A News/North report on mining Week
North a hotbed
•Exploration spending on the rise
•Agnico-Eagle pouring gold in Kivalliq
•Iron ore on Chinese radar
A2 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
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NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 A3
in both territories
and diamond recovery
by Guy Quenneville Though nowhere near the
Northern News Services record $432 million spent in
NWT/Nunavut Nunavut in 2008, the amount
Nunavut and the NWT's spent this year – $280.6 mil-
exploration industries have lion – represents a 50 per cent
bounced back from 2009, a increase over 2009 and is well
year when companies clamped above the initial forecast of
down on spending in the wake $238.3 million for 2010.
of the 2008 market crisis and Outside the exploration the-
the resulting drop in commod- atre, Agnico-Eagle, owner of
ity prices. the Meadowbank gold mine,
Exploration spending is up is pumping millions of dollars
in both territories this year, into Baker Lake, located 70
according to new figures from km south of the mine.
Natural Resources Canada Meadowbank, which
(NRCan). poured its first bar of gold
"Folks get the feeling that in March, is also a key driver
we're getting out of the reces- of the territorial economy.
sion or that we've come a According to the Confer-
long ways out of the recession ence Board of Canada, an
in the last year," said Tom independent economic think-
Hoefer, executive director of thank, Meadowbank will con-
the NWT & Nunavut Cham- tribute significantly to Nuna-
ber of Mines. "It used to be vut's GDP, which is expected
expected that we would see an to increase by 12.9 per cent
upturn, and I guess I was sur- this year.
prised at how big the upturn And if one mine isn't
was. It's very encouraging." enough, in early July, Agnico-
Hoefer said people should Eagle purchased the Meliadine
keep in mind that NRCan's gold project from Comaplex
measurements of exploration Minerals. While the company
spending include high-priced is not going to fast-track Meli-
activities like the compila- adine like it did Meadowbank, Guy Quenneville/NNSL photo
tion of feasibility studies and nearby Rankin Inlet and other Nick Alukjuaq, right, assists surveyor Pierre Veilleux at Agnico-Eagle's Meadowbank gold mine, located
environmental baseline stud- Kivalliq communities will 70 km north of Baker Lake. According to one economic think tank, Meadowbank will be a major factor in
ies – programs that usually certainly benefit either way Nunavut's GDP rising 12.9 per cent this year.
dwarf the cost of drilling pro- as Meadowbank takes a more
grams, which is what most targeted approach to making
people think of when they sure Northern benefits are state-owned company. The exploration activity has the As Hoefer pointed out, the diamond prices and are now
hear "exploration." maximized for Nunavut-based deal has to the potential to potential to result in new NWT has been on a declin- operating at full capacity.
businesses. seriously accelerate the pace mines. ing slide for years in terms De Beers Canada and its
Nunavut More recently, Advanced at which the project – with In the Kitikmeot, Newmont of overall mineral exploration partner Mountain Province
Recently-revised statistics Exploration's Roche Bay iron an estimated life of 50 years Mining Corporation, which spending nationwide. Diamonds are expected, by
show Nunavut will account ore project near Hall Beach – goes from development to spent $140 million developing That statistic rose from 2.3 the end of this year, to release
for 10 per cent of overall min- received a major boost – over production. its Hope Bay gold project near per cent to 3.5 per cent this the feasibility study for Gah-
eral exploration spending in $1 billion if the mine moves The Kivalliq isn't the only Cambridge Bay this year, is year. cho Kue. The potential dia-
Canada this year. ahead– from a new Chinese region of Nunavut where eager to begin production as "There's a little upturn mond mine, around 300 km
early as 2012. back," said Hoefer. northeast of Yellowknife, has
fact file And in the Baffin region,
Peregrine Diamonds – bol-
In 2010, mineral explora-
tion spending reached $98.8
the potential to last 11 years.
Further east near Lutsel
stered by money from its part- million, a 124 per cent K'e, Canadian Zinc is engaged
Northern exploration spending ner BHP Billiton – is still in increase from the previous in the environmental assess-
Estimates are current as of October 2010, and will be revised by Natural Resources the early stages of developing year, when only $44.1 million ment of its Prairie Creek zinc
Canada in March. the Chidliak project near was spent. mine. Prairie has much of
Pangnirtung. The project has Thanks to that rebound, the its infrastructure already in
NUNAVUT Initial estimate of Here's how other the potential to bring dia- territory's GDP is expected to place, a huge advantage in
Actual exploration spending exploration spending in jurisdictions stack up in monds back to Nunavut after increase by 4.8 per cent this the infrastructure-challenged
in 2009: $187.6 million 2010: $66.3 million terms of what percentage the 2008 closure of the Jericho year and 9.3 per North.
Initial estimate of Revised estimate of of overall mineral Diamond Mine. cent next year, And demand
exploration spending in exploration spending in exploration they are Speaking of Jericho, Shear according to for rare earths –
2010: $238.3 million 2010: $98.8 million estimated to account for in Minerals, heretofore a junior
exploration company, is pos-
"There's a which are almost
Revised estimate of Percentage of overall 2010:
exploration spending in exploration spending itioning itself to be a major Like Nuna- little upturn plied by China,
player now that it has acquired vut, the NWT
2010: $280.6 million
Percentage of overall
in Canada the NWT is Newfoundland and
estimated to account for in
Labrador: 2.6% Jericho, which the company is also trying to back." which is placing
exploration spending 2010: 3.5% Nova Scotia: 0.8% hopes to put back into produc- reach the level on shipments of
in Canada Nunavut is New Brunswick: 1.0% tion as early as possible. of exploration the commodity
estimated to account for in Quebec: 19.9% seen in previous – are allowing
CANADA NWT years, like 2007, when $193.7 Avalon Rare Metals to quickly
2010: 10% Actual exploration spending Ontario: 29.5%
Manitoba: 3.1% Nunavut's mineral explora- million was put down by com- develop its proposed Nechala-
in 2009: $1.9 billion tion sector may be more panies. cho project near Yellowknife.
NORTHWEST Revised estimate of Saskatchewan: 10.8%
TERRITORIES Alberta: 0.6% robust, but the NWT – while But even if its exploration Read further to get a
exploration spending in still faced with the perception theatre pales in comparison to clearer picture of where each
Actual exploration spending 2010: $2.8 billion British Columbia: 12.6%
in 2009: $44.1 million Yukon: 5.6% that its regulatory system is Nunavut, the NWT's mining of these projects are in their
keeping investors and com- industry remains bolstered by development processes and
Source: Natural Resources Canada panies away – is also showing three diamond mines, which how residents of the NWT and
signs of strength. have recovered from weak Nunavut stand to benefit.
A4 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
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The industry's new voice
Chamber of Mines' new director talks all things mining
Guy Quenneville/NNSL photo
Tom Hoefer, the new executive director of the NWT & Nunavut Chamber of
Mines, tours the historic Con Mine site in Yellowknife, where his father worked
as chief assayer.
by Guy Quenneville News/North recently sat News/North: No, but is for developing mine-related
Northern News Services down with Hoefer to talk there anything you can do to infrastructure in both ter-
Somba K'e/Yellowknife about the difficulty recruiting encourage them? ritories. The plan included
"I used to live in that workers to live in the North, Hoefer: What I see our a trans-Northern electrical
building over there," said Tom the chamber's plans for a role as being is a facilitator, grid, nuclear power plants,
Hoefer as he manoeuvred his Nunavut-focused office in an educator, helping keep- roads through the Slave Geo-
car down a path inside the Iqaluit and how Hoefer views ing discussion going. What logical Province and Kivalliq
old Con Min site, pointing the chamber's role. we have up here are govern- region and mining towns at
to a two-story building that News/North: You previ- ments that are interested in sites like Mary River. What
once housed workers from the ously announced that the seeing development occur, we do you think of it?
former gold mine. chamber would like to open have aboriginal communities Hoefer: I look at it as an
To his new position as an office in Iqaluit in Octo- that are interested in seeing idea generator. We need to
executive director of the mem- ber. Can you give me an development occur, and we have dialogue on what's pos-
ber NWT & Nunavut Chamber update on that? have companies that are inter- sible, and without putting
of Mines, 57-year-old Hoefer Hoefer: I think I was a ested in seeing development something on paper to start photo courtesy of Tom Hoefer
brings a wealth of informa- little optimistic when I said occur. What I see as my job the discussion, it's hard to Hoefer's father, Fritz Hoefer, pictured here, worked
tion borne of his extensive October. It's really been very is to keep discussions going know where to begin. I think as the chief assayer at Con Mine. Hoefer's family
experience in the North (he's a hectic here, getting started. between those three so that we what Lou did was a really lived on site for several years.
lifelong Yellowknifer) and the I'm still trying to build a can find oppor- good approach,
mining industry (he ran the foundation of knowledge and tunities and seek to put whatever
chamber for several years in understanding of how the those opportun- you can think they are welcome here, that rich agreements for grassroots
the 1990s, so it's like coming chamber's been operating and ities. "I see our role of (on paper). their investment is secure exploration,'" which is the
After working rigs for Pan-
where we're going.
