Fort Simpson (Aug 04/06) -Work at Cantung mine is continuing, following changes to a order that originally told the mine to shut down.

On July 25, officials with Indian and Northern Affairs Canada sent a letter ordering Cantung to stop underground mining activities and milling ore because water leaking from a tailings pond posed a danger to the environment.

The Cantung mine, owned by North American Tungsten Corporation Ltd., is located on the Northwest Territories and Yukon border. During an inspection on July 19, a water resource officer found the mine was breaking its water licence by allowing water to seep from a tailings pond into the Flat River.

"I believe the deposit of untreated mine water, as well as the seepage of water from Pond 4 through its current pathway into the Flat River, poses a danger to the environment," said Troy Searson, INAC's water resource officer, in a letter addressed to Stephen Leahy, the CEO of North American Tungsten.

The inspection also found that the mine's tailings Pond 3 was at serious risk of being overfilled with waste water "with an attendant danger of catastrophic dam failure," according to the letter.

Stephen Leahy said the order came unexpectedly.

"The reaction was certainly a surprise," said Leahy.

Some notice should have been sent before something of this magnitude was ordered, Leahy said. Maintaining water quality is at the top of the priority list for the mine, he said.

According to a letter sent to the Mackenzie Valley Land and Water Board, changes were immediately made at the mine following the order to stop operations.

The mine water, treated camp sewage and tailings are being sent to Pond 3 and the water seeping from Pond 4 is being pumped back into the pond.

The structural integrity of the ponds is also being assessed by an outside professional engineer. The company is also building an additional pond.

"We want to be good citizens of the land. We don't want anyone pointing fingers at us. We take it seriously," said Leahy.

The mine has been allowed to continue production because it addressed the immediate concerns, said Annette Hopkins, the director of operations with INAC.

No notification was given leading up to the shutdown order because the issues have been ongoing, said Hopkins.

The seepage was originally discovered in February and after being addressed, it started again.

The inspector thought the situation wasn't getting any better and might be worsening.

The mine water seeping from Pond 4 contained higher levels of suspended solids than the water licence allowed.

The inspector will revisit the mine to verify that the company has made the necessary changes.

Weather prevented the inspector from visiting the mine on Aug. 1 so it may be a few days before he reaches the mine, said Hopkins.

"We are keeping in close contact with the company on the matter and they assure us that things are under control," she said.

To his knowledge, Leahy said the mine has never been over the limitations in the water licence.

He would like to see tests proving the charge so that changes can be made if necessary.