A decision on whether to proceed with the proposed power line extension from Carmacks to Pelly Crossing has been put off for two weeks, says the chair of Yukon Energy.

Willard Phelps told the Star Monday the board of directors decided at its meeting last week it needs more information about cost estimates.

It's expected that information will be available when the board meets again June 11, he said.

Phelps, however, said he is reasonably confident the project will go ahead.

'We are carrying on but we have not got enough information to say yea or nay yet,' the chair said. 'But we are proceeding with stuff we are doing, which is moving toward doing the YESAA work and so on.'

To proceed with the final design stage, and to complete other matters related to the project, such as obtaining the various permits required and completing negotiations with the first nation, will probably cost another $2 million, he said.

Yukon Energy has put the cost at somewhere between $19 million and $26 million.

Phelps pointed out that if the board goes ahead with the final design, it will still have one more opportunity to cancel the project, if the actual construction bids come in too high.

The line extension is required primarily to supply the new Minto copper-gold mine with hydroelectric power.

The Yukon Utilities Board has approved an amended power purchase agreement between Yukon Energy and the mine.

The agreement sets out a number of conditions, including a $7.2 million contribution for the main line by Sherwood Copper Corp. and its wholly-owned subsidiary, Minto Explorations Ltd.

Minto will be responsible for the entire cost of the 27-kilometre spur line running off the Klondike Highway into the mine site, which is estimated at $3.9 million.

Under the purchase agreement, Yukon Energy will provide the upfront financing for both Minto's share of the main line, and the cost of the spur line, to repaid over several years.

The Yukon government has committed $10 million to the project, and the publicly-owned Yukon Development Corp., Yukon Energy's parent company, has committed $5 million.

The proposed schedule calls for construction to begin this year, with an aim of having the mine hooked up the newly-extended grid by the end of September 2008.

Yukon Energy has said it will not be releasing the final estimate provided to the board, to protect the bid process.

Phelps said the board of directors is somewhat nervous about the project cost, particularly in these times of escalating material costs combined with a tight labour market.

If the project goes, it's expected the Minto mine would save $3 million to $4 million annually by not having to use its four diesel generators, which will power the mine for the first year of operation.

The mine is scheduled to be in production next month.

Tying Pelly to the grid will also displace some 600,000 litres of diesel fuel burned annually to run its generators.

See letter, p. 7.