Introduction
Pallas
Resource Corporation is a company founded by William T. Jordan in
1989 after his predecessor corporation, Athena Gold (1985), had been
illegally taken over by Scientologists. (1)
In
Athena, the business plan for the Tallapoosa gold mine prospect was very
successful and the discovery of a huge gold deposit was made prior to the entry of
Scientologists. With this background of success, the plan was adopted by
Pallas so as to recoup lost assets and extend the business activities,
the premise being that "the plan wasn't broken and needed no
fixing".
Intent on
capitalizing on their success, Jordan and a few of his loyal Athena
investors managed to regroup despite constant suppressive interferences,
and bought the fully-functional Gooseberry Mine property near Reno,
Nevada, from Asamera Minerals in 1993.
An
opportunity to purchase such an advanced property to get into the gold
mining business was a stroke of good fortune for the company and would
shorten time to reach its corporate goals. Possessing a complete
infrastructure, a huge inventory of tools, supplies, and some residual
reserves of economic grade, this property offered diversity and a wide
scope of opportunities. It was only twelve miles more distant to a labor
pool.
For a
development stage company listed on the Over-The-Counter Bulletin Board
(OTCBB), the Gooseberry properties offered a tremendous blastoff for its
economic development.
(1)
TIME Magazine, 05-06-1991 - Richard Behar
The Gooseberry
Frauds Story
Pallas
Resource Corporation owns 560 acres east of Reno, Nevada, known as the Gooseberry
Mine property. Land near these 560 acres is now (2005) selling for
prices between $1.95 and $2.75 per square foot. One neighboring property
is used for warehousing and regional distribution by WalMart.
At 43,560
square feet, each Gooseberry acre has a comparative market value of
somewhere between $82 thousand and $119 thousand. The 560 acres
extrapolate to a value range of $45 million to $66 million. This, of
course, represents basic real estate value only.
The
property is located almost in the middle of a new 102,000 acre
"Tahoe - Reno Industrial Center" (TRIC) which is touted as being
the largest development of its kind in the world. The Gooseberry is
being referred to as the hole in the TRIC doughnut.
The
corporation holds a Certificate of Good Standing from the
Nevada Secretary of State's Office dated May 5, 2005.
Due to
problems caused by frauds perpetrated against Pallas, title to the
Gooseberry property is contested. Documentation exists to expose said
frauds.
Asamera
Minerals, now owned by Conoco- Phillips, sold 100% of the Gooseberry Mine
to Pallas Resource Corporation according to a written agreement dated
April 16, 1993. Pallas was given to believe that it was purchasing all
of the Gooseberry property; it did so in good faith. Now Martin Family
heirs have come forth claiming they own 50% of the Gooseberry Mine and
that Asamera sold 100% of its 50% ownership. This does not conform to
Asamera's Sales Agreement with Pallas, and thus constitutes a fraud
perpetrated by Asamera. Asamera also misrepresented the quantity,
quality, and value of minerals remaining on the property. These are only
two of a number of frauds committed against Pallas.
Pallas
was led to believe it was buying a viable mining project. In reality,
Asamera Minerals was selling a spent mine, a reclamation project. These
are two different things. The only reason Pallas allowed a reclamation
bond to be a term of the sales agreement was because of assurances of
mineable gold and silver reserves of economic grade left in place
underground by Asamera.
As can be
imagined, a host of complications tie to the foregoing. Pallas has been
targeted for exploitation ~ even ruination ~ by unscrupulous persons (in
and out of government) and certain corporations working in concert. They
must be brought to justice.
Pallas
Resource Corporation ~ which thought it was buying clear title to the
Gooseberry Mine property just east of Reno in 1987, has been victimized
by an extreme case study in criminal perversion of justice.
William
T. "Bill" Jordan, President and CEO of Pallas,
is now seeking investors to become familiar with the Pallas situation
and realize that a multimillion-dollar, "slam-dunk" lawsuit is just
waiting to be pressed in an honest court by competent attorneys. Click
here to send email to
Bill.
