Ungava Minerals Corp.
PINK SHEETS : UGVAF

September 04, 2007 14:02 ET

Ungava Minerals Corp.: Ontario Litigation Update

MONTREAL, QUEBEC--(Marketwire - Sept. 4, 2007) - Ungava Minerals Corp. (the "Corporation") (PINK SHEETS:UGVAF) announced today that there have been significant developments in the Ontario litigation in which the Corporation and its subsidiary, Ungava Mineral Exploration Inc. ("UMEI"), are Plaintiffs.

In the action against James Mungall and University of Toronto, Carl Michael Lesher has filed an Affidavit in response to the Plaintiff's motion that he and others become defendants in connection with a freshly amended Statement of Claim. In it he asserts that between 1989 and 2000 he and others from the University of Alabama studied the rocks on the Falconbridge properties. In 1989, 1990 and 1991, Falconbridge funded travel expenses, salaries and the cost of analysis of rocks. In 1993 and 1994 salaries were not funded by Falconbridge and after 1997, only travel expenses were funded.

He also asserts that from 1990 onward, he and a Professor Reid Keays collaborated in a certain joint research project. In 1994 they were both working at the Falconbridge property known as Donaldson. Keays on August 10 1994 visited the Expo Ungava property. The purpose of the visit was to collect rocks from a sub-economic (Expo Ungava) area for comparison to rocks from the economic (Raglan) area as part of their collaboration. Those rocks were studied by Keays, Lesher and Dr. Marcus Burnham as late as 1996 at Sudbury.

Lesher asserts that he was contacted in March 2000 by James Mungall who proposed a joint research project involving samples in Mungall's possession. Mungall had told Lesher, prior to March 2000, that he was consulting for Canadian Royalties Inc. Mungall provided rock samples to Lesher who analyzed them and provided the data to Mungall. Shortly afterward, Mungall advised he was having legal troubles and would not be able to continue with their joint research. The Lesher Affidavit will be filed as a schedule to the Material Change Report to be filed in respect of this Press Release. No other proposed defendant has as yet filed an affidavit.

In connection with the Motion, the Plaintiffs wish to examine third party witnesses. In support of an application for an order for such examinations, the Plaintiffs have filed the Affidavit of Glen Erikson. In it Glen Erikson indicates why Glenn Mullan, Dany Houde, Manager of Abitibi Helicopter, an as yet unidentified helicopter pilot and an as yet unidentified passenger accompanying Mullan and the pilot in September 2000, should be examined. This affidavit also indicates why the Plaintiffs wish to examine Professor Sarah Jane Barnes of Chicoutimi University, Professor Reid Keays of Australia and Dr. Peter Fischer. The Affidavit of Glen Erikson, together with its exhibits, will be filed as a schedule to the Material Change Report to be filed in respect of this Press Release.

One Exhibit to Glen Erikson's Affidavit is the Transcript of Glenn Mullan's recent testimony in the Quebec action of Gogama Gold Inc. "Gogama" to recover from Canadian Royalties Inc. "CRI" the 1% NSR royalty sold to CRI January 12, 2001, at the time of the option of an 80% working interest in the Expo Ungava property to CRI.

In it Mullan, a geologist, admits he knew Permit 1079, also known as the Expo East property, abutted Ungava's property when he staked Permit 1079. He says he sold or optioned Permit 1079 to Novawest Resources Inc. and retained an NSR royalty. Mullan admits that he nominated Todd Keast, a geologist, to join the Novawest 1998 field crew working in the Ungava Trough region and that Keast could be considered "(his) man". Mullan acknowledges that he read Dr. P. Fischer's Report about the 1998 field program on the Expo East property shortly after it was released, but saw "nothing significant" in it. Mullan says since "no economically significant assays" were reported in the Report, he did not study the UTM co-ordinates of the sampling which gave rise to the assays reported. Mullan acknowledges that the text of the Fischer Report, asserting that new showings were discovered "in the southwest corner of the permit" is contradicted by the figures which form part of the Fischer Report which show the location of Keast's sampling as being off the Expo East property. He acknowledges that the "text contradicts the presentation", but states the Keast sampling is shown to be so close to the common boundary, that it is within the margin of error of GPS at that time and that in any case, the location of the sampling was "a moot point since they're (assay results) not economically significant". Mullan asserts that "greater precision comes from maps" than from GPS. Mullan admits that, based upon the margin for error of GPS, the location of the Keast sampling in 1998 could actually even be further south of the Expo East property than is indicated in the figures comprised in the Report and hence be the result of a deeper trespass onto Ungava's property.

Regarding the negotiations of 2000, Mullan states "I can't tell you with confidence that we spoke (with Mr. Erikson) about this Report (the 1998 Fischer Report), I don't recall". While he alleges he spoke about some assessment files with Mr. Erikson, he would not have pointed out the text and the figures of the 1998 Fischer Report because "It wasn't important then, it does not appear important now".

Mullan admits that the version of the 1998 Fischer Report produced in the 2002 arbitration by Bruce Durham in satisfaction of an undertaking, was sourced by him from his files.

Regarding his September 2000 sampling, Mullan asserts that it was carried out at a location different from where Keast had sampled in 1998. He also asserts that the Robert Wares 2001 Report, which describes his September 2000 exploration work, is in technical error or suffering from confusion when it refers to "two short lines of max/min horizontal loop EM survey work." Mullan states he had actually dragged a "beep mat" at the location he sampled in September 2000 and that he had told Bruce Durham what he had done in the field and that Durham had communicated with Wares "and voila, we suddenly have two (2) short lines that talk about max/min". This Wares 2001 Report is the Report used by Mullan and Durham to raise CRI's exploration funds in 2001 and which was filed with the Exchange. Mullan states he verbally disclosed the results of his September 2000 sampling to Mr. Erikson.

Mullen states that if GPS co-ordinates of the location sampled by Keast in 1998 coincide with where CRI drilled diamond drill holes TK01-1 to TK01-5 in 2001, "so be it", "because there is nothing economically significant in those (Keast 1998) samples", "..its coincidental with grab samples that gave no economic values". Mullan states that Durham, perhaps with Keast's input, spotted the CRI 2001 diamond drill holes.

Mullen asserts that DDH TK01-1 to TK01-5 were drilled to test the area with "the new occurrence", presumably referring to the mineralization Mullan had encountered in his September 2000 sampling. Later Mullan also states he had never been to the TK zone area where TK01-1 to TK01-5 were drilled prior to 2001 and then a little further states "it was definitely planned to look at this (TK Zone) area that I had been to in September 2000 to look at that area, broad area".

The text and figures of the 1998 Fischer Report referred to will be filed as a schedule to the Material Change Report to be filed in respect of this Press Release. Certain large maps and charts of the Fischer Report which cannot be easily reproduced, will be omitted.

This news release contains forward-looking statements within the meaning of the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties and other factors which may cause the Company's results to differ materially from expectations. These include risks relating to market fluctuations, investee performance and other risks. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.

Issued and Outstanding: 28,263,276 Common Shares

Contact Information

  • Ungava Minerals Corp.
    Dr. Allan Miller
    President
    (613) 231-5656