The Queen of the North ferry ran aground and sank 150 kilometres out of Prince Rupert on its way to Port Hardy early Wednesday morning.
BC Ferries says there were 101 passengers and crew on board and all were evacuated safely.
It happened in Wright Sound at approximately 12:43 a.m. Wednesday, when the vessel hit a rock off Gil Island.
The mayday went out at 12:25 pm Tuesday, and the first responder was a fishboat from Hartley Bay. Both the military and the Coast Guard then responded, and at one point there were six Coast Guard vessels involved.
Some of the passengers and crew have been taken to Hartley Bay, about 120 kilometres south of Prince Rupert. Others are on the Canadian Coast Guard vessel Sir Wilfred Laurier. All will be taken to Prince Rupert by the Coast Guard.
The Coast Guard vessel Sir Wilfred Laurier was on the scene by 2:15 a.m.
Transport Canada and the Transportation Safety Board have been notified.
The Queen of the North left Prince Rupert at 8:00 p.m. Tuesday bound for Port Hardy. It was sailing in 2-metre seas at the time of the grounding.