Stuart offers Int. Baslen stake in Hemlo gold claims

An announcement that International Baslen Enterprises (ASE) has been offered the chance to finance a legal fight for control of 148 claims in the Hemlo, Ont., area was enough to ensure a packed house at the company’s recent annual meeting in Toronto.

An interest in the claims, which house Hemlo Gold Mines’ (TSE) huge Golden Giant Gold mine, are being offered to Baslen by stock promoter Charles Stuart who recently had them restaked in an undercover operation.

Noranda is connected to the Golden Giant which produced 369,300 oz gold last year, via a 50% holding in Hemlo Gold.

Claiming that the Hemlo ground was staked illegally by Noranda Inc. (TSE) back in 1982, Stuart has sold Baslen an option to acquire a 20% equity interest in the holding company set up to hold the claims for $50,000.

The proceeds are being used to finance phase one of a law suit, expected to be filed by Stuart against Noranda.

If after due diligence, it is found that Mr Stuart has a right to the claims, Baslen will exercise the option,” said Toronto lawyer Walter Bowen, who is acting as Baslen’s advisor.

“The offer will only be accepted if legal counsel and management are satisfied that this represents a corporate opportunity that can be pursued,” he said. Hemlo option

According to Baslen treasurer Andre Dorfman, it will be at least another couple of weeks before the company can decide whether or not to exercise the Hemlo option.

“Our next move is to get an injunction to stop Hemlo from mining our gold,” said Stuart who attended the Baslen meeting dressed in a red tartan sports jacket.

Since the Hemlo claims are under lease to Noranda by the Province of Ontario, Toronto lawyer James McCartney recently told The Northern Miner that Stuart is wasting his time in attempting to claim the Hemlo ground.

“I have researched the problem for over 10 months and the Mining Act wasn’t followed when Noranda restaked the ground in 1982,” said Stuart. “The ground has been open for staking for about 10 years.”

In other news, a headframe is expected to be on site within a couple of weeks at Baslen’s 3,000-acre Val d’Or property which already contains a 3-compartment 782-ft shaft and 2,180 ft of underground drifting.

While the property is known to host about 50,000 tons of gold reserves, a recent announcement that the K and No 4 zones have been traced from the adjoining Sullivan mine claims onto Baslen ground, has sparked a preliminary report recommending immediate exploration. Sullivan mine

“The granitic body associated with the Sullivan mine to the west appears to underly much of the northern part of the ground, its contact phases occurring immediately north of the Harricana deposit and near the northeastern corner of the Baslen property,” the report says.

On Baslen’s Val d’Or claims, established reserves in vein 13 are 25,000 to 30,000 tons grading 0.26 to 0.53 oz gold per ton. The Hydro vein which contains a possible reserve inventory of 26,000 tons of grade 0.111 oz, is open for extension to the east and west, Baslen says.

Baslen recently reported a first quarter cash position of $35,097 which compares with $47,337 at the same period last year.