Snowfield sues Dyno under drilling, blasting agreement

2010-08-16 16:38 ET - News Release

Mr. Robert Paterson reports

COMPANY INITIATES LEGAL ACTION

On June 7, 2010, Snowfield Development Corp., as plaintiff, filed a writ of summons and a statement of claim in the Supreme Court of British Columbia naming Dyno Nobel Canada Inc., a company incorporated under the laws of Canada, naming Dyno as the defendant. The action was initiated with respect to a drilling and blasting agreement entered into with NWT Rock Services of Yellowknife, Northwest Territories, on Oct. 16, 2006, with respect to a 500-tonne bulk sample of kimberlite being undertaken by the company to be completed by March 31, 2007. NWT Rock was amalgamated with Dyno on Jan. 1, 2007.

Snowfield alleges that Dyno breached the blasting and drilling agreement by failing to follow the specifications of the pit plan design; failing to draw up a blasting plan and execute the work in compliance with the pit plan design, industry standards and accepted practices for drilling and blasting for kimberlite as well as applicable mine safety regulations; failing to carry out the drilling and blasting in a workmanlike manner; failing to observe and follow the industry practice of preshearing to facilitate the creation of walls and benches as required in the pit plan design; failing to create the walls and benches as required by the pit plan design; failing to exercise reasonable care in supplying the drilling and blasting services, in particular taking reasonable care to avoid damage to the kimberlite; and, failing to complete the drilling and blasting on or before March 31, 2007.

Snowfield further alleges that Dyno's actions delayed the completion of the drilling and blasting work for several months after the contracted completion date of March 31, 2007; the defendant blasted the pit in a manner that created blasted rock fragments too large to transport and as such required further (secondary) blasting; the defendant blasted the pit in manner that destroyed the diamonds in the kimberlite; the defendant blasted an open pit that made it impossible for the plaintiff's transportation contractors to access the kimberlite until many months after the contracted due date for completion of the work. Snowfield and Dyno were ordered, on or about April 10, 2007, by the Mine Safety Branch to stop operations "until proper sized benches have been established" as a result of the narrow bench widths blasted by Dyno that were a violations of the previously accepted pit plan design and the Mine Health and Safety Regulations, N.W.T. Reg. 125-95, Section 1.137 (1) (a).

Snowfield was compelled to engage an independent engineering firm to draw up a remediation plan involving a new pit design plan which required the company to move over 100,000 cubic metres of rock to access the kimberlite, rather than the contracted amount of 40,000 cubic metres of rock. Dyno was involved in the remedial drilling and blasting in accordance with the revised pit plan prepared by the independent engineering firm.

As a result of Dyno's alleged breach of contract, Snowfield has suffered and continues to suffer substantial costs and expenses, damage, losses and harm, including: expenses thrown away by the company as a result of hiring replacement contractors to carry out the work that it contracted with the Dyno to complete; expenses thrown away by the company as a result of delays caused by the defendant; incremental expenses involved in excavating 100,000 cubic metres of rock, rather than 40,000 cubic metres; future expenses involved in moving additional material, approximately 60,000 cubic metres of rock, in undertaking environmental restoration of the Mud Lake bulk sample project site as prescribed in the company's MacKenzie Valley Land & Water Board's land use permit; loss of reputation and goodwill and shareholder value, both within Canada and beyond, associated with representing the company's mining exploration projects; and, such other damages and losses, particulars of which will be provided before trial.

Snowfield is claiming against Dyno: judgment for breach of contract in favour of the company; general damages for breach of contract; special damages for breach of contract; prejudgement and postjudgment interest pursuant to the Court Order Interest Act, R.S.B.C. 1996, c. 79; costs on a solicitor and client scale or as the court orders; and such further and other relief as the court may permit

Like was mentioned on the other board

"I would have to say if his company is drilling and he's buying stock don't miss the gravy train..I just don't go out gig up my back yard find roots from and old tree and run off to walmart to buy more trees..

Look at the stock the last few days this is easily a double if not a triple from these prices.

