Background: Fellhawk Enterprises Ltd. operates placer mining in Yukon and applied for a water licence and land use approval from the Yukon Water Board to continue operations. Despite having the necessary consent from the existing licensee, H.C. Mining Ltd., both applications were denied by the Board.

Judicial Review and Appeal:

• Land Use Approval: Fellhawk sought judicial review for the denial of the land use approval. The court criticized the Board for speculating potential issues without substantial evidence, noting that the Board failed to identify or mitigate adverse effects as required by the Placer Mining Act.
• Water Licence: Fellhawk appealed the denial of the water licence. The court found the Board's reasons inadequate, emphasizing that the Board speculated on potential conflicts without substantiating why these concerns would materialize, despite mitigation strategies proposed by Fellhawk and regulatory bodies.

Legal Principles: The court applied principles from "Canada (Minister of Citizenship and Immigration) v Vavilov, 2019 SCC 65" requiring reasonable and justified administrative decisions. The Board's decisions were found lacking in adequate reasons, consideration of mitigation measures, and consistency with previous similar cases.

Outcome: The court granted the judicial review for the land use approval and allowed the appeal for the water licence, remanding both decisions back to the Board for reconsideration based on the legal standards for reasonableness and adequacy of reasons. The decision did not specify the allocation of costs