Debentureholders pursue Skukum

A debentureholders meeting will be held here in early June to pursue a number of allegations involving Skukum Gold (VSE) during a period when it operated the Skukum Creek gold project 55 miles southwest of Whitehorse, Y.T.

At the time, the project was a joint venture with Omni Resources (VSE), a junior associated by way of common management to Skukum Gold.

Skukum Gold was informed by its trustee, Central Guaranty Trust, that a meeting of debentureholders was called by one of the holders of the debentures in order to decide on a course of action.

Skukum issued $1.8 million in debentures due May 31, which are believed to be charged against the company’s interest in claims making up the Skukum gold property.

The debentureholder requesting the meeting alleges that Skukum defaulted or breached its covenants under the terms of the trust indenture by failing to perform all of its obligations under the joint venture, and that the company allowed certain mineral claims to lapse.

Skukum Gold President Ernie Bergvinson was unavailable for comment. Bergvinson is also president of Omni and of Berglynn Resources (VSE).

In a recent Omni news release, Bergvinson stated that Omni has redeemed 100% interest in its Skukum Creek property “free and clear of any encumbrances.”

The release also stated that a joint venture agreement with Skukum Gold “terminated with Skukum Gold failing to earn any interest by not placing the property into production before the end of 1990.”

To date, over $12 million has been spent on the Skukum Creek gold project. Current preliminary reserves, based on diamond drilling, drifting and cross-cutting through the mineralized zones, are reported to be 882,000 tons grading 0.22 oz. gold and 8.02 oz. silver per ton.

Diluted, minable reserves are estimated at 513,000 tons grading 0.22 oz. gold and 8.0 oz. silver. Work carried out on the property includes 7,545 ft. of underground horizontal, ramp and raise development which provides access for stoping in two mineralized zones, named the Rainbow and Kuhn, over a vertical interval of 656 ft.

Omni is reported to be entertaining proposals to further explore and develop the deposit. The Skukum Creek deposit is metallurgically complex and would require additional processing by roasting or bioleaching to liberate the refractory gold mineralization.

Skukum also reported that it recently resigned as operator of a 50-50 joint venture with Berglynn on the Wheaton Gold joint venture, also near Whitehorse.

Bergvinson said a review of geological data and results will be carried out in order to “formulate a plan for the next phase of exploration and development on this promising gold discovery.” In 1989, Placer Dome was involved in discussions with Bergvinson for a possible private placement in Skukum Gold. At the time, the major was reported to be interested in the Goddell Gully structure, a promising new discovery on the Wheaton River property. But several sources told The Northern Miner the major backed away because of concerns raised by its legal department. An action against Skukum Gold was recently initiated in the Supreme Court of British Columbia by Ko-Ken Mine Services of Whitehorse alleging a claim for $182,437 for services rendered. Skukum said it intends to vigorously defend the action.