Yes the proof is not only in the drill but who bought after they drilled."

I'm in show me the money Cliff

Grizzly Discoveries begins drilling at Greenwood 2010-06-30 09:37 ET- News Release Mr. Brian Testo reports GRIZZLY DISCOVERIESINC. COMMENCES DRILLING AT THE GREENWOOD GOLD PROJECT, BRITISH COLUMBIAAND AMENDS WARRANT TERMS Grizzly Discoveries Inc. has signed acontract with Lone Peak Drilling to commence diamond drilling on theGreenwood gold project, south-central British Columbia. Grizzly receivedits Mines Act exploration permit for drilling at Copper Mountain fromthe British Columbia Ministry of Energy, Mines and Petroleum Resourceson November 12, 2009 and for the Sappho drilling on June 14, 2010. Thedrill was mobilized to the property on June 24, 2010 and has commenceddrilling on gold showings in the Copper Mountain area (See GZD newsreleases dated May10, 2010 and October 14, 2009). Historiccopper-silver-platinum-gold showings at the Sappho area (See GZD newsrelease dated October 14, 2009) and the gold zone intersected at Ket 28during late 2009 (See GZD news releases dated January 18, 2010, andOctober 14 and August 14, 2009) are slated for drill testing during the2010 drilling program. Additional prospecting, sampling, groundgeophysical surveys and geological mapping are in progress at a numberof target areas in the Greenwood area. The fieldwork commenced mid-Mayand is being conducted by APEX Geoscience Ltd. As current targetidentification progresses, other targets will be drill tested during2010. All 2010 field and office exploration programs are beingconducted under the supervision of Mr. Michael Dufresne, M.Sc., P.Geol.,a principal of APEX Geoscience Ltd. and a Qualified Person under NI43-101. Amendment of outstanding warrants Grizzly is pleasedto announce that the TSX Venture Exchange has conditionally approved anextension to the expiry date of outstanding common share purchasewarrants of the Corporation to acquire an aggregate of 565,555 commonshares of Grizzly issued on June 30, 2009, for one additional year toJune 30, 2011. The exercise price of the amended warrants remainsunchanged at .65. The original terms of the amended warrants aredescribed in Grizzly's news release dated July 2, 2009. We seekSafe Harbor.

Testo's no idiot he's buying everything people lay on the table.

Grizzly Discoveries Inc. (GZD)

As of June 24th, 2010

Filing Date
Transaction Date
Insider Name
Ownership Type
Securities
Nature of transaction
# or value acquired or disposed of
Unit Price

Jun 14/10
Jun 14/10
Testo, Brian
Control or Direction
Common Shares
99 - Correction of information
34,700

Jun 14/10
Jun 11/10
Testo, Brian
Direct Ownership
Common Shares
10 - Acquisition in the public market
5,000

.220

Jun 11/10
Jun 09/10
Testo, Brian
Direct Ownership
Common Shares
10 - Acquisition in the public market
1,000

.220

Jun 11/10
Jun 08/10
Testo, Brian
Direct Ownership
Common Shares
10 - Acquisition in the public market
1,500

.220

Jun 07/10
Jun 04/10
Testo, Brian
Direct Ownership
Common Shares
10 - Acquisition in the public market
23,500

.220

Jun 02/10
Jun 02/10
Testo, Brian
Direct Ownership
Common Shares
10 - Acquisition in the public market
24,500

.245

May 31/10
May 28/10
Testo, Brian
Direct Ownership
Common Shares
10 - Acquisition in the public market
500

.245

May 26/10
May 26/10
Testo, Brian
Direct Ownership
Common Shares
10 - Acquisition in the public market
25,000

.225

May 26/10
May 26/10
Testo, Brian
Direct Ownership
Common Shares
10 - Acquisition in the public market
21,000

.220

May 25/10
May 21/10
Testo, Brian
Direct Ownership
Common Shares
10 - Acquisition in the public market
20,000

.200

Must be glass buying up in small batches