YELLOWKNIFE - A 27,000-pound Zoom Boom loader owned by a Yellowknife construction company broke through the ice on Prelude Lake Sunday, about 175 feet from shore.

A zoom boom loader owned by Doycon Northern Inc. sinks ever so slowly on Sunday afternoon. The $150,000 loader eventually sank 12 feet. Residents are concerned about oil leaking from the machine. - George Lessard/NNSL photo

The loader was being transported towards the north end of the lake to retrieve a one-tonne truck got stuck in the ice earlier that day, said Don Asher, manager of Doycon Northern Inc.

The truck belonged to a man with an exploration licence whose identity Asher would not disclose.

Asher said the man rented the zoom boom and an operator from Doycon Northern to try and lift his truck out.

Asher said the man had been using the truck to transport some materials for work on a nearby cabin.

"They took the zoom boom out on the ice, which we thought was three and a half feet thick, but they must have hit a soft spot and the machine slowly sank into the water," said Asher. "It's in about 12 feet of water."

Asher was not sure whether the machine is insured.

"We're figuring that out now," he said.

Asked why the zoom boom was taken out in such risky conditions, Asher said, "The man who rented it guaranteed that the ice was strong enough."

The Doycon operator was not injured because the loader fell on its ride side with its main door facing upwards, allowing the operator to exit, said Dave Sundberg, a Yellowknife firefighter with a commercial diving licence who voluntarily dived down to view the loader.

Sundberg, who lives on Prelude Lake Main and has plucked snowmobiles from Jackfish Lake in the past, said he volunteered because he was concerned about possible contamination of the lake.

"That's where I get my drinking water," he said.

Sundberg's fears were confirmed during his swim to the underwater site.

"There's a black pool of what looks like oil under there," he said. "There's also some hydraulic fluid going to the surface of the ice.

"Quite a lot of people in the area are worried about it."

Asher said his company sent divers of its own to inspect the loader.

"They said there wasn't a problem," Asher said.

If diesel fuel or hydraulic fluid is leaking from the loader, Doycon could be in violation of the Fisheries Act and subject to a maximum fine of $100,000, said Craig Boom, manager of enforcement for Environment Canada.

Shawn Larcombe, a sales rep with the Edmonton company that sold the loader to Doycon, said that type of loader can contain up to 125 litres of diesel fuel, 150 litres of hydraulic oil, 23 litres of engine coolant and 15 litres of engine oil. Larcombe also estimated the value of a new loader with same model number at $150,000.

The machine is salvageable, said Larcombe.

"It should work again as long as it wasn't running when it went under water," he said. "All you'd have to do after recovering it is change all the fluids and theoretically it should be okay."

Asher said Doycon plans to retrieve the loader on Friday.

"We're sending divers down to hook up cables to the loader. We'll be pulling it back onto shore with a winch truck."

Sundberg's brother Brian, who also surveyed the scene, said Doycon will have a tough time pulling out the truck.

"What Doycon did is - it's so stupid! - they drilled a whole pile of holes down through the lake and figured they could just winch up the loader," David said. "They drilled the holes to weaken the ice, but in the process, you can't get anything out there. It's a comedy act."