B.C. plans to build toll road into Iskut River area

British Columbia Premier Bill Vander Zalm recently announced the go-ahead for a 72-km road to reach the resource-rich Eskay Creek and Iskut River areas in the province’s isolated northwest. In a speech to the Mining Association of British Columbia and the Yukon Chamber of Mines, Vander Zalm said his government was prepared to move forward to develop road access as part of its overall regional strategy. The road will operate on a user-pay basis.

“The northwestern area of British Columbia has been by far the most active region of mineral exploration in this province for several years now,” he said. “However, the full potential of the area cannot be realized without roads and other infrastructure. Here is where we will take the lead in establishing a corporation to build and own the road on a cost-recovery basis.”

The $20-million road will be built from Bob Quinn on Highway 37 to reach the Eskay Creek property and the Johnny Mountain and Snip gold projects in the nearby Iskut River mining camp.

Vander Zalm said the road would not only provide a catalyst for the development of new mines, but help forestry and tourism.

“It will create new opportunities and over time, as the region reaches its full potential, we’ll see full cost recovery,” he added.

“This is not just a mining road,” emphasized British Columbia Mines Minister Jack Davis. “It will be built and managed to meet strict environmental standards and fit in with other regional needs.”

According to Dave Parker, member of the provincial legislature for Skeena, the road will be a real boost for economic development and expanded business opportunities in Smithers, Stewart, Terrace and other northern communities.

The announcement was a welcome one for mining companies already active in the region, even though construction won’t be completed until next season. An advisory council will be formed to design the road which will include representatives from mining companies, the Tahltan Tribal Council, and the Kitimat-Stikine regional district.

Murray Pezim, whose Prime group of companies will be directing or involved in exploration programs worth more than $42 million in the region this year, told The Northern Miner he was “thrilled and delighted” by the announcement.

“It’s not only important for our group of companies, it’s important for northwestern British Columbia,” said Pezim. “The road will suddenly open up a new area that has seen very little exploration.”

Now that the road is assured, Pezim said he believes the region will become the “hottest area of Canada over the next five years.”

Pezim’s Prime Resources Group (VSE) currently owns 50% of the high-grade polymetallic Eskay Creek project and 40% of the Snip gold mine project being developed toward production by Cominco (TSE). In addition, about 33 Prime-managed junior companies will be involved in exploring over 50 projects from the Galore Creek area to Stewart.

Dave Johnson, vice-president of mining operations for Cominco, said the company would have to complete an assessment on the cost of using the government road and of extending it to the company’s 60% owned Snip project before making any commitments. Cominco will be comparing this cost to that of using a hovercraft based out of Wrangell, Alaska, as is currently planned for the 300-ton-per-day mine.

Bill Price, president of Skyline Gold (TSE), said the announcement was “welcome news” for his company which owns and operates the Johnny Mountain gold mine in the Iskut area. The mine is accessible by airplane.

Although Price said details remain to be clarified, he said the concept of setting up a corporation to own and operate the road on a user-pay basis “appears to be the sort of thing we have been advocating for some time.”

Bill Wolfe, president of the British Columbia and Yukon Chamber of Mines, said the announcement was “terrific news” for the mining industry.

“Northwestern British Columbia has the potential to contribute to the economy through the development of new mines,” he said. “To have new mine openings we need to find mines, and we need to have access.”

Wolfe was also encouraged by the Premier’s remarks on the future of resource industries in the province, particularly in view of a growing preservationist movement that is threatening the future of the forestry and mining industries.

Vander Zalm assured the mining industry that the use of natural resources was the province’s “economic lifeline,” and that British Columbians need the mining industry.

Although he acknowledged the “legitimate” demands of British Columbians for more recreation and wilderness areas, Vander Zalm also expressed confidence in the industry’s ability to recognize and respond to its environmental challenges and responsibilities.

“You shouldn’t have to apologize for being in the mining industry,” Vander Zalm said. “It’s the miners and loggers of this province who create the wealth and prosperity we enjoy. “That’s something you should be proud of and the rest of us should respect.”