Dawson City mine granted water licence

The Yukon Water Board has approved a water license for the Slinky gold mine on Dawson City's Dome Road area, but the mine's owner must clear another administrative hurdle before work can begin.

The mine has been at the centre of controversy since residents in a country-residential neighbourhood along the Dome Road asked for a ban on mining within municipal boundaries.

The Yukon Water Board rejected concerned residents' calls for a public hearing, but it imposed multiple conditions on the Slinky mine's water licence.

The mine's water licence is valid for the next five years, instead of the standard 10-year licence. As well, mine owner Darrell Carey must adhere to special conditions such as buffer zones, noise restrictions and fencing.

Glenda Bolt, who lives near the Slinky mine site, said she will still call on the Yukon government to ban mining in municipalities.

"I'm not going to give up with this because I think that what happens here is going to colour what happens in other situations within the municipality here and around the Yukon," she told CBC News on Friday.

"This is a Yukon-wide issue and it just happens to be playing out in Dawson now."

But even with a water licence, Carey cannot start working on his claims just yet, as he needs to obtain a development permit from the Dawson City municipal government.

"The proponent has actually applied for a permit and council is now considering the final decision on that permit application," said Jeff Renaud, the town's chief administrative officer.

Renaud said council is considering a number of conditions it could apply to the Slinky mine development permit. A special meeting on the issue has been tentatively set for Monday.