The Court of Appeal of British Columbia recently dismissed an appeal by Taseko Mines (TSE) in which Taseko sought to nullify an option allowing Cominco (TSE) to earn an interest in its Fish Lake copper- gold property, 130 km from Williams Lake, B.C. As a result of the ruling, Cominco continues to hold its option to earn an 80% interest in the property by making a production decision, with Taseko retaining a 20% net profit interest.
Taseko, which based its legal action on Cominco’s alleged failure to live up to the terms of the agreement, said it will be “considering its options for further legal action within the framework of its agreement with Cominco.”
The Fish Lake property has been explored in the past, namely by Bethlehem Copper in the late 1970s. This work led to a preliminary reserve estimate of 201 million tons grading 0.24% copper, 0.015 oz. gold per ton and 0.33 oz. silver.
William Wolfe, Cominco’s exploration manager for Western Canada, told The Northern Miner the property is currently viewed as a long-term hold.
“We’ll keep reviewing the economics of it on a regular basis,” he said, adding that further metallurgical work may be done to determine if gold recoveries can be improved.
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