Prospector disputes Hemlo Gold's ownership of the Golden Giant Mine.

• Author: McDougall, Douglas
• Position: Ozias Theriault; Hemlo Gold Mines Inc. - Gold Mining Report

Prospector disputes Hemlo Gold's ownership of the Golden Giant Mine

One of Canada's largest companies and the province are named in a multi-million dollar lawsuit concerning ownership of the Golden Giant Mine in the Hemlo Gold Belt.

The northwestern Ontario mine produced 378,400 ounces of gold last year and is expected to yield approximately 400,000 ounces of gold this year. The property is currently owned by Hemlo Gold Mines Inc., which is 50.8-per-cent owned by Noranda Inc. of Toronto.

Ozias Theriault, a truck driver and part-time prospector launched the suit, alleging that staking and registration originally done by the company did not comply with the Ontario Mining Act.

Theriault's lawyer, Greg Cancade of Thunder Bay, will attempt to prove that the mining recorder in Thunder Bay allowed the initial staking to be abandoned and new staking to be recorded without adhering to the mandatory 11-day waiting period. He said that during the waiting period, the notice of abandonment must be posted in the recorder's office.

Among the defendants named in the action is HGM Inc. of Toronto. HGM was formed with the amalgamation of Golden Sceptre Resources Ltd., Goliath Gold Mines Ltd., Noranda Hemlo Inc., Hemlo Gold Mines Inc., and Hemglo Resources Ltd.

HGM holds title to the claims through leases and patents on land around the Golden Giant Mine.

Teck Corporation of Calgary is also named in the lawsuit because it holds certain rights and easements on three of the claims in dispute, including two through its subsidiary Teck-Hemlo Inc.

Cancade said the only discussions which have taken place with any of the defendants named in the suit have been with a lawyer representing Teck Corporation. He said that the lawyer contacted him to inform him that Teck will be filing a statement of defence within two weeks.

Also named in the action are four Canadian banks.

"The defendants, Canadian Imperial Bank of Commerce, Citibank Canada, National Bank of Canada and Chemical Bank of Canada, are Canadian banks with their head offices and chief places of business located in Toronto. These defendants each have a security interest registered against the leases and patents," states the claim.

In addition to the ownership of the Golden Giant Mine and the claims surrounding it, Theriault is suing for $3 million in damages and $10 billion as the estimated value of the claims.

"These are extremely valuable claims," insisted...