The British Columbia government has issued a permit allowing construction to start on the proposed $50-million Silvertip Mine just south of the Yukon border.

The Mines Ministry says the underground silver, lead and zinc mine could operate for up to 21 years and create up to 200 jobs when it is in full production.

Mines Minister Bill Bennett says JDS Silver Inc., has signed a benefits agreement with the Kaska First Nation.

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Bennett says the mine will store its tailings in above-ground and underground facilities, using above-ground dry-stack tailings rather than a tailings pond.

JDS Silver's chief operating officer Kevin Weston says the mine will be one of the most environmentally responsible operations in the province.

A massive tailings pond failure at the Imperial Metals mine in central B.C. last summer has focused intense scrutiny on mining operations across the province.