Derek Neary and Thorunn Howatt
Northern News Services

Prairie Creek (Nov 18/02) - Canadian Zinc will have to agree to treat water leaving its proposed Prairie Creek zinc mine before it gets a water licence.

Last month, a report commissioned by the Department of Indian and Northern Affairs (DIAND) blamed the potential mine for high metal and ammonia levels in Harrison and Prairie Creek.

Canadian Zinc Corporation wants to develop the Prairie Creek silver-zinc mine located on the edge of Nahanni National Park in southwestern Northwest Territories. The Cadillac Mine and mill were built there in 1982 at a cost of about $100 million of today's dollars. The mine was permitted, but its owner went bankrupt and the mine never produced.

Canadian Zinc bought the property, hoping to rejuvenate the project, but has been plagued by environmental complaints ever since. The recent DIAND report concludes that water discharged from the mine should be treated to meet more acceptable standards. It recommends that water sampling be carried out at least three times per year and groundwater and aquatic life in the area should be analyzed. The Mackenzie Valley Environmental Impact Review Board is conducting and environmental assessment on Canadian Zinc's application to begin plant and decline work.

Louie Azzolini, an environmental assessment officer with the board, said the DIAND water quality study is one of many factors the board will consider in making its decision, expected in early 2003.

Malcolm Swallow, president and chief executive officer of Canadian Zinc, said he doesn't quibble with the statistical data in the report but vehemently objects to the deduction that his mine is to blame.

Swallow argued that the Nahanni River, which Prairie Creek empties into has even higher metal levels than Prairie Creek. He noted that Canadian Zinc has already proposed to treat the discharge water from the mine site "as necessary" once the pilot plant and related work commences.

Since work was delayed at Prairie Creek, the company has focused on its Damoti Lake Gold project, located 192 kilometres north of Yellowknife.