Brookbank development remains stalled by suit

The legal wrangle which is stalling the sinking of a 1,800-ft shaft on the Brookbank property near Beardmore, Ont., is far from being resolved, Metalore Resources says. Following announcement in The Northern Miner of the discovery in March, 1986, Ontex Resources launched a legal suit in the Supreme Court of Ontario claiming $500 million in damages or return of the property from Metalore. Metalore has filed a counter suit claiming $20 million in damages from Ontex for delaying the project.

George Chilian, president of Metalore says that the suit is currently at the examination for discovery stage. Ontex President Salvatore Fuda confirmed this, saying that two days of examinations have been completed. As a result, a proposed underground exploration program made by Hudson Bay Gold, has been delayed until title to the property is cleared. Hudson Bay optioned the property in July, 1986. Part of the deal requires that the Hudson Bay Mining & Smelting affiliate sink a 1,800-ft three- compartment shaft.

Ed Thompson, who recently joined the Hudson Bay organization, says the company is only conducting limited surface drilling which is designed to confirm Metalore’s original results. Metalore’s discovery holes included 53.4 ft grading 0.47 oz gold per ton and 32.6 ft grading 0.23 oz gold per ton. A total of six holes were completed by Metalore which cut the zone at depths ranging from 1,341 ft to 1,450 ft.

Under an agreement signed between Ontex and Metalore in 1983, the former com pany holds a 10% net profits interest in the Brookbank project.