Proposed tungsten mine opts for Yukon side of the line

North American Tungsten plans toshift its proposed Mactung mine from the N.W.T. side of the border into the Yukon to simplify the regulatory process, it says.

The Mactung tungsten deposit, which straddles the border between the two northern territories, was first targeted for development in the 1970s but high tungsten prices have renewed interest it.

The original plans called for the project to be builtpartly in the Yukon and partly in the Northwest Territories, said Stephen Leahy, the company's chief executive officer.

But now the company has decided it would be better to construct the mill and tailings pondsentirely on the Yukon side of the boundary so that it only has to deal with one regulatory regime, he said.

"Recently, becausethe only access really isfromYukon and dual regulatory bodies were not of the size we can deal with I think, we are looking at a design of all of the mine infrastructureessentially just over the border intoYukon," said Leahy.

North American Tungsten already operates theCantung tungsten mine, which issouth of the Mactung deposit, butwithin the Northwest Territories boundary.

It currently produces about four per cent of the world's tungsten, which is used in light bulbs and weapons.

A large Chinese mining company recently offered to buy a stake inNorth American Tungsten but the deal has not yet been finalized.