Derek Neary
Northern News Services

Fort Simpson (June 07/02) - Other than basic maintenance, work at the Prairie Creek mine is out of the question for the summer due to a delayed permit application, according to Canadian Zinc president and CEO Malcolm Swallow.

The application for use of a pilot plant and a decline was forwarded to the Department of Indian Affairs and Northern Development (DIAND) by the Mackenzie Valley Environmental Impact Review Board (MVEIRB) in early February.

"Our program is stopped as far as we're concerned until such time as we get a permit," Swallow said, adding that it's now too late for the summer season. "As it is there's no way I can raise the cash and mobilize within that time frame."

David Livingstone, director for renewable resources and environment for DIAND, acknowledged the time lag.

"I think everybody recognizes that the process has taken longer than it should," he conceded.

He explained that the delay stems from trying to coordinate the five agencies now overseeing the permit. DIAND, the GNWT, Parks Canada, Fisheries and Oceans and Environment Canada had to reach consensus on the matter, he said.

Their collective recommendation should be forwarded to the minister of DIAND within the next month, said Livingstone.

"It's a complicated issue and we want to be sure the right recommendation is made to the minister," he said.

The application was originally submitted to the Mackenzie Valley Land and Water Board over a year ago.

The planned work at Prairie Creek is an integral part of the mine's feasibility process, designed to demonstrate tailings disposal and water quality among other things, Swallow noted. He said Canadian Zinc is capable of complying with MVEIRB's recommendations.

Canadian Zinc has the Fort Simpson Chamber of Commerce's support.

In a letter to DIAND Minister Robert Nault last month, Chamber President Duncan Canvin wrote, "We do believe the MVEIRB was designed to listen to and protect the rights of affected individuals... to now sit on the fence in the face of (their) decision is simply an abuse of process."

Low zinc prices would also make it difficult to raise cash currently, Swallow admitted.

"But the zinc cycle will turn around within two years," he predicted. "If we get delayed a year here obviously it doesn't shorten the permit process."

Swallow said his company is subsequently turning its attention to its gold exploration activities north of Yellowknife.