Gold Commissioner cancels claims next to Eskay Creek

The Chief Gold Commissioner of British Columbia has ordered the cancellation of the DUP 1-3 claims which had been subject to an option agreement between Adrian Resources (VSE) and Paul Dupras and Alex Briden. The claims are adjacent to the Eskay Creek property north of Stewart, B.C., owned equally by Calpine Resources (VSE) and Stikine Resources (TSE).

The ruling by the Gold Commissioner came about as a result of Section 35 complaints under the Mineral Tenure Act by Matt Mason, a principal of ARC Resource Group. The ground formerly covered by the DUP claims is now covered by the IKS 1-3 claims held by ARC and optioned 100% to Adrian Resources.

The IKS 1 and 3 claims, but not 2, are in turn the subject of complaints under Section 35 of the Act by Ken McKenzie. A number of other properties in the Eskay Creek area, many of which were optioned by Prime Group companies, were also restaked by Ken McKenzie on the basis of Section 35 complaints.

Adrian expects, however, that Dupras will appeal the Gold Commissioner’s decision to cancel the DUP claims. To complicate the matter further, just before the ruling Dupras and Briden terminated their option agreement with Adrian which would have allowed it to earn a 50% interest.

In a legal action filed in the Supreme Court of British Columbia, Adrian will be seeking a declaration that the agreement is valid and binding should Dupras ultimately prove valid title to the claims.

In a separate ruling, the Gold Commissioner cancelled the Cyr 2 claim held by Calpine under an option agreement with Paul Dupras. This ground is now covered by the STOR 2 claim, which is held by Calpine (66.67%) and Canarc Resource (VSE), a company associated with ARC. The STOR claim in turn is the subject of a Section 35 complaint by Ken McKenzie.