Metalore mum on Brookbank results

Metalore Resources (TSE) isn’t releasing any new drill results from its Brookbank gold property in northern Ontario, although a $1- million exploration program was completed on the claims last year by Placer Dome (TSE) and a summary report on that work has been written. According to Metalore President George Chilian, the results are being kept confidential because of an ongoing 4-year legal battle with Ontex Resources (ASE) over ownership of the Brookbank property.

The Ontex versus Metalore litigation began back in 1986 and an Ontario Supreme Court trial date is now set for Sept. 4 with a 3-month trial period expected.

Chilian said Placer Dome has completed the first phase of its exploration expenditures required under a 33-month option agreement with Metalore. The senior partner, which can earn a 50% interest in the property, is awaiting the outcome of the court battle before moving on to the second phase of exploration work. Some surface sampling and correlation of drill data will be continued this summer on certain claims in the Brookbank joint venture as well as on other claims that are not subject to the lawsuit.

More than 35,000 ft. of drilling were completed at Brookbank last winter by Placer Dome. Preliminary reserves were last reported at 1.3 million tons grading 0.3 oz. gold per ton.

Under terms of the $7-million option agreement signed with Metalore last March, Placer Dome doesn’t have to make additional phase-two expenditures on the Brookbank property until the legal dispute is settled.

“They (Placer) would be working on the property right now if it weren’t for the legal problems,” said Chilian.

Meanwhile, Metalore is planning to continue exploration by itself this summer over a group of 64 claims in Walters Twp., where a program of geological mapping and diamond drilling is planned for the Fox Ear Lake grid.