Banks Island Gold Ltd. (TSX-V: BOZ), a junior mining company that went into production on Banks Island on the B.C. north coast, has taken a stock price hit, following a pollution abatement order for unauthorized discharge of mine waste.
The company’s shares were down about 50% today (July 30) during midday trading following news reports – which the company has called inaccurate – that about 1 million tonnes of mine waste had been released into a local stream without authorization.
And just three weeks after the company announced a new CFO on July 8, the company announced that Saurabh Handa has resigned his position.
The company received a pollution abatement order from the B.C. Ministry of Environment on July 10 for unauthorized discharge of effluent from its Yellow Gold mine, but did not put out a press release until July 24.
On Thursday, Banks Island Gold CEO Ben Mossman reacted to press reports that he called inaccurate.
In a press release, the company said that, contrary to media reports, it has not shut down. It’s mill continues to process ore, although the company its production has been “significantly impacted.”
The company also disputed media reports that mine waste that had spilled into local waters was toxic.
“Toxicity testing of the water spilled at Bob indicated 100% survival of Rainbow Trout and Daphnia Magna,” the company said.
Unlike most mines in B.C., Banks Island Gold does not store mine waste underwater in a tailings ponds. After processing, the waste is eventually backfilled underground.
A company spokesman could not be reached to comment on the incident or the departure of its new CFO.
In a news release, the company only said of Handa’s departure that, “Based on other commitments Mr. Handa currently has, it was mutually decided that it would be in the best interest of the company for Mr. Handa to resign at this time.”
