Sites Under Government Care

The following four mines are currently under government care:

• Clinton Creek
• Faro Mine (links to the Faro Mine Closure site)
• Mount Nansen
• United Keno Hill Mines

Clinton Creek

What was mined at Clinton Creek?
Asbestos was mined at the Clinton Creek mine site. Asbestos is found in serpentine rock and was used for numerous industrial functions.

Where is the mine located?
The mine is located 100 km northwest of Dawson City and 638 km north of Whitehorse, Yukon. It is located in the Tr’ondek Hwech’in First Nation traditional territory.

When did the mine operate?
Clinton Creek was in operation from October 1967 until August 1978. By 1978, all of the available asbestos was mined. Due to instability in the Porcupine Pit walls, some of the ore originally planned to be mined was isolated. The last mining operator was the Cassiar Asbestos Corporation. The company abandoned the mine site in 2002.

What is the current condition of the Clinton Creek mine site?
While in operation, approximately 16 million tonnes of serpentinite rock containing 940,000 tonnes of asbestos was removed from three open pits. Over 60 million tonnes of waste rock was deposited over the south slope of the Clinton Creek valley and approximately 10 million tonnes of tailings were deposited along the west side of Wolverine Creek.

In 1974, the Clinton Creek waste rock dump failed, resulting in a slide that blocked the valley and the creek, creating an impoundment referred to as Hudgeon Lake. Hudgeon Lake is roughly 115 ha (roughly 150 football fields) in size and is up to 25 m deep in some places.

The primary concern is that with heavy rains or with a quick snowmelt in the spring, there is risk of accelerated erosion of the lake outlet that could lead to sudden and significant downstream flooding. This erosion could drain the lake over a short time. Effects could be felt all the way to Forty Mile with anyone downstream of the lake at risk.

To prevent further erosion to the Clinton Creek stream channel, erosion resistant rock-filled gabion baskets have been placed in the channel (see photo below).

A similar problem though at a smaller scale, has developed at the tailings pile. Slope failures have led to temporary blockages of Wolverine Creek. Studies are underway to determine the risks posed by the tailings blockages and possible remediation options.

Asbestos fiber can be found at the site in the waste dumps, pit walls, and tailings. Asbestos is a known hazard if inhaled. An investigation to determine the risk of exposure to people working at the site is underway.

What is the plan to clean up the site?
Current stream channel stabilization work includes repairs to the damaged portions of the Clinton Creek channel over the waste rock and maintenance of the access road.

Further risk assessment is underway to better understand the site and site components. This work will be utilized to identify further work required at the site and to determine final closure options for this site.

History of Clinton Creek

1967	Cassiar Asbestos Corporation commences mining operations.
1974	Failure of Clinton waste rock dump, impoundment of Clinton Creek and creation of Hudgeon Lake. Failure of the south lobe tailings deposit into Wolverine Creek.
1978	Cassiar Asbestos Corporation ceases mining operations and removes main sections of the concentrator, most mining equipment, and primary structures of the town site. Town site and mill buildings auctioned off. Construction of rock lined outfall channel and weirs to convey Wolverine Creek over the south lobe of tailings deposit. The progressive failure of north lobe tailings deposit is ongoing.
1981	Cassiar Asbestos installs culverts and an apron at Hudgeon Lake and constructs rock weirs and channel armoring in Clinton Creek.
1982	Clinton Creek escapes armoured channel and undercuts north valley wall.
1984	Clinton Creek channel armour reconstructed.
1985	North lobe tailings deposit mass reaches and impounds Wolverine Creek.
1987	Cassiar submits abandonment plan. DIAND Minister refuses to sign proposed water license amendment and DIAND retains bond on property.
1988	Further equipment and structures removed from site.
1989	Warning signs erected and some clean up carried out.
1991	Cassiar Asbestos Corporation bought by Princeton Mining Corporation. Further remedial action undertaken.
1992	DIAND officials recommend that bond be returned to Princeton Mining Corporation.
1997	Significant flood event destroys channel armouring and weir structures in Clinton Creek.
2002	DIAND Water Resources directs Cassiar Asbestos Corp. to undertake actions to stabilize channel under Section 37 of the Yukon Waters Act. As no response is received, DIAND Waste Management implements an initial phase of a channel stabilization program.
2003	Management of the site devolved to the Yukon government. Phase II of stream stabilization completed and further site investigations concluded.
2004	Stream stabilization completed.

