52FeSNE»«46 63.3578 ATIKWA LAKE (GRAPNEL 010

MAYBRUN MINES LIMITED

l eoor/

iL IJear CnhJ, $J$ 31, 1965

MAYBRUN MINES LIMITED

To THE SHAREHOLDERS:

The Annual General Meeting of Shareholders will be held on the 31st day of January, 1966 at the time and place as set out in the accompanying notice. Shareholders who are unable to attend are requested to return their proxies in the envelope provided for that purpose as quickly as possible so that they may be properly represented at the Meeting.

Financial statements for the year ended July 31st, 1965 are enclosed. Subsequent to July 31st, 1965, an additional amount of $52,500.00 was added to your Company's treasury by means of an underwriting on 350,000 shares of the capital stock of the Company.

Dr. S. S. Szetu, consulting geologist, was retained by your Company to make a study and recalculate the known ore reserves on the Company's Atikwa Lake copper-gold property. As a result of his study, Dr. Szetu recommended that the Company allocate approximately $125,000.00 to further explore the potential of the property and the probability of reopening the mine for mining and further development. This development program is now under way.

We are enclosing, for your information, a summary report prepared by Dr. Szetu dated January 4th, 1966, setting out the results of the program to date.

Recent advances in the price of copper and the world shortage in this mineral have certainly enhanced the economic possibilities of the Atikwa Lake property.

During the past financial year, the Company conducted a geophysical survey and a diamond drill program on its mining claims in Langmuir Township, Porcupine Mining Division, Ontario. The drilling objectives "indicators" would appear to have been due to fault zones and not to mineralization.

Shareholders will be kept informed concerning future important developments on the Company's Atikwa Lake property.

Respectfully submitted on behalf of the Board of Directors,

"GEORGE D. RICHMOND",President.

Toronto, Ontario, January 4th, 1966.

MAYBRUN MINES LIMITED

(=jeotoqi&i>& Report

tiy blocked out 2,824-,825 tons flie flhnvg are ore-grade, with

January 4, 1966. The President and Directors, MAYBRUN MINES LIMITED, Suite 403, 62 Richmond Street West, Toronto, Ontario.

V

GENTLEMEN:This is a summary for the year end 1965 on the program of exploration work in progress on

your Atikwa Lake property. The program followed a recommendation given in our report on Study and Calculation of Ore Reserves, dated September 30, 1965.

Previous surface and underground development indicated and parti' of rock with a grade of 1.18% Cu., 0.08 oz^Au.,j 1,508,454 tons^ofjL _ mineable widths from 8 feet to 120 feet, ftnd~avefaging 1.48% Cu.,_D.ll oz. Auj

The current program of work is designed to test a nine-claim area which has never been covered by electrical geophysical survey, and to block out projected ore-shoots and the extension of some other ore-shoots to the 500 foot level by surface diamond drilling. The program is also designed to obtain additional information for possible open pit mining on part of the mineralized zone and to further outline the indicated ore at about the 1000 foot level. An Induced Polarization survey is to be carried out along the mineralized zone to assist this current program of surface drilling.

The following have been accomplished:(1) A transit-line grid re-established at 300 foot intervals, covering the "Ross", "B", "Discovery",

"N" and "7" mineralized zones. This line grid has been extended partly on the lake to the east of the said zones for the I.P. survey, which is to be started immediately at the New Year.

(2) The line grid for a geophysical survey to cover the south nine claims of the property has been completed, but the actual survey has just started and the results will not be available until about the end of January, 1966.

(3) Drill holes Nos. M-65-1, M-65-3, M-65-5 and M-65-6 have been completed. Holes Nos. 2 and 4 are partly completed. The results are listed as follows:(a) Hole No. M-65-1, located at Section 250S (250.92S., 100.40W.), drilled east at 70 10'

dip. The ultimated depth is 800'. No surface drilling has ever been done before at this section.The hole cut a mineralized zone from 11.5' to 140.5'. The more interesting sections are listed as follows:Section

(1)(2)

Footage Width Cu.43.091.7594.7598.5

106.5114.5

87.093.2596.75

104.5113.5115.5

1.452.560.971.560.306.80

Au./oz,/ton0.0520.030.010.030.010.14

(Note: There are traces to 0.68 Ag./oz./ton in all samples assayed. The inbetween narrow sections have now been sampled by your Resident Geologist, Mr. J. D. Murphy, for assay, but have not been received to date.)The hole also cut 4.20% Cu., 0.03 Au./oz./ton from 189.5' to 190.5'; 1.35% Cu., 0.06 Au./oz./ton from 539.0' to 541.0'. There are several small diorite-porphyry dikes occurring

from 550.8' to the end of the hole at 800'. These dikes may cut-off the north extension of the narrow shoot indicated by one hole at about the 700' level on Section 300S.

