As a consequence the increased use of high grading the a:v! the curtailment of development mining caused Bay collapse of "che ir.ost productive part of the Copper known as section of the mine, which consequently became resulted in the "Big Cave" area of the sine workings, and of operations. the immediate closing down of all other areas tha owners This succession of calamities GO discouraged further t h a w in 16?6 they dec iced to discontinue, any operations of the mines.

In 1S9S Bruce y.ir.es was purchased by an English concentrating company which installed a ^00 ton per c'ay had been mill. However, as underground development and as neglected curing the foregoing salvc.ge operations not been their present, preliminary development had the mill adequate, they found it impossible to supply with enough ore to maintain profitable production.. "^ Y?^ f Consequently, wften the mill was destroyed by a fire in 1902, they decided to close the mines and eventually allowed them to flood.

In 190pj the locations were once r^ore. acquired by an English Company who under the direction of Mr, H. J. Carnegie Williams de-watered and thoroughly examined the old west'workings. However, although the results were encouraging, they were followed by only spasmodic mining operations, which were soon terminated in 1908. (Bef. 7)*

To this stage in the history of exploration of Bruce Mines, underground exploration was extremely limited ar.d was confined largely to the immediate area of the current mining operations to facilitate immediate -production requirement rather than to build up the ore reserves or explore the possibility of extensions of the ore deposits- laterally and to depth.

There is no record at hand of how. or when the South Vein was discovered or developed.

In 1914- the Mond Nickel Company acquired ihe Bruce Mines and the Seating and Cuthbertson Locations. i?ro." 1916 to 1921 they mined the westerly sections of the dF^ot-its largely for quartz to be used for blast furnace linings and the fluxing of their sulphide ore. They closed

S SK - l' 5 4 :^^tHe niihos down in 1921 when, according to th'3ir reports, ' all payable oro had bvjen exhausted. It may be significant, however, that about this tine the Mond Nickel Company became part of the International Nickel Company of Canada, who consequently became the owners of the Bruce

Mines.- **

In May 191*! an option to purchase Keating and Cuthbertson locations and the old Bruce Mines Property from the International Nickel Company of Canada was arranged by Mr. Ben Keen for the Ventures Ltd. Mining Co. In the summer and fall of 19^1, surface exploration and capping was carried on by their subsidiary exploration company, Probisher Sxploratipn Company Limited, under the direction of Professor S. 3. Wolfe. Several sections - i i of the property were geologically napped "and geophysically ; t surveyed. This work was followed by a program of surface diamond Grilling under the direction of i-'r. T. Denton. It is understood that none of the drilling was done in the area of the old mine v.-orkings but that one hole was drilled to test the possible northwest extension of the Copper Bay section. It has been reported t'..at the results v.'ere inconclusive and consequently the option f r on International Nickel was terminated. (Hef. 10).

In 19^4- the 12,000 acre tract of land comprising the Xeatir.g and Cuthbertson locations were purchased fror. the International Nickel Company by the R. N. Bond interests , of New York. - v Very little, exploration was. carried out- by this organization in the Bruce Kines section of she property. Some dianond drilling wab reported to have oeen done on severs.! outlying raineral occurrences which are located within the tracts of land but not near tho immediate vicinity of the Bruce. Mines.

In 1965 the southerly 9,000 acres of the Keating and Cuthbertson Locations were purchased from the ?.. N. Bond estate by Messrs. F. P. HcGuire and S. Huxter. 'Mo extensive surface exploration has been carried out to date by the present, owners of the Locations.

SUGARY O? PRODUCTION HISTORY The quantify of ore which was ained between - 1S50 and 1S?6 is a rcatter of conjc-cture. It nay reasonably be assutr.ad however, that V00,000 tons were rained in the old workings from the Bruce section to the Copper Bay section and Vr.c.t 300,000 tons were treated to produce 9)850 tons of copper (?.ef. 7) ?* 155)- It has bsen calculated that the average grade of .-2 i ne d during all the period of operation until 18?6, was about V. 5/j. This amounts to a copper consent of 13,500 tons. It has been reported that the copper concentrating process had been inefficient and, fro:* the above estimates of production, it is indicated -hat recovery had amounted to only about oO/j of the cooler contained in the treated ores. t ;: , ; Although the mining that had been carried on , in the Copper Bay and Wellington sections immediately before 1876, (the period when the mine collapsed), had not been done to develop new areas of the copper zone, it had succeeded in proving that the sulphide deposit at a depth of ^20 feet had been no less than 18 feet in width and that the sulphide had contained an average of 3# copper..

The mining operations carried on between 1893 and 1902 similarly had not developed enough potential ore before production on a ^00 ton per day basis had been attempted. This,' coupled with the fact that the .price of copper had Cropped to a low for the period of ..l*r(J per pound, contributed to the causes of unprofitable operations which were eventually stopped in 1902 when the surface plant had been destroyed by fire.

Before the Mond Nickel Company had discontinued their mining of Bruce k'ines in 1921, very little underground exploration or development of new ore had been in progress. It ;nay also be a significant coincidence that in 1921 the price of Copper was once again at a low for that period of . 1\r? per pound. The property had been acquired by merging of the Kona Nickel Company with the Canadian Copper Company to become the International Nickel Company of Canada. They had established production of silica flux fron their Lawson Quarry near Espanola. It is assumed that this replaced flux orocuction from Bruce Mines. ON O? REGIONAL 0112 DEPOSITION -THJlOUGUOUT Ii. WAUE3, SUDKJilY - COBALT DISTKIC23

A few authoritative observers of the geological environment of the Bruce Mines - Sudbury area and the Cobalt-Gowganda area metallogenic provinces have commented upon the similarity in the occurrences of veins .and ore deposits in Nipissing type diabase sills, which are common to these areas. The late Messrs. C. W. Knight, E. S.. Moore and W. H. Collins were some of oany eminent geologists who were very familiar with this broad area.

C. W. Knight has compared the Bruce Mines quartz vein deposits in diabase with those of the Cobalt area calcite veins in diabase. On this basis, he has conjectured or. the possible depth to which the Bruce Mines-vein deposits will extend, knowing that in the Cobalt area the ore bearing pares of the veins (although not always the veins themselves) are limited to a distance of about ^OC feet from the diabase contacts. However, he qualified his ov.-n doubts when he wrote as follows: "It is known that there are many similar veins in the surrounding regions which intersect not only conglomerate, quartzite slate, and other sediments but granite as well. Therefore, it may be that the- quartz veins at Bruce Mines extend down through the diabase into the rocks below but what really happens will fall to the province of the miner to discover." Cite f. 2 ).

f,,*C! 'C?vj?;*; 7'l' L^ li- v.?f; 'iA tf)} •f - Tho lato Pr. n. 5. Hooro'a connonUns on tho Biaco Mir.os - Sudbury nrca voin co^osltn vroto no follows i

Jit Si*-'i ;.' - "Kcarly all tho deposits occur in close association with Nipissing diabaso r.nd it In boliovod that nest of thon have boon dorivou fro:-i tho pano na^m an tho di-\b-iso, alihoujh in west casor. t..s oro c'o p o.".i t s uoro fornad .?XS.?J1 tho intr.isioi of thin rook, Tho veins olrioat . nvavinbly cut tho uiabaso to so-e extent at l9c^t and tho intrusions have b^an responsible for opening chnnnels for tho oro ist" (which forced tho vein?)t "Tho solutions the vcino csc'ipod .'it f'opth f r oro tho underlying e.agrru from which the di sir; so rose tit on curlier sta^o of the Igneous cctivlty. Thero v\s n ot enough differentiation *n si.tu in t).3 c?i-.-:V.s:sc iJ.ro]f to produce tl-.o ores u s there was i,i l h c- Sue'Hi r y nio]:ol or

Tho aa in vain system of tho Druco Minos 5:; a ns, porsirjtant, qunrts filloC fracturo xono 3n cliabysc, which lias bo-an traced t'.irou/.h four oeotioas of wina woriiinjfi for a total distance of 8,000 foot r.nti to a depth of 52p fcot. Tho uiiiod sections of tho voin system havo yielded f .••ubstantial tontiase of good ^r.'i-:3o cooper sulphiOGs v'nich ban bsen cnlculntod to have ascusito''! to about 5'ÔjOOO tons of fiô;n Vv to 'i;* copper ^radc. iixploratlons botwoon nnd below tho mined sections han been rcoager. Tho possible contir.uitioa of tlie vuin system to tho northwest of tho Copper J'iy sectlm regains to be further explored nlonî tho 2.5 rsllos of otrlko extension which lies within tho property boundary. Geophysical test surveys could bo used to advantage in this area and on possible parallel vein systems.

