Gold junior appeals court ruling

Solid Gold Resources is challenging a Superior Court of Ontario ruling that halted its exploration program in northeastern Ontario.

The Toronto-headquartered company said that it intends to appeal Justice Carol Brown's Jan. 3 decision that upheld an injunction by the Wahgoshig First Nation to suspend exploration drilling near Lake Abitibi.

The court ruled that the junior miner made a “wilful effort not to consult” with the community despite provincial requests to do since 2009.

Drilling was ordered to be suspended for 120 days, while the company and the Ontario government paid for a third party mediator to begin a consultation process with the First Nation.

After initially decided not to challenge the ruling, the company has reversed course. The company claims the province wrongly delegated its legal responsibility to consult with the First Nation over to Solid Gold.

In a Jan. 19 news release, the Toronto miner cited said the Superior Court ruling “squarely conflicts” with a 2004 Supreme Court of Canada decision, Haida Nation v. British Columbia.

That ruling was that it is the legal responsibility of the Crown to consult and accommodate, and that third parties cannot be held liable for failing to discharge the Crown's duty.

The community claims the area the company was drilling contains ancient burial grounds and many sacred sites.