How can you find out more information about this site?
Project Manager:  Hugh Copland (867) 667-3208
Office Address: Rm. 210 – 419 Range Road, Whitehorse, Yukon
Mailing Address: Box 2703, K-419, Whitehorse, Yukon  Y1A 2C6

Article:

Landslide Dams and Creek Stabilization at the Former Clinton Creek Asbestos Mine, May 2005   3.2 MB

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Mount Nansen

What was mined at Mount Nansen?
Gold and silver were mined at Mount Nansen.

Where is the mine located?
The mine is located 60 km west of Carmacks and 180 km north of Whitehorse, Yukon. The mine is located in the Little Salmon/Carmacks First Nation traditional territory.

When did the mine operate?
Since 1942, there has been intermittent gold and silver exploration and mining in the Mount Nansen area. A mill was constructed and ore from the Huestis and Webber veins was mined underground. Two attempts at production were undertaken from September 1968 to April 1969 and again for five months from 1975–1976. Both attempts did not meet gold and silver recovery expectations and were not profitable.

BYG Natural Resources Inc. was part or whole owner of the property since 1985, when the company and various partners began exploration of the Brown McDade vein system. A mine and mill operated from November 1996 to November 1997 and March 1998 to February 1999. In February of 1999, the company failed to meet its water license obligations and the Department of Indian Affairs and Northern Development (DIAND) ordered the company to meet these requirements or shut down. On February 17, 1999, operations ceased.

How is the site currently managed?
On April 6, 2004, the Supreme Court of Yukon appointed PricewaterhouseCoopers as interim receiver for the assets of BYG Natural Resources Inc., Mount Nansen mine.

The receiver is preparing a plan for sale of those assets, mainly mining claims and leases, which are outside the area of the mill, tailings pond and open pit. At the same time the Receiver will be dealing with the claims of those parties owed money by BYG, including DIAND and Yukon.

What is the current condition of the Mount Nansen mine site?
When the site was abandoned, the tailings pond contained high levels of cyanide and metals and was in danger of spilling over the dam and into the Dome Creek – Victoria Creek – Nisling River system. The dam holding back the tailings and contaminated water was in very poor condition, leaky and unstable. As a result, each summer the contaminated water is pumped from the tailings pond to a water treatment system then discharged, to make room for the next seasons water flow. The contaminated water that seeps below and through the dam is continually captured and pumped back into the main pond for treatment.

Since taking over the site in 1999, impounded water quantities have been reduced, relieving some of the concern with dam stability. Water quality has also been greatly improved such that cyanide and metal values are now much lower. Long term dam stability remains a concern and various options including moving the tailings out of the valley or major improvements to the dam are being examined for long-term closure.

CANMET Mining and Mineral Services Laboratories conducted a characterization and assessment of the chemical stability of the tailings in 2001-2002.  The study concluded that the tailings are relatively stable chemically but contain enriched amounts of arsenic, copper, cyanide, lead and zinc that could be re-mobilized.

During operation, ore was extracted from an open pit on the property. The pit exposed underground workings that were constructed during the 1940’s. Water is now collecting in the pit and could discharge to other stream drainages if it rises too far.

Studies are being conducted to determine the long-term water quality and amounts of water that may be expected to accumulate. Water was pumped and treated from the pit in 2002 to keep the levels below any underground conduits. Physical hazards such as pits, trenches and underground workings need to be addressed before final closure.

A number of the original 1940’s buildings, including the mill remain on site. Portions of the mill are used for the water treatment system.  Upon final site closure, these deteriorating structures will need to be addressed.
 
What is the plan to clean up the site?
Graceland Construction is currently under contract to maintain the operation of the water treatment system for the tailings pond effluent, and undertake site security and safety. 

Due to reduced water quantities in the tailings pond and improved water quality, water treatment is only carried out when necessary.

Additional research and stakeholder consultation is required to select the most effective final abandonment plan. Public information sessions and stakeholder workshops are underway to establish site closure objectives and alternatives.

How are Yukoners Benefiting?
Fuel, electricity, propane, generators and other miscellaneous supplies, parts and equipment are purchased/leased from local companies.

