Study confirms Polestar’s plan for garnet mine

A study of a proposed garnet quarrying and processing operation near the Apex recreation area 32 km west of Penticton, B.C., was recently completed, although no decision was made on the project’s future.

The property is owned by Polestar Exploration (VSE). Western Garnet Company (VSE) has an option to earn a 70% interest by funding the project to production and paying Polestar a total of $5 million during a 5-year period. Polestar will retain a 3% royalty until Western recoups its capital cost and the cash payments.

The companies had hoped to develop a 225-tonne-per-day operation producing about 60,000 tonnes of clean garnet per year, but development plans were delayed by local opposition.

The provincial government commissioned a study by Ken Youds, a public consultation specialist, and Ken Peterson, an economist, to look into outstanding issues and concerns relating to the project.

The report determined that although there is a limited amount of data regarding the marketability of garnet, if the company can produce at its target price of $100-120 per tonne, a market niche is likely. The study also found that the quarry and milling operations would have a perceivable but not an intolerable negative impact on recreation in the area. Low-level noise from milling as well as truck traffic through Apex village are seen as the largest outstanding technical issues.

In addition, a cost-benefit analysis did not give definitive grounds to reject the project on the basis of potential impact to the skiing operation; in fact, there are significant uncertainties about the economics of the ski operation with or without the mine.

Energy and Mines Minister Anne Edwards and Environment, Lands and Parks Minister John Cashore stated that they plan to study the report and focus on the issue of noise from milling and trucking as well as on possible options for mill location and transportation routes. No indication was given as to when the government will make a decision on the project.