A legal dispute between Seabridge Gold and Tudor Gold has prompted the B.C. government to delay a key permit decision for the KSM project in the province’s northwest.
Seabridge said April 13 the Ministry of Mining and Critical Minerals has postponed a decision on permits needed to build and operate the Mitchell Treaty Tunnels, a critical link between planned mining operations in the Mitchell Valley and processing facilities in the Treaty Valley.
The dispute involves two major resource projects.
The first is Seabridge’s KSM project — recognized as the world’s largest undeveloped gold project by reserves, located about 65 kilometres northwest of Stewart, B.C.
The second is Tudor Gold’s nearby Treaty Creek project, considered one of the largest gold-copper-silver deposits in North America.
“We have always been clear that if Tudor has an approved and permitted mine plan for its Goldstorm Project, then we are willing to sit down and find an amicable solution to the MTT issue.
However, agreeing to move the MTT route before Tudor has a defined project makes no sense,” Seabridge Chair and CEO Rudi Fronk said.
The dispute has been ongoing for months. The latest delay stems from a court challenge launched by Tudor over whether a restriction tied to the tunnels applies to its mineral claims.
The restriction is meant to prevent other claim holders from interfering with construction and operation of the tunnels. Seabridge said the province has previously indicated the restriction applies, but the ministry will wait for the courts to resolve the issue before making a final permit decision.
About 12.5 kilometres of the tunnels would pass through claims held by Tudor.
Seabridge already holds a licence of occupation for the route and has approval to begin limited construction at tunnel entry points, but still requires full authorization to proceed along the entire length.
As reported April 4, Tudor is continuing two legal actions: one against the province over how the restriction applies to its claims, and another seeking a judicial review of the decision to grant Seabridge access to part of those claims.
Tudor has argued the measure limits development of its Treaty Creek project and reduces the value of its holdings, while Seabridge maintains it allows the tunnel project to proceed.
Fronk added there are no plans to begin tunnel construction until a final feasibility study is complete.