Golden Tag Resources Gives ECU Silver Mining Inc. Notice of Arbitration to Enforce Rights in the San Diego Property Joint Venture
MONTREAL, QUEBEC, Jun 23, 2009 (MARKETWIRE via COMTEX News Network) --
Golden Tag Resources Ltd. (TSX VENTURE: GOG) ("Golden Tag") has today given a formal notice to ECU Silver Mining Inc. ("ECU") demanding arbitration consequent upon having determined that ECU, the operator of their San Diego joint venture has failed to remedy fundamental breaches of the option and joint venture agreement (the"JVA"), signed on November 2, 2005 in respect of the San Diego property. The silver zinc rich property is located in the Velardena Mining District, Municipality of Cuencame, Durango State, Mexico (the "Property"). Golden Tag's counsel in a letter dated March 20, 2009 notified ECU of these breaches and Golden Tag subsequently received assurances that the breaches would be rectified within the requested 30 day period. Despite several follow-ups, the breaches have not been remedied. Golden Tag is fully vested in a 50% Property interest under the JVA.
Among the breaches of ECU which Golden Tag believes will be substantiated at arbitration are that ECU :
(A) Allowed a third party charge against the Property contrary to the JVA.
(B) Invoiced Golden Tag for joint-venture expenses but did not remit the funds to pay joint venture suppliers on a timely basis, some suppliers still being unpaid.
Copyright Failed to timely contribute its equivalent pro rata share of funding to the joint venture.
(D) Failed to follow proper procedures and timely financial reporting.
Due to these significant breaches, Golden Tag plans to seek the right to assume operatorship of the Property, dilution of the interest of ECU and/or compensatory damages and other relief.
The San Diego Property hosts published NI 43-101 compliant Resources (See Press Release: January 27, 2009) of:
Indicated Resources
371,000 TONNES GRADING 245 Ag g/t, 1.80 % Pb, 1.33 % Zn and 0.339 Au g/t, representing a total of 4.25 Million ounces of silver Equivalent (oz.Ag EQ), or 371,000 Tonnes grading 356 g.Ag EQ/t (11.44 oz.Ag EQ/t).
Inferred Resources
21,632,000 TONNES GRADING 110 Ag g/t, 1.84 % Pb, 2.21 % Zn and 0.134 Au g/t representing a total of 214.3 Million ounces of silver Equivalent (oz.Ag EQ), or 21.6 Million Tonnes grading 308 g.Ag EQ/t (9.91 oz.Ag EQ/t).
Golden Tag Resources Ltd. is a junior exploration company exploring for high grade gold and silver deposits at the San Diego silver project in Durango State, Mexico; the Aquilon Gold Project in James Bay, Quebec; and the McCuaig gold project in Red Lake, Ontario. Golden Tag has 39,770,958 issued and outstanding shares and no debt.
