Yellowknife (Jan 21/05) - A fire that destroyed a government warehouse in Old Town, Tuesday morning, likely caused several hundred thousand dollars in damage.

The federal Department of Fisheries and Oceans used the building to store boat motors, solvents and rifle ammunition.

The most significant losses came from outside the warehouse where three parked trucks - including a brand new pickup - were completely destroyed, said DFO area director Ron Allen.

"I would say the total is in the hundreds of thousands, at least," Allen said.

The fire should not affect DFO operations in the Yellowknife area, Allen said. The department's snowmobiles escaped unscathed and officers could rent a truck if necessary.

"We are still mobile," he said.

Concerns were raised Wednesday that chemicals seeped into the ground during the blaze. Allen said the only hazardous materials in the warehouse were antifreeze, fuel and small amounts of oil, but studies would have to be done to determine if the soil was contaminated.

"In all likelihood, most of the stuff was vaporized," Allen said.

DFO, like most government agencies, does not have insurance.

Allen expected other federal departments to help replace the smaller items, but it could be months before the trucks are replaced.

"We have a lot of paperwork ahead of us," he said.

Despite the losses, the situation would have been worse if the fire had reached a large propane tank about 15 metres from the building, Allen said.

"We were fortunate," he said. "The snow on top didn't even melt. I guess that's why they place them away from the building."

Investigators with the Yellowknife Fire Department and the fire marshal's office have not determined the cause of the blaze.

Crews were still dousing minor flare ups Wednesday and it could be a few days before they are able to begin digging through the debris, said deputy fire Chief Clem St. Croix.

For now, he said, the blaze is not considered suspicious, but he cautioned that assessment could change.