Elect,
This Murdo management credibility keeps coming up. I once invested in a Company where the president had been "AT IT" for so many years and then was told by a savvy investor that maybe there was a reason (incompetence) why he hadn't been successful in all those years, and that turned out to be the right answer.
je
ps Da news
Flag receives mining recorder's error in staking
Flag Resources (1985) Ltd FGR.A
Shares issued 16,224,180 2000-09-29 close $0.4
Monday Oct 2 2000 News Release
Mr. M.C. McLeod reports
On Sept. 20, Flag's president, Murdo McLeod, along with Flag exploration people, discovered a significant zone of mineralization, on mining claim 809104, in the vicinity of the Rathbun-Scadding township boundary. A representative grab sample assayed 1.28 per cent nickel and copper (0.425 per cent nickel and 0.864 per cent copper) and 0.126 ounce or 4.36 grams of platinum group elements (PGE) (0.49 gram gold, 0.44 gram platinum and 3.43 grams palladium).
On Sept. 22, a Sudbury mining recorder informed Flag that the portion of claim 809104, in Scadding township, was invalid, because of a mistake in staking 16 years ago. He stated that Flag's application to record showed an intent only to stake in Rathbun township. He stated, contrary to regulations, the claim extended from a surveyed township (Rathbun) into an unsurveyed township (Scadding).
Flag has spent approximately $100,000 in exploration expenditures on the claim, with assessment work on the claim accepted by the ministry for 16 years.
On Sept. 23 and Sept. 24, the ground covered by claim 809104 was inspected by Flag. It was discovered that a large part of 809104 had been overstaked in 1997, by claim 1230297, staked by Sudbury residents. Flag was not notified of the overstaking.
On Sept. 25, the claim map of Scadding township was changed, deleting the gap at the northern edge of Scadding township on which the southern claim posts of 809104 are located.
Points of contention:
The mining recorder says no part of Flag's claim 809104 can legally exist in Scadding township, as the 1984 application to record refers only to Rathbun township.
However, Section 17 (b) in the Mining Act of Ontario states:
If it appears that a licensee has attempted in good faith to comply with the act and the regulations, a mining claim of the licensee is not invalidated by:
the failure of the licensee to describe or set out the actual area or parcel of land staked out in the application to record the claim or the sketch accompanying the application Ontario Regulation 115/91,17.
According to this part of the act, claim 809104 not only legally exists in Scadding township, it cannot be legally invalidated.
Flag says its primary objective was not to stake its claim in Rathbun township, but to stake it to cover a surface occurrence of sulphides. Its application to record 809104 referred to Rathbun township, believing that is where it was located, not realizing it extended into Scadding township. Flag only became aware that the claim was partly in Scadding township, 16 years later, upon being informed by the mining recorder on Sept. 22.
As claim 809104 extends from Rathbun, a surveyed township, into Scadding, an unsurveyed township, the Scadding portion of claim 809104 has been said to be invalid.
Flag says the area, in which 809104 is located is uninhabitable, consisting of marsh and thick bush. There are no physical landmarks to distinguish the boundary between Rathbun and Scadding townships. If Flag had been aware that its claim extended into Scadding township it would have been shown on the application to record and the required adjustments made in staking.
The mining recorder is relying on a survey completed between 1892 and 1894 as defining the boundary between Rathbun and Scadding townships.
The Ministry of Natural Resources, Peterborough, which administers the records for surveys of Crown lands, informed Flag that the boundary between Rathbun and Scadding township is not surveyed, referring to the 1892 survey as the original survey, which is apparently not recognized as a useable survey by Natural Resources.
Flag is holding further discussions in regard to the validity of the original staking of claim 809104.
Flag is drilling a deep hole into an anticline structure, west of Jess Lake, Mackelcan township 11 miles north of 809104. There is a considerable exposure of sulphides on the surface of the anticline.
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