PEHDZEH KI/WRIGLEY - A future lead-zinc mine straddling the Yukon/NWT border may predominantly rest on the Yukon side, but that doesn't mean the NWT – namely, residents of the Sahtu region – won't benefit from the project down the road, says the president of the company developing the project.

A drill rests on the lead-zinc deposit being developed by Selwyn Resources on the Yukon-NWT border, with the project's southeastern end resting on NWT land. While no NWT residents are currently participating in the company's summer exploration project, there lies potential for Sahtu residents to gain employment once the project becomes a mine. - NNSL file photo

Vancouver-based Selwyn Resources has been developing the lead-zinc Selwyn Project – whose southeastern end (10 per cent of the overall known deposit) extends onto Sahtu territory, west of Wrigley – since 2003. The company is spending $35 million on exploration this summer, with another $50 million planned for next year.

But while the labour force for this year's field season does not include any workers from the NWT, that will likely change as the mine enters production and the company looks to explore extensions of the deposit that stretch onto NWT land, which have largely unexplored, said Harlan Meade, president and CEO of Selwyn.

Meade estimated the mine will require between 220 and 240 workers, and not all of them can come from the Yukon.

"Certainly (among) the local First Nations on the Yukon side, it's fair to say, we're unlikely to find 240 skilled workers," said Meade. "That creates an opportunity to access other people who live in the area. I think that there are opportunities for the Sahtu in mine operation as this goes forward."

While all the high-grade resources identified on the property so far fall on Yukon territory, as the mine enters production, Selwyn will likely set its sights on exploration in the NWT, said Meade.

"Once we get more operational, then I think we'll see exploration undertaken on the Northwest Territories portion and at some point I expect there will be mine development in there."

Sahtu residents are currently playing a role in the project's development, however.

In the late 1970s, a road going from the Selwyn property to Norther American Tungsten's CanTung mine was built, and Selwyn needs to the road to be rehabilitated.

"That road is going to be refurbished commencing in the next few weeks and that will be solely manned by Sahtu members," said Meade.

Selwyn hopes to release a bankable feasibility study on its project by the middle of next year, at which point the company must then begin raising capital for the mine, whose capital cost Meade estimated hovering between $600 million and $800 million.

Another lead-zinc project located 42 km east of Hay River, Tamerlane Ventures' Pine Point project, is in its third year of seeking financing after the company released a feasibility study in 2008.

While declining to comment on a rival lead-zinc project, Meade said he's confident about the Selwyn Project's chances.

"It has attracted the attention of many large smelting companies," he said.

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