It will probably be a little
With the Sel-
wyn project, for as being a How viable
each of these is
when they come up here,
that we're going to help them
wrong timing for that sort of
thing. So we need to have dis-
arctic Oils in the High Arc-
tic, Hoefer pursued a masters
while longer before we can
example, there is
an interest from
facilitator." isn't the ques-
tion yet. Right
when they come up here. We
want them to be successful,
cussions on helping re-estab-
lish that certainty up here.
degree in mineral exploration News/North: Selwyn our side for a few now, it's blue- because it will be successful I think on the Nunavut
at Queens University, eventu- Resources is developing a reasons, one rea- skying. You're for the North. I think right side, a part of it is infra-
ally returning north to work huge lead-zinc mine on land son being that hopefully there's brainstorming, so you don't now there's a question mark structure. It's a very, very big
for the chamber (from 1990 to that straddles the Yukon- ore underneath the NWT side criticize anything. So I think over that. region. They've got lots of
1996) and as a spokesperson NWT border. Their plan is of the boundary as well ... that's really good way to gen- Now, in some regions, exciting development going on
for Diavik Diamond Mines to mine the parts falling on Importantly, too, access to it erate discussion now. Now that's not an issue, but in some there. I'll learn more, I guess,
until late 2007. the Yukon first, then focus is through the NWT... people can talk around them regions where land claims as I hire a person for that
As the successor to long- their attention on the NWT They would prefer to keep and come up with ideas and aren't settled, for example, office, and we start rolling our
time fixture Mike Vaydik, side, so in terms of job oppor- that road access through the approaches. We need to do companies are starting to sleeves up on that front.
Hoefer said his main focus tunities for NWT residents, NWT, which means we're a more of that. scratch their heads and go, Another part there, I think,
will be encouraging and fos- that will only come later. Is part of that project. News/North: What do you "We don't get the feeling that would be trying to get people
tering increased dialogue there anything the chamber News/North: Last year, the think is the biggest challenge we belong here. The govern- prepared for work. With all
between government, industry can do to hold Selwyn to its former president of the cham- facing the mineral explora- ment's saying 'Come on in these new projects coming
and aboriginal organizations. promise? ber, Lou Covello, released an tion industry in the North and stake claims and explore along, it's going to be very
In that effort, he is aided Hoefer: ... they are mem- ambitious discussion paper right now? on them,' but then the pro- nice if we could get lots of
by office manager Cheryl bers of the chamber, as well, calling for a unified strat- Hoefer: I think the NWT's cess is getting us hung up, or Inuit people employed in the
Wourms and land access ana- and it's not our job to hold egy between government, challenges are providing some we have some groups saying, communities, which means
lyst Ryan Silke. them to our promises. communities and industry certainty to companies that 'No, we want to negotiate very training.
A6 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
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photos courtesy of Advanced Explorations Inc.
According to the preliminary economic assessment released by Advanced Explorations last year, the Roche Bay iron ore project could have a mine life of 50
Hall Beach iron ore fact file
Roche Bay by the numbers
attracts Chinese backers
Companies: Advanced Explorations Inc. and Xinxing
Ductile Iron Pipes Co., Ltd.
Location: 60 km northeast of Hall Beach
Estimated resource: 357 million tonnes of inferred
Project by Advanced Explorations Inc. Estimated capital cost of mine: $1.1 billion
Estimated mine production jobs: 400 to 450
gets $1 billion cash boost Cumulative spending on project since Advanced
acquired it in 2007: $40 million
by Guy Quenneville iron ore, XXP has agreed to of his hotel and proceeded end, personal link in their Cost of summer exploration program: $2 million
Northern News Services provide Advanced with a stag- to cook a meal using fish he engagement. I was instantly Staff on site during summer program: 60
Sanirajak/Hall Beach gering $1 billion to support found washed up on the ham- impressed, because it demon- Inuit employed during summer program: 40
As his plane touched done further development of the let's shore. strated that this was a com- Status: targeting Q2 release date for feasibility study;
in Hall Beach, the wind howl- project. In addition, Advanced "Everybody thought it was pany that fully comprehended preparing application for the Nunavut Impact Review
ing and freezing rain pelting will receive $20 million over great. I'd never seen that kind the entire scope of what they
the aircraft, John Gingerich, the next year to complete the of casual discourse at a com- needed to do when they came Board
president and CEO of project's feasibility study and munity level," said Gingerich. there – to the point where
Advanced Explorations Inc., yet another $30 million of "So the Chinese pulled
thought to himself, "'God, working capital upon comple- Please see Potential, page A8 Source: Advanced Explorations Inc.
off what I considered a high-
this meeting's done. We're tion of the study.
gonna lose these guys because Advanced's preliminary
everybody thinks the North is economic assessment of the
intolerable.'" deposit, released last year,
The August meeting pegged the capital cost of the
Gingerich is referring to was mine at $1.1 billion – virtually
with senior ranking executives the same principal amount the
of a company called XinX- Chinese have committed.
ing Pipes Group Co. Ltd. The So what happened that day
Chinese state-owned company in Hall Beach?
was travelling to the tiny ham- "It was very friendly,"
let of 700 people said Gingerich.
to see Advanced's In addition to
Roche Bay iron assorted com-
ore project, "Everybody munity members
located 60 km
from the com- thought it was and the mayor,
"We had the
great." president of the
hunters and trap-
tives had made pers association.
a long journey, (The visiting
flying from China to Ottawa, delegation) all stood up and
then boarding another plane made very clear that they were
to Iqaluit before finally arriv- very keen to develop respon-
ing in Hall Beach. sibly. They spoke very much
Gingerich, whose company to the fact that they're not
was seeking a partner to help asking anybody to endorse or
finance the deposit's develop- support anything but respon-
ment into a producing mine, sible development."
saw the weather as a bad "It was the first time we
omen: the deal that Advanced had visitors from that far over-
had been crafting with the seas to our community. Big
company's subsidiary, Xinx- money. That was awesome for
ing Ductile Iron Pipes Co., us," said Hall Beach Mayor
Ltd. (XXP), over the last three Ammie Kipsigak.
years was going to go sour. Gingerich knew the meet-
How wrong he was. ing was going well when one
As the parties announced of the Chinese visitors, having Residents from Hall Beach and Iglulik work in the core shack at Advanced Explorations Inc.'s Roche Bay
on Sept. 27, in exchange for difficulty adapting to the Inuit iron ore project, located 60 km northeast of Hall Beach.
50 per cent of the project's diet, took over the kitchen
A8 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Hall Beach, from page A7 "We always talk about
training up the ladder, but
one of the guys took over the what we forget is there are a
kitchen and cooked a meal." lot of people who don't want
Roche Bay has the poten- to go up the ladder and they
tial to create between 400 and still want a network of sup-
450 jobs, but not everybody port; they don't want to get
from the community or sur- left alone.
rounding region will neces- "The Chinese really picked
sarily desire a job at the mine up on that and spoke to that."
– and the Chinese realize that, Not that technical training
said Gingerich. for jobs at the mine won't be
"One of the things the provided.
president of the hunters and "The bigger the program
trappers association said is, goes, the bigger the skill sets
'Look, not everybody wants a (needed)," said Gingerich. "...
job at a mine. We have trad- we of course don't have any
itional people here,'" he said. heavy equipment operating
According to Gingerich, on site yet. As the project
photo courtesy of Advanced Explorations Inc. the Chinese have committed matures, we'll get into road
Steve Roebuck, vice-president of exploration for Advanced Explorations Inc., second from left, poses with to supporting the traditional building, site development,
harvesting of foods in the area and ... we can certainly then
Xu Lanjun, Zhang Hongbin and Song Yanqi, senior executives with XinXing Pipes Group Co. Ltd., during a by purchasing such foods for expand on the network and the
site tour of the Roche Bay project in August. Inuit staff at the future mine. skill sets."
