Casa Berardi property focus of a legal dispute

News of a gold find in Douay Twp. in the Casa Berardi area of northern Quebec has created a stir in the mining industry and indirectly sparked a legal dispute. Inco (TSE), Societe d’Exploration Miniere Vior (ME) and Cambior (TSE) reported intersecting 59.3 ft. of 0.23 oz. gold per ton in a single drill hole at their jointly owned Douay property northeast of Joutel, Que. (T.N.M., Feb. 19/90).

Operator Inco has a 42% interest, Vior 37% and Cambior 21%. Results of a second hole drilled to a vertical depth of 600 ft. (200 ft. deeper than the first hole) and 200 ft. south of the discovery hole were to be released shortly after presstime.

The legal action has been taken by Golden Rule Resources (TSE) and Northern Abitibi Mining (ASE), which own adjacent property to the north and west of the Douay project. Being disputed is an option agreement between the two companies and Inco for the property which straddles the boundary between Douay and Joutel twps.

The pair has filed a statement of claim in the Court of Queen’s Bench in Calgary, Alta., seeking a declaration that no binding agreement with Inco was completed with respect to the Douay/Joutel claims. Alternatively, the companies want the Feb. 6 agreement with Inco declared void and unenforceable.

Golden Rule and Northern went to court after Vior and Cambior announced they would become parties to the option agreement with Inco. According to Inco, Vior and Cambior, the three have an option to earn a combined 60% interest in the Golden Rule-Northern claims by spending $1 million on exploration during the next four years.

Vior also says it has acquired the interest of Exploration Finor in the Golden Rule-Northern claims.

Meanwhile, Vior has entered into an option deal, subject to regulatory approval, with Inco regarding claims owned by Vior which straddle the boundary of Joutel and Aloigny twps., northwest of the Douay project. Inco may earn a 50% interest in the property by spending $1.2 million on exploration work during the next three years. Vior will be the operator of the exploration program.

The deal also includes a private placement, valued up to $950,000, whereby Inco will purchase 250,000 shares of Vior at $2 per share, and has the option to purchase an additional 150,000 shares of Vior at $3 each by the end of 1990.

At the Douay project, two more holes, to the west and east and 200 ft. from the discovery hole, of the initial 4-hole program remain to be drilled.

Among the companies active in the region, Greater Lenora Resources (TSE) says it is the second- largest landowner in the area of the Douay project after Inco. Lenora says it has a 76% interest in more than 300 claims in Joutel, Montgolfier and Aloigny twps.; the remaining 24% is owned by Homestake Mineral.