(b) Hole M-65-2 is proposed to test the extension of a deep ore-shoot at about the 1000 fool level. This hole was completed to 814 feet before the drill broke down shortly before Christmas.

(c) Hole M-65-3, located at Section 150S (150.20S., 248.36W.), drilled east at a dip of 40°. • The ultimated depth is 201 feet. No surface drilling has ever been done before at this section.The hole cut mineralization from 35.7' to 172.0' and the more interesting sections are listed as follows:Section

CD(2)

(3)

Footage

(4)

35.7 —64.0 —75.5 —89.0 —

103.0 —110.5 —116.0 —118.5 —123.0 —126.5 —129.0 —134.0 —144.3 —147.5 —161.0 —171.0 —

50.067.080.0

100.7109.2112.5117.0119.5125.0127.5132.0135.0145.5148.5162.0172.0

Width14.3' 3.0' 4.5'

11.7' 6.2' 2.0' 1.0' 1.0' 2.0' 1.0' 3.0' 1.0' 1.2' 1.0' 1.0' 1.0'

Cu. %0.930.862.991.561.413.922.144.644.462.024.620.922.572.321.381.20

Au./oz./ton ——

0.010.100.050.050.040.120,020.010.011.120.010.560.030.050.03

(Note: All samples assayed traces to 0.94 Ag./oz./ton. The narrow inbetween sections have now been sampled for assay, but have not been received to date.)

(d) Hole M-65-4, located at 150.20S., 252.06W., vertical to a depth of 113'. The proposed depth is 1,050 feet and the hole will be deepened after the completion of Hole M-65-2. Copper mineralization was noted from 60.8' to 107.7'.

(e) Hole M-65-5, located at Section SON. (49.60N., 297.29W.), dip 40°, bearing east, ultimate depth: 157'.The hole cut mineralization from 15' to 129.5'. The more interesting sections are listed as follows:

Footage

(2)

15.0 —22.5 —25.0 —29.7 —32.0 —44.0 —46.0 —50.0 —55.5 —59.5 —65.2 —72.0 —76.5 —78.2 —81.5 —86.5 —89.5 —91.5 —

16.025.029.731.035.045.048.551.556.760.566.273.078.279.282.587.590.592.5

(lost core)

Width1.0' 2.5'

1.3'3.0'1.0'"2.5'1.5'1.2'1.0'1.0'1.0'1.7'1.0'1.0'1.0'1.0'1.0'

Cu. %0.961.79

1.680.803.962.22I.12

• 1.61 0.84 2.34 0.81 0.84

II.80 1.29 1.25 1.22 2.48

Au./oz./tonL25 0.27

0.070.050.250.020.010.021.500.010.010.010.060.020.050.020.02

Section

(3)

Footage96.0 — 97.7 98.5 — 99.5

100.0 — 102.0 123.0 — 124.0 125.5 — 127.5 128.5 — 129.5

Width1.7' 1.0' 2.0'i.o:2.0' 1.0'

Cu. %3.625.483.921.600.331.54

Au./oz./ton0.151.35 .0.050.010.010.01

v (Note: There is apparent ore grade material in Section No. 2. The average grade will be *•. calculated when the narrow inbetween sections have been sampled and assayed. Part of

this section is outstanding because of the fact that only mineralized rocks — not ore —were expected.)

(f) Hole M-65-6, located at Section I50N. (150.60N., 347.90W.); dip 40° bearing east, depth: 250'. There is one short old surface hole located at 300 feet to the east on this section.The hole cut mineralization from 9.0' to 36.5' and from 62.5' to 126.0'. interesting sections are listed as follows:

The more

Footage Width

(2)

.(3)

14.0 —16.8 —21.8 —25.0 —28.5 —62.5 —72.0 —74.0 —97.5 —

101.0 —103.5 —

16.018.823.628.029.565.073.075.0

100.3102.0108.0

Cu. %1.940.782.151.121.120.980.547.100.701.543.28

Au./oz./tonO23 0.02 0.05 0.05 0.13 0.08 0.01 0.18 0.02 0.07 0.04

(Note: The narrow inbetween sections will be sampled and assayed when work is resumed on the property.)