This year, Advanced spent
approximately $2 million on
a drilling program meant to
increase the mine's resource
count, which currently stands
at 357 million inferred tonnes.
The summer exploration cam-
paign employed around 40
people from Hall Beach, Iglu-
lik and Repulse Bay.
The company is aiming to
release the project's feasibility
study by the second quarter
of next year. It has not yet
filed its project application to
the Nunavut Impact Review
While the Chinese have
expressed their desire to
increase Advanced's proposed
annual production rate of 1
million tonnes – a move that
could trim the mine's 50-year
lifespan – Gingerich said, "It's
not going to change it much."
He added that the Chinese
wouldn't have gotten involved
if they didn't believe Roche
Bay had long-term potential.
Now that project has gradu-
ated from being one of many
exploration projects to one of
the foremost potential mines
in Nunavut, the community
has some work to do to ensure
the opportunity presented by
the mine doesn't pass Hall
That includes the forma-
tion of a Hall Beach develop-
ment corporation that will cre-
ate a co-ordinated approach
to preparing for the mine's
economic opportunities, said
"I'm getting the word out to
the community that we have
to get a (development) cor-
poration in the near future
because mining companies
and other projects are going to
be here. We'll have two min-
ing projects – one is Baffin-
land (Iron Mine's Mary River
iron ore project) and the other
is Advanced Explorations.
"Even if we don't get into a
corporation right away, there
are others – one or two local
contractors – that will bene-
Looking for quality
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 A9
diamonds in Nunavut
Junior exploration company gathers bulk sample in bid to advance project
Johnny Qilluniq, top, and Kevin Mablik, bottom, hammer a tarp on top of a
cabin at the Amaruk site.
photos courtesy of Diamonds North Resources Inc.
Drillers with Diamonds North Resources operate a drill at Amaruk, located 40
km south of Kugaaruk.
by Guy Quenneville Co-op in Kugaaruk, Dia- gold showings could also spur
Northern News Services monds North often asks the more activity at Amaruk,
Kugaaruk/Pelly Bay hamlet to recruit workers to added Kolebaba.
Junior exploration company help off-load supply planes "Our overall focus is still
Diamonds North Resources landing in the community. diamonds, but we are looking
spent approximately $1.5 mil- But overall, as is typical at these other commodities
lion on drilling at its Amaruk with early exploration projects because we've got them," he
diamond project near Kugaar-
uk this year – about on par
like Amaruk, the amount of
available work is small. Resi-
Diamonds North isn't the 2011
with what it spent last year. dents might wonder: what will only company exploring at the
Compared to two years it take to drive activity back to Amaruk site. In March, the
ago, however, it is a signifi- the levels seen in company formed a
Weeks before the Septem-
MMG Resources IqaluIt, NuNavut
aprIl 5-7, 2011
ber 2008 market collapse sent has an answer: Inc.; another play-
junior exploration companies
into hiding, Diamonds North
be a real er in the Nunavut
Resources spent more than
$10 million looking for dia-
the most prom-
price driver..." try, developing
the Izok Lake
monds at Amaruk. So far, 29 discovered at zinc-copper-lead-
kimberlites have been found,
and 90 per cent of them con-
Amaruk thus far,
Kolebaba said, "If we come up
silver project at
the opposite end of the Kitik-
The 2011 Nunavut Mining
tain diamonds. with coarse diamonds (there), meot region, approximately Symposium is the premiere
The number of Nunavum- we're going to be going big 245 km from Kugluktuk.
miut who found work at the again." The agreement allows networking event for exploration
project this year was also Prior work at Amaruk sug- MMG to stage its own nickel
down, with four to six people gests Beluga 3 contains lar- exploration program at the and mining in Nunavut.
from Kugaaruk and Repulse
Bay working amidst a total
ger, commercially viable dia-
monds, whereas most of the
Amaruk site; the company
spent $2.2 million in its first
Close to 400 delegates and exhibitors
workforce of 17 – and many kimberlites discovered so far year. will attend from across Nunavut,
residents submitting their on-site are not big enough to Canute Krejunark, former
resumes, according to Mark bother with. mayor of Kugaaruk, said that Canada and worldwide.
Kolebaba, president and CEO To confirm Beluga 3's while the community remains
of Diamonds North. promise, the company concerned about possible For information, registration, schedule of events
"They're helping with the extracted a 25-tonne bulk sam- environmental contamination
exploration side of things and ple for analysis this summer. resulting from exploration or and sponsorship opportunities,
management of the camp," said The results were not available mining work, it is neverthe- call 1.877.477.2919 or visit our website.
Kolebaba of those employed. as of press time, but according less glad to see some of its
"We've got guys who've been to Kolebaba, "If that has real residents receive employment,
working here for a number of commercial stones, that could temporary as it is.
In addition to purchasing
supplies from the Koomiut
be a real price driver for the
"We don't have a lot of jobs
here, especially for the young www.nunavutminingsymposium.ca
Besides that, promising people," he said.
A10 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
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NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 A11
Fortune awaits Supreme Court
decision on NICO assessment
$1.5 million on drilling
by Guy Quenneville the lands that it owns and the
Northern News Services impact on the land and the
Whati/Lac La Martre people in that area that have
The environmental assess- never been exposed to these
ment for Fortune Minerals' sorts of things."
NICO project near Whati is The court's decision is not
being temporarily halted by expected until the new year,
Fortune as the company awaits said Zoe.
the outcome of a Supreme
Court motion filed by the Tli- Progress halted
cho government in relation to When the Tlicho govern-
the proposed mine. ment filed its motion, For-
In late September, after tune was ready to submit its
consultation with commun- developer's assessment report
ity chiefs, the Tlicho govern- (DAR) to the review board.
ment filed a motion asking "We have voluntarily
the Supreme Court to over- refrained from submitting the
turn the Mackenzie Valley DAR for a few months so that
Environmental Impact Review the Tlicho can work this out,"
Board (MVEIRB)'s decision said Robin Goad, president
to continue with the NICO's and CEO of Fortune Min-
environmental assessment, erals. "We still have to go
made despite objections from through an environmental
the government. assessment process no matter
Three months earlier, what happens."
the Tlicho asked the review "I wish they were not
board to suspend the process doing what they're doing now,
because Fortune has not made because unfortunately it has
any agreements to build an the (appearance) of a fight," photos courtesy of Fortune Minerals
access road cutting across Tli- continued Goad. "But we're Janet Rabesca of Behchoko collects deep groundwater samples for water quality monitoring at the
cho lands to the mine site. The not. We are not named in the
road is an essential component suit. They're suing MVEIRB
proposed gold-cobalt-bismuth NICO mine, which is being developed by Fortune Minerals 50 km north of
of the mine plan. to basically make Whati.
"There hasn't a legal deter-
mination of who ing, investors aren't looking at new significant riches were cho communities like Gam- pany plans for drilling work
be in a position to been any has the right to cobalt and bismuth and metals found, they would be added to eti, Whati and Behchoko, said next year, "There's no immedi-
grant approval of make decisions they don't understand. But a the project's current resource Goad. ate plans," said Goad. "We got
such a road until opposition on their lands." lot of investors are looking estimate. They worked as core split- all the drilling done. Right
its own land use
plan is finished
to the mine While the
to invest in gold, and usually
when you have over a million
"At the very ends of the
deposit, our drilling was not
ters, site labourers, camp
maintenance workers and
now, we're in permitting ...
There's not too much we can
within the next itself." assessment may ounces of gold, just gold alone, sufficient to say, 'We know kitchen help. do except for environmental
year. be temporarily they start to get excited." exactly where the ore termin- "The camp manager was baseline work and engineer-
Therefore, the on hold, Fortune This summer, partly in an ates and starts.' We wanted to aboriginal," noted Goad. ing until we get into mine
government has alleged that is still moving ahead trying effort to reach that goal, the better define those limits." Assay work was completed construction."
Fortune's application is incom- to increase the gold content company mounted a $1.5 mil- The full results of the 2010 by ALS Chemex, working out Fortune has previously
plete, making it too early to at NICO, as gold prices have lion drilling project on site. program were not released as of its Yellowknife office, while stated its hope to begin com-
conduct an environmental reached as high as $1,300 an The program was also meant of press time. supplies and manpower were mercial production of the $250
assessment of the project. ounce. to better define the mineral- In terms of project staff- flow into camp by Yellow- million mine in 2013.
