Crystal Peak awaits permits

Management of Polestar Exploration (VSE) is putting some of the blame for the loss of its listing on NASDAQ on continued delays in receiving operating permits for the Crystal Peak garnet quarry near Hedley, B.C.

The company said a primary reason for the loss of its listing was the low bid price on its stock, due to “long and inordinate delay” in obtaining an approval-in-principle for the project from British Columbia’s Ministry of Mines.

Polestar’s share price slipped from a 52-week high of over $1.30 to the recent level of 25-30 cents.

Hawkeye Developments (VSE) can earn a 70% interest in the property by funding the project to production and paying Polestar a total of $5 million over five years. Polestar retains a 3% royalty on gross sales until Hawkeye has recouped its capital cost and the $5 million in payments at which point the property reverts to a 70-30 joint venture in favor of Hawkeye. Plans call for a 225-tonne-per-day operation producing about 60,000 tonnes of clean garnet per year primarily for the sand-blasting market. The companies had expected to begin construction last summer but faced opposition from nearby cabin owners as well as the adjacent Apex alpine ski area. The opposition appears to be related to a perceived negative impact on the recreational value of the area, although the quarry and processing plant would not be visible from either the cabins or any of the ski runs. In addition to the negligible visual impact, British Columbia Parks concluded that the scale of the project would not significantly affect the recreation resources and values in the area.

Prior to the election of a new government in British Columbia, the companies had met all technical requirements and were waiting for approval-in-principle as well as cabinet approval.

A subsequent public meeting presented a forum for public comment, which resulted in a primarily negative response, again relating to a perceived adverse impact of a quarry operation near the ski hill.

The recently elected New Democratic government is now reviewing the project and Irwin Henderson, director of communications and public affairs, said Anne Edwards, the mines minister, and Darlene Marzari, tourism minister, plan to visit the property site as well as meet with some of the parties opposed to the development. He added that no date had been set for the visit. Henderson said public concerns will have to be resolved before the project goes to cabinet, leaving Polestar and Hawkeye with what will likely be a prolonged uphill battle.