McEwen’s Los Azules copper project gets key environmental approval
The company anticipates construction to begin as early as 2026.
The Xatśūll First Nation may sue the British Columbia government and Osisko Development (TSXV: ODV; NYSE: ODV) if its concerns aren’t addressed in the permitting process for the Cariboo gold project.
The project in east-central BC threatens community health, cultural sites and traditional practices due to potential contamination and restricted land access, the nation said in a statement Thursday.
“If the permitting processes move ahead without addressing our concerns, any permits that are issued will be highly vulnerable to legal challenges,” Chief Rhonda Phillips said.
The Xatśūll has called on the BC government and Osisko to halt the project until its issues are resolved, and its free, prior and informed consent is granted.
Cariboo is in the permitting stage, with a Jan. 2023 feasibility study outlining an initial production start next year. The project received an environmental assessment certificate in Oct. 2023, with final permitting expected by December. It aims for 164,000 oz. gold annually, peaking at over 220,000 oz. during its 12-year mine life.
The project requires an initial investment of C$137 million, with an additional C$451 million for expansion, totalling C$588 million for the life of the project. It has an after-tax net present value of C$502 million at a 5% discount rate and a 21% internal rate of return at a $1,700 per oz. gold price.
The Xatśūll says it wants sustainable development but insists it must be done in accordance with the Declaration on the Rights of Indigenous Peoples Act (DRIPA) and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
They cite the Mount Polley tailings disaster of Aug. 4, 2014 as an example of how things can go wrong.
“Xatśūll Territory is ‘ground zero’ for the harmful effects of the province’s unilateral regulation of resource extraction activities, which resulted in the ongoing environmental catastrophe of the Mount Polley tailings failure,” Phillips alleged.
The nation complains it can’t fully exercise its Aboriginal title and rights. Mining disturbances disrupt essential rituals and seasonal gatherings, and erodes the Xatśūll’s profound connection to the land and their ancestors, Phillips said.
Osisko said its Cariboo project permit was now under final review by B.C.’s Ministry of Energy, Mines, and Low Carbon Innovation (EMLCI). A decision is expected by December. A Nov. 7 press release said the company would work with Indigenous partners, including the Xatśūll, even as permit decisions are pending.
Osisko Development, through its reviews and permits, addressed 3,500 comments, chairman and CEO Sean Roosen said in the release.
“We have made good faith and reasonable efforts in the past two years to reach agreement with Xatśūll First Nation, including reasonable offers for financial and other benefits along substantially similar frameworks as those offered to, and agreed by, other Indigenous communities,” Roosen said.
The province’s EMLCI said it could not comment, as it has been in a caretaker role since the recent elections. The result gave the New Democratic Party 47 of 93 seats. This was enough to form a majority government.
But, in the background, the ministry said it continued to engage with the Xatśūll about natural resource development in their territory. The province remains committed to timely statutory decision-making, it said in a brief statement sent to The Northern Miner.
Key issues the Xatśūll raised include the potential negative impact on the threatened Southern Mountain subspecies of the Barkerville woodland caribou and concerns over cumulative environmental effects that infringe on Xatśūll’s Aboriginal rights.
Phillips’ statement noted the ongoing effects of legacy mining. Despite years of remediation, it still affects the community’s ability to practice traditional activities and maintain their cultural heritage, she said.
Osisko Development last traded at C$2.52, up 0.8% or C$0.02 per share, having touched C$2.32 and C$4.30 over the past 12 months. It has a market capitalization of C$263.4 million.