Indented
material below is excerpted from about 600 pages authored by or compiled
by Bill Jordan. He and some of his mining activities have been featured in various publications
including Time Magazine.
Left
margin material, such as this paragraph, is the work of Guy Felton,
Webmaster. Felton is listed in the 2000 edition of Who's Who in
America. At age 73, he is a former Marine, police officer, school
teacher, newspaper columnist, executive job search consultant, and
etcetera.
In the
words of Bill Jordan:
Pallas
Resource Corporation bought the Gooseberry Mine Properties from
Asamera Minerals on April 16, 1993, a site located 22 miles east of
Reno, Nevada. The property consists of 560 acres of fee land, all of
which is usable when taking into account Pallas' Wind Power Project.
This acreage is centrally located within Asamera's original 105,000
acre Western Nevada Gold Project. The Gooseberry Property contained
the operations of Asamera's former gold and silver mine on 56 acres
with primary mining facilities secured behind chain link fence.
The
mining operations of previous mine operators were on 27 acres composed
of a milling and support complex of extensive infrastructure that
included: office buildings, a fully operational and updated
exploration and metallurgical laboratory, maintenance garage, supply
warehouses, wood working shop, hoist building and head frame servicing
a 1,465 foot deep mine shaft (to usable water), crushing plant, and
grinding system capable of producing material down to minus 400 mesh,
mill, home for security watchman, steel yard with huge quantities of
un-inventoried materials and used equipment, electrical substation
with excellent distribution throughout the part of the property used
for operations, good ingress and egress with easements, water, fully
equipped emergency room with first-aid and medical care capability,
extensive office furniture and engineering equipment, and many other
useful personal and real properties.
There
were extensive complements of tools, supplies, inventories, equipment
and rolling stock that would form the propagation and servicing of
numerous business projects, such as a hardware outlet, repair and
maintenance garage, landscaping, real estate, cement products,
aggregate, and many other compatible project possibilities, as well as
the aforementioned wind power project and turbine development.
Under
Asamera's former management, this complex employed up to 128 workers
at peak production, which required an
extensive complement of personal property investment that averaged at
least $35,000 per employee, not including real estate and mine
reserves. Asamera closed mining operations during a low gold market
but alleged to Pallas through submitted information that residual ores
of economic grade remained and potential values ranged from $25 to $73
millions. This was one of the inducements for Pallas to accept the
reclamation bond, a liability of which Pallas was not the cause.
Asamera's figures were likewise passed onto the Nevada Bond Pool,
which is funded by Nevada miners, but one that is managed by corrupt
Nevada administrators using the pool to protect a very large and well
connected corporation, Conoco-
Phillips.
When
Pallas bought the operation, all facilities were working and in
excellent condition, and the company had added to and maintained these
useful properties in like manner as it looked forward to Post
Mining Uses that would further enhance investor values. Trips by
shareholders to review the facilities and view firsthand the beginning
gold production was topped off with the occasional barbeques and
gatherings enjoyed by all.
Of the
accounted-for values passed to Pallas in the sales and purchase
agreement were $3,353,000.00 worth of personal properties. However,
this figure did not include non-inventoried personal properties that
would increase the total value by at least another $1,000,000, nor
does this provide replacement values which would reflect a gross
amount of personal property value worth at least $5,000,000 or more.
In Pallas' Business Plan dated April 4, 1994, the surface
infrastructure was estimated at being worth $6,000,000 and underground
development and equipment was estimated at $4,000,000. This Business
Plan had been required and approved by the Nevada Division of Minerals
(NDOM) for purpose of justifying issuance of the reclamation bond for
the Gooseberry mine property.
Another
advantage to the Gooseberry is that the power hookup to the facilities
is a two-mile power line that goes from Sierra Pacific's 603 Line to
the company's sub-station within the operational compound. This power
line provides an additional plus for Pallas' intended Wind Power
Project, and importantly, connects to the nationwide grid.