"There hasn't been any The project's current ization at the edges of the ing, a third of the 20 or so knife company Air Tindi. When in operation, NICO
opposition to the mine itself," resource estimate includes property, meaning that if any people on site came from Tli- As for whether the com- will create 150 jobs.
John B. Zoe, executive offi- 907,000 ounces of gold – "and
cer of the Tlicho government, a million ounces is object
told News/North following lease significant."
the motion's filing. "What Meaning it sounds better to
we're talking about is to have potential investors?
respect for the jurisdiction of "Yeah, that's basically (it),"
the Tlicho government and said Goad. "Generally speak-
NICO by the numbers
Commodities: gold, cobalt, bismuth
Location: 50 km north of Whati
Reserves: 31 million tonnes including 907,000
ounces of gold, 82 million pounds of cobalt and
109 million pounds of bismuth.
Potential mine life: 15 to 18 years
Projected cost: approximately $250 million
Cost of summer drilling program: $1.5 million
Tlicho residents on site for program: about 7
Projected mine production jobs: 150
Estimated construction start-up date: 2013
Fortune Minerals share price as of Oct. 8: $0.79
Status: under environmental assessment
Jim Mucklow, manager of environmental and community affairs for Fortune Minerals, far right, explains
Source: Fortune Minerals
the NICO project to a group of elders from Whati touring the property this summer.
A12 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Mine company wants seat
at uranium public forum
Areva Resources spends
$12 million at uranium site
by Guy Quenneville public forums will take place
Northern News Services across the territory next year
Qamanittuaq/Baker Lake to gather people's feelings on
An attempt to halt the uranium mining.
environmental assessment The Government of Nuna-
of a proposed uranium mine vut (GN) currently has no
near Baker Lake has proved uranium policy, though it
unsuccessful, but to tackle is guided by six principles
concerns about the project, released in 2007 (see sidebar).
the company behind it says Areva had not consulted
it wants to participate in a with the GN about participat-
recently-announced series ing in the process as of press
of public meetings meant to time. But Areva wants to take
inform the Government of part, McCallum told News/
Nunavut's yet-to-be-written North.
uranium policy. "If there is a role for indus-
Last month, Nunavum- try, we would be pleased to
miut Makitagunarningit – an participate in it, and we in
Iqaluit-based group aiming fact hope that there would be
to get a public inquiry into a role for industry because
uranium mining in the terri- it's a forum about industry,"
tory – called on the Nunavut he said.
Impact Review Board (NIRB) Nunavummiut Makita-
to halt its assessment of Kig- gunarningit – which is Inukti-
gavik, a proposed uranium tut for "Nunavummiut can rise
mine located 75 km west of up" – was formed in 2009.
Baker Lake. In an inquiry, "you look
The project is being into the issue and get differ-
developed by Areva Resour- ent points of view, not just
ces Canada Inc. from residents but medical
According to Barry McCa- experts and other experts in
photos courtesy of Areva Resources Canada Inc.
llum, manager of the area," said
Nunavut affairs sp oke sp e r son Don Mimealik, left, and Gary Ippiak, right, both of Chesterfield Inlet, worked as observers for the marine
mammal surveys conducted by Nunami Jacques Whitford in Chesterfield Inlet and on Hudson Bay. This
"NIRB has writ-
"We would Sandra Inutiq
at the time of is just one aspect of the environmental baseline work that Areva has conducted over the past four years.
ten to the group
that requested a
be pleased to the group's for- The information will be part of the company's draft environmental impact statement, which the company
mation. "When plans to release next year.
delay to the pro- participate there is so much
cess, and (NIRB)
told them that in it." risk involved,
you need to wanted more transparency a concern about the Govern- copied from its 2007 news questions – showed that most
there will be no really have an in the process for important ment of Nunavut's submission release," he said. enquiries reflected concerns
suspension. inquiry before events that are going (on) in to NIRB regarding Kiggavik, Responding to concern about the environmental and
"But we are not in control we start digging for uran- Nunavut." which began its environmental about the project, this year human health implications of
of the environmental assess- ium." Inutiq isn't the first to ques- assessment in the spring. Areva launched a blog – www. uranium mining.
ment process, so I certainly Inutiq added that Nuna- tion the GN's preparedness "Although this project kiggavik.ca – to post infor- Among the questions list-
couldn't comment on the other vut lacks clear information on when it comes to uranium could have significant impact mation about Kiggavik and ed: "What is the risk of radia-
parties that have control over uranium mining. mining. During the March on the community, the gov- answer submitted questions. tion exposure to our people
it." "It's really hard to find any 9 session of the legislative ernment could barely produce A recent scan of the web- and the environment? How
Premier Eva Aariak has information on any develop- assembly, Moses Aupaluktuq, more than one page of infor- site – which does not post much of Canada’s isotopes
announced that a series of ment projects," she said. "We MLA for Baker Lake, raised mation, which was mostly the identity of those sending Please see next page
Nunavut's guiding principles on uranium mining
Though the Government of places special responsibilities on b) Environmental standards must
Nunavut has no concrete policy on government because of the nature be assured for the land, water and
uranium mining within the territory, of uranium and its by-products, the wildlife;
in 2007 the GN released six guiding history of its use for both peaceful c) Nunavummiut must be the
principles regarding the hotly and non-peaceful purposes, and its major beneficiaries of uranium
contested commodity, the industry potential risks to human health and development.
surrounding it and the implications the environment.
for Nunavut. •believes nuclear power generation
•understands uranium will be an important part of global
Under its principles the Government development must have the support strategies for ensuring energy
of Nunavut: of Nunavummiut, especially in supplies while reducing reliance
communities close to uranium on greenhouse gas-emitting fossil
• regards mining, including uranium development. fuels.
mining, as an important potential
source of revenue to meet the needs • will support uranium development •believes Canadian law and
of Nunavut’s growing population in Nunavut provided that the following international agreements provide a
and also as a potential source of conditions are satisfied: reasonable level of assurance that Dianne Iyago of Baker Lake is a nursing student
employment and associated skills uranium mined in Nunavut will be in Iqaluit, but has served Areva as a community
development for Nunavummiut. a) Health and safety standards used for peaceful purposes.
• recognizes uranium development meet Canada’s national standard relations assistant in the Baker Lake office every
Source: Government of Nunavut summer since 2008.
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 A13
photos courtesy of Areva Resources Canada Inc.
Baker Lake expediting contractor Peter Tapatai stands by a loaded truck at Areva Resources Canada's Kiggavik uranium site, located 75 km west of Baker
From previous page million on engineering work, see our operations to ensure them are repeat workers. alone, finding enough resi- "After a few years of oper-
would be made from uranium ongoing environmental base- we're carrying out our wild- Some of them have worked dents has not been difficult, ations, we would expect half
mined at Kiggavik?" line studies and drilling work life protection mitigation plan, for us all four seasons. said McCallum. of that workforce to be from
The blog had attracted 60 at Kiggavik. and they report independently "Geological assistants "We didn't have any open- the North," said McCallum.
questions as of October, said To the end of August, $2.9 back to the community. were from Baker Lake and ings that could be filled by "They won't all be from
McCallum. million was spent on Northern "The camp operators – the have been the past three years local people that weren't filled Baker Lake ... but between
Areva is targeting a mid- companies, with $2.4 million people who run the inciner- as well." by local people," he said. Baker Lake and the rest of
2011 release date for its draft of that going to Inuit-owned ator, who load and unload the Even with Agnico-Eagle's Kiggavik is expected to the Kivalliq communities, we
environmental impact state- companies helicopters – were all locals Meadowbank gold mine create between 500 and 600 expect that workforce will be
ment, which NIRB will make A total of 59 people worked and they have been all locals employing more than 150 jobs when it begins commer- there and that we will be able
available for public review. on the project, and 30 of them since day one, and many of workers from Baker Lake cial production. to employ that workforce."
The company is also look- were Nunavummiut – in line
ing to release its feasibility with previous exploration pro-
study on Kiggavik next year. grams carried out at Kiggavik
Having both documents to by Areva. Most of the Inuit
complete at the same time employees were from Baker
"gives us the opportunity to Lake.
assess the most modern look "There's a wildlife mon-
at what we plan to do," said itor on site at all times," said
McCallum. McCallum. "We use a total
This year, Areva spent $12 of three of those. They over-
Kiggavik by the numbers
Company: Areva Resources Canada Inc.