The drilling results obtained up-to-date are satisfactory with all but one objective having been apparently confirmed and also indicated the occurrence of one unexpected ore-shoot. The results have improved the over-all picture for open pit mining at the south part of Zone "B", which is now under serious study.

In addition to the six holes described above, there are eleven other holes which have been proposed for drilling. The total number of holes to be drilled will no doubt be increased when the geophysical surveys have been completed. The new indicated ore-shoot cut by Hole M-65-5 points to the fact that some of the other sub-ore grade zones should also be tested.

Respectfully submitted,

CANA EXPLORATION CONSULTANTS LIMITED, S. S. SZETU, Ph.D.,

Consulting Geologist.

NOTE:Cu. = Copper Au. = Gold Ag. = Silver

MAYBRUN M(Incorporated under the laws on

balance

ASSETS

Current assets:Cash ..........................................."... $ 68,605.46Government and government guaranteed bonds, at cost (market

value $51,495.00) ................................ 54,750.00Accrued .interest on bonds ............................. 875.02 $ 124,230.48

Investment in grubstake 300.00

Fixed assets, at cost:Mining claims, at valuation of $191,688.30 attributed to capital

stock issued for the claims plus $132,098.16 paid in cash (Note 1) ....................................... $ 323,786.46

Buildings and equipment .............................. 45,188.83 368,975.29

Deferred expenditures:Exploration and administrative expenditures, per statement ... $ 1,221,154.51 Organization expenses and cost of supplementary letters patent 8,764.43 1,229,918.94

$ 1,723,424.71

The accompanying notes are an integ

LIMITEDhe Province of Ontario)

at * 3t, 1965

Current liabilities:Accounts payable .

LIABILITIES

$ 2,250.00

Capital and deficit:Capital stock (Notes 2 and 3):

Authorized:6,000,000 shares, par value $1.00 each (as increased

by supplementary letters patent dated November 5, 1964)

Issued and fully paid:5,400,000 shares .............. $ 5,400,000.00

Less — discount (reduced bypremium of $150,000.00) 3,268,495.10 $ 2,131,504.90

Deficit (no change during year) ......................... 410,330.19 1,721,174.71

Approved on behalf of the Board of Directors:

"G. D. RICHMOND", Director.

"H. SHLESINGER", Director.

$ 1,723.424.71

art of the financial statements.

MAYBRUN MINES LIMITED

DEFERRED EXPLORATION AND ADMINISTRATIVE EXPENDITURESFor the Year Ended July 31, 1965

Exploration expenditures:Atikwa Lake, Ontario:

• • Engineer's fees and expenses for property evaluation —estimated cost to date ......................... $ 2,000.00

Government fees and licenses ...................... ____121.15 $ 2,121.15Langmuir Township, Ontario:

Geophysical surveys .............................. $ 3,500.00Diamond drilling ................................. 9,872.55Engineers' fees and expenses ....................... 1,252.99Miscellaneous expenses ............................ ____100.50 14,726.04

Township 27, Sault Ste. Marie, Ontario:Geophysical surveys .............................. $ 7,200.00Engineer's fees .................................. 300.00Government fees and licenses ....................... 343.00Miscellaneous expenses ............................ _____48.94 7,891.94

Yukon Territory — government fees ..................... ____100.00$ 24,839.13

Administrative expenditures:Accounting and secretarial services ...................... $ 2,400.00Transfer agent's fees and expenses ....................... 1,308.28Shareholders' meeting expenses ......................... 1,228.82Shareholders' information .............................. 1,016.07Legal and audit fees .................................. 2,157.15Directors' fees ...................................... 1,250.00Stock exchange fees .................................. 1,254.35Charitable donations .................................. 1,000.00Miscellaneous expenses ................................. ____156.08

$ 11,770.75Less — interest earned ............................ 4,429.56 7,341.19

Expenditures for the year .................................. $ 32,180.32Balance deferred at July 31, 1964 ........................... 1,188,974.19Balance deferred at July 31, 1965 ........................... $ 1,221,154.51

SUMMARY Exploration expenditures:

Atikwa Lake ........................................ $ 1,091,629.34Langmuir Township .................................. 14,726.04Township 27 ........................................ 7,891.94Yukon Territory ..................................... 900.00 $ 1,115,147.32

Administrative (net) ..................................... 106,007.19$ 1,221,154.51

AAAYBRUN MINES LIMITED

NOTES TO FINANCIAL STATEMENTS July 31, 1965

v>*

Note 1 — By an agreement dated February 26, 1964 the company leased its .Ram and Tundra mineral claims in the Yukon Territory for a term of two years from March 1, 1964, with option to renew for a further two years.

