The Ross River Dena Council and Broden Mining are entering into a partnership on the remains of a portion of the Faro mine site.
The Ross River Dena Council, through Dena Nezziddi LP and Broden Mining Ltd., have formed the Tse Zul Development Corporation to acquire and assess the land.
The corporation is planning a feasibility study and further environmental data collection as soon as possible, with a plan to maximize benefits to the First Nation citizens including training, employment, ownership opportunities and revenue.
“Historically, mining in this territory has had a negative impact on the people of Ross River Kaska Dena. I am pleased that our new partnership for the Vangorda Lands presents a real opportunity to change the future, and work in partnership to create a new beginning for cultural and socio-economic growth,” Ross River Dena Council Chief Jack Caesar in a statement.
“Our young people and community can have meaningful jobs and opportunities to look forward too,” he added.
In the same press release, Broden Mining CEO Donald McInnes thanked Caesar and the community for the partnership.
“To all the community members who shared their first-hand experiences and hopes for the future over many years, we are honoured to have earned your trust to become your partner in this project,” said McInnes.
Broden Mining Ltd. is a company created for the project, and was founded by Vancouver-based companies Strategic Metals Ltd. and Silver Range Resources, who both have a history in the Faro area.
Strategic owns technical information on the Grum and Grizzly deposits, while Silver Range is the current owner of the Keg Project that lies north of the Vangorda Plateau.
The parties have an agreement in principal with Canada and the Yukon to acquire mineral rights in the Vangorda plateau portion of the Faro mine site and neighbouring lands to the east of the plateau.
The Vangorda Lands include the already-disturbed Vangorda and Grum deposits. Potential for silver, lead and zinc mineralization have been estimated from existing exploration surveys.
Approvals will need to take place before any mining commences – the purchasers will need to provide a financial security and pass an environmental assessment under the Yukon Environmental and Socio-economic Assessment Act.
In addition, the project will need a quartz mining license and water license from the Yukon government.
Faro Mine was once the largest open-pit lead-zinc mine in the world before it shuttered in 1998 following the bankruptcy of the Anvil Range Mining Corporation.
Since then, millions have been spent on maintaining the site, without cleanup, in order to avoid further environmental damage. The estimated cleanup itself could cost the federal government up to $1-billion.
The Yukon government release from Aug. 31 notes that “future development of the Vangorda Plateau could reduce the cost to Canadian taxpayers for the remediation of this portion of the Faro Property.”
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