Production at Banks Island Gold’s Yellow Giant gold mine in British Columbia (BC) has been hit after the company received pollution violation notice following a insdustrial water spill.

The company has denied media reports that the operations have been closed, saying that production has been scaled-down. It also added that the company is continuing processing of Tel mineralisation facility.

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Earlier this month, the company received a Pollution Abatement Order from the British Colombia Ministry of Environment for the water spill and sedimentation occurred at the Bob Zone.

"As a result of the Pollution Abatement Order, the company was ordered to discontinue backfilling of the Bob Zone stope and provide a number of engineering reports and studies."

Banks Island Gold last week said: "Sedimentation was also noted in the discovery zone where water containing drill cuttings had flowed into two small adjacent waterbodies.

"This material will be characterised and removed on approval from government regulators.

"As a result of the Pollution Abatement Order, the company was ordered to discontinue backfilling of the Bob Zone stope and provide a number of engineering reports and studies.

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"In order to comply with this order, the company immediately commenced preparation of the Tel Mine for backfilling. The Tel Mine currently has void space available for over six months of production."

According to the BC Government, the BC Conservation Officer Service will support the federal agency’s investigation.

The Vancouver Sun reported Environment Canada spokeswoman Barbara Harvey as saying in a written response that the agency’s enforcement branch is currently carrying out an investigation.

Harvey said: "As the investigation is ongoing, it would be inappropriate to provide further information at this time."

After completing analysis, Banks Island Gold reported an assessment of the spill estimated at 240m³ of water containing a total of one tonne of solids.

Toxicity testing of the water indicated 100% survival of Rainbow Trout and Daphnia Magna in the affected area, the company added.