The veins have been classified as low temperature depositions, accompanied by little replacement of the host rocks. This suggests the possibility of higher temperature type of deposition occurring at greater depth. The associations of quartz zone rocks, quartz veins and massive sulphides in the Sudbury deposits and at the Pacer mine, are indicative of the type of mineralization that might be encountered ir. the higher temperature zones at. dep-^h below Bruce Mines particularly if the diabase sill or body is considerable size, particularly in its vertical dimension.

In the three periods of production of Bruce Hir.es, the low price of copper, which by coincidence, was. IM- cents per pound, combined with other factors which terminated the particular period of operation. It woo probably adverse economic conditions which closed the raines finally in 1921 and which kept thea closed through the next, 25 years of economic depression and world war when copper prices decreased to as little as nine cents per pound.

There had baen no incentive for the International Nickel Company to nine flux froa the Bruce Mines because they had an.abundant supply at their operating Lawson quarry near Espanola. Thoro arc reserves of ^000 tons of l.fc/J ore abovo the 155 - foot level of the .Toylor section possibly 10,000 tons of unknown grado about the 200 foot level in the Bruce section, which are opened up by shafts and drifts for stope development.

The present price of copper near the 60 cents per pound price adds considerable impetus to further exploration of the Br'uce. Mines deposit and it now appears that the future for copper is promising enough to proceed with an exploration programme at this time.

Since there is a reported copper sulphide vein partially developed on the 155 - foot level and since there is ^0,000 tons of copper sulphide in this general, area of the Taylor Shaft section, then further exploration sust be carried out to outline a possible economic tonnaje of copper bearing material. (See Page 11 this report re - Taylor Section).

It is therefore recommended that the following exploration be carried out on the property in two Ph'ases. Phase I will of necessity be conservative and is planned to test the most easily accessible area around the Taylor Shaft, namely the potential ground between surface and the 155 ~ foot level by a series of short diamond drill holes. S SK!-I 5-13. Concurrently vith tho drilling will bo cho tio- of thu 'iuylor eiiufc to ;he l^'p - foot lc-vol for o preliminary exuuinntion end sailing of tho reported copj,v v vein uonu whore a tonnage of copper sulphides

Tho estimated cost of Phase I is as follows: 1. Diarnoml drilling. Five holos c 1' 200 feet each at intervale northwest and southeast c-f the Taylor Shaft to tost tho urea above tho 1J# ~ foot level - - - ^(SjJrOO.J

2. Dc-v:aterins Lho Toylor Shaft to tho 15p - foot l::vel for cxcnin-\tion nnd saraplirir, - - - - - ~ - ~ - ^ - - - - ^10,000.00

3. Gup t-r vi s i on - 51,000.00

l.. Coritinrrencios ~-*--~^-. .- ~^- - 01,000.00

Kstiw:.ted Lcti:l ccst of ^in,500.oo

If Phoso l ii- yucoi-ssful or c one: i c ions r.re such Lhf.L furthii- exploration ef the Ion;' Main Uo. l Vein a no part31yl ve-in systems can ba explored then the fcllov/ir:^ cxploratir-n is reco-r.^.onded:

1. Geophyoical surveying uuirii; the IP Induced/,^ 5 D. W. SULLIVAN Potential r.nd riloctroaagnotic nethoris to *i SM 1 r 4 (Tl-'V^t^**' look for extension of the Mo* l vein NA.N*, oT tho Copper Soot3on nn^or J ©© tho Huron IJ©cor.tono and nny -*r,t'•i.ji^V fi; v. vein.systems

CO3t ~~-~-- ^•10,000.00

Dii;i,ont, t!jil).inn to tost the arna bslow ohs l;,' 5 - foot lovol In tno rnylor :'-hoft. Possiblo ol^nont'i drilling fro:? ui drill stations. Kurthor c'riilin-3 surfr.ee on yooorwon^od joophyoicnl

3. He-hub 11 J. ea to t!ie do-wat-jrcO Tayio.r sh-'ift ffi1 butter ncco.'is to drill 1-),^} bull: R^'-pUn^ ?:;ir? r her t 5 c i: t .ea i s. i r on tho voin ~ - - -,. - ,. ~ - ~ ^ ~ 4*75*000.00

Total tir,ti!nutO(3 ct'uo of Phnr.o II SI40,000.00

Rospsctfully cuknitted,

D. W. Sullivan, P. Ens., F.".A.C.

Datoc3 at Gecrcotovn, Ontnrio Fobrunry 17, 1-7/0 C li K T I P I C A T S

I, D. W. Sullivan, of ths Township of Esquesing, in tha County of Halton, Province of Ontario hereby /*certify: a ** *-1 4*\i . -

1. That I aa a Mining Engineer and reside at R. It. j? 3* 5th Line, Georgetown, Ontario.

2. That I ara a graduate of Queen's University with a B- Se. degree -nd that I have been practising my profession as a Mining Engineer for the past twenty-two years.

3. That I have no interest, either directly or indirectly, nor do I expect to receive any interest, . either directly or indirectly, in the property of Huron-Bruce Mines Limited or any affiliated companies. k. That I do not beneficially own, either directly or indirectly, any securities of Huron-Bruce Mines Limited or any affiliated companies.

5. That the following report is based upon a study of considerabls published data on the Bruce Mines property and a personal knowledge of she area-gathered from several trips to the property over the past several years. A recent trip to the property was not rr.ade by the writer.

6. That I ar.1. a member of the Association of Professional Engineers of the Province of Ontario and the Geological Association of Canada.

Dated this l?th day of February, 1970. Vfco ooapeay fco* 9,000 arran** tbo Town of trace Mineo, 30 mileo Mat of tamlt *to* Marie. Otterlo. tt le on Bijfcway i?, tbo Canadian Voelf lo Railway end lake Boron and oonplotoly onteaooo tbe original * l^^flW) l o 3 VttUlvoii Moport) Prior deptba frtai s;;. faee of ISO foot d*ep t) Daring production per**** record* ahev tfcat total pr^Jvetioa nawatad to approxiaatoly SOO.OOO tow. of eoppor oro (r*go O) fro* M to 4* coppor grado. (yago J1J vo of thin prodvetioa c*n bo otatad foor way* 1. M coppor at tbo ooataatie Cwv*di*n prieo of S9*Xlb. (|35.40Aon) * 117.700.000.00 2. coppor at tbo Metal deetengo prico (for Canadian prodveora vitb an oxport liônao) of 63*Ab. (f49.90Aon) - f 24. 900, 000 .00 3. 4* eoppor 9 I9*Ab. (*47.20Aon) - S 2 3, 600, 000 .00 4. 4* eoppar 9 BSC/lb* (J W. 40 Aon) . 133,200,000.00 "In tbo Coppor Bay auction whar* tbo M and fi vain* bad nargod, bottor tonor of oro and groatar vidtha bad baon d*poaitoC. According to H. J. ctrnogio William, tbo or* dapoait in this atollon bad boon of *McoptionaJ.ly bigb grad* for widtba of *tp to 24 foot* Moat of tba oro bad boon of o grado vhich laado it **tit*bl* for anolting without any primary concentration bting requi* (pngo 10 fiul liven) RBASQHS FOR, PREVIOD9 CLOSIHO Tba Kin* tlo**d down dua to an abnormally low price of copper -149 par pount (Ptge 19 sullivan) (covparod to th* prea^nt Canadian price of 590 Ab. and 030 Ab. on tba L.M.x.) Tba aurfaea plant waa *lao coo^pl*tc*ly daatroyed by fir** (P*g* 19 Sullivan) VEI1 Tba fil Vein. "On* grovp of fXvcruro vaina, r*f*rr*d to a tbe main vein, appears to occur fairly continuously along tbe atirike for a distance of 8,000 feet.* (peg* 7 Sullivan) Tbe t2 Vein. "A aoutb vein occurring 500 feet aoutbweet of tbe aain vein baa been traced ty old workina *or a diatance of about on* nil*** (Peg* 7 d 8 Bullivan) "...** good grade of ore bad been Mined from this deposit** (Page 12 t 13 Sullivan) "A north vein occurring 2,500 feel northeast baa also been explored by old workings and diamond drilling for t length ?f about 1,000 feet.* (Page O Sullivan) *....*iuch of tbe dus^ material from tboso old workings Appeared to be of or* grade and in aone canes blgb grade.- (Page 13 Sullivan) mmmi]rc7rrl)n?n!'.7r;'r~n .ni s^:r 11 19/c i!..i," RESIDENT GEOLOGIST XBftfflUQES&a. "*t tbo Yaylo* Sbeftdriftiaf wao ooatiavod oa tbo voia OB tbo US foot laval mtil tbo foso woo 1,95?. foot t* tbo southeast Of tbo ftbafti f SO foot of brak woo rot out to a haight of 12 foot aad aodo roidy for otopiae oad tbaa all vork woo atcpped at thin abaft oa Ooooabor )0tb, 1920* togo 77, voltae XXX, part l, 1920, Oatario Papirtaanl of Kinoa* •ftlaeo no vork baa boca dona at tbo ftnheo Niaao tinea that tiea tbia oootioa of la in plaoo to tbio data.* (Pago 11 auliivaa) ' tboro la 40*000 tooo of coppor bearing •ulpbidoa cvoragiag 1*9* copper abovo tbo ISi foot lovol (Ontario Dopartaant of Kiaoo M.R. circular MO* 12* 1M9)* fnio tcimafo vaa dar*iopo4 bot aot mined....* (taoo 2 tollivaa) At i9*Xlb*, tbo 40,000 toaa wovld bav* a OToaa valoo of 9*49,600*00. At 814/Lb** tha aaaa toaaaô wcmld bavo a prowaat gro** valoa of fi ,19S* 200*00* KAK8 Dta propoaod oxploratioa prograa la doaigaad to oxtoad tbo known loa^tb and doptb of tbia aoaa, to iacraaaa tha availabla toaaaâ in tba Taylor Shaft Ara*. Otitar araaa aarit iavoatigatioa too* a.y* Ex^loratioa* batwoan and boicw tba aiaod aaetioaa baa baen neagra. Mao - *Vbo poaalbla continuation of tba vain ayataa to tba north- waat of tba Copjâr Bay aaotion rMaaina to ba furtbar axplorad along tha 3.3 ailoa of atrika oxtoaaioa Which liaa within tha pro; arty boundary. " (paoa 21 A 22 Sullivan).

