Minto Metals comments on Yukon water challenge

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Minto Metals Corp. [MNTO-TSXV] on Thursday responded to a direction from the Yukon Government regarding the use of water at its Minto mine in Central Yukon.

In a statement, Minto said it has received the direction from the government on the grounds that water has been and is being used in contravention of the conditions of its water license, and directing the company to take action to protect the environment during this spring’s freshet.

Specifically, the company has been directed to immediately begin transferring water from the current water storage facilities to the Minto North pit, another on site pit, to ensure safe storage prior to treatment, if the total storage capacity in the tailings facility falls below 300,000 cubic metres.

When the water transfer to Minto North pit commences, the company said it must also cease all deposition of tailings into the tailings storage facility until water volumes from the spring freshnet have decreased and the water storage capacity in the tailings storage facility has recovered, which may result in a temporary suspension of the milling operations.

No further depositions of tailings is permitted without the written approval from the inspector, the company said.

Minto President and CEO Chris Stewart said his company is committed to strong environmental stewardship which was demonstrated last year by the company temporarily shutting its milling operation for six weeks to handle the excess water it received during spring freshet.

“With our investment into the water treatment plant over the past 12 months, we are in a much better position to treat and discharge large volumes of water coming into spring freshet this year,’’ he said.

“We will continue to work with the Yukon government and Selkirk First Nation to ensure our mine operates responsibly.’’

Minto is the second producing hard rock mine in the Yukon next to Victoria Gold Corp’s [VGCX-TSX] Eagle Gold Mine north of Mayo, which poured its first gold bar in September, 2019.

The Minto mine has been in operation since 2007, with underground mining starting in 2014. Since 2007 approximately 500 million pounds of copper has been produced from the Minto Mine.

In 2022, Minto said $8 million was invested in the water treatment plant and this year, the company is allocating another $12 million on upgrading and operating the water treatment plant on site. In addition, the company is in the process of commissioning a second water treatment plant to double the output capacity as the company prepares to enter spring freshet.

Minto also noted that the snow pack last year was 417% above normal. It also said 1.4 million cubic metres of water was discharged in a safe and compliant manner in 2022. It said that constitutes more than double what was cumulatively discharged over the past seven years.

On April 19, 2023, Minto shares closed at $1.15 and currently trade in a 52-week range of $2.40 and 90 cents.


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