T'THENAAGO/NAHANNI BUTTE - The company developing the future Prairie Creek mine says it will scale back on-site activity and spending until the regulatory process for the approximately $100 million project picks up more steam.

Denis Nelner, general manager of Nogha Enterprises in Fort Simpson, at the recent NWT Aboriginal Business Conference in Yellowknife, says several businesses in Fort Simpson are preparing for the opening of Canadian Zinc's Prairie Creek mine, but when the mine opens depends on how long the rest of the regulatory process takes. The company has received the terms of reference for the project's environmental assessment and hopes to have the necessary permits to begin building the mine some time in October 2010. - Guy Quenneville/NNSL photo

Canadian Zinc, which has been exploring for lead, zinc, copper and silver at Prairie Creek since the early 90s and wants to build a 220-person mine to last 20 years, has yet to finish its pre-feasibility study for the project, citing the glacial pace of regulatory approvals for the project. The company needs the necessary permits from territorial regulators to construct and operate the mine, located 90 km southeast of Nahanni Butte.

The company has made progress on the regulatory front this year. In July, it received the terms of reference for the project's environmental assessment (EA, now requiring the company to submit its developers assessment report.

Provided everything goes smoothly, the EA under the Mackenzie Valley Environmental Impact Review Board could wrap up in October 2010, according to Canadian Zinc.

Even if that happens, the project isn't guaranteed to move forward.

"At such time that the company receives its operating permits for the Prairie Creek Mine (which is not a certain event), it will require significant additional financing to place the mine into operation. There is no guarantee that the company will be able to obtain such financing to complete the development of the Prairie Creek Mine," read Canadian Zinc's second quarter earnings report.

In the meantime, Canadian Zinc will limit further on-site work to sporadic rehabilitation of a road connecting the mine to the Liard Highway as well as necessary environmental baseline studies to help advance the project's assessment, said president and chief operating officer Andrew Taylor.

"We have been working on that in moderation only, but our main focus is to complete all these baseline surveys that need to be done in order to support a submission of the developers assessment report," said Taylor.

Drilling at Prairie Creek last took place in 2007, employing 40 people, 12 of whom were Northerners.

Nogha Enterprises, which is owned by the Liidlii Kue First Nation (LKFN), is one of several organizations in the Dehcho region eagerly awaiting and preparing for the opening of the mine, according to general manager Denis Nelner.

This summer, in partnership with international food service provider Sodexho and Georgia-based Landmark Logistics, Nogha opened the $4 million Fort in the Forks facility in Fort Simpson, which includes a lodge with 48 rooms, a 100-person conference room, a restaurant, a gas bar and a convenience store.

The facility was developed partly with the future business coming from Prairie Creek in mind, said Nelner.

"Sodexho didn't get into a deal with us because of our good looks. It's because there's opportunity there," said Nelner.

Despite previous setbacks to Prairie Creek - including appeals by the Dehcho First Nations regarding water licenses obtained by Canadian Zinc for previous legs of the project - Nelner is optimistic the mine will be up and running in the next 20 months.

"The infrastructure is there," he said. "Basically - and I'm oversimplifying it - at just the turn of a key the engine fires up and everything's ready."