The Yukon Environmental and Socio-economic Assessment Board has recommended approval of the proposal to build an open pit mine at the Kudz Ze Kayah property southeast of Ross River.

The board’s executive committee finalized its screening report and recommendations on Oct. 21.

BMC Minerals, a privately funded company, submitted its proposal to build the mine in March 2017.

YESAB’s recommendation contains 30 specific conditions, ranging from water management, wildlife management to a number of provisions directed at ensuring the welfare of personnel.

The Yukon government and the federal Department of Fisheries and Oceans (DFO) are the decision bodies on the project proposal. They have 81 days to issue their decision.

There is a requirement for the decision bodies to consult with the affected First Nations, which in this case is the Ross River Dena Council and the Liard First Nation.

Both First Nations made submissions to the assessment board, and while they didn’t object outright to BMC’s proposal, they did raise several concerns, particularly about the potential impact on the Finlayson caribou herd.

Kudz Ze Kayah means land of the caribou, the Liard First Nation noted in its submission.

The company does have a Socio-Economic Participation Agreement with the Kaska First Nations.

BMC president Scott Donaldson issued a statement last week applauding the recommendation and what he described as a rigorous and robust screening process with input from all affected parties.

“We are now preparing the development permit applications which will incorporate the recommendations,” Donaldson said in his statement.

“The process of assessment in the Yukon is very rigorous and all Yukoners can have confidence that the development of the ABM mine would be progressed in accordance with the highest standards.

“We would like to thank the First Nations, regulators, organizations, and individual Yukoners that have provided comment and constructively contributed to the assessment process. BMC looks forward to receipt of the Decision Document in due course.”

The company also issued a release Thursday noting its updated feasibility study confirms mining the ABM deposit is financially viable.

The Kudz Ze Kayak property is located 115 kilometres southeast of Ross River. BMC purchased the property in 2015.

BMC estimates it will cost a total of $376 million to bring the ABM mine at the Kudz Ze Kayah property into production, according to the feasibility study.

The company is targeting first production in late 2023, with an estimated mine life of nine years initially, though exploration is continuing in hopes of expanding the mine life.

The feasibility study noted silver will be the dominant mineral, with production estimated at 7.8 million ounces annually.

The study also noted the production of gold, zinc, copper, and lead will also be strong.

BMC vice-president Allan Nixon said Thursday they expect construction will take around 20 months.

The company estimates at the peak of construction it will have as many as 500 workers on the site but between 350 and 400 for the most part, he said.

Nixon said they estimate the mine will employ about 300 during operations.

He said a significant number of the 30 conditions recommended are on the social side, which the company was planning for anyway but they welcome nonetheless.

“I think it is a positive step for the board, for sure,” he said.

Under the YESAB legislation, the Yukon government and DFO do not have the option of altering any of the executive committee’s conditions.

Decision bodies can alter conditions made from screenings of smaller projects assessed at the designated office level but not at the executive committee level.

The government and DFO must accept the recommendation in its entirety or send the recommendation back to the executive committee with alternatives for consideration.

The committee would then be obligated to issue a public notice and accept public comments on the alternative for a period of 21 days, which could be extended to another 14 days.

Once the public comment period closes, the executive committee would have another 21 days to prepare a new recommendation.

Donaldson has previously indicated once it has its Quartz Mining Licence, it will move to secure its water licence.

Only when they have the two authorizations will the company’s board of directors make a final decision on whether to proceed with the ABM mine.

Companies, he explained, typically wait until they have the required permits before making a final production decision.

But Donaldson also told the Star early in the process the company and its private investors wouldn’t be spending in excess of $100 million assessing and advancing the project if they didn’t think they had a shot at a viable mine.

BMC Minerals is a subsidiary of BMC (UK) Ltd.