CALGARY, Sept. 18 /CNW/ - Although inhibited by a cease-trading order on
its shares, FLAG completed a recommended airborne survey over its holdings in
Rathbun and Mackelcan Township, Sudbury, Ontario, Canada.
SID MISCZUK, FLAG's chairman, provided $40,000.00 and FLAG's president,
MURDO MCLEOD, provided $75,000.00 for the initial funding of the project.
The airborne magnetic and EM surveys outlined more mineral prospects than
had been found in 28 years of previous exploration.
The New Finds
a) The airborne surveys resulted in the discovery of mineralized quartz
diorite over a large area in Rathbun Township. Anomalous nickel values
were intersected throughout two shallow drill holes 4900 feet apart and
in a large surface exposure 800 feet southeast of the second drill hole.
It is a significant discovery for FLAG as quartz diorite is associated
with major ore deposits in the adjoining Sudbury Igneous Complex.
b) Magnetic anomaly throughout Rathbun Lake, recommended for drilling.
c) Coinciding EM and magnetic airborne anomalies, east of Rathbun Lake,
recommended for drilling.
d) Rathbun Lake magnetic anomaly, at south end of lake, intersects near
surface rich mined out massive sulfide lens (selected sample - 10%
copper, 34 ounces palladium ), as it changes passing under the Nipissing
Gabbro and Huronian sediment contact, prime study of the area
e) E.M. anomaly at north end of Rathbun Lake and in peninsula at south
end of Rathbun Lake.
f) Magnetic anomaly underlying and to the northwest of Wolf Lake.
Magnetic anomaly on east side of Laundry Lake Fault, into Laundry Lake,
northeast of Wolf Lake, Mackelcan Township. Airborne EM survey
Five varieties of nickel-bearing sulfides, confirmed by 2001-2003 studies
to be in quartz veins in mineralization at Cobalt Hill, southeast of Wolf
Lake, Mackelcan Township - suggested to have migrated from a nearby
mineralized mafic or ultramafic intrusion.
As reported, these new discoveries have created a bright outlook for the
future value of FLAG shares.
Notwithstanding these significant discoveries, the ALBERTA SECURITIES
COMMISSION is demanding that SID MISZCZUK and MURDO MCLEOD resign as directors
of FLAG RE
SOURCES. In a hearing scheduled for February, 2009, the Commission
is demanding that they resign as directors or officers of any issuer, and to
be permanently prohibited for acting as such, that they cease trading in or
purchasing any securities and that they be denied any of the exemptions
contained in Alberta laws.
These are the Commission's rewards to SID MISCZCUK and MURDO MCLEOD for
their discoveries and 28 years of diligent service for FLAG shareholders.
Although they are 80 and 81 years old, respectively, for the past
28 years SID MISZCZUK's company provided funds for most of FLAG's financial
requirements ($8,000,000.00). MURDO MCLEOD was directly involved in FLAG's
exploration program, including the airborne surveys.
He founded FLAG 55 years ago in 1953.
The two have commented that they are fortunate that they are not in their
nineties, as the Commission may have demanded a life imprisonment sentence.
Tracing recent events with the ALBERTA SECURITIES COMMISSION, the
Commission rejected an application, in May, 2006, from FLAG's auditors for a
one month extension to file the 2005 annual financial statements, cease
trading FLAG shares on May 19, 2006, for late filing of financial statements.
In December of 2006, FLAG applied to the Commission, requesting that its
cease trade order on FLAG shares be rescinded, as it was up to date in its
filling of financial statements. The application was not processed by the
Commission. Instead the Commission commenced its first review of FLAG's
financial statements in 28 years.
Allegations of financial improprieties, in the 2003-2005 financial
statements were made, by the Commission, in a 3 page report in April 2007, a
25 page report in January 2008, and recently, in a report on August 14, 2008.
In the August 14, 2008 report, the Commission alleged that FLAG's
2003-2005 annual financial statements were not prepared in accordance with
Generally Accepted Accounting Principles (GAAP).
The annual financial statements are prepared by FLAG's auditors,
independent of any management input, but, for whatever reason, the Commission
alleged that they were the responsibility of FLAG's chairman and president,
and with their allegation of the statements not being prepared in accordance
with G.A.A.P., demanded the resignation of Chairman SID MISZCZUK and President
MURDO MCLEOD, as detailed in this press release.
It is FLAG's contention that the Commission had no legal basis for
extending its cease trading order on FLAG's shares, by alleging improprieties
in the 2003-2005 annual financial statements, as there were no improprieties.
The 2003-2005 annual financial statements were prepared in accordance
with "Canadian Generally Accepted Accounting Principles".
These financial statements were deemed acceptable by shareholders and the
investing public. Accordingly, FLAG proposes to ask the ALBERTA SUPERIOR COURT
to rescind the Commission's cease trading order on FLAG's shares.
After 28 years of peaceful existence with the Exchange and Commission,
the past 4 years have been difficult, to the detrement of FLAG shareholders.
CALGARY, ALBERTA, CANADA
Call toll free 1-888-531-7798
For further information:
For further information: Murdo C. McLeod, President, Phone: (403)
262-8883, or toll free in North America: 1-888-531-7798, Fax: (403) 262-8886