Selwyn Resources (CVE:SWN) said Wednesday that the Supreme Court of Yukon has dismissed an application by the Liard First Nation group to cancel an earlier government decision that completed the environmental assessment of the underground exploration program at the company's zinc-lead project in the territory.
The Selwyn project is operated by Selwyn Chihong Mining, the joint venture company equally owned by Selwyn and Chihong Canada Mining, a subsidiary of Yunnan Chihong Zinc and Germanium Co.
Selwyn said the latest decision removes uncertainty in regards to the validity of its Type B Water License and Mining Land Use Permit for the Selwyn project. These licences allow for ongoing exploration of the property, and the implementation of a 200,000 tonne underground exploration program.
In November last year, Liard applied to quash, suspend, or stay a Decision Document issued by the Yukon government's director of mineral resources to allow Selwyn's advanced underground exploration campaign to proceed to the regulatory stage for licensing and permitting.
In the application, the First Nations group said the evaluation report of the program was "deficient", and that the Director "failed to meet the statutory requirements of the Yukon Environmental and Socioeconomic Assessment Act...and that the Yukon Government had failed in its duty to consult with the Liard First Nation," Selwyn said in a statement.
However, the Supreme Court found that the report "reasonably considered" the significance of the environmental effects of the project, and that there was no breach in "the duty of fairness", as all obligations were met.
The Selwyn project hosts large tonnages of zinc-lead mineralization, and the known deposits have the potential for large scale production.