S HURON BRUCE MINES LTD.

WAD OFFICE, Field Offie*. Bronth Off le*) ' SUITE P.O. BOX 62 BOX 33 85 RICHMOND ST. WEST BK'JCE MINES UAX, ONTARIO TORONTO 1, ONTARIO ONTARIO PHONE (416) 942-1570 PHONE TORONTO AFTER HOURS: (416) 942-4134 (416) 362-6041

2-1 19 r

RESIDENT G EOLOGIST Dear Sirs: SAULT STE. HA.v,,

The Board of Directors of Huron Bruce Mines Ltd. would like to introduce our company to you. We comprise a group of experienced mining executives, wurking to renew production from the famous oli Bruce Mines property. During the past year we have made significant progress in the development of the mine^aJi/ed zone located within the 9,000 acres of patented mining property which straddles Highway No. 17 at about 35 miles cast of Sauit Sic. Marie, Ontario.

In recent months, we have dewatered the Taylor Shaft and adjoining underground working which subsequently were inspected by the local resident geologist and mining inspectors of the Ontario Department of Mines. At present we arc conducting drift sampling of the first and second levels of the mine workings. In conjunction four diamond drill holes have been completed of a 5,000 foot drilling programme to explore the ore body between and below the mine levels which are locc'ixl at 65 and 155 feet below surface. The gratifying results obtained iodate have not only confirmed but have considerably enlar^ejl. theformer tonnage estimates of 2.949,' copi/jr ore which had been partially developed preparatory to mining by the former property owners, International Nickel Company of Canada.

Naturally we are extremely pleased with the results of our current exploration programne, which has been expertly planned and conducted by our consulting geologists, Messrs. Peter E. Giblin, Ph. D. , and Robert A. MacGregor, M. Se. , registered professional engineers and geologists. Under their capable management we arc looking forward with the utmost confidence to continued success in locating and developing known and newly located ore deposits on the property, [t is perhaps important to mention hero that a company affiliated with Huron Bruce Mines also has arranged tentative agreement to

Ontario©s First Copper Producer Loctted at Bruce /Mines Ontario *^:i;^ mW--' ••:..4 "

take a working option on an adjoining 3,000-acre property held by the Bannockbarn Trust. Undeveloped ore occurrences similar in nature to '.he Bruce Mines deposits are known to be located in several localities qn this adjoining ground, b view of this fortuitous situation joint development of both properties is being seriously considered.

For the long term point of view it is pointed out that we have had some encouraging discussions with several copper producing companies regarding their interest in eventually providing the major financing required to bring the Bruce Mines back into production once more. We anticipate that these discussions will continue as our exploration programme expands and feasibility studies of production possibilities have been carried out.

We have enclosed a reproduction of the plaque, which may be studied.in front of the Historical Museum of Bruce Mines. The rer. ler will note that c .\ the plaque Bruce Mines is referred to as the first commercially successful copper mine in Canada. It is our hope and firm intent that this property will bc revived and brought into renewed production to become one of the most recent new copper producers in On t ar i o bythe end of 1972^. -'

We would be pleased to discuss any details about our future plans if you will give us the pleasure of being the guest of Huron Bruce Mines at their convention headquarters at the Royal York Hotel between March 7th to 10th, 1971.

Our Company suite will be open from 3 p.m. on. Please check at the Royal York Hotel desk for our room number.

Yours sincerely.

F. P. McGuire, President HURON BRUCE MINES LTD.

"i^HEAD OFFICE: Field Office: Branch Office: SUITE 612 P.O. 6OX 62 BOX 33 85 RICHMOND ST. WEST BRUCE MINES AJAX. ONTARIO TORONTO 1, ONTARIO ONTARIO PHONE (/16) 942-1570 PHONE TORONTO AFTER HOURS: (416) 942-4134 (416) 362-6041 ; ^

BRUCE 'MINES; If'.J^.- ort*i[Uit'il'.iJiii in. thr Bftiw Mine -location'was •(lied H Ip .x-jiU-iuU-r l^4b In'JaiiH'v CuihLtTlHoii It was unjUiroil n| ihi' loHti'wtii^.^far by the Munfirnl .Viniric Company ahd ©* *"V li (*tvluc(Mi. toiuiiK-iiivj in 1^47-4*5 -,a wlul U-i-anii* Hie HmU

tin; i-tn!i(iany optTiiloif -111011) ne *h:fM^ Ly llif\V^l Cvilijilrf'Mining tt-uM.'J jM/.t. ol'the prujiyrly In trtjy AVVIIioV'uw -srM Cojiju-r Bay ;f M*iuv*-Ki-rV at'd6iictl' more

Ontario©s First Copper Located at Bruce Alines Ontario •.r* *--v*m f W

' •j'-' HURON BRUCE MINES LTD.

Field Office: Broneh Office: P.O. BOX 62 BOX 33 85 RICHMOND ST. WEST BRUCE MINES AJAX, ONTARIO TORONTO 1, ONTARIO ONTARIO PHONE (416) 942-1570 PHONE TORONTO AFTER KOl'HS: (416) 942-4134 (416) 362-60^

World Resource Investment Digest BOX 283 BIRMINGHAM, MICHIGAN 48012

NOVEMBER 1970

GENERAL NEWS AND INFORMATION HURON-BRUCE MINES are making plans to diamond drill their 9000 acre patented property at Bruce Mines, Ontario. This was the first copper mine found in Ontario in the year 1847 and up to 1920 had produced S7 million in copper using old outmoded methods.

r 2219 Kennedy Road, Agincourt.

November 27, 1970 w*- Huron Bruce Mines Limited, Suite 612, 85 Richmond Street West, Toronto l, Ontario.

Dear Sirs:

At ; our request, I have revised Mr. I). Sullivan's recommendations contained in his Report dated February 17, 1970, following hi s recent trip to *.hj property at Plummer Additional Township prior to his entrance into hospital. This is prepared for submission to the Board of Directors with a view to incorporating it into the Conrrany'o Prospectus.

