Boss scoops Blizzard after title dispute resolved

Vancouver — A dispute over the title to the Blizzard uranium project has been resolved, paving the way for a technical program to evaluate the “amenability” of developing the controversial project, located in south-central British Columbia.

While the project might be technically feasible — as was deemed to be the case in a 1979 feasibility study — what’s less clear is whether the government will allow development or put the project on ice, as an ostensibly mining-friendly government did in 1980.

Pushing the project forward will be the responsibility of Boss Gold International (BOG.H-V, BOGGF-O), a junior listed on the NEX board of the TSX Venture Exchange, now that a contentious title dispute has been settled. The dispute involved Santoy Resources (SAN-V, SANRF-O), independent prospector Adam Travis, and a previous property owner, Anthony Beruschi.

Santoy, together with former partner Sparton Resources (SRI-V, SPNRF-O), acquired the Blizzard project through an option agreement with Travis. Santoy then inked a deal with Sparton to acquire the project outright in return for various considerations, including 1 million shares and an equal number of warrants.

Santoy had previously supported the prospector’s stance in a title dispute with the previous owner, who claimed “superior right, title and interest” to the claims. Beruschi, the former owner, filed a notice with B.C.’s gold commissioner, alleging the properties were lost due to computer errors involving the conversion from manual to paper staking.

The newly crafted settlement calls for Santoy and Beruschi to vend a 100% interest in the Blizzard deposit and certain rights to surrounding claims for Boss shares, cash, and other considerations. Both parties will appoint two directors to a new Boss board. These four directors will then appoint two more directors and a president.

Santoy also entered into a settlement agreement with Travis that amends and supersedes their previous agreement, whereby both parties will transfer their respective interests in the project to Boss for cash and shares, and other considerations.

The proposed transactions will have the effect of consolidating the uranium deposit and surrounding lands to Boss, which will then proceed with efforts to explore and develop the project under a new name.

Previous work at Blizzard includes 478 reverse-circulation and diamond-drill holes totalling 21,184 metres, and a 1979 feasibility study for a consortium of companies that included Ontario Hydro. This work led to a historic resource of 2.2 million tonnes grading 0.214% U3O8, for an estimated 10.4 million lbs. of U3O8. A recent technical report compliant with National Instrument 43-101 standards cites an indicated resource of 1.9 million tonnes grading 0.247% U3O8, plus 4,685 tonnes at 0.162% U3O8.

In the late 1970s, the B.C. government courted Korean utilities as potential buyers of uranium, but when public opposition mounted, Premier William (Bill) Bennett appointed a commission to study the project, situated in his Okanagan riding. Bennett then pulled the plug on the commission — and the project — by unilaterally imposing a moratorium on uranium exploration and development. A diplomatic row erupted, which caused ripples in capital markets at the time.

The left-wing New Democratic Party (NDP) opposition jumped into the fray and accused the right-wing Social Credit (Socred) government of “adopting NDP policies only when they figure the press heat is getting onto them.” The NDP also raised concerns that potential buyers of other resource products would perceive the province as an unreliable supplier because of its “knee-jerk, seat-of-the-pants, bush-pilot-type of government.”

The government-imposed moratorium has since expired, but the debate could heat up again if environmental groups continue their long-standing opposition to uranium exploration and development.

Beruschi appears confident that this won’t be the case. In a prepared statement, he noted that “nuclear energy is a clean and environmentally sound solution to the world’s ever-increasing demand for power.” He also stated that “the most important factor in our lives and the lives of our children is global warming.”

Environmental groups have made similar statements about the perceived threat of global warming, but whether they are prepared to accept uranium mining or nuclear energy in British Columbia is another matter. In any event, the Blizzard project is not likely to become a conventional mine, as was originally proposed, but rather will be advanced as a potential in situ leach (ISL) operation. This widely used, low-cost method offers the advantages of low environmental impact and minimal surface disturbance.

Once approvals for the various agreements underpinning the resolution of the title dispute are in hand, Boss plans to change its name to Blizzard Uranium. Santoy will end up with an approximate 45% equity interest in the shares of the new company.