Noranda Exploration to start work on Capricorn bet

Noranda Exploration plans to start work shortly on the Capricorn gold property at Rouyn, Que., following the lifting in late February of a court injunction preventing any work from being conducted.

Noranda will be seeking the extension of a substantial deposit that has already been traced on the Waite-Beauchastel and Ribago properties.

The Capricorn property was originally 100% owned by Aiguebelle Resources. It vended to Marshall Minerals a 60% interest. Noranda then made a deal to earn Marshall’s 60% interest. Aiguebelle, however, says it had the right of first refusal on the Marshall-Noranda deal — in effect, the right to match whatever deal Noranda offered.

The dispute went to the Quebec Superior Court where the Marshall- Noranda deal was upheld, but Aiguebelle took that decision to Quebec’s Court of Appeal and subsequently obtained an interim injunction preventing any further work on the property. That injunction has since been lifted even though the appeal is still before the court.

In the meantime, Aiguebelle has been taken over by a 100%-owned subsidiary of Cambior called Rouanda Mines. The Northern Miner understands that Cambior plans to pursue the appeal. As a result, the Cambior subsidiary will have at least a 40% interest in the property and could increase that if the appeal finds in its favor.

Cambior and Noranda are already partners on the Ribago property which adjoins the Capricorn property. Noranda has a 41% interest in Ribago while Cambior has a 34% interest and Cogesco Mining Resources has a 25% interest. Noranda holds a 100% interest in the Waite-Beauchastel property.