Yours very truly,

W. F. MOKK1SON

J ' - ' - - ., . . ' :- '

PHASB JL OT&".',-, Di aniqnd ..Or ill HI G iUM^--' 1. Five holes drilled from surface to explore above 155 foot level of Taylor Sha ft Area $ 6,000.00 2. Five holes drilled from surface to explore Taylor Shaft Area to a depth of 500 feet below surface 12,500.00

3. ile-habilitat-Jon of Taylor Shafi, and underground v:orkints to permit safe access for m.Af'pini', arid sawplinf of 155 foot level drift. 5,000.00

/t. F/quippir^; shaft for servicing of underground working 5,000.00 5. Sampling of undo rfround working r^inlv 155 foot level . 'Z^f 5,000.00 Supervision 3,000.00 Sundry cxponr.es _1.,JPCO,.C)0

TOTAL - I'HASK I $3?,5CO.OO

Testing of I.P. Induced Pot.c-::lift\ a:;rl Klcct.i-cr.i;jf,:ictic siethodr. on knov;n oro sect i one v:H)i yonio extO.orat 'on botv.'oeii socticM'i $ ' 5,000.00

PXtrtlicr drilling from surface and serac drilling from mderf.rourvJ dril] i-tatio:ir. 75,000.00

Tc:r,i ra5r.Jnf. to s^rfaco frc.-i 155 foot level. }!u]k KtmpJit^', of oro body on 155 foot J.GVJ! 35,000.00 -l 9A.Jnr:^^^!.l(;U-lA:'i^..':'Ari1.0.;'l.J::T-l\J^ for devolc'i riont prc^ran, 30,000.00

Eupj)'vj s i on 32,COO,00 Sundry Kxponrscs •l TOTAL .. pllAfiK n . 11*11*1eei e PLUMMERm .———— - ADDITIONAL. 900 ii|l^^-^ C^v,lô; -y •;..: " ' ' .' v.-:-'."' SA'UUT i**t.''•A^-^^m^^v.:: w,-' ^311^-; K ym-^^''^^:'': /.: ^fe-Y. m #7 X.X.L-.(L f*^^^;^r'""•iir^VCiVA, -' -- -' ' •'•-•' ^mm^'j--t- A-î'^-i".^* VT ''~-V'' - . - . - ' Hpi^—v , fctm^. :': ''/: , ,t. ifeV-^':'-'-'''-':'"' X mi^;,. .^ /; -;- v C gî-,'-"'JL^f^^.-^— /'

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" '-''•1 '

HURON BRUCE MINES UMITED

Bought — Sold — Quoted

Proipeetut on requett

GLANDFIELD ft CO. LIMITB]|' 60 King St. Wwl, Toronto, T*l. 363^)057 , Ti|y Tin-; :' x/, 1970 IKIKO-; 'Jiwj.-; ;:i::; ••; Jj.'iiviii) 2 - TO K ir !i ..c i,.! Siox.M, i/i. 'f O r O; 1 1. 'i C', 'it'll lo

co!-;::ou STOCK (Si f.; r vnlu;)

of which 650 ,000 arc for tho account of tho Company ar/1 200,000 previously issued shares are for tho account of Selling Shareholder (See paj;os A t' 5 ). No proceeds of the calc by Selling Shareholder will bc paid to tho Co;:,p:my. PURPOSE OF ISSUE: The Co.npany proposes to spfjnd tho funds to be raicod by tho calc of /.JO,000 treasury chares offered hcrc- undcr to jny tho costs of the issue, to carry out m the recommendations of Kr, t1. V/. Sullivan, P. Kng., , referred to in h i.r, Report dated February 17, 197^ as amended m November Z!, 1 970, and piy outotnr,dint-; liabilltloo.

OFFERING: (a) GLANDKIULD f, CO. UKlTlil; (Hndcn/riter-Option-io// /.pent) No. of shares Firmly Jnder Price Per Ket Proceeds MaxJwini Cfforing )j^tion Share Price to Public 250,000 15* S37,500 200,000 20* /,0,000 30* 200,000 25* 50,000 35* 250,000 AOO.OOO * There is no obligation upon tho underwriter .and there it; no asrsurfinoe that any of the optioned shares vd]l be purchased.

The Underwriter-Optionee nviy bc pjid to realise a profit in ari nr.KUiit equal to the difference between the price prdc! for such sharan asiJ the price at which said shares are sold to the public. Tho Underwriter-Optionee will offer chares purchased by it for salo through registered security dealers in Ontario at the current in-irkot price within the allowable price ceiling at tho t: mo of offering.

(b) SELLING SHAREHOLDERS In addition, Charles ^Jckrin, a r-harehnldor of the Co.iip.any, will offer 200,000 previously issued shares, as set. out under the heading "Of ferine", tho proceeds of v/hich will not. accrue to the Cor.pruiy. 7'noso r.harcs will bc sold through rcr.ir.tcr.vl security dealers as afcnt for the fellirif1, Shareholder in the Province of Ontario, None of such chares will bc offered for sale unless and until the 650,000 underwritten and optioned shares referred to above have been sold.

THESE SECURITIES ARE SPECULATIVE

There is no market for these securities

s,;:..' Underwriter-Optionee b -cnt V;.: 1 GUMDKJELn t, CO. LIMITED tiO i.jnf Street V.'ost, Toronto l,

Refintrar and Transfer Agent The Sterling Trusts Corjioration 372 Pay Street, Toronto l.

No Securities Commission or similur authority i i Canada has in any way passed upon the HicrJts of-the securities offered htrcui/k-r MIC! any representation to the contrary ir. ;w o ffence.

S SM- l W:-'--.-..-, . , toV ' T A B L E O K C O i! T J 1, K T S

TACK

HISTOKY AND BUSINESS...... 3 ACQUISITION OF PROPERTIES FOit SHARK AND CASH...... 1-3

OFFERING...... /.

USE OF PROCEEDS...... A DESCRIPTION -OF CAPITAL STOCK...... 5 CAPITALIZATION...... 5 ESCROWED SHARES...... ,...... 5 PRINCIPAL HOLDERS OF SHARES...... ,...... 6 DIVIDENDS...... 6 PURCHASFRtS STATUTORY RIGHTS OF WITHDRAWAL AKI) RESCISSION...... 6 PROMOTERS...... ,...... V

MANAGEMENT...... ? REMUNERATION OF DIRECTORS AND SENIOR OFFICERS...... ? PRIOR SALES...... 7 INTEREST OF MANAGR-IEMT AND OTHERS IN MATERIAL TRANSACTIONS..,...,.... 8 MATERIAL CONTRACTS...... B

AUDITORS, TRANSFER AGB'ITS AND RKQISTR/iRS...... ti OTHER MATERIAL FACTS...... B FINANCIAL STATEMENTS...... ,...... 9-13 CERTIFICATE OF THE COMPANY...... l/,

CERTIFICATE OF TOE UNDERWRITER...... l i.

^ r') 4 -~ W* J.* A;;

Huron Bruce Minus Limited (K:-r. i nail'; i n-f\ rrc.-d to a r, l h o "Cc-.ipnny") was incorporated under thu provision-; of Die Corpoi ,;l ion.s Aol of the Province of Ontario by Loiter;: Patent dated the ^rtth day of IVb/inr.v, 1966, as a public company, The head office of the Company ir. r.ituM'. ,-tt SuiU- 612, 85 Ricnr.iond Streot West, Toronto l, Ontario. HrjfeixTiff.! i;; n/ui-j (.o tho harling "Hi;:!'--;/ ( " !V, , riv-" h-render regarding f'oiv,-r production from th'.- Co, p":r/':, j.r .j ,i'y ;.l I'V '.r Additional Township. Too Cc.-.p-my, at the pro.-or.t tin; h.-m ;.:. ir.;..T, -- ;.! p] an L or equipment on Iho property •••ilthot.i.'-h it h-ir; a rv r in. r of ::.:.-\'.'\-, J r-r-criVx: l in detail, hen-'under. ACQUISITION OF PflOPEKTlKS FOIl SHARKS AMD CASH

