WRN shares rose by about 7.48% yesterday. Carmacks will be one of the richest mines in the world when this mess gets sorted out (grade of copper), and Casino will be one of the biggest (quantity of copper -- even without the massive news the other day). 118% undervalued. Will have to wait and see...this could be big!

Chamber seeks standing in appeal process

The Yukon Chamber of Mines is seeking courtapproval to become in intervener in the upcoming appeal by WesternCopper surrounding the jurisdiction of the Yukon Water Board.

The Yukon Chamber of Mines is seeking court approval tobecome in intervener in the upcoming appeal by Western Coppersurrounding the jurisdiction of the Yukon Water Board.

In a sworn statement filed with the Yukon Supreme Court a week ago,the chamber indicates it has a “unique focus and the appropriateexpertise to present to the court an important and unique perspective,as well as a valuable information regarding the implications of thewater board’s decision in this matter.”

After several days of public hearings earlier this year, the waterboard issued a decision last May denying Western Copper a water licencefor its proposed Carmacks Copper Project.

The decision came after the Yukon government approved the open pitproposal in 2008 following a recommendation from the Yukon EnvironmentalSocio-economic Assessment Board (YESAB) that it be allowed to proceed.

By denying the licence, the water board has subverted the regulatoryprocess and created harmful uncertainty in the Yukon’s regulatoryregime, says the affidavit sworn by Michael Wark, the chamber’sexecutive director.

“Certainty, is a highly important factor in resource companies’decisions to pursue development of mineral resources,” says thestatement.

Wark goes on to point out that because the water board is usually thelast regulatory body to assess a project proposal, its decisiongenerally comes after a company has invested significant amounts ofmoney into advancing the project.

“The water board’s decision under appeal has undermined the clarityand predictability that the mineral industry relies upon, and thechamber is in a unique position to present evidence and offersubmissions relevant to this issue and the adverse impact that thedecision, if allowed to stand, would have an investment in the Yukon’smineral resource industry,” says the affidavit.

Wark said Friday the chamber was assured at a case management meetinglast week that there would no objections to it being given intervenerstatus.

While the water board’s decision sent shivers through the miningindustry, it was applauded by the two First Nations closest to theproject proposal and the Yukon Conservation Society.

All three have argued extensively that the method of processing theore the company was proposing amounted to unproven technology whichcould have potentially devastating implications for the Yukon Riverwatershed.

In denying the application, the water board agreed the proposed method of processing the ore amounted to unproven technology.

Western Copper appealed the board’s decision.

Yukon Supreme Court Justice Ron Veale ruled recently that theconservation society and both the Little Salmon-Carmacks First Nationand the Selkirk First Nation will be given full party status as“respondents” during the appeal hearing.

Respondents have more latitude during court hearings, and also havethe ability to appeal the court’s decision, though they also face the risk of having to pay court costs if it becomes an issue, Veale pointedout.

Interveners are permitted to make submissions to the court but do not have the same latitude as respondents, nor do they have a right toappeal the court’s decision.

Veale indicated in his decision the appeal essentially deals with the authority of the water board in making its decision.

Western Copper, the judge indicated, will argue the water board must issue a licence which agrees with the Yukon government’s approval of the project, though it is free to build into the licence whatever conditions it deems appropriate.

Carola Scheu, manager of the water board, said last week the water board will be arguing it is an independent body when deciding whether toissue a licence.

(The Star incorrectly explained the board is an independent body throughout the entire regulatory process. In fact, when the board does decide to issue a water licence, the licence must conform to the conditions set out in the government’s decision approving the project.)