Partners dispute holds up work on DOC gold-silver bet

A dispute between joint venture partners Magna Ventures and Silver Princess Resources is holding up work on the Doc gold-silver claim group in the Sulphurets belt near Stewart, B.C.

At issue, according to Magna President Bradford Cooke, is Magna’s right to earn a 50% interest by spending $1.2 million, which it completed Nov 12. Cooke says the company spent approximately $1.6 million by that date and close to $2 million on exploration by the end of January.

Cooke claims that Silver Princess defaulted on the agreement and invited Magna in writing to take them to legal arbitration. Magna started arbitration proceedings late February.

“Management anticipates receipt of the Transfer of Interest through legal arbitration within 60 days,” Cooke says.

Silver Princess President H. Briden says his company has 14 days to appoint an arbitrator and would also like a quick settlement. “In our opinion they have not fulfilled the clauses in the agreement and we have advised them of that,” Briden told The Northern Miner.

In the meantime, Magna has proposed a $4.3-million program for 1988, including 2,000 ft of underground development, 30,000 ft of diamond drilling, metallurgical testing and road construction. The company is seeking financing and anticipates work will resume this summer.

Based on 1987 exploration, including 1,235 ft of underground drifting, 2,278 ft of underground drilling, along with 3,000 ft of surface drilling in 1986, Magna estimates reserves in the Q17 vein in all categories, uncut and undiluted, amounting to 207,000 tons grading 0.32 oz gold per ton and 1.38 oz silver. The drifting was successful in proving up high grade ore to 250 ft below surface and the vein is open in all directions.

Goals of the next phase will be to prove up 400,000 tons of ore grading 0.5 oz gold in the Q17 vein, Cooke explains, and to systematically evaluate the Q22, Q25 and Q28 veins, as well as four other veins which were discovered in last year’s surface exploration program.