McKenzie challenges title to Eskay

Ken McKenzie, who has initiated several claim disputes in the Eskay Creek area north of Stewart, B.C., is now challenging Prime Resources Group (VSE) and Stikine Resources (TSE) for title to certain claims that make up the Eskay Creek project. McKenzie’s latest complaint, filed under Section 35 of the Mineral Title Act, was lodged against the TOK 3-6 claims of the Eskay Creek property on the grounds that assessment work was not filed against these claims.

The TOK 3-6 claims contain a sizable portion of the reserves at Eskay Creek which at last report totalled 1.55 million tons grading 1.34 oz. gold per ton and 36.21 oz. silver in the probable and possible categories.

Prime was informed of the complaint by an official of the British Columbia Ministry of Energy, Mines and Petroleum Resources. But the company was also informed that official notice of the complaint would not be given until the Chief Gold Commissioner had investigated further whether valid basis for the complaint exists. A ruling is expected shortly.

Prime called the complaint “specious and vexatious” in view of the fact the TOK 3-6 claims have been held for many years and have undergone extensive exploration and development work at a cost of many millions of dollars. Details are still sketchy, but it is believed that McKenzie’s complaint may involve a technicality caused by certain staking gaps found within the surveyed Prime-Stikine claim blocks.

Should McKenzie’s claim be found to have merit, both Adrian Resources (VSE) and Eurus Resource (VSE) say they would each lay claim to portions of the ground covered by the disputed claims. The two Prime group juniors stressed that their claims would have priority over McKenzie’s claim based on precedence of title.

As an interesting aside, McKenzie has title to one of the three claims making up Adrian’s SKI project. He also has Section 35 complaints against nine of the 12 claims making up Eurus’ Albino Lake property. Both highly prospective properties are strategically located adjacent to or near the Eskay Creek property.

Calpine Resources, the recorded holder of a 50% interest in the TOK 3-6 claims, filed legal action some time ago against McKenzie. This suit is now being amended to claim substantial damages against McKenzie as a result of his latest complaint.

McKenzie is a defendant in at least six actions in the Supreme Court of British Columbia filed by companies holding prior claims that were overstaked. Little is known of McKenzie, although it is widely speculated he has either a partner or financial backers.