The lease provides that in the event ore is recovered or extracted by the lessee the company will receive 15% of the net smelter returns.

The lessee is committed to expend a minimum of $5,000.00 per annum on the said mineral claims.

Note 2 —During the year ended July 31, 1965 the company issued 400,000 shares of capital stock for $60,000.00 cash and 524,993 shares for mining claims on which a valuation of $39,999.30 was placed.

Note 3 —By an agreement dated October 4, 1965, an underwriter has agreed to purchase 350,000 shares of the company's capital stock at 150 per share.

AUDITORS' REPORTTo the Shareholders of Maybrun Mines Limited.

We have examined the balance sheet of Maybrun Mines Limited as at July 31, 1965 and the statement of deferred exploration and administrative expenditures for the year ended on that date. 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.

No provision has been made for depreciation of building and equipment, nor for any damage that may have been sustained due to the property being shut down since July 7,-1957.

In our opinion, except as indicated in the preceding paragraph, the accompanying balance sheet and statement of deferred exploration and administrative expenditures present fairly the financial position of the company as at July 31, 1965-and its activities for the year ended on that date, in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year.Toronto, Ontario, October 4, 1965.

FISHER, NISKER & COMPANY,Chartered Accountants.

J. ~.'^ c: a 1 nuinnary on MAYERUN MINES LTD.

Main .property:... 22 claims, Pap.ulus-Atikva Lakes., some.50 miles from Kenore, .Ont.........

Development: 1. Six drills exploring the surface have established a continuous strike length of 2,400 feet long which is still open at both ends! Drilling continues.2. Several other interesting sectors will be drill tested later.3. A 3-compartment shaft has been sunk to a depth of 300 feet with drifting being done on the 150 feet and 275 feet levels. Under ground drilling for a minimum of 10,000 feet will be done.

Values: Copper$r.2i*1.1*'+

1.71+1.591.701.132.922.152.37

Jo Idoz..05.02.01.01.03.05.13.05.02

Width

37-Oft16. 5ft12.0ft6.3ft3.6ft6.0ft

25.5ft36.8ft5.0ft

Copper56

1.112.082.111.802.271.322.821.091.15

Goldoz..10.12.1*4.25.10.15.36• 58..76

Width

20.0ft23.5ft7.0ft

15.Uft•5.5ft5.0ft5.0ft5.0ft2.5ft

Ore Reserves; 1,510,000 tons of copper-gold ore, valued at $25,250,000 (at cur rent prices) has been drill indicated to shallow depth to date. A substantial tonnage of lower grade ore is not included. This indi cates a $16 million profit before taxes and write-offs. Officials are confident of expanding these figures from anticipated under ground results. ' .'.

Production: Production is being considered at the rate of 1,000 tons daily.

Other Properties; 16 claims, uranium prospect, Blind River, Ontar^>.2 groups, base metals prospects, Bathurst, ''....

Further work on these holdings is deferred with all efforts being concentrated on bringing the copper-gold property into production.

Finances: Accounts at October, 1955, showed the treasury with $6UO,000 cash in hand. Only 3,500,007 shares have been issued from the 5,000,000 .authorized shares leaving a comfortable treasury share reserve.

Management: Management is experienced and able and have pursued'a consistent development programme that is returning persistent success.

Summarv: v.'-jth a proven, substantial, ore reserve that has favourable chances of beini*. increased to benefit from today's high copper prises, ~:i£ires oiiov excellent longer term growth potential coupled v. ith a comfortable degree of safety.

;:;-.:;, at market and hold for longer term gains, (About £1.75 T.S.E.)

