Prime to build Iskut Valley road

The British Columbia government will provide financial assistance to Prime Resources Group (VSE) to build the 38-km portion of the Iskut Valley road west from Highway 37 to the Volcano Creek junction. Construction will begin before summer, and the restricted access road will be built to forest road standards.

Under the terms of the agreement-in-principle with the province, Prime will build and pay for the first leg of the road with government financial assistance. The company also plans to develop its own 24-km branch to its proposed Eskay Creek mine north of Stewart, B.C.

“There is exceptional mineral potential in Eskay Creek and the area was the scene of British Columbia’s largest exploration program during 1990,” stated Jack Weisgerber, acting mines minister. “The road will play a vital part in developing several other active mining prospects and will also support forestry activities.” Prime Resources will charge other industrial users’ tolls to cover maintenance and capital costs. And the province will recover its financial contribution from tolls collected from users of the Highway 37 to the Volcano Creek road when these tolls exceed maintenance costs.

Initial planning for the road began in 1988 when the government and a number of mining companies reviewed a number of road access options. The studies identified a preferred corridor along the south side of the Iskut Valley from Bob Quinn Lake west to the Bronson airstrip. The branch corridor from Volcano Creek to Eskay Creek was also studied. Construction costs for the entire road were estimated to be about $21 million in 1989.

Subsequent studies revealed costs would be higher than originally estimated. As a result, Cominco Ltd. does not intend at this time to proceed with 35-km road access to its Snip gold mine at Bronson Creek.