Anyone see this yet, or is it old news:
BUSINESS
canada.com Business Centre
Claims staking process silly, mining firm says
Bruce Johnstone
Saskatchewan News Network
November 2, 2004
REGINA -- A Regina-based mining exploration company says the province's system for staking lapsed or re-opened mineral claims on Crown lands is unfair, costly and favours larger mining companies.
"It's a silly process," said Shaun Spelliscy of Seagrove Capital Corp., a junior resource company that explores for diamonds, gold, base metals and uranium in Saskatchewan. "It's an unfair process."
On Monday, Seagrove successfully staked seven claims that had been optioned to Nevada-based company, CMKM Diamonds, which failed to do the required assessment work, causing the property in the Fort a la Corne area near Prince Albert to lapse.
CMKM Diamonds and its predecessor company, Casavant Mining Kimberlite International, and three of its officers and directors, were slapped with a cease trading order last week by the Saskatchewan Financial Services Commission. The commission said the companies failed to file a prospectus in the province and have no right to sell securities to Saskatchewan residents.
Spelliscy said he had to hire a security company, Ground Zero Security, to hold his place in line at the Saskatchewan Industry and Resources Sub-surface Geological Laboratory for nearly two weeks.
Spelliscy said the process of "paper-staking" lapsed mineral properties, which are posted on a list and awarded on a 'first-come, first-served' basis, is both costly and unfair. He said the cost of hiring two security personnel to wait in line for 12 1/2 days came to about $8,600. "That's a fair amount of cash."
He said the province is the only jurisdiction in North America that requires mining companies to line up for days, sometimes weeks, to stake lapsed or re-opened claims on Crown lands.
Seagrove has also been involved in legal disputes with the province over lapsed claims in the past. Spelliscy said the government should "eliminate the lapsed (claims) list. The government's unable to enforce it own system."
Pam Schwann, director of the mines branch for Saskatchewan Industry and Resources, said the province is aware of the industry's concerns and has proposed changes to the system. "Our department would agree with that. We don't think this is the most efficient way to dispose of Crown lands."
Schwann said there have been four disputes over the last 10 years about the process. However, proposals to change the system were rejected by the industry three or four years ago, resulting in a return to the status quo, she said.
Currently, the province is proposing several options, including a lottery where companies would submit applications for land, which would be selected by random draw. Another option is to use a 'bonus bid' system where land is awarded to the highest bidder, a system which is used in the oil and gas industry.
Schwann said other provinces use the lottery system, but the bonus bid system is not widely used for minerals in Canada.
Charles Roy, exploration chair of the Saskatchewan Mining Association, said the industry hasn't had a chance to review all the options yet. But he said the status quo isn't one of them.
"Having a security guard stand line for weeks is stupid," added Roy, who is manager of exploration programs for Cameco Corp. in Saskatoon.
© The StarPhoenix (Saskatoon) 2004
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