Plummer Additional Township, SauJ.tSto.Marie Mjnin;y Division., jQntajr.iq

By agreement dated January 31, 1966, m rt o buti.-'en tho Company and Algo-Bruco Minor. Liwited, 1]2 Mure h Street, Fo.ii 11 Ste. Kiric, Ontario, tho Company acquired from A]p,o-Bruco Miner. Limited Loir. 3 to B i n Conccnrsjont; II, HI, IV, V, parts of lots 3 to R in Conccnuion VI and J-oto l to A in Concession VII (Cuthbertson Locnlion) and 1-ols l lo 8 Concc.'isions 111, IV V, and parts of 3/ots l lo 8 Concession VI (Keating Location) situate in Plumper Additional Township in the Sault Ste. Marie Mini 113 Division of Ontario, in consideralion of Ihe issue and allolmcnl lo Alpo-Brucr Minos Limited of 750.000 shares in the capital stock of the Ccmp/uiy on the basis of 10# free and 90^i placed in escrow subject to release only on tho written c on son t of Ihe Boart! of Directors of Ihe Company and of the Ontario Oeruriti.es Cc.-jnission. Algo-Bruce Mines Limited was acting on its own behalf and on behalf oa Messrs. Francis Patrick McGuire, P.O. Box 33* Ajax, Ontario, Sarson Frederick Huxter, 6 Edward Street, A^ax, Ontario, Clarence F. Hewilt, /( yt Burlington Avenue, Burlington, Ontario, and Archibald Burnside Vlhitelaw, 11 Yorkleigh Avi-nuo, Woston, Ontario, Tho only person having a greater than yf, i nterest in Algo-Bruce I'incs Limited is V.'i]liam F. Marlz, v;ho acted as Trustee f or* the' 'share holders of thai Company, v/h o arc mainly rcsidnnl in the Dutrojt area, none of v/hon is connected with any of tho princijxi3s of Ihe Co.-pany. Tlie said Algo-Brucc Mines Lamited h ?\? been i nad i ve for many years. Subsequenlly, the Company was advised thai certain claims againrjt the , property had been rude by Ha 3 agawa le h Mining Con.pany l..imiled, an Orilario company, wliolly ov.ned by Dennis O'connor 13A6 3iulianv;oorl Road, Lake Orion, Michigan, and Fli7,abclh Sanderson, (Adninislratrix of thv F.stato of Raymond N. Bond ) and, after prolonged negotiations, in order to avoid litigation, agreed to setllc Ihe claims of Ma3agawatch Mining Company Limited by the issiio and allotment of 100,000 free and 50,000 escrowed shares to the said D-jnnia O'connor and 23,3.60 free and 50,000 escrowed shares to Ihe said Eli/abclh Sanderson representing payment for moneys spent by them in conneclion v.'ith the property. Tho . Tiie Ooii pany now has.clear title to the said patonled mining righls covering 9,000 acres and lo palcnlcrt surface righls covering 12 acres. As part of the r-^ttleriu*"! with Ma3arav;alc)i Mining Company L-inaled the Com[xiiny conveyed the surface rights only of the who3c of Lot l, Concession II in tho Cuthbertson Location, the southerly pnrt of Lol l, Concession IV in Ihe Kealing Location and a33 Iho French Islands, save McKay Island and French Island, lying in fronl of the Cuthbertson Location, to tho said Dennis O'connor. HISTORY OF PROPERTY

The property completely embraces the originn3 Bruce Mine in Plum;r.sr Addilional Township in Ihe Sault Ste. Marie Mining Division o.V Ontario and is located 30 miles east of Sault Ste. Morie at the Town of Bruce Minor, on the C. P. P*. 13way and Highway 17 on the North Channel of Lilto ihron and is readi3y accessible by road, rail and boat. Tho above IMrh'.ny and C. P. fei l way cross the property.

S SH - J 543, Kfe The original Hruce M l m; -s w.v. operate! /r, the' fir^t copper ;,.iiic J M Northern Ontario during several period:, between 1P/.6 ani J 921. Considerable exploration inclining surface geological and geophysical .surveying followed by diamond drilling wan carried nuL in ]9'iO,

Host of the production cano fiom the fb. l vein which Ka s mlnoi in four sections along a length of K, 000 feet and between depth o of 155 to 550 feet. The total production war; 500,000 tons mojt of which VMS rr.inod from the- northwest end of the vein in the Copper Hay mid V.'nllington sc-ctionr.. About 133|000 tonn were gent to Sudbury for flux by the Mond Nickel Con^'fiy between 1916 and 1921.

In the Copper Day and Wellington sections the Mo. l vein wan nlned for a length of 2,500 feet and to a mximum depth o l* 550 feet producing ore with an average grade of 3 percent copper. In the Taylor Shaft section located 2,/iCO feet southeast of the Wellington sect-ion the vein wao drifted on for 2,300 foet on the 155 foot level and stopcd above the 65 foot level. The average grade of c ar samples was recorded as 2.95 percent coppor. Tho Bruce No. l Mine where the first mining was carried out on the southeastern en! of the No. l vein is located 900 feet from the Taylor shaft drift. Incomplete records indicate that this section was 'mined for a length of 2,500 feet and to probably 300 feet in depth.

A South Vein system located 500 feet southwest of the No, l Vein has been mined to a shallow depth at intervals along a distance of about one mile. A North Vein located about 2,500 feet northeast of the Bruce No. l Mine has been explored for a length of 1,000 foot by surface pits, diamond drilling and a shaft to 75 feet from which no lateral v;ork was done. Most of the reported information on the early development and mining of the various veins on the property have been thoroughly studied by two senior officers of the Company. The Taylor Shaft workings have recently been inspected and mapped Jvy Ontario, Department of Mines personnel and a report on their ' findings iTbeing prepared. ~~~ — — —

The Corpany's Con&ultinp Engineer , Mr. D. W. Sullivan, in hit Ropnrt to the Company dated Febmnry 37, 1970, as amended by him in consultation with Mr. V.'.F. Morrison, Geologist on November 27,1970, has ree o.™ ended n t wo- phase exploration programme as follows; PHASE I

Jll ill i

'•: V ;' 1. Five holes drilled from surface to explore above *.;i j,*''-'- foot level of Taylor. Shaft Area $ 6,000,00 f.?; 155 i'^ ' 2. Five holes drilled from surface to explore Taylor Shaft Area to a depth of 500 feet lelow surface .12,500.00

Underground Sampl i nr

3. Re-.'iabilitation of Taylor Shaft and underground workings to permit safe access for mapping and sampling of 155 foot level ardft. 5,000.00

- /,. Equipping shaft for servicing of underground working 5,OOO.OU . m 5. Sampling of underground working mainly 155 foot level 5,000.00 Supervision 3,000.00

Sundry expenses —J.j.ijl'f'.'.00 TOTAL - 1'IIA.SK I 3137,500,00

jKm^ m

H 1 ' fi -., r

i KM:! r*.. y:/;;,';! ic Tcytinp (.f 1.1. irrl'icG i i'dl' :,, ; a l .-c,i! t V r.'.-." c;x|.: " fvi i i ( ,|! l rif(ho!r. MI KfA.'vr f.;-o fi'.-.-^d:::; \;' bet VC',T: f.oct ' c.v,

Hi a" oivl Dr.' 11 i' • - K'h1-' P.inp. Further drill li.p from ii'jrfac^ at,d nof.-? dri from iindcrp.rourid drill Matior.i.

Uulk Test rniF.itif. t.c. surTaco from ]^ foot )evcl, samplitif of oro body on l '; 1? fool lcvol - roqui . , 30,000,00 for development prof-ram.

Eupervi suon

Sundry Kx pen HO 6 TOTAL - PIIASK I J S'O 60, 000. 00 Kchru?iry 3V, 1970 ond of Mr. Sullivan'r, report to rvmaf.c-JT.ont, dntod A full copy for insjoc'.tion on the public amended Report datud November 2V, 1.9VO, is available files of the Ontario Securities Cor.ndsuion. agreed April 6, 19VO, Core Diamond Drill inf.; limited, By Letter aprccn'.ont dated thereby Shaft and the Cave areas at thoir ovm expense, to dewiter the Taylor also agreed to pay the cost of Phase I of the exploration prof,rar.me,and reducinp. recoverable mineral, as a reou.lt to the Company 25/6 of Uie met profit from any Y/ater. of leaching the ore in solution in the Mine early in September 19VO that they Cone Diair.oivi Drilling reported to the Comjuiiiy worUinpo and rehabilitatod certain tiinbors and had dewatered all underground from nine proceeding with the projoct of lcacliitif, ore ladders but were not thnt the not thin had proven to bc uneconomic. Tlicy rejxDrted "ater since excess of ^20,030, It operations by them at that ' imc had been in cost of tation of thie slmft including agreed to employ Gone to continue the rehnbili was 65' and 155' levels so thnt a vashinp dovm its walls and the drifts on the thorough examination could be carried out.

