Tudor Gold challenges Seabridge Gold tunnel permits in court

Tudor Gold Corp. has filed a petition in the British Columbia Supreme Court seeking to void a government license that allows Seabridge Gold Inc. (NYSE: SA) to construct tunnels through Tudor's mineral claims.

The legal challenge targets a September 2024 License of Occupation granted by the British Columbia Ministry of Water, Land and Resource Stewardship to Seabridge for its Mitchell Treaty Tunnels project. The tunnels are part of Seabridge's KSM Project and consist of two 23-kilometer parallel tunnels connecting the east and west sides of the mine site.

Approximately 12.5 kilometers of the tunnel route passes through Tudor's Treaty Creek Property mineral claims. The license replaced a previous 2014 authorization for the same land area.

In the petition, Tudor seeks declarations that a License of Occupation cannot interfere with mineral claims holder rights and requests the court to quash the ministry's decision. Tudor alleges the ministry's determination was procedurally unfair or unreasonable.

Tudor claims the tunnel construction "will destroy the economic viability of the Treaty Creek Project and remove all reasonable uses of Tudor's property." The company argues Seabridge requires rights to the Treaty Project Claims to proceed with construction.

Seabridge maintains the license terms protect Tudor's mineral rights by requiring excavated material to remain under Tudor's ownership. The company notes this represents Tudor's third legal action against the tunnel authorizations.

"We have attempted to find terms to avoid a conflict like this with Tudor, but their demands have been unreasonable," said Seabridge Chair and CEO Rudi Fronk.

The License of Occupation remains in effect while the legal challenge proceeds. Information in this article is based on a press release statement from Seabridge Gold.

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