Location: 75 km west of Baker Lake
Estimated resource: approximately 130 million
pounds of uranium
Estimated mine life: 15 to 20 years
Estimated capital cost: $1.5 billion
Estimated lifetime operating cost: $4 billion
Cumulative spending since 2008: $35 million
Amount to Northern companies: $9.2 million
Amount to Inuit-owned companies: $6.2 million
Total spending in 2010 alone: $12 million
Amount to Northern companies: $2.9 million
Amount to Inuit-owned companies: $2.4 million
Total staff during 2010 exploration season: 59
Inuit staff during 2010 exploration season: 30
Roland Alerk, left, and Roger Owingayak, right, both of Baker Lake, draw fuel from storage tanks near the
Source: Areva Resources Canada Kiggavik site. Alerk has worked at Kiggavik every summer since 2007.
A14 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Meadowbank pumps money fact file
into Baker Lake, Kivalliq
Agnico-Eagle's Direct Inuit Employees
(as of Sept. 16)
Community Number Percentage
But now that Baker Lake 152 61%
it's running, what's next Arviat
for the mine? Coral Harbour 7 3%
Chesterfield Inlet 5 2%
Repulse Bay 4 1.6%
by Guy Quenneville bar of gold, worth approxi- Whale Cove 1 0.4%
Northern News Services mately $250,000, during an
Qamanittuaq/Baker Lake on-site ceremony in March to Total 248 100%
Agnico-Eagle's Meadow- mark the mine's official start Source: Agnico-Eagle Mines Ltd.
bank gold mine near Baker of commercial operations.
Lake is on track to produce The event signalled Nuna-
300,000 ounces of gold in its vut's re-entry into the mine ed amount of attention and said David Aksawnee, mayor
first year of oper- production arena money. of the hamlet, which is home to
ation, according after the 2008 Between the second quar- approximately 1,900 people.
the company's closure of Tahera ter of 2007 and the second The money flowing into
manager of Nuna-
vut operations. "There's a lot Diamond Cor-
quarter of 2010, suppliers in
Baker Lake have done $60.8
the community has even
prompted one bank, the First
there," said Denis
more work." diamond mine,
located 350 km
million worth of business with
Nations Bank of Canada, to
suggest it is "highly consid-
Gourde, who also southwest of Of the $17.8 million that ering" a branch in the newly-
photo courtesy of Agnico-Eagle Mines Ltd. acts as site man- Cambridge Bay. will be spent by the end of minted mining community.
William Ubluriak is one of about 35 people from ager at Meadow- For Baker the year on Inuit wages, $11.5 "The community ... has an
Rankin Inlet that works at Meadowbank, where bank. Lake, located 70 km south of million of that will go to mine economic opportunity that's
The $700 million gold Meadowbank, the gold mine employees from Baker Lake. ... driving the need that was
the total number of Kivalliq staffers is 248. mine churned out its very first has brought an unprecedent- "There's a lot more work," there already. So it's definitely
high on our list of commun-
ities that we're considering,"
said Keith Martell, chairman
and CEO of the First Nations
Bank of Canada.
When other businesses
in Nunavut are factored in,
spending during the same per-
iod amounted to $227.7 mil-
lion – 24.5 per cent of overall
expenditures. However, read-
ers should keep in mind that
much of that spending went to
construction of the mine and
its associated infrastructure,
such as the 100-km gravel
road from Baker Lake to the
But as Gourde tells it,
Agnico-Eagle's mission now
Prebuilt Homes · Housing Packages · Trusses that Meadowbank mine is up
and running is to maximize
Crating · Marshalling · Commercial & Residential Projects its Northern spending during
operations with other affected
communities in the Kivalliq
With over 45 years of service in the North, Igloo is the region.
In order to achieve that
goal, Agnico-Eagle has con-
right choice for building Materials. ducted six community work-
shops to talk to residents and
businesses owners about what
opportunities are available to
· Igloo supplies and services the NWT and Nunavut regions. The initiative began six
months ago, with workshops
· Expert shipping, crafting, and packaging for all transportation modes. in Baker Lake, Rankin Inlet,
and Arviat, while in recent
· Marshalling services available on northern shipments. weeks Agnico-Eagle has been
to visit Chesterfield Inlet,
· Igloo Prebuilt has the tools necessary to deliver high-quality prebuilt Coral Harbour and Whale
homes to Canadians. An Igloo Prebuilt home is custom built, custom The meetings were also
designed and custom engineered in an environmentally controlled meant to tell communities
about the associated oppor-
state-of-the-art facility. tunities from the Meliadine
gold project near Rankin
Inlet, which Agnico-Eagle
purchased from Comaplex
Minerals earlier this year.
"(Given) the fact that we'll
be building Meliadine in a
Edmonton, AB (Head Office) Yellowknife, NT Hay River, NT couple of years, it's time to
21421 - 111 Avenue 338 Old Airport Road 43032 Mackenzie Highway start building that Northern
business infrastructure so that
P. 780.451.0600 P. 867.920.4005 P. 867.874.2324 when we'll be going out for
F. 780.455.6356 F. 867.873.8796 F. 867.874.6866 tenders on those projects, then
E. email@example.com E. firstname.lastname@example.org E. email@example.com we'll have a wide spectrum of
new Northern businesses that
will be able to offer competi-
www.igloo.ca // www.workatigloo.ca tive prices for that new con-
Please see next page
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 A15
Meadowbank Project Expenditures
Since the second quarter of 2007, Agnico-Eagle
has spent a total of $930 million on the construc-
tion and operation of its Meadowbank gold mine.
The company uses a series of increasingly expansive
measurements to indicate how much has been spent
in various sectors of the North.
Project to date
Category Percentage of
photos courtesy of Agnico-Eagle Mines Ltd.
expenditures Clara Noah of Baker Lake works as a mine clerk at Agnico-Eagle's administrative office at Meadowbank.
By the end of the year, it's estimated Agnico-Eagle will have paid $17.8 million in Inuit wages.
Total project expenditures $929,768,758
Expenditures to Baker Lake $60,784,618
based suppliers 6.5%
Expenditures to NTI registered $213,021,837
Expenditures to Nunavut-based $227,730,601
Expenditures to Northern- $423,893,824
based suppliers (NWT,Nunavut, 45.6%
Source: Agnico-Eagle Mines Ltd
From previous page for that for quite a while."
struction," said Gourde. The materials for a 100-by-
Not that construction at 150-foot gym arrived in Baker
Meadowbank itself is over. In Lake via sealift in early Octo-
fact, a new $20 million crush- ber.
er facility will begin construc- The gym will include three
tion "in the next few months," or four badminton fields,
according to Gourde. space for games like basket-
As he explained, the new ball and volleyball, and fitness
facility will enable the com- equipment.
pany to improve its annual "I would say that by mid-
production rate, which or late-November, it should be Ian Taipana of Baker Lake, right, works in the maintenance shop of Agnico-Eagle's Meadowbank gold
Agnico-Eagle hopes to accel- functional," said Gourde. mine, located 70 km north of Baker Lake. Taipana was one of 152 people from Baker Lake working at
erate to 400,000 ounces of "No pools are in the plans,
gold per year starting in 2011. though." the gold mine as of Sept. 16.
"Right now, we have a pri-
mary crusher that is crushing
material from the mine that is
one metre in size to six inch-
es," said Gourde. "Now we're
adding a new crusher facil-
ity that will take the material
from six inches to two inches,
and then it will be processed
in the process plant. Hopeful-
ly it will increase the capacity
of the process plant."
In addition to improv-
ing the mine's performance,
Agnico-Eagle is looking to Specializing in drilling, blasting and explosives sales
give its workers more to do
on site when they're not on in the uniquely challenging environment of the Canadian North.
In January, when the mine
was in the last stages of com-
missioning, one flustered elec-
trician from Montreal called
the lack of recreational space
"(Maybe) if there was a lit-
tle bit more room to do social
activities, (maybe) a larger
room with a few pool tables
... or simply just a recrea-
tional room to get your mind
off your 12-hour day, waking
up at five in the morning to
simply do your job that you're
here for and not think of any-
thing else," he said. "Human-
ity is lost for 12 hours. You're
turned into a workhouse and
Gourde said he is well
aware of such past complaints. Ph: 867-873-5494 Yellowknife Ofﬁce Ph: 800-565-8375 Calgary Ofﬁce
"For sure, they've been asking
A16 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
there is white here
Kitikmeot Inuit Association supports responsible
Responsible mineral exploration & development that protects
and promotes the social, cultural, environmental
Management and economic well-being of Inuit in the
of Inuit For more information about access to Inuit owned
Owned Lands land. please contact our Lands, Environment &
Resources office in Kugluktuk, Nunavut.
