Court dismisses Kemess South injunction

The British Columbia Supreme Court has dismissed an application by two native bands intent on halting operations at the Kemess South gold-copper mine, owned by Royal Oak Mines (RYO-T).

The Tsay Keh Dene and Takla bands had asked the court to halt logging for the 380-km power line to the project, situated in north-central British Columbia.

The bands filed a petition in February against the provincial government, seeking an order to render void the project approval certificate granted in April 1996. The bands say they were not properly consulted about the impact the mine would have on their territory.

The certificate allowed Royal Oak to proceed with mine construction, which began last July. Startup is set for April 1998.

Minable reserves at Kemess South are estimated at 221 million tons grading 0.018 oz. gold and 0.224% copper, with a waste-To-ore stripping ratio averaging 1.26-To-1.

Annual production is expected to average 250,000 oz. gold and 60 million lb.

copper over a minimum of 16 years. Cash costs are expected to average US$189 per oz. gold and US48 cents per lb. copper.

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