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Tempest brews over Blizzard

Opponents sound off as Boss Power gets set to move forward on B.C. uranium claim

DON WHITELEY

Special to The Globe and Mail

http://tinyurl.com/3e468n

July 9, 2007

In the mountains east of Kelowna, B.C., a resource war is brewing between a junior mining company proposing a uranium exploration program and Big White, one of the province's premier ski resorts.

The battle over development of the Blizzard uranium deposit will present a dilemma for the provincial government, which must chart a path between welcoming all mining development and the wariness of many B.C. residents about all things nuclear.

While the government may wish the issue would go away, that is not likely to happen. Global demand for uranium is growing, and uranium prices have risen nearly 13-fold in the past four years, making the sector attractive to investors and miners.

Schumann Resorts Ltd. of Kelowna, owner of the Big White resort, has made it clear in a letter to the government that it is not keen on living side by side with a uranium mine, and it does not want to see any exploration activity.

The mining company, Vancouver-based Boss Power Inc., says that should a uranium mine be economically viable, the gross value of the deposit is about $1-billion.

Boss Power acquired rights to the 335-hectare Blizzard property from Santoy Resources Ltd., also of Vancouver, which has retained an interest in the claims. The deal was completed last month through a reverse-takeover procedure. Boss Power has $7-million in venture financing in the kitty, and hopes to launch a uranium exploration program this fall.

The dispute over developing Blizzard, which has festered for more than a year, could become a political wildfire as the company moves forward. Boss Power said it is only two weeks away from launching a community awareness program, and filing applications for a drilling program.

B.C. Minister of State for Mining Kevin Krueger said if the company meets the province's requirements, it will get the permit despite widespread public opposition to uranium mining in this province. "It [uranium] is not ruled out," Mr. Krueger said. "If there's an application for exploration, it will be given full consideration just like any other application. The chief inspector of mines will make a decision on it."

While Big White is concerned about the aesthetics of a mine near its skiing resort, other opponents to uranium mining cite safety and environmental concerns.

Meanwhile, Boss Power notes that nuclear power is one of the cleanest methods of producing electricity, and that Blizzard's uranium deposit could be an important contribution to supplying nuclear power stations, thus reducing greenhouse gas emissions and global warming.

Well aware of the hot-button nature of uranium in B.C., Mr. Krueger said he would advise any company hoping to eventually develop a uranium mine in B.C. that public opposition will be strong. "People fear it, and that's a reality in B.C.," he said. "Whatever assurances are passed along to them, people either don't believe it or they say they're opposed regardless, saying we don't need it, we don't want it, and we don't want you to allow it. But there's no moratorium against uranium exploration or mining in B.C."

Opponents include local residents and environmentalists, who have been waiting for this proposal to come forward for more than a year now. "It is going to be a major battle," says Beaverdell rancher Wayne Fipke, whose range borders on the Blizzard claim. He also owns a chalet at Big White. "The property owners of Big White en masse are vigorously opposed to any development of this nature."

Mr. Fipke is no stranger to mining; he was president of Kelowna-based Dia Met Minerals Ltd. when the first diamond deposits were discovered in the Northwest Territories. But he draws the line at uranium. "Everyone is 100 per cent against it. [The Blizzard property is] only eight kilometres from Big White Village. You can't have people from Europe looking and seeing a uranium mine from the chairlift."

Paul Plocktis, vice-president for real estate development at Schumann Resorts, was asked if the Big White ski area could live side-by-side with a uranium mine.

"We'd rather not," he said, noting the mine would be an eyesore. "When skiers come from England or Australia and get to the top of the hill and see a cut block they say 'Oh my god, what are you doing to your environment?' "

While exploration for, and development of uranium occurs in virtually every other jurisdiction in Canada, in B.C. there has been (until now) virtually no activity since the Social Credit government of Bill Bennett imposed a moratorium in the early 1980s.

Santoy Resources president Ron Netolitzky said if the Blizzard claim moves toward an application for a mine (which would require federal government approval), Boss Power is studying the idea of using an in situ process rather than a conventional open pit mine.

Mr. Krueger is well aware of how his "mining-friendly" government will be viewed if it gives uranium special treatment.

"We're not willing to impose a moratorium because we don't want to send out any sort of negative message to investors or the mining industry worldwide." But, "nothing in British Columbia happens without a social licence any more."