To request an application for access to Inuit Owned Lands
or for more information contact:
Geoff Clark Stanley Anablak
Director of Senior Lands Officer
Lands, Environment & Resources Ph: 867-982-3310
Ph: 867-982-3310 Fax: 867-982-3311
Fax: 867-982-3311 firstname.lastname@example.org
Engineered & Manufactured by
I N S TA N T
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 A17
Newmont ramps up Hope Bay
do their part
at Hope Bay
by Guy Quenneville
Northern News Services
Newmont Mining Corpor-
ation's plan to begin produ-
cing from its Hope Bay gold
belt near Cambridge Bay has
propelled the project to the
forefront of this year's boom-
ing Nunavut mineral explora-
This year alone, Newmont
spent $140 million to develop photo courtesy of Newmont Mining Corporation
the project, which hosts an Gilbert Tikhak of Cambridge Bay takes part in a summer camp welding course at Newmont Mining Corporation's Hope Bay gold
estimated nine million ounces project, located 90 km south of the community. The company is aiming to increase the percentage of Inuit employees at site, currently
of gold and is located 90 km
south of Cambridge Bay.
between 15 to 20 per cent.
"We're in continuous oper-
ations now, whether we're "Our camps are occupied Newmont is hoping to pro- that we'll have reached the following that, "Probably by Newmont has been
constructing Doris North (one year-round now." duce its first bar of gold from ore body for Doris North, mid-winter 2011, maybe early expanding the holding cap-
of three deposits that makes If you take the latest sta- Doris North, which is fully and then we start mining ore new year 2012, we'll be pro- acity of its camps and con-
up the Hope Bay project) or tistics from Natural Resour- permitted, as early as 2012. and bringing it to surface in ducing unrefined bars out of ducting exploratory drilling at
doing regional drilling, sur- ces Canada, Hope Bay will Before it can do that, it has to March-April," said Buchan. Doris North." Hope Bay for the last three
face drilling," said Alex Buch- account for 50 per cent of build an underground ramp to But milling of the ore won't Production throughout the years.
an, a resident of Cambridge mineral exploration spending reach the gold. start right away. 80 km district – which also The total labour force
Bay and manager of commun- in Nunavut this year. "Probably by February or As Buchan explained, a includes the Madrid and Bos- peaked this summer at 230,
ity and external relations for So what's driving all this March of 2011, that tunnel barge in September 2011 will ton deposits – is targeted to and 15 to 20 per cent of work-
Newmont. activity? will be of sufficient length bring the mill to site, and start in 2015. ers were Inuit.
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A18 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Kivalliq Mine Training Society formed
to equip Nunavummiut
for mining jobs
by Guy Quenneville at a variety of mines under
Northern News Services development in the region as
Kangiqliniq/Rankin Inlet heavy equipment operators,
In response to growing trades apprentices, journey
interest in the Kivalliq region, persons, general labourers,
a number of parties have come and administrative and tech-
to together to form a body nical support providers.
devoted to providing training "The Kivalliq right now is
for mine work. sort of the hotbed of all activ-
In July, the Government ity," said Kevin Bussey, the
of Nunavut, the Kivalliq Inuit society’s executive director.
Association and Agnico-Eagle In addition to Meadow-
– owner of the Meadowbank bank, which is located 70 km
gold mine near Baker Lake north of Baker Lake, Agnico-
– created the Kivalliq Mine Eagle is developing the Melia-
Training Society. dine gold project, 24 km north
The ultimate aim of the of Rankin Inlet.
Guy Quenneville/NNSL photo society is to equip as many There’s also Areva Resour-
Kevin Bussey, executive director of the recently formed Kivalliq Mine Training Society, promotes the Nunavummiut as possible with ces Canada’s Kiggavik uran-
organization at the Prospects North 2010 conference in Yellowknife in October. the skills required to work Please see High, Page A19
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NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 A19
High Inuit employment forecast
Kivallliq, from page A18 kin Inlet that wanted to hire employment with Agnico
an apprentice electrician, we once they graduate from that
ium project, located 75 km could subsidize their train- program," said Bussey.
west of Baker Lake, plus ing so that they can get their Agnico-Eagle has also
Starfield Resources’ Fergus- ticket. Or the airport – we asked the society to recruit
on Lake nickel-copper-cobalt could find training for people candidates for camp cook pro-
project, located 240 km west to work at the airport or in grams to be delivered in three
of Rankin Inlet, to name only security. communities, he added.
a few examples. "So it’s not just mining – "We were there right
In recent years, a mix we could train people to work from the start to develop it,"
of government and industry in almost any aspect of private said Denis Gourde, Agnico-
has, under the umbrella of a industry or government." Eagle’s manager of Nunavut
Nunavut mine training round The society’s primary operations, of the society.
table, met sev- source of fed- "(In) Arviat, they’re focus-
eral times to eral funding ing on diamond drillers and
discuss how to
prepare for the
"The Kivalliq is the Aborig-
equipment operators, and they
can go to the Mine Train-
onslaught of is sort of the and Employ- ing Society and ask for fund-
mineral explor- ment Partner- ing for that. More people will
ation projects in hotbed of all ship (ASEP), a know about it ... and then
The Kivalliq activity." nationally-man-
more training programs will
become available, so it’s all
Mine Training geared to pro- good."
Society grew viding Aborig- Skills training is crucial NNSL file photo
out of that round table discus- inal people with the skills and to bolstering Nunavut’s min- Chefs Andre Caron, Arnaud Le Saux, Benoit Nantel and Richard Jackson
sion group, officially starting training they need to partici- ing workforce, according to serve up some food at Agnico-Eagle’s Meadowbank mine. Camp cook training
operations in July. pate in economic opportun- a recent territorial forecast
"With this society being ities. issued by the Conference for Inuit, as requested by Agnico-Eagle, is set to start in January in Baker Lake,
set up, it will give us more The society’s operating Board of Canada. Arviat and Rankin Inlet, said Bussey.
access to federal funds for budget for this year is $1 mil- "Including mining ser-
more training, and skills lion, with Agnico-Eagle put- vices, Nunavummiut will
development for our people," ting forth $250,000 of that. make up 54 per cent of those
said Peter Taptuna, minister Under a training agreement employed in the territory’s
of economic development with the Operating Engineers mining industry this year,"
and transportation, during the Training Institute of Ontario read the report. "But this pro-
June 8 session of the legisla- in Morrisburg, the society has portion is expected to increase
tive assembly. sent 18 people from the region ... as some non-resident work-
The focus of the society is – including three women – ers take up residency and as
not solely mining, said Bus- to the institute to learn how more training opportunities
sey. to become loaders and truck for Nunavummiut result in a the NWt leAder iN miNiNg ANd iNdustriAl trAiNiNg
"It’s meant to train people operators. more skilled workforce.
for employment in mining, or "Once they’re finished "As such, close to two-
any sort of supporting or spin- there, they go to Meadow- thirds of the workers employed Aurora College offers programming at three campus locations
off activities. For example, if bank for one week of on-site by the mining industry in 2020 and in various communities. In the Beaufort-Delta region Aurora
there was a company in Ran- training. They’re guaranteed will be Nunavummiut." College makes use of a state-of the art Mobile Trades Training Lab.