J. L. Li twin & Co^.ar.v Ltd.

: nsw:

9 ONTARIO

DEPARTMENT OF MINESLABORATORIES BRANCH

7263

CERTIFICATE OF ANALYSISThe following results have been obtained on samples submitted by

J.C. Davies f Resident Geologist, 20*3 Mlns St., Kenora,

/i ' - iti^ ^^; /,(/V*r / 1 QUALITATIVE SPpCTf

m , t / x \ Pothole Zone Turtlepond Lake (north J fmM-^Antimony — —Anenic -BerylliumBismuth ~ _Cadmium *" „Cerium ~ «. 'Chromium T TCobalt - -Copper - . TGermanium - . . •• . .Lead - . - i- -Lithium ~ ~Manganese Ti» . TLMercury - . • . . —Molybdenum *• • ' »,•

.'>'•' i ,~- r • • " < - ' . ..

• ' - ' •' •-- ' *, •-.,*''.• J ,". .' f - t -

! --'

'- rf •'_• J . ' s

' I - \ "

1IOGRAPHIC ANALYSIS, Turtlepond Pothole Zone

frfflke ( north ) ' (east)NickelNiobium - - -SilverTantalum ~ . -Tellurium " "Thorium *" "TinTitanium TJ, TLTungtten „ -Uranium - -Vanadium T ?

- Yttrium « . • -Zinc „ • ' '

.• 'Zirconium M • "*' •' - * *

.• ••••' '-:• '••. : .'.-, >

Key to symbol! : H 10tolOO<!b MH 5 to l&jb

: M 1 to lO^fc LM 0.6 to 6.0^ L 0.1 to 1.0* TL 0. 05 to 0. 50% T -0. 01 to 0. 10* „ None detected or

insignificant trace.

Date.

Fees received for above $.,..,....$.

66 ,,^<y/<....(P.-.A.t...«8iWl<>)Provincial Aiiayer

Except by special permission, reproduction of these results must include any qualifying remarks made by this department with reference to any sample.

ONTARIO

DEPARTMENT OF MINESLABORATORIES BRANCH

B 7687

CERTIFICATE OF ASSAYThe following results have been obtained on samples submitted by

J.C. DavieSf Resident Geoloist 20 M^" S^ Kennra

Sample No.Bay 2«n«

Sample No .Bay Zonft Nnrt.h

Sample »!«,'TiiT'i' ") ppnnr^ T.g]^^ ^rtrth'

Ssmpl e MO ,Potfjpl e Znn*> |^st

GOLDoz

PER TON

0,01

0.01

Traco

Trace

GOLD VALUE

PER TON

ftrt 1C— W+rtt —

$0.3? -

SILVER OZ

PER TON

•

PERCENTAGE OF

— Gejspe* — O t 8J|<C —————————————

Copper — OvOTJ?" • •

Fees received for above £ ... Department

,« 66 . AJbddleProvincial Asiayer

Except by special permission, reproduction of these results most include any qualifying remarks made by this department with reference to any sample.

ONTARIO

DEPARTMENT OF MINESLABORATORIES BRANCH

CERTIFICATE OF ANALYSISThe following results have been obtained on samples submitted by:

J t C, Davids, Resident, Geologist, 20? Main St,., Kenora^ Ontario

QUALITATIVE SPECTROGRAPHIC ANALYSIS

AntimonyArsenicBerylliumBismuthCadmiumCeriumChromiumCobaltCopperGermaniumLeadLithiumManganeseMercuryMolybdenum

•

_ _--- -- , ~— . ••

T T•, M

L_ -- -W* . • Ml

T TL-

„

Nickel "* TNiobium ~SilverTantalum "*Tellurium ""Thorium ""TinTitanium TLTungsten »Uranium -Vanadium TYttrium •••ZincZirconium *"

•

^^

.

m i.' ' „

.TL..-T•M

~

Mk>

Key to symbols: H 10 to 100ft MH 5 to 15ft M 1 to 10ft LM 0. 5 to 6. Oft L 0. 1 to 1. Oft TL 0. 05 to 0. 50ft T • 0. 01 to 0. 10ft „ None detected or

insignificant trace.

Fees received for above £ .....Department

Date...........Provincial Atniyer

Except by special permission, reproduction of thetc results mutt include any qualifying remark* made by this department with reference to any sample.

o

* ..^»»!t' T

I- . ytwyo

D. D. H. No. jg

.}I

/

* £r-ry<>No.

Lat.

Dep.

DipD. D. H. No.

_0 Elev. Start

Bearing Depth

toot Grade Mineralization I Noranda |No. Length* Cu. An. j Remarks

i •-j

U--

4

Z?Sheet No.

D. D. H. No.X

«. /; i.

Lat.

Dep.

Dip

Depth

Start

End