The Fentie government's continuing failure to recognize and consult self-governing first nations on land issues has resulted in a mining company losing $50 million on the open market, says a well-known mining executive.

Clynton Nauman, president and CEO of Alexco Resources, said his company's stock value plummeted $30 to $50 million after the First Nation of Na-cho Nyak Dun (NND) announced Friday it was pulling out of regulatory talks on the United Keno Hills mine project because it was not being meaningfully consulted.

'It's a body blow,' said Nauman in an interview from his Vancouver office. 'Make no bones about it, it's compromised the value of our company.

'This is not a situation that is foreign to Yukon in terms of first nation and government relations.

'We're somewhat caught in the crossfire,' he said.

Nauman said while his company maintains a good relationship with the NND, he will be making efforts to encourage the government to develop a formal consultation process with first nations to avoid similar problems in the future.

'I'm going to make my best effort to see that something is resolved between these governments.

'At the risk of upsetting people, I'd like to see a more formal framework in place,' he said.

Nauman said his company, which employs about 50 people in the Mayo area, half of which are NND citizens, will continue to maintain the United Keno property but is not sure if or when environmental reclamation and redevelopment will take place.

The company currently contributes approximately $250,000 a month into Mayo's economy, he added.

'We are charged with the responsibility to continue the maintenance of the United Keno Hill mine, from that perspective nothing has changed.'

On Friday, NND chief Simon Mervyn announced his government would be 'suspending' all regulatory dialogue on the mine until the federal and Yukon governments recognized NND's self-government rights.

'Governments have excluded us from any meaningful dialogue related to Elsa/Alexco proposed redevelopment of the Keno Hills Mines,' said Simon Mervyn, chief of the NND.

'Although we have had some discussions in the past, they were courtesy consultations' and only paid lip service to our rights while the government eagerly cooperates with Alexco in furthering its objectives.

'Our first nation's people have used these lands for generations and we intend to be fully involved in the decision making process regarding their reclamation and redevelopment,' Mervyn said.

In a recent letter to the Yukon and federal governments Mervyn wrote that NND would not participate in discussions until the rights of his government were respected.

'Until such time that there is a process and funding for the Na-Cho Nyak Dun to independently evaluate, assess ad contribute towards all ongoing regulatory processes with respect to the proposed redevelopment of Keno Hills, we have no other option but to withdraw from the process,' Mervyn wrote.

Mervyn said a decision earlier this year by the Yukon Supreme Court which quashed a government decision to issue an agricultural lease in the Carmacks area is evidence that more work has to be done by the Fentie government on his relationship with first nations.

Liberal Leader Arthur Mitchell said this morning that Fentie's disregard for first nations' rights to be consulted is now affecting more than just first nations.

'Mining companies are suffering because Premier Dennis Fentie is not working in good faith with first nations.

'It's not only impacting first nations, it's affecting first nations and the economy,' he said.

'How many times do we have to see this failed relationship between the Fentie government and first nations to realize this is not anecdotal evidence, it's behaviour.'

Mitchell said he is wondering what it will take for the Fentie government to consult first nations in a formalized framework that recognizes their rights under self-government.

'Does this government need to be continually dragged into court to live up to their obligations?'