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HAY RIVER - Tamerlane Ventures denies that its exploration of the Pine Point mine near Hay River has been put on hold.

Reports that a drop in share prices has caused the U.S.-based mining company to cancel work are not true, according to vice president of operations and project manager David Swisher.

A drill on the Pine Point site where Tamerlane Ventures is going ahead with operations for a lead/zinc test mine. - NNSL file photo

"We've basically just made the decision to throttle back on our exploration program," said Swisher.

"Because the markets are down, we don't necessarily need to do exploration at this point."

Swisher said the company, which received its land use permit this summer, is currently finishing up the process for its water license.

"Everything is still moving forward," he said.

In May, Tamerlane Ventures was able to begin the process of getting land and water use permits for the project from the Mackenzie Valley Land and Water Board. Plans for a test mine were given the green light in February for the long-closed Pine Point Mine after undergoing a nearly two-year environmental assessment.

Hay River deputy mayor Michael Maher said drilling at the lead/zinc test mine, about 48 km east of Hay River, wasn't even planned to begin until winter.

"Their biggest roadblock right now is getting their permits," said Maher. "Ninety-nine per cent of their effort is on the regulatory process."

He said Tamerlane is "plugging along" and will continue to move ahead.

Tamerlane hopes to begin construction at Pine Point this fall, with the capital costs of the project estimated at $110 million. Construction is expected to last 15 to 18 months, with 60 to 70 people on site at any one time.

The mine is expected to employ over 200 people during its operational phase.

Last summer, the company announced proven and probable reserves of lead and zinc totalling over one million tonnes at the Pine Point site.

-with files from Jennifer Obleman