The Liard First Nation has received federal funds to start talks with Selwyn Resources Ltd. towards an agreement that would help the Vancouver-based company develop a lead and zinc mine in eastern Yukon.
About $245,000 in federal funding, announced Monday by Indian and Northern Affairs Minister Chuck Strahl, will help the First Nation pay for negotiations towards reaching a socioeconomic cooperation agreement with Selwyn Resources, Chief Liard McMillan said.
"It will also allow the Liard First Nation to conduct research with respect to traditional knowledge studies, and to hold community meetings with our citizens, to get feedback from our elders," McMillan said Tuesday.
Selwyn Resources wants to develop a mine at its Howard's Pass property, located north of Watson Lake, Yukon, on the Yukon-Northwest Territories border. The company is currently in the advanced exploration stage on the project.
While zinc prices have dropped by about 50 per cent over the past year, Selwyn officials said they're optimistic their mine will go into production.
"We have a world class project here. We're looking at one of the largest undeveloped lead-zinc deposits in the world," said Justin Himmelright, the company's vice-president of environment and community affairs.
"With an asset like that as the flagship of the company, I think we're very well-positioned to weather any market turbulence over the short term."
Himmelright said the Liard First Nation is welcome to take advantage of the opportunities that a mine could provide.
"With a project of this scale, I think there is a huge number of opportunities for First Nations to be involved in many different ways, from contractors to employees," he said.
In the past, the Ross River Dena Council of Ross River, Yukon, has accused the Liard First Nation of trying to unilaterally negotiate these types of deals with mining companies.
Both McMillan and Himmelright said the door is open for the Ross River Dena council to negotiate its own agreement with Selwyn Resources.