Drilling holding a greater than 5# interest in (5or.o Diamond The only persons Ontario, F. G. are - B. G. Church, 29 Endicott Terrace, Welland, Limited R. A. KacLoan,Fonthil.l, Ontario. Church, l/i V/cstdale Avenue, Welland, Ontario,and that the vein described in early records is Mr. Sullivan has reported On the the drifts of the 65 foot and 155 foot levels. visible in the shaft and and a height of the vein has been stope d for 200 feet in length 65 foot level for 2,300 feet and would On the 155 foot level the vein wao followed 35 feet. sections being up to 5.5 to average about 3.5 feet in width vrith sor.ie appear bornite appeared to bc very feet in width. The minerals chalcopyrite and along the 155 foot level drift. prevalent in the vein quartz at many places 65 foot level cannot be reliably The extent of sulphide mineralization on the and bactohas been done. assessed until further washing down of walls

SSM-154B ' i''-'

r.-.J— - f': 1HB

V. : The Corpt'.v Ino r.'Mor-vl i:;tc en- .- ' c- -- , ' rJ.tt l ('-t',!'., .l';, -l'''- s A.-; amended Novonber Y), 1 970, wj l h r, l -n. !fi-M v c:r,. I'vi!..-i, -n •••• ; - M - ,- t Wool,, Toronto, Ontario, ("Glandf .ir: l .1") ;v.' \\'--\ ( n .it:, c. -..r. K- l r,1:', v::-r. -1 y GlandfieM aprc-od t. o pu re h i :;o vy.^U/O Ir,-; ;-MV .-.'•..••.ri :- of t h' r-:;.;!;,! :,'.' '- • •: o f the Comjiany at 10',' ; ''r :*H,nro to net'.' *.;,o O.' ; v.y ': \'! , [- -. - j -,;-:.bl fi^j-t'-. ' ;. ' l, upon tlio effective; datu, ^finc'l in Lh^ t.-iid .•-rr-"--i,T:'. •••- tr;r," d -j y r. -iT'-r the dale on which thi: C'.: j .'irr/ '.-, Pror.; "f! i;:, ir; ;.?c .'j t ^ i J\-;- fi "l i,. u; by 1:,.: Ontaiio Securities Co-ir.dssjon.

v;a.'j alr-o frnn'.fv] the oj-t.ifM.'. to j-irc.h-i.v.- additional treasury rhnn-r. of th'' Clvr,

No, of Sharer, Price within which opMon ex ^ rf i cable-

200,000 20; 3 rr.onthr; 200,000 Ci month li

The only persons liolJir-c a greater than y/, i ntcrciit in Clandfio.l.d aro Rowland Gland f i rO a and i'rank CadesKy. In addition, 200,000 juwioufily i.r;.sued -shares will bo offered for sale to the public by Glandfield on behalf of Charier, Puckrin, Ajax, Ontario, none of which vfill bc r.o.ld unleor, and until, the 650,000 underwritten and optionod shares referred to above have been sold. There are no cub-underwriting or .vab-option a

USE OF }'ilOCKi:i)S

The CorniBiiy propose;; 1o npond tho funrlr, raiorJ by the nalc of the firmly underwritten r.hareu referred to under tho hoadinp as follows: 1. To pay the coni :; of the issue, incluiini; lef,al, audit and printing, estimated at i; 2,500,00 liabilities . 2. To pay its curr.-nt to #20,713.16 lesa c a r- h on hand in tho amount, of ^. l lt ,l: 2W.53

To carry out Items l and 3 of Phase I of the recommendations of Kr. D. V.'. Sullivan, P. Knp., referred to in his n:;,ort to thu . Company dated February 17, 1970, ar, amended by him in concultation with !-ir. \\.\\ Morrison, Gc^lof.ist, in ar.cnclinp rcpoi-t dated November 27, 3970 11,000.00

The full reeonmendationr, of t.he Corp-ir.y's Con:;ultir.j', Fnf,ini;cr:i aro c(:t out on pages 2 and 3 hereof. Addition^ fund:; rt i.s'.vi by the calf; (.f oj shares will be used to carry out \ \\\.\ rer.-iitrlor of therse tt

W- Ho p.irt of the proncoJj v.il) bo v-j'.'j to invrat, underwrite, ir-. or trade in securities other than those thnt qti-iljfy ns invontmctitu in vhich trust fuirJfl May bo InvcstrJ tuMor tlio Inwj of tho Jurlr.dlct.ioii in which occur!ticu offered by thio propafctu.-j rmy lowfully bo :ol'J. Should the Company propose to u:;o the procooJn to acquire pK' : non-trustee type securities after the initial, distribution of tho securities offered by thin prospectun, pemlfoion of the shareholders hill bo obtained and dioclocuro *dll bo made to the regulatory security bo-Jico having Jur'sdiction over the oalc of tho securities offered hereby.

(•V. .,. ; DESCKIPTJO:i OK CAPITAL STOCK

Tho oharcs of the Company arc all of ono class. All oharca issued by the Company rank equally as to dividends, if, as and whon declared by the directors of the Cowpany. All shares issued by the Company rank equally an to voting power, one vote per r.haro. There aro no conversion righto, and there aro no special liquidation righto, pre-emptive righto or subscription rights. The presently outstanding capital stock is not subject to any call or assessment, and the shares offered hereby, vhcn issued, and sold as described herein, will not bo subject to any call or asooscraent.

CAPITALIZATION

Number and amount in dollars out Number and amount in dollars out in dollars out standing if all Designation authorised by standing as of standing as of securities being of ^ Security Letters Patent AuQ-;,t 10^1970. Sept. 10 1970. offered aro sold Convnon stock 5,00u,000 1,421,013 1,421,013 2,071,013* $l par value ^166,390.60) C$166, 190. 6(0 C$293, 690. 60) * This figure reflects the sale of the entire 650,000 underwritten and optioned shares being taken up and paid for.

ESCROWED SHARES

At the present time, certificates represent ing 865,000 shares arc held in escrow by the Transfer Agent of tho Company - Tho Sterling Trusti Corporation, Toronto, subject to release pro rate, vrit-h tho written consent of the Ontario Securities Concnission and the Board of Directors of the Conpany and subject further to transfer, hypothecation or other alienation only with the written consent of the Ontario Securities Commission, No. of Shares Designation of Class held in escrow Porccnta/^o of Class Cordon stock $l par value 865,000 53.08JZ*

* Calculated on the basis of their being 1,421,033 shares issued and outstanding. The following are those persons holding 10* or more of the escrowed shares of the Conpany: Class of Type of No. of Shares Percentage Name and address Security Ownership Owned of Class

Willir.ro F. Hart?, oornman of record ??17 Pcnobscot Bldg. S l par Detroit, Michigan, value U.S.A., Trustee. 337,500 39*

Jiitnos GroxtoM d.i root, of record Box ffi, and beneficial lv fii-ncf,- Miir r;, Onl'irio 90,000 i o.//;, ' •6- f"1 i.-h!j l;

t:". f S., PRINCIPAL HOLOFW or li Det forth horoundor are particulars of tho present principal holders of tho shares of tho Company. No. of Shares Percentage Class of of Clans and Address Security Type of Owpcrship Owned___ William F, Mart?., coinmon of record 375,001 Truotoo, $l par 2217 Pcnobscot nidg. Detroit, Michigan 25.13** Dennis O'connor of record, direct 205,001 13^6 Indianwcod Hd,, and beneficially Lake Orion,Michigan owned 14.5* * Charles Puckrin, of record, direct and beneficially AJax, Ontario owned 200,000 ^Calculated on the basis of l,A2l,013 shares issued and outstanding. DIVIDENDS

No dividends have boon paid by tho Company to date.

PtmCHASER'S STATUTORY RIGHTS OF WITHDRAWAL AND RESCISSION

Tho Securities Act, 1966, contains (Section?63 and 6/*) certain provisions enabling a purchaser of securities offered in the course of primary distribution to rescind tho contract of purchase j- (a) while thepurchaoor is still the owner of ;he securities if the prospectus and any amended prospectus as of tho date of receipt by the purchaser, contains an untrue statement of n material fact or omits to state a material fact in order to make any statement contained therein not misleading but only if action is commenced within 90 days from the laot to occur of tho receipt of tho prospectus or amended prospectus or the contract of purchases and (b) if the person or company from whom the securities were purchased is notified in writing or by telegraph of the purchaser's intent to rescind not later than midnight of tho second day, exclusive of Saturdays, Sundays and holidays, after receipt by the purchaser of tho prospectus or amended proopectus, A prospectus or amended prospectus sent by prepaid mail is deemed conclusively to bo received in tho ordinary course of mail. The receipt thereof by a person or company acting as agent or who thereafter commences to act as agent of tho purchaser shall be receipt by tho purchaser ao of tho date of the agent's receipt thereof 5 however, for purposes of tho aforegoing, a person or company is not considered to bo acting as agent of the purchaser unless the person or company is acting solely ao an agent of the purchaser and has not received and ht\a no agreement to receive compensation from or on behalf of tho vendor with respect to the purchase and eale, Thio right of rescission is not available to a registrant or to a purchaser who sells or otherwise transfers beneficial ownership of tho ooouritioo purchased before tho expiration of tho time within which reociosion may bo effected.