Many of the programs below have regularly scheduled intakes,
while others are offered through partnership, contract or 3rd party
training. For information on any of these programs, please contact
one of the regional industrial training coordinators listed below, or
visit our website at auroracollege.nt.ca
Introduction to Underground Mining Introductory Carpentry
Underground Miner Training Trades Access
Heavy Equipment Operator Program
(Campus-based) Building Trades Helper Program
Heavy Equipment Operator Program Apprenticeship programs in:
Class 1 Driver Training Heavy Duty Equipment
Because He Dreams Mineral Processing Training Program Plumber/Gasfitter
Director, Trades, Apprenticeship &
We invite northern contractors Phone: 867-872-7518
to join our business registry Fax: 867-872-4511
We build relationships for the
long term Inuvik Yellowknife
Rory Voudrach, Coordinator, Industrial and Mine
We deliver training and Coordinator, Industrial Oil & Gas Training
apprenticeships with our partners Training Phone: 867-920-3050
find out more Phone: 867-777-7839 Fax: 867-873-0160
We consider contractors family. www.debeerscanada.com Fax:867-777-5117
Work with us
A20 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
De Beers and partner look to
increase territory's sparkle
Fourth diamond mine
could last up to 11 years and
produce 4.5 million carats annually
by Guy Quenneville
Northern News Services
De Beers Canada and its
Spending at Snap Lake joint venture partner Moun-
tain Province Diamonds are
"De Beers projects in the Northwest Territories moving ahead with their plan
are not huge projects, but they do create great to open the NWT's fourth dia-
benefits" – and the Gahcho Kue diamond joint mond mine, the Gahcho Kue
venture will be no different, says Cathie Bolstad, project.
spokesperson for De Beers Canada. To prove More recently, the partners
her point, Bolstad used these numbers detailing announced that the project's
spending during operations at the company's feasibility study will be final-
Snap Lake diamond mine. ized before the end of the
The mine began commercial operations in year.
2008. "We're at the stage now
2008 where we're looking at the
Operations and capital spending: $295.9 feasibility study to make some
million very important decisions
NWT expenditures: $218.9 million (74% of about this project," said Cath-
total expenditures) ie Bolstad, spokesperson for
Aboriginal expenditures: $132.9 million (45% De Beers Canada, at the Pros-
of total expenditures) pects North 2010 conference
in Yellowknife last month.
2009 Some preliminary details
Operations and capital spending: $156 million about Gahcho Kue have photo courtesy of De Beers Canada
NWT expenditures: $116.2 million (74.5% of already been made public by Jovan Madanovic, affectionately know as “Grandpa” among his De Beers
total expenditures) the companies. co-workers, works on a new utilidor being installed at the Gahcho Kue project
Aboriginal expenditures: $59 million (37.8% of Among them: Gahcho Kue
total expenditures) is estimated to have a min- exploration camp in July 2010.
imum mine life of 11 years,
2010 with an annual rate of produc- closing in about 2025 if we Lake, which began commer- carats last year. The mine's
Operations and capital spending (as of the tion of approximately 4.5 mil- were to open in about 2013," cial production in 2008 with production capacity is nor-
end of September): $229 million lion carats. said Bolstad. an estimated mine life of mally 1.4 million carats per
"We could see the mine By comparison, Snap 20 years, produced 443,543 Please see Open, Page A21
Source: De Beers Canada
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NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 A21
Open pit mine
De Beers, from page A20 that project ... But we're doing
everything we can to ensure
year, but production was sig- they have what they need in
nificantly impacted last year terms of information to plan
by the mine's closure over six for us as part of their business
weeks during the summer. plan in the event that our pro-
If it appears that Gahcho ject is permitted."
Kue will be mined at a faster Bolstad said she expects
pace than Snap Lake, there's a De Beers to begin negotiat-
simple reason: whereas Snap ing impact and benefit agree-
Lake is Canada's ments for Gahcho
first fully under- Kue next year.
ground mine, For Snap Lake,
Gahcho Kue – "They're two De Beers Canada
which is located
approx i mately very different has agreements
with the Yellow-
300 km northeast
mines..." knives Dene First
Nation, the Tli-
– will be a trad- cho Government,
itional open pit the North Slave
operation akin to BHP Billi- Métis Alliance, and Lutsel
ton's Ekati Diamond Mine. K’e.
Underground operations The Gahcho Kue deposit,
are typically more difficult which Mountain Province
to mine, not to mention more claims is the largest new dia-
expensive, Bolstad previously mond project under develop-
told News/North. ment in the world, includes
"They're two very different indicated resources of photo courtesy of De Beers Canada
mines, so the profile of their approximately 30.2 million An aerial shot of the Gahcho Kue camp. The diamond project will require a capital investment between
costs are not going to be the tonnes grading at 1.76 carats $550 million and $650 million, say the partners behind it.
same," she said. per tonne.
Gahcho Kue will cost
somewhere between $550
million and $650 million to
build. Snap Lake ultimately
cost $975 million.
"When we talk about
Gahcho Kue, our company is Every Every room features
a complimentary night light.
making a huge investment in
Canada, even though Canada
is just a small part of De Beers a complimentary light.
a complimentary night night light.
as a whole," she said.
The partners have previ-
ously cited a likely operations
workforce of 400 workers,
and during a video shown by
Bolstad at the conference, the
number of construction work-
ers required was said to be
To again compare num-
bers with Snap Lake, since
construction began, De Beers Experience the the Northern Lights from our Lights from
Experience the spectacular view ofspectacular view of the Northernbalconies. our balconies.
Canada has employed a total And while you’re to our complimentary continental breakfast.
And while you’re here, treat yourselfhere, treat yourself to our complimentary continental breakfast.
of 540 full-time-equivalent Experience the spectacular view of the Northern Lights from our balconies.
workers at Snap Lake. And while you’re here, treat yourself to our complimentary continental breakfast.
As far as the project's per- The Coast Fraser Tower
The Coast Fraser Tower
mitting is concerned, "We're 5303 - 52 Street, Yellowknife, Northwest Territories, Canada
5303 - 52 Street, Yellowknife, Northwest Territories, Canada
now at a point where the regu-
latory system is waiting for De
The Coast Fraser Tower Tel: (867) 873-8700 Fax: (867) 873-8708
Tel: (867) 873-8700 Fax: (867) 873-8708
Beers to submit our environ- 5303 - 52 Street, Yellowknife, Northwest www.coasthotels.com
1-800-663-1144 Territories, Canada real people.
mental impact statement," said
Tel: (867) 873-8700 Fax: (867) 873-8708
Bolstad. "We've indicated that
we're going to file that at the 1-800-663-1144 www.coasthotels.com real people.
end of this year."
Power is a huge considera- ABORIGINAL MINING GUIDE
tion for any developer plan-
ning a new mine. De Beers How to negotiate lasting benefits for your community
Canada has previously said
that diesel accounts for 12
per cent of Snap Lake's yearly
Deze Energy's Taltson
Hydro Expansion Project –
T o generate lasting benefits for local communities from a mine requires
research, planning, and persistence. It requires carefully-prepared and
-conducted negotiations that capture the whole range of benefits.
Examples from actual Aboriginal experience illustrate the negotiation and
implementation of SEPAs and Joint Ventures: the Ekati, Diavik, and Snap Lake
Diamond Mines (NWT), Raglan Mine (Quebec), Voisey’s Bay Mine (Labrador),
which has received regulatory and Brewery Creek and Keno Hill Silver District (Yukon).
The Aboriginal Mining Guide will help you to decide if there are lasting
approvals from the Mack-
benefits that your community can gain from mining. It also explains how to The Aboriginal Mining Guide is available free of charge. Go to
enzie Valley Environmental
negotiate Socio-Economic Participation Agreements (SEPAs) and Joint www.miningguide.ca to read it, explore its hotlinks and documentation, and
Review Board (MVEIRB)
Venture agreements in order to gain those benefits, while protecting the download individual modules or the entire publication in PDF. You can also add
– will power the territory's
environment and your quality of life. comments and insights, post questions, participate in discussions with other
three existing diamond mines,
visitors, and subscribe to its free e-newsletter, Bedrock.
and De Beers is definitely The Guide has seven modules: 1) Putting the Community First, 2) Mining
interested in tapping into that Basics, 3) Getting the Most out of Leverage, 4) Doing Your Homework, 5) “Raven” and “Wolf” are courtesy of Jackie Olson, Dawson City, Yukon. The Aboriginal Mining Guide is
supply for Gahcho Kue. It's Negotiating Benefits Agreements, 6) Negotiating Joint Ventures, and 7) Key written by Mike Lewis and Sara-Jane Brocklehurst, who bring to their subject nearly 50 years of
experience in Aboriginal and community economic development. The Guide is published by the
just a matter of timing, said Learnings. There is a glossary of technical terms and a thorough bibliography. Canadian Centre for Community Renewal in collaboration with Tr’ondëk Hwëch’in and the Canadian
Bolstad. Straightforward language, diagrams, and drawings are used throughout. Northern Economic Development Agency.
