Yellowknife (Apr 22/05) - Internal problems at the Mackenzie Valley Land and Water Board threaten to derail mineral exploration in the Northwest Territories, warns the president of a Vancouver-based mining company.

"This doesn't bode well for the NWT," Tim Coupland, president of Alberta Star Development Inc., said after water board chair Todd Burlingame suspended business last week.

Junior mining companies are "voting with their feet and dollars and are moving their projects to Nunavut," said Mike Vaydik, executive director of the Northwest Territories and Nunavut Chamber of Mines.

"It's difficult to quantify, but I've been told by a number of junior companies that they are finding it a lot easier to explore in Nunavut," Vaydik said.

"There seems to be a more can-do attitude at the Nunavut water board. They seem to be interested in timely responses to requests for permits."

Problems at the water board "are longstanding," Vaydik said. "Based on our experience with Todd Burlingame at the Mackenzie Valley Environmental Impact Review Board, we are hopeful that he can make positive changes."

Alberta Star is one of 20 companies left hanging when members of a board panel voted to ask Burlingame to stand aside until lawyers decide whether he might be in conflict of interest.

The resolution will be discussed at a meeting of the full water board set for April 28 in Inuvik. It's not known when the board will resume regular business.

Alberta Star has been active in the Northwest Territories since 1996 and has "an impeccable record environmentally," Coupland said.

"If we can't get a simple permit done, then we'll have to go to a jurisdiction that is mining-friendly. That's pretty much everywhere else in Canada, these days."

Alberta Star has committed to spend up to $5 million over the next two years exploring for uranium, copper and gold near MacInnis Lake, 275 km southeast of Yellowknife.

Spent $175,000

The company has already spent $175,000 to book aircraft for this year's exploration program and needs the permit by mid-May if it is to proceed, Coupland said.

"We commit to our work season six months in advance. If we're not able to work, we'll have to seek some form of restitution," he said.

"We expect to get it. If we don't, this will have serious repercussions for the mining industry in the Northwest Territories."