History of Mount Nansen

1943-1984	Intermittent exploration throughout area. Two attempts to mine local deposits not viable due to poor gold recoveries.
1985-1988	Chevron Minerals and BYG Natural Resources Inc. carry out exploration and environmental baseline studies of the Mt. Nansen property.
1994	Exploration resumed under new BYG management, leading to feasibility study reporting 650,000 tonnes of ore, four year mine life at 50,000 ounces per year and a capital investment of $7,500,000.
1996	Class A Water License QZ94-004 issue and mining and milling initiated in October.
1997-1999	Operations period. Total ore production was 269,000 tonnes.  Recovery problems limited total gold production to 35,700 ounces. Total capital investment was approximately $14,000,000. Project generated operating profits in only two quarters. Serious environmental concerns included problems with tailings dam construction and operation, and discharges from water treatment plant repeatedly failing toxicity test. There were four requests for Water License amendments to suspend non-toxicity requirements.
Feb 1999	Inspector issues directive that BYG comply with Water License or cease operations. Mining and milling suspended. BYG declares voluntary receivership. D. Manning and Associates Inc. appointed receiver for physical assets.
July 1999	D. Manning and Associates resign and leave property overnight. DIAND hires agent to maintain environmental integrity.
August 1999	DIAND formally declares property abandoned and takes over property under Section 39 of Yukon Water Act.
1999-2002	DIAND manages care and maintenance of the site.
April 2003	Management of site devolves to the Yukon government.
April 6, 2004	Supreme Court of Yukon appoints PricewaterhouseCoopers as interim receiver for the assets of BYG Natural Resources Inc.’s Mt. Nansen mine.

 

How can you find out more information about this site?
Project Manager:  Hugh Copland (867) 667-3208
Office Address: Rm. 210 – 419 Range Road, Whitehorse, Yukon
Mailing Address: Box 2703, K-419, Whitehorse, Yukon  Y1A 2C6

Updates:  

Update on Mount Nansen, May 2006  177 KB
Monitoring Plants & Animals, June 2006  356 KB
Monitoring Water & Fish, June 2006  140 KB
Main Issues, July 2006  210 KB

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United Keno Hill Mines

What was mined at United Keno Hill?
Silver, lead and zinc have been mined at Keno Hill since the early 1900s. The Keno Hill camp was considered to be Canada’s second largest producer of silver. From 1914 to 1989, approximately 6.8 million kg (218 million ounces) of silver was produced from over 34 mine sites.

Where is the mine located?
The United Keno Hill property is located near the community of Keno, 85 km northeast of Mayo and 452 km north of Whitehorse, Yukon. Many old mining operations are spread over an area 26 km long by 8 km wide located on three mountains (Keno, Sourdough, and Galena Hills). The property is located within the Nacho Nyak Dun First Nation traditional territory.

When did the mine operate?
From 1914 to 1989, there was near continuous mining and milling at the Keno Hill property. In 1989, the last mining operator, United Keno Hill Mines Ltd. (UKHM) closed and the property was placed under care and maintenance. An attempt to re-open the mine in 1996 was unsuccessful and UKHM became insolvent in 2000.

How is the site currently managed?

In June 2003, after two failed attempts by creditors to sell the assets, the Yukon government took over interim care and maintenance of the mine site, in the absence of an owner.

The Government of Yukon, through the Assessment and Abandoned Mines Branch of the Department of Energy, Mines and Resources is responsible for maintaining the environmental management of the site on a day to day basis. This is managed through private contractors.

In April 2004, at the request of Indian & Northern Affairs and the Yukon government, the Supreme Court of the Yukon Territory appointed PricewaterhouseCoopers Inc. (PwC) as the interim receiver for UKHM under the Bankruptcy & Insolvency Act.

PricewaterhouseCoopers Inc. as interim receiver has the power to:

• take possession and control, of mine assets to preserve and protect them;
• manage or carry on the businesses and affairs of United Keno Hill Mines Limited and UKH Minerals Limited with respect to the assets;
• apply for the issue or renewal of any leases, claims, permits, licenses, or approvals that may be required; and
• to market any or all of the assets.

Why and how was the mine sold? 
When it closed, the UKHM site had ore reserves remaining in the ground and excellent potential for the discovery of more ore. To support the return of this mine site to the private sector, the federal government agreed to limit the liability of the purchaser. The existing historical liability would remain with the federal government. Without this indemnity the property would have no positive financial value to a new purchaser.

Through a court approved marketing plan, PricewaterhouseCoopers in conjunction with the governments of Yukon and Canada launched a sales process for the assets of the mine. In January 2005, PwC targeted over 400 mining companies with information packages outlining the mine assets. By mid April 2005, nine companies submitted formal proposals to purchase the mine.

After an extensive evaluation process ending in July 2005, Alexco Resource Corp. (Alexco) was chosen as the preferred purchaser and entered into detailed negotiations with PwC, Yukon, and Canada to work out the details of the deal. The Supreme Court of the Yukon approved the sale of the mine to Alexco in April 2006.