SSM-1543 p-v IJ&r-Y ; Ifc^v

Tho Ctrpny la , V4, -,l.H b/ ri-- .-i'- iV'tri.k reti , Aforuj.aid, l-' iho vendon. of UK, ,,,.o N rl.v rof- ,-,v,J l, v:,l,, t!, l, "Ir* A^(ui, lor, of Property for Shares ni... C;,:.h" r, -.y be c o,,:'.' ri..- rod lo |.o , n within the iKoanirif, of the Securities Act.

Director;! an.! Officers

Hoina Position Francis Patrick 15cGui.ro P.O. ttox 33 President and a Ajax, Ontario Director

William Fjvnois T.orrir.on 2219 Kennedy Koad, Vice-Prcsidcnt and A^incourt, Ontario. a Director

Archibald Durnsidc 11 Yorkleieh Avcnuo Secrctary-Trcaouror Whit claw Wc3ton, Ontario and a Director Gordon Church 29 Rnclicott Terrace Direstor V/clland, Ontario

Dennis O'connor Lake Orion, Michigan Director

Hr. KcGuire is a Jtetail Merchant who has also been associated with miriin/; exploration co.Mpanioy since 1930.

Mr. Hoa-rir.on hat; been a Mining and tkploration Goolojist for more than the past five years and ir. presently employed by the Ontario V.'ater Resources Gc,r.;.nr.sion. Mr. Whit claw has been a partner in the firm Macdonald ft Macintosh (now Manning, Drucc, Macdonald 6 Macintosh) for the past five years. Mr. Church is a Mining Contractor, and is President and General Manager of Gome Diamond Drilling Company Limited. Mr. 0 ! Connor ir, the cole owner of O'connor Itoal Estate, Lake Orion, Michigan. HLMl'.'^iATIOIJ OF DI!l!-;CTO!!C A!ID fi!::J10ll OFFICERS Mr. Fra r/: i r. Patrick McCv.iro, .o 1'ronidcnl c f the Cor:ipar,y has been f ran {.cd -in option to {archaic 100,000 sh-ircr, of the capital stock of l,ho Cor, pany at 20{ par sinr^ cxcroicable over a rt-'V.inJ of throo yours f row May ?-'', 1 970. This option v;as granted to Mr. Mefiuiirc in co.".oid'-;-al : -on of hie nervicc-o to thu Company, without rc.T'inoratio.'i, over the }-:tst fc-ur .vuarr,, Mr. Dennis O'connor has received 55,0'.')'.) nharos in the capital stovX of l hi Ccap-iny in nottlcn'.ont, (/f iho suni o? #11,00'.) clue to hi r, as di rector 'R rc.-.'.n.cration for tine sp--;i:t. on the Corr-pany'p barrira;.';,-, . Ol.hor than the foro^oinf , th (: Ct,:,.par,y han not pi id any reromcration to any Director or r.t.-nior Office;- since incoi-poration PK10H SALK

Price, Pc-r jgh.iro NqtÂmounJ. Rv.cc:i.vnd,,b.y, the Company ——No, of - SharcnJiold~y " " î.oo ^ 5 .00 107.000*** .10 10,700.00 .15 30,000.00 206 ooo " - .20 28,189.60 Îssued and allotted in satiafactj.on of certain liabilities of the Company as follows: D:-ni.is O'connor, aforesaid, 55,000; Annac Securities Limited, aforesaid, 20,000; Francis Patrick McGuire, aforesaid, 51.3/tBj ClarenajF. Hewitt aforesaid, H, 500. ** 100,000 ^.'o)'0 issued to Mr. Janics Grcxton, aforor-aid, ,in set. cut uudor ttu heading "Ot.hnj- Mat.erial Facts". f,' -. h'- 1; ' '''V-.;. ., r.' , INTKRF^T OF KAfttnFXKNT AND OTHBHS IN MATERIAL TflMÂCTIOf^

(a) Messrs. Francis Pitrick McGuire and Archibald Burnsido Whitolaw, the President and Secretary-Treasurer of the Company oach received 93*750 shares in the capital stock of tho Company in connection with the Bale of tho mining property to *.he Company referred to under O.D heading "Acquisition of Sharos for Property and Cash".

(b) Dennis O'connor, a director of the Company, received 205,000 shares in connection with moneys advanced on behalf of the Company in connection with the property referred to under tho heading 'V jquisition of Property for Shares and Cash", and "Prior Sales". (c) Mr. Archibald Burnside Whitelaw, director and Secretary-Treasurer of tho Company, is the President of Armac Securities Limited which received 20,000 sharos in tho capital stock of the Companv in satisfaction of previous indebtedness of the Company for legal : 'vices to the fornor finn of Macdonald 4 Macintosh, 357 Bay Street, Toronto, which was subsequently assigned to Armac Securities Limited. (d) Mr. Benjr.nin Gordon Church is tho President and General Manager of Come Diamond Drilling Limited which is engaged in work on the Taylor shaft on tho Company's property, particulars of which are set out on page 3* hereof.

MATERIAL CONTRACTS

(a') Agreement between tho Company and Algo-Bruco Mines Limited, aforesaid covering the acquisition of the raining property in Plummer Additional Township, referred to under the heading "Acquisition of Property for Shares and Cash": (b) Underwriting and Option Agreement dated October 15* 1970, between the Company and Glandfield 6 Co. Limited, referred to under the heading "Offering".

(c) Letter Agreement du Led April 6, 1970, between the Company and Come Diamond Drilling Limited covering tho dewatering of the Taylor Shaft on the Company's property. (See page 3. hereof). Copies of tho above material contracts may be inspected at the Head Office of the Company during normal business hours while the shares offered hereundor are in the course of primary distribution.

AUDITORS, TRANSFER AGENTS AND REGISTRARS

The Auditors of the Company are Messrs. Glendinning Jarrett Gould it Co. The Royal Trust Tower, Toronto-Dominion Centre, Toronto, Ontario. The Transfer Agent and Registrar of the Company is The Sterling Trusts Corporation, Toronto, Ontario.

OTHER MATERIAL FACTS

Daring tho past four yoars Mr. Jarres Crexton, aforesaid, as acted as Company representative on the property at Plummer Additional Township, has assisted in guiding representatives of largo mining companies over the property and shown them the various veins, shafts, etc. In consideration for his services tho Company agreed to issuo and allot to him 10,000 free sharos and 90,000 sharos to be escrowed on tho same terms as the vendors' consideration, and also to pay him the sum of $3,000 in cash on August l, 3970.

There arc no other material facto. I:

-9- GLENDWNJNO, JARRBTT, GOULD & Co.

ACCOUNTANTS orriccs. Monlrtol Cebovrg Toronlo Irontford loyal Trvil Tow*r Winttior Thvnrfcr toy r.O. Ion It Winnipeg Colgory Toronlo-Domlnlcn Centre Kontloopi Vontcwcr Toronto 1, Conodo Anodolti In clhtr t/wnMci Ttlepnone (416) 342-6001

AUDITORS' REPORT

To the Directors, Huron Bruce Mines Limited.

We have examined the balance sheet of Huron Bruce Mines Limited

as at July 31, 1970 and the statements of deficit, deferred exploration

expenditure, administration expenditure and source and application of funds,

for the period from incorporation, February 28, 1966 to July 31, 1970. Our

examination included a general review of the accounting procedures and such

tests of accounting records and other supporting evidence as we considered

necessary in the circumstances,

In our opinion, these financial statements present fairly the

financial position of the Company as at July 31, 1970 and the results of its

operations, and the source and application of its funds for the period then

ended, in accordance with generally accepted accounting principles applied

on a consistent basis throughout the period.

Toronto, Ontario, CHARTERED ACCOUNTANTS November 27, 1970.

