Battle over Frasergold Continues

The battle for control of the Frasergold project west of Williams Lake, B.C. appears to be far from over.

Two Vancouver-based juniors, Southlands Mining Corp. (VSE) and Eureka Resources, (VSE) have locked horns over the gold project for some time now. According to Eureka, recent discussions between the partners were unsuccessful in resolving the major outstanding issues of the dispute.

Eureka president J. J. O’Neill says the winter development program performed by Southlands’ operating partner, Sirius Resource Corp., did not meet the objectives of the recommended program. Eureka described the quality of work as “inadequate, poorly planned, sloppy and incompetent.” The company also states that it understands the results of a recent reverse circulation drill program were “very inconclusive” and it wishes to regain “absolute control” over future programs.

Philip Yeandle, president of Southlands Mining, calls these allegations “unprofessional, premature and trifling” and says the company has obtained an injunction to prevent Eureka from interfering with its continued exploration program.

The company is compiling a report on the reverse circulation program and says upon receipt of final results it expects to be in a position to announce indications of a mineral inventory and grade “which will be of great significance in the continuing development of the Frasergold project to production feasibility.”

Eureka says it will continue its position in litigation to maintain a 100% interest in the property.