Nuinsco in the market for more exploration funding

With more than 600 overburden drill holes, some 20,000 rock samples, and other geological surveys behind them in Richardson Township, Nuinsco Resources Ltd. is getting closer to the higher-grade mineral zones it knows lie somewhere beneath the rock bed.
But while indicators suggest there’s “gold in them there hills,” Nuinsco told those attending three open houses in the district last week that not much can be done about it until additional funding comes through for its mining exploration project here.
So far, the project has succeeded in obtaining the gold mineralization of the #17 Zone and yet-to-be explored zones confined within a mineralized caldera structure.
This structure is estimated to contain about 20 millions ounces of diffused gold to a depth of 500 metres.
Meanwhile, the #34 Zone nickel, copper, and platinum group mineralization also remains a future target area, with the potential for an exceptionally rich metal value greater than $400/tonne.
But due to the lack of operating dollars, Nuinsco hasn’t been doing heavy drill work in Richardson Township since the spring–a stalemate it said was brought on by a poor showing on the stock market and a general mining industry slump caused by the Bre-X scandal.
This was a portion of the update Nuinsco president and CEO Douglas Hume brought to the three information sessions held in Barwick, Fort Frances, and Nestor Falls that attracted about 200 people altogether.
“Mining experts give us encouragement to continue work here as we have for the past four years,” he said. “We’ve spent an awful lot of money but we have a fantastic opportunity.
“How long it will take, and how much money, I couldn’t tell you but we are determined to keep the project running here,” he stressed.
In fact, Hume is counting on shareholders as the saving grace for the company’s heavy drill program as Nuinsco offers up an additional rights purchase consisting of one common share and one-half of one common share purchase warrant.
Each whole warrant would entitle the holder to purchase one additional common share at a pre-determined price until one year from the expiry of the rights.
Hume expected the new offer to shareholders would generate net proceeds of more than $2 million and jump-start the drill program back into business.
“This is an offer exclusive to existing shareholders to buy shares at a advantageous price,” he noted.
“In order to continue work, we are turning to our existing shareholders to continue funding [and] we are expecting the rights offering will permit us to do heavier work that would lead us to the discovery of a mineable deposit,” he added.
Dan Wright, community development co-ordinator with the Rainy River Future Development Corp. who was at all three sessions, stressed honesty and hope were two of the company’s greatest assets in finding success in its mining endeavours here.
“The big thing is to keep the public fully informed about what’s going on. It takes away rumours and talks about realities of the project,” he noted.
“In this particular case, what we are prepping for is a mineable situation and that, in turn, be the start of public talks,” Wright added.
“Nuinsco has always been up front. There’s never been any gloss–just hope and practicality,” he said.