S SM- l 54 3 -10-

HURON BRUCE MINES LIMITED (Incorporated under the laws of Ontario)

BALANCE SHEET

AS AT JULY 31, 1970

ASSETS

Current Cash 6,284.65 Accounts receivable 601.94 Prepaid expenses (Note A) 7.000.00 $ 13,886.59

Mining property (Note 3) 75,000.00

Deferred exploration expenditure 25.617.46 S 114,504.05

LIABILITIES

Current Accounts payable $ 20,713.16

SHAREHOLDERS' EQUITY

Capital stock (i;otcs l and 2) Authorized: 5,000,000 shares of $1.00 each

Issued and fully paid; 1,421,013 shares $ 1,421,013.00 Less; Discount 1,254.822.40

166,190.60 Deficit __72.399.71 , 93 ,790.89

$ 114,504.05

ircctor

Director .. - V '.( , .' . - - ' •^'•;V?.--iZ'- ',':'-'\ . m*-; Jlw: -11-

M; - - HURON BRUCE MINES LIMITED

NOTFS TO FINANCIAL STATEMENTS

JULY 31, 1970

1. Capital stock

During the period from incorporation, February 28, 1966 to July 31, 1970, the Company issued a total of 1,421,013 shares of capital stock as follows;

Shares Capital Discount Issued for: Mining property 750,000 750,000.00 675,000.00 Cash 207,005 207,005.00 176,300.00 Services 240,848 240,848.00 202,678.40 Settlement of claims against the Company 223,160 223.160.00 200.844.00

IA2JUQI3 $ The Company has a^ced to sell 250,000 shares of capital stock for $37,500.00 cash, payable within three days of the date of acceptance for filing of the Company's prospectus by the Ontario Securities Commission (the effective date). Options arc outstanding on a further 400,000 shares of capital stock, excTcisablc as follows:

200,000 shares at 20 cents per share within 3 months of the effective date 200,000 shares at 25 cents per share within 6 months of the effective date

2. Capital stock - management option

The Company has granted options on a total of 100,000 shares of capital stock at 20 cents per share to a director of the Company exercisablc on or before May 26, 1973.

3. Mining property

Patented mining rights covering approximately 9,000 acres and patented surface rights covering approximately 12 acres in ths Township of Plummer Additional, Sault Ste. Marie Mining Division, Ontario, acquired for 750,000 shares of capital stock valued by the directors at 10 cents per share. $ TS^QQPLJD.

4. Subsequent transaction

The Company has incurred costs of $12,000.00 relating to rehabilitation of the Taylor shaft of which $7.000.00 had been advanced at July 31, 1970. ^^-^ff^^'^-j^v^to^fj^-fi-^f ît:îîj^m^HÂ^.-f^^^^-û^^:'^m^^f-!ff

BORON BRUCE MINES LIMITED

STATEMENT OF DEFICIT

FOR TEE PERIOD FROM INCORPORATION FEBRUARY 28, 1966 TO JULY 31, 1970

Five Months Five Xonths February 23/66 ended ended to Years ended February 28, July 31, July 31, Februarv 28/67 1968 1969 1970 1970 ___:?69

Balance, beginning of the period 12,628.36 17,978.76 45,782.21 52,134.64 45,782.21

Administration expenditure 4,840.45 5,350.40 5,487.45 6,352.43 20,265.07 2,236.65 Organization expense 7,787.91 Claims against the company settled by the issue of 223,160 shares of capital stock valued by the directors at 10 cents per share 72,316.00

Balance, end of the period $ 12,628.36 17,978.76 45,782.21 52.134.64 72.399.71 48.068.86 '' -~-.',.'- -~ v""'T,'"™" ;'-" ~-: ,-TS'\"'- ~"^SPi,qr*-7i -.s^i'V^^ii-Pp^p?^! s?ffT^w*g^K!^jgj.Ai * VjT.*WUC*' r.*.^^^^|g "' : ""

HURON BRUCE MINES LXMITED

STATEMENT OF DEFERRED EXPLORATION EXPENDITURE

FOR THE PERIOD FROM 3NCOP70RATION FEBRUARY 28, 196' TO JULY 31, 197O

February 28, 1966 Years ended February 28 Five months Five Tr.ont'ns to ended Balance ended February 28, 1967 1963 1969 1970 Julv 31, 197O Julv 31. 1970 July 31, 1969

Property fencing 6,157.15 7,175.45 13,332.60 1,8^0.02 Acreage taxes 3 l,921.1b 774.92 768.24 4,416.04 4,404.48 12.284.86 1.840.02

STATEMENT OF ADMINISTRATION EXPENDITURE

FOR THE PERIOD FROM INCORPORATION FEBRUARY 28, 1966 TO JULY 31, 1970

Supervisory services $ 3,000.00 3,000.00 3,000.00 3,000.00 1,000.00 1,250.00 Director's services 11,000.00 85 Travel 924.00 958.19 820.00 1,266.00 1,396.72 342.00 to Consulting fees 350.OO 400.00 Office expenses 282.47 247.65 552.89 552.88 70. CO 230.35 Legal fees 5,193.89 Audit and accounting fees 1,000.00 Share certificates 282.24 Telephone and sundry 283.98 1,144.56 1,114.56 1.133.55 322.22 464.30 CO .40 5.437.45 20.255.07 r HURON BRUCE MINES LIMITED

STATEMENT OF SOURCE AND APPLICATION OF FUNDS

FOR THE PERIOD FROM INCORPORATION FEBRUARY 28, 1965 TO JULY 31, 1970

Five Months ^ive Months February 28/66 ended ended to Years ended February 28, July 31, July 31, February 28/67 1968 1969 1970 JL970 1969 Source Issue of capital stock - for cash 5 705 .00 30 .000. 00 - for services and * expenses 2 ,900 .00 35 ,269. 60 3 ? 605 .00 65 ,269. 60 Application T Deferred exploration expenditure A. ,921 .18 774.92 6,925.39 11,591.49 4 ,404. 48 1,340.02 Administration expenditure 4 .840 .45 5,350.40 5,487.45 6,352.43 20 ,265. 07 2,236.65 Organization expenses 7 ,787 .91

14 ,549 .54 6,125.32 12,412.84 17,943.92 24 ,669. 55 4,126.67 Increase (decrease) in working capital (10 ,944 • 54) (6,125.32) (12,412.84) (17,943.92) 40 .600. 05 (4,126.67) Working capital deficiency beginning of the period 10,944.54 17,069.86 29,482.70 47.426.62 29,682.70 Working capital deficiency end of the period 10*944.54 17,069.86 29,482.70 47,426.62 6,326.57 33,609.37

Number of shares issued for: Cash 7,005 200,000 Services and expenses 14,500 226,348 jjPfa*"Hf r" v* J ™K^S.'^BtSJvA

PC- ts;**-.Sfe v -~- -'

The; forcfjolnj constitutca full, true and jxUln dincJ. of all material facts relating to the r.ocnu-j.ties offered by this Prar.pcctuo as required l-y Tne Socuritic:; Act, 1966, and the rc^ulcvt.ioifc. thcrcuu-Jor.

DATED this 27th day of Nover.ber 1970.

F/P. W.F. Morrison Chief Executive Officer Director

t i /l -*"1-

^A^vA . *G7 Uhur^ji ^Chlef 'Financ.Lal Officer Director

To the best of our knov/ledgc, infom-ation and belief, the foregoing constitutes full, true and plain disclosure of all material facts relating to the securities offered by this Prospectus as required by The Securities Act, 1966, and tho regulations thereunder,

GLANDFIELD ft CO. LIMITED ^ Per: AMENDMENT NO. l TO TIE PROSPECTUS OF HURON BRUCE HINKS LIMITED toted November 27, 1970

The Prospectus of the Cocr.pnny is amended by the addition of the following under the heading "OFFERING" on page /* -

Glandfield has taken down and paid for 250,000 treasury shares at 15^ per share, being the firm comitmsnt referred to in the underwriting and option agreement dated October 15, 1970, between the Company and Glandfield, and has also taken down and paid for 65,000 treasury shares at 20J per share, being part of the option on 200,000 shares due on March 7, 1971. The Company has granted an extension of three months to Glandfield in which to take down the balance of the said option due on Karch 7, 1971, namely, 135,000 shares at 20* per share and a similar extension within which to take down and pay for a further 200,000 shares at 25f per share. Tho forcp.oing, together with the Prospectus dated November 2V, 1970, constitutes full, true and plein disclosure of all material factu relating to tho securities offered by this Prospectus as required by the Securities Act, 1966, and the regulations thereunder. Dated this 10th day of March, 1971 . Chief Executive/officer Director thief financial Officer Director

To the best of our knowledge, information and belief, the forepoinp,, together with the Prospectus dated November 27, constitutes full, true and plain disclosure of all material facts relating to the decurities offered by this Prospectus as required by the Securities Act, 1966, and the regulations thereunder.

GLANDFIELD 6 CO. LIMITED

per ma*!s**-: • n'-'-f

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LOCAT ION PLAN

HURON- BRUCE MINES LIMITED PLUMMER ADDITIONAL TOWNSHIP SAULT STE. MA^IE MINING DIVISION

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PLUMMER . ADDITIONAL TOWNSHIP

SAULT STE. MARIE MINING DIVISION ONTARIO

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