Four
years before Pallas was incorporated, the current Pallas' management
first entered into the gold mining industry with its purchase of the
Talapoosa gold and silver mine that it bought in 1985 for its first
company, Athena Gold Corporation, at the very lofty price of
$1,060,000. This was risk-taking at its best since there was only one
drill hole that provided encouragement for a near surface oxide
orebody. Management increased the initial 1,320 acres to just under
10,000 acres with all located on the western Lyon County line
adjoining the Asamera Western Gold Project.
In
early 1988 an announcement was made by management to the shareholders
in Athena Gold that a discovery of over 1,000,000 ounces of gold in
the ground had been made. And as management predicted, the Talapoosa
deposit did expand by another 50% and topped out at about 1,556,000 of
proven in-ground ounces, which is still not seen as being the limit.
An exploration geologist can work a lifetime and never make a
discovery of this kind. And, Pallas' associate, J.R. Burke, P.E., who
began working with Athena Gold in 1986, worked up the only plan of
operations in 1987 for this deposit.
But,
there was trouble on the way. Inherited in a secondary funding for
Athena Gold were unsavory characters posing as benign investors.
Unknown to management at the time, these characters turned out to be a
takeover team made up of top-level OT VIII members of the cult of
Scientology, characterized as a criminal organization in Canada and
elsewhere.
The
illegal taking of Athena Gold became the "1st Taking" of
management' properties with the story partially portrayed in a
sub-article "Mining Money In Vancouver" that was included in
a major TIME
Magazine expose'
dated May 6, 1991, entitled "Scientology: Cult of Greed".
But, at the time, the extent of infiltration of this cult in the gold
mining business was not known, and buying the nearby Gooseberry with
its extensive infrastructure was considered to be a perfect fit for
this huge deposit that was seen as advancing the company's long-range
mining plans.
Some
time after purchase, Pallas would discover that it had been defrauded
by Asamera Minerals as reserves and ending cost information had been
faked. There were no reserves as ending cost of production at time of
closing the Gooseberry operations were at a deal-killing high of
$3,145.00 per ounce of gold produced. All of Asamera's deceptions and
that of its lawyers were intended to shield it from its reclamation
responsibilities and effectuate the transfer of a spent mine
reclamation project, not the mining project that Pallas and the Nevada
Bond Pool were led to believe existed.
Pallas
wasn't about to accept this fraud and set about to remedy the
situation by filing a claim against Asamera. Pallas had obtained the
reclamation bond through the Nevada Bond Pool in the amount of
$269,195 and had collateralized it with 34 pieces of equipment
appraised at the time for $500,600. This gave the company the right
to perform the reclamation and was making plans to do so. It was to
the company's advantage as it sought to redeem its equipment and
improve the property simultaneously. Four different lawyers were hired
to sue Asamera and make it pay for the reclamation and redeem Pallas'
collateral. Shortly after hiring, Pallas was forced to sever relations
with each one after time and money had been wasted.
Despite
the setback, the company would later turn things around at the
Gooseberry as it began to develop a cash flow from scavenging gold and
silver from surface materials using its in-place carbon circuit and
other equipment. For this, the company pumped water from Sierra
Pacific's containment ponds for two seasons through its pipeline with
plans of stepping up production from surface tailings. This
coincided with its Business Plan, and Pallas was combining reclamation
activities at the same time it stepped up its stripping operation.
There
were four mill tailings deposits that were to be transported and
deposited in eight parallel trenches that had been dug upon the heap.
The heap and various tailings consisted of about 300,000 tons and was
contained on an approved liner. By depositing the mill tailings from
these four deposits upon the heap, this would satisfy reclamation
requirements and also facilitate the leaching of gold and silver from
only these trench areas. As the surface area of the trenches was
confined to a narrow rectangular area, the sprinkling mechanism was
limited to the spraying of one trench at a time and, when finished, it
would be rolled to the next trench all in one motion. In this way, the
entire heap would not be leached as Asamera had done; the envisioned
procedure was compact, efficient, very environment friendly, and
required only three to four employees for part of the year, supervised
by the venerable Mr. Walter Wolf Mercer.