Town officials in Dawson City, Yukon, are standing behind their decision to license a controversial placer mining project within town limits, but some residents say they will continue to oppose the project.

Mayor Peter Jenkins and council held a special meeting on Wednesday to announce their decision with regard to the appeal of a development permit that the town granted to Darrell Carey's Slinky property earlier this year.

Carey's placer gold project has been controversial because it is situated on the Dome Road, raising public safety concerns among residents who live nearby.

"Public direction's been 100 per cent — certainly during the appeal process — to revoke the permit, and I'm wondering from where did council take direction to issue the permit in the first place," Dawson resident Jim Taggart told CBC News in an interview Thursday.

"Residents have rights to … peaceable enjoyment of property under the Yukon Human Rights Act; those [rights] are being ignored."

Carey did not attend the meeting.

Council's decision had been made weeks ago, but it was announced only on Wednesday. Officials say they will not reconsider their decision.

Residents say council will have to deal with the Slinky mine issue in the next municipal election, but Taggart said the topic may come up before then.

"There are strong legal grounds in which to withhold a permit, and we feel these avenues haven't fully been explored," he said.