LETTERS TO THE EDITOR (April 13, 1992)

As lawyers for Sherwood Mines and Casamiro Resource Corp., we would like to bring to your attention a small detail which seems to be omitted every time there is an editorial or comment on government regulation in British Columbia.

Sherwood and Casamiro had Crown-granted mineral claims in Strathcona Park that were immediately south of those of Cream Silver Mines. The litigation regarding compensation for the mineral claims when mining was closed in Strathcona Park has proceeded ahead of Cream Silver’s.

Casamiro established in a British Columbia Court of Appeal decision the principle that the denial of use constitutes an expropriation and, because its claims were Crown-granted, proceeded before the Expropriation Compensation Board under the Expropriation Act (British Columbia) for a determination before that board of what ought to be paid for expropriation. The hearing was completed March 9 (after six months) and counsel is currently preparing argument.

The Cream Silver case is still involved in the litigation of whether or not expropriation has occurred. The British Columbia Supreme Court decision has been appealed by the government to the B.C. Court of Appeal. We think it would be of some benefit for the mining community to know that the court system and the Expropriation Act have provided a mechanism for the payment of “market value” compensation, particularly in light of the apparently poor relations between the industry and the current administration over such matters as security of title and compensation.

Gary MacDonald

Ferguson Gifford

Vancouver