Banks Island Gold suspends operations on North Coast

The Banks Island Gold Mine
suspended its operations
on July 31st

There will be no confusion now as to the operational status of the Banks Island Gold Mine on the North Coast, with the company announcing this morning that as of July 31st they had suspended all operations at the Yellow Giant Gold Mine on the North coast island.

The latest statement to be issued by the Vancouver based mining company provides more background into a month long process at the facility, which as we outlined last week is now being reviewed by Environment Canada for pollution related issues.

Today's announcement offered up two themes of note before operations will move forward at the site.

"The Company announces it has suspended all operations at the Yellow Giant Mine as at July 31st 2015 and will put the mine into care and maintenance until permitting and regulatory issues at the project are resolved and the Company has sufficient working capital to re-commence operations."

In addition to the focus on environmental issues which are currently addressed to the mining operation, as we noted last week, some internal issues are in play as well, with the company's Director and CFO departing from the organization last week.

The operation had only recently started its mining operations on Banks Island, noting in today's media release notes that it "provided direct employment for over 100 people and indirect employment for many more, whose families depend on the mine operating."

Those employees working for the company both on site and away, as well as suppliers to the operation in the Northwest will all be affected by the recent developments. With much of the uncertainty to continue until the environmental issues and financial concerns are addressed during the suspension of operations period.

Environment Canada has not provided any form of a timeline when it comes to their review of the pollution issues at the site, while Yellow Giant Mine did not provide any indication as to how long it anticipates the quest for further sufficient capital to take.

You can review the full statement from Banks Island Gold here.

The issue of the impact of the mine on the North Coast recently was addressed by North Coast MLA Jennifer Rice, who issued a statement on the situation on Friday afternoon.

For more items related to mining on the North Coast see our archive page here.

Cross posted from the North Coast Review