The actual sale is a two phased process. Upon court approval in April 2006 known as “Initial Closing” Alexco was granted access to the site for purposes of exploration and undertaking the day to day care and maintenance under contract with the Government of Yukon. Once Alexco has obtained a water licence for the site, a process that could take up to three years, final conveyance of assets to Alexco will take place; this date is known as “Final Closing”. At this point Alexco will become responsible for ensuring the site remains in compliance with the terms and conditions of the water licence.

What is the current condition of the United Keno Hill mine site?
The main environmental issue at UKHM is metal laden water coming out of old adits in a number of locations. The key element of concern is zinc, which is present at significantly higher concentrations than any other metal. The main aquatic habitats that have been impacted by the mine activities are Christal Lake, Christal Creek, Flat Creek and the South McQueston River, immediately downstream of the confluence of Christal and Flat Creeks. The majority of the contamination originates from adits of Silver King, No Cash 500, Galkeno 300, Galkeno 900, and Bellekeno mines sites, and the Elsa Mill Tailings. Active water treatment using lime is presently carried out at five locations: Galkeno 900, Galkeno 300, Bellekeno 600, Silver King and on a seasonal basis from the valley tailings ponds.

Another concern is the potential instability of tailings dams. The tailings dams are built on permafrost using inadequate construction methods and were classified at “marginally stable” in 1996. These dams require annual inspection and maintenance.

In 2005 all PCB containing transformers and other PCB containing electrical gear, as well as a large amount of hazardous chemicals were removed from the site for destruction at certified disposal facilities outside the territory.

There are 26 sites with safety issues including unfenced shafts, open holes due to collapse of underground workings, unlocked portal entrances, old open buildings, and adits.

What is the plan to clean up the site?
Under the sales agreement with Alexco, the company and governments will be responsible for developing a closure plan for the site. This process is expected to commence in the fall of 2006 and could take two to three years before the plan is completed.

How are Yukoners benefiting?
Fuel, electricity, propane, generators and other miscellaneous supplies, parts and equipment are purchased/leased from local companies. Alexco is utilizing local Nacho Nyak Dun First Nation citizens and other residents of the Mayo-Keno area to the extent possible for care and maintenance activities.

History of United Keno Hill

1885	Prospectors entered area looking for placer gold.
1903	First recorded discovery of silver-lead on Galena Hill.
1913	Mining commences.
1919	Silver vein discovered on Keno Hill led to staking rush in the area.
1921	Treadwell Yukon Company Ltd. began shipping hand-cobbed ore.
1924	TYC constructed 110 tonnes per day mill at town site of Werneke on Keno Hill.
1933	Wernecke Mill relocated to Elsa on Galena Hill.
1936	136 tonnes per day Elsa Mill put into operation.
1945	Conwest Exploration Company Ltd. and Frobisher Exploration Co. Ltd. acquired all former TYC interest and formed Keno Hill Mining Company Ltd..
1948	Company reorganized as United Keno Hill Mines Ltd..
1951	Elsa Mill capacity expanded to 450 tonnes per day.
1962	Falconbridge Ltd. acquired control of UKHM.
1989	Production suspended due to falling silver prices, high production costs and inability to meet production targets and mine closed.
1990	BLM Mines Inc. purchased 44.8 per cent interest in UKHM.
1991	Rosmith Investments and Stephen Powell each acquired 50% of the issued and outstanding common shares of BLM.
1996	UKHM issued a Class A water license, however production did not start.
1996	Yukon Supreme Court ordered that the mine assets and property be sold.
2000	UKHM applied for creditor protection.
2001	AMT Canada Inc. agreed to purchase the Elsa property and assets for $3.6 million and proposed to reprocess the tailings.
Feb. 2003	Terms of purchase agreement with AMT not met and court ordered AMT to be divested of its mining claims and assets at Elsa. Nevada Pacific Gold announced intention to purchase the property from a group of secured creditors subject to completion of due diligence.
May 2003	Nevada Pacific elected not to complete the purchase of the Keno Hill assets.
June 2003	Yukon government took over interim care and maintenance of the mine site in absence of an owner.
June 2004	PricewaterhouseCoopers appointed Interim Receiver.
January 2005	Mine sales process initiated.
July 2005	Alexco Resource Corp. selected as the preferred purchaser.
April 2006	Yukon courts approve sale to Alexco.
June 2006	Alexco takes over site care and maintenance under contract to Government of Yukon.

How can you find out more information about this site?
Project Managers: Hugh Copland (867) 667-3208 and Frank Patch (867) 393-7445
Office Address: Rm. 210 – 419 Range Road, Whitehorse, Yukon
Mailing Address: Box 2703, K-419, Whitehorse, Yukon  Y1A 2C6

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