RE: OK,so where's the PRCanstar Announces Decision by Newfoundland and Labrador Supreme Court Regarding Mary March Property-Re-Hearing Ordered
TORONTO, ONTARIO, Jul 27, 2006 (CCNMatthews via COMTEX) -- (CCN Mathews)
The Directors of Canstar Resources Inc. (TSX VENTURE:ROX) announce that a ruling has been released by the Newfoundland and Labrador Supreme Court, Trial Division, with respect to the title dispute on the Mary March mineral property in the Buchans area of Newfoundland. This property is held by the Canstar-Phelps Dodge Corporation of Canada Joint Venture. Pursuant to the agreement between Canstar and Phelps Dodge, Canstar has the right to earn 50% interest in the property plus first refusal rights on the remaining 50%.
The Supreme Court of Newfoundland and Labrador, on July 26, 2006, set aside the decision of the Mineral Rights Adjudication Board in favour of Vinland Resources Limited, and referred the matter back for a re-hearing. The ruling can be viewed in its entirety at www.sedar.com. The Court determined that the original Board decision improperly placed the burden of proof on the Mineral Claims Recorder rather than requiring Vinland Resources Limited to prove that the subject lands were open for staking. The Court also found that the Board had applied an incorrect standard of proof, and had not given adequate reasons for its decision, in particular by its failure to address the evidence before it. The matter has been ordered to be heard by a different panel, in accordance with the guidelines in the judgment.
The judgment of the Supreme Court of Newfoundland and Labrador is viewed as positive for Canstar. The Corporation's legal advisors believe that the merits of the case strongly favor Canstar.
By way of background, in September and October 2000, a privately held Newfoundland company, Vinland Resources Limited, filed applications with the Mineral Claims Recorder for the Government of Newfoundland and Labrador seeking Map Staking Licenses over the core Mary March discovery areas. The Mineral Claims Recorder, on the basis of evidence that the lands in question had been privately held since 1905, rejected the applications. On December 20, 2000, Vinland Resources Limited filed a grievance with the Mineral Rights Adjudication Board, asking that the Mineral Claims Recorder's decision be overturned. In a ruling handed down December 17, 2003, the Board ruled against the Province and titleholders. On January 8, 2004, the Province filed an appeal on behalf of the Mineral Claims Recorder before the Supreme Court of Newfoundland and Labrador, Trial Division. The Supreme Court hearing on the matter commenced on January 23, 2006 and concluded on January 27, 2006. This hearing resulted in the judgment announced in this press release.
The actual date for the re-hearing has not been determined. As soon as a date is set, a press release will be issued with any further details.
As earlier reported, previous exploration on this property, including limited drilling, resulted in the discovery of high grade VMS massive sulphides with values up to 10.1% zinc, 1.68% lead, 0.64% copper, 221.1 grams/ton silver, and 4.2 grams per ton gold over 9.63 meters. Upon resolution of the title issue in favor of Canstar, Canstar plans an aggressive exploration program, including definition drilling of the known mineralized zones.
The Directors appreciate shareholders' continuing faith and patience and we look forward to a final resolution of this matter.
On behalf of the Board of Directors
Harry J. Hodge, P.Eng.
WARNING: The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Canstar, are forward-looking statement that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Canstar's expectations are exploration risks detailed herein and from time to time in the filings made by Canstar with securities regulators.
SOURCE: Canstar Resources Inc.