"We're not in the position
right now as a company to
commit to an agreement. We
don't have a permitted project
and we don't have the cap-
ital approval to proceed with
www.miningguide.ca Canadian Northern Economic
Agence canadienne de développment
économique du North
A22 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Realizing a 'rare' opportunity
Avalon Rare Metals pushes ahead with
fact file Guy Quenneville
So what are rare earths, anyway? Northern News Services
Ian London, a market development The company behind
and energy advisor to Avalon Rare the Nechalacho project near
Metals, fills us in. Yellowknife may be in a race
with other countries to bring
Remember the Periodic Table its supply of rare earths to
from high school? There was market, but it does have a
a row of 15 elements on the strong advantage, according to
second to last line with odd names like neodymium, the company's vice-president
dysprosium, terbium and europium. This group
"China currently produces
of elements – with their unique chemical, 95 per cent of all rare earths in
mechanical, magnetic and optical properties – are the world," said David Swisher Guy Quenneville/NNSL photos
the key ingredients in making special components of Avalon Rare Metals, which
for today’s wind turbines, hybrid cars, and iPods,
Rare earths are in high demand around the world due to China controlling 95
has been steadily moving its
to name only a few items. project toward production in
per cent of the world's current supply, and Avalon Rare Metals is one of many
And it doesn’t take a lot of rare earth material, the last two years. companies looking to cash in.
when added to much larger quantities of other "For Avalon, we have a
materials, to make the magnets, phosphors, little bit of urgency to meet upcoming heavy rare earth 18-year mine life, though Don Avalon will consider southern
catalysts and special alloys that make up these market demands and meet our producer, which is not as com- Bubar, president and CEO of locations for the plant.
energy efficient products. timelines." mon as your typical light rare Avalon, has previously told Swisher said that the com-
Magnets help make brushless motors, which
That urgency is the result earths," said Swisher. News/North that Nechalacho pany is working with the
of a half-dozen other compan- has the potential to last 100 GNWT to come up with solu-
significantly reduce energy losses as heat. These ies with similar projects cur- Milestone year years. tions to keep the plant near
motors are appearing in refrigerators, elevators, rently in development. This year has been an The $600 million mine Hay River.
air conditioners, dish washers and in cars (for "Countries like the U.S., important one for Nechalacho. will create 185 operations "(That) would benefit
power windows and power seats.) Japan, South Korea, I wouldn't In June, the pro- jobs, while a the Northwest Territories by
In wind turbines, rare earth magnets, which be surprised to see them react ject's pre-feas- hydrometallur- keeping the hydromet here but
remain effective even at higher temperatures,
increase the amount of wind energy that actually
quite quickly," said Swisher.
Unlike most projects, how-
ibility study was
"We're very gical plant locat-
ed 85 km east
also benefit our shareholders,
which we're responsible to in
gets converted into electricity. There are also ever, Nechalacho is host to a thereafter, the fortunate of Hay River – ensuring that we're providing
very high percentage of what project's resource near the historic the most economic avenue ..."
magnet applications that eliminate gearboxes in
these wind turbines, further reducing maintenance Swisher dubs "heavy" rare estimate went up having this Pine Point Mine Construction of all infra-
earths. Simply put, they are
particularly uncommon – and
by 40 per cent.
deposit..." – could add
another 90 jobs
structure could start in 2013,
lasting 24 to 30 months, with
Hybrid cars use permanent magnets (made thus highly valuable – types of ing at the site, to that pool. full production at Nechalacho
permanent by the addition of rare earths rare earths. (For more details located 100 km That's if the commencing in 2015, accord-
neodymium and dysprosium) in assemblies that on just what rare earths are, southeast of Yellowknife, facility is located in the NWT, ing to the pre-feasibility
convert mechanical energy from brakes into see sidebar.) increased the amount of con- however. As Swisher himself study.
electricity. "We're very fortunate firmed rare earths to 20.5 mil- admitted, the cost of ship- The project is currently
Have you every asked what makes the colours having this deposit because lion tonnes from 14.4 million ping up 600,000 tonnes of undergoing an environmental
on a flat screen TV or computer screen? our competitive advantage tonnes. reagents (yearly) for the plant assessment by the Mackenzie
Answer: rare earths. with the rest of the world in The project's pre-feasibil- lies between $80 to $120 per Valley Environmental Impact
this market is that we are an ity study estimates an initial tonne. In a bid to cut costs, Review Board.
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NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 A23
¥∂ﬂ±´ IN NUNAVUT
ÌÕ¿›ùÀØ·ﬂî Ä¥¿∞î ¥∂ﬂ±¨îêî Ö±Ø á¬ÖÒê´ú Ä¥Úî We would like to thank everybody in Nunavut and
ÔØ≤îêÖç ÖêÄ∏∂ÇØîéÖÍ≤Ú∏¥î Ö±Ø Ä¿πØÀÍÀÖéêî especially the people of Baker Lake for their dedication and
á∂ªüπÔÍ≤Ú∏¥î öÀπîéÖÊéùπØÕîé∏¥î ∞∏∂≠î éïúêü professional approach leading to the success we’ve had thus
Öäé∏∑Òë´ ÇÕË∏≤ÖÍ›¯´. far at the Meadowbank Mine.
πﬂ≤úΩÒ áÇîéÖÒëŒÒâÒ ê∏ˆ›¿ÇÒã∆¿Öé∆¬í Ö±Ø The future looks Golden as we are laying the groundwork
≤‰Çù∆¬éü ÄÔ¬¢ÍÀ∏≤ á¿‰ÖÙÀÒ, íÄ∏∂ 25 ïƒ¨í≤ú and looking forward to the Meliadine project, which is 25
Çˆπéù≤ÔÒêÒ ÇÖ∏∂ˆí áˆ∏∂ÒãπÖ≤ öÚÒ˘≤Çç km northwest of the hamlet of Rankin Inlet and 290 km
Ö±Ø 290 ïƒ¨í≤ú ≤ùÖí áˆ∏∂ÒãπÖ≤ Ü£≤ò-∂îêË¿ú southwest of Agnico-Eagle Meadowbank mine.
Öäé∏∑Òë´ ÇÕË∏≤ÖÍ›Çç. Agnico-Eagle believes that Meliadine will become the
Ü£≤ò-∂îêË¿ú ÇçáÊªçâî ÄÔ¬¢ÍÀÄî center of another exciting new mining region for
êîíÍ›Ç¿Í≤ÖÒêù∆¬ü Öπúö∏≤ˆ¥î ¥ì≠î Nunavut and we plan on continued success
ÇÕË∏≤ÖÍ›ÇÀ≠î ¥∂ﬂ±´ Ö±Ø öÀπé°ªÖÍ≤ÖÒãﬂî in providing jobs, training and business
íØ∏∂ öÀπîéÖÍ≤Ò áíÔÒéîé≤úòî opportunities in the Kivalliq region
ÄÒö∂ÄŒúΩ≤ú, áùÇÒΩœÀé≤ú Ö±Ø and Nunavut while keeping in
á¿‰›∏¥î á∂ªÖËîΩ≤ú ï·∆¿Í´ mind traditional lifestyles,
Ö±Ø ¥∂ﬂ±´ ÄªØùπ∏∑Í¬ùî environment and wildlife
áœÀπêÔÒπÇéî Äµ∫î, Ö·é protection.
Ö±Ø ÉØÀ≤ú Ωâœ«≤Ò.
öÀÚÒΩÒãﬂî Ä¥¿∞î ê≤πÌ∆¬ùî á¿‰πØ≤Í≠î ééÒöÌé´∏¥ú Çﬂˆ:
We encourage everyone to submit your resumes to:
A24 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
NTI's Uranium ¥∂ﬂî ê∏ˆ›ú é´ˆîí NTI-kut Uraniumik
Mining Policy ¥ÙÀÄîê´ú ÇÕË∏≤ÖÍ≤Í≠î Uyagakhiurnirmut
GUIDING PRINCIPLE AUYARUT TUNNGAVIAT
Uranium exploration and mining must be ÖêÖÒπœÀíÇÀÒ Ø¿úíÄÕ‰Ö¿ú
¥ÙÀÄîê´ú Î∂Õ∏≤Ò Ö±Ø ÇÕË∏≤ÖÍ≤Ò Uraniummik nalvarhiurniq uyagakhiurniglu
carried out in an environmentally and socially havariyauyarialik avatimik inungniglu kamattiarluni
responsible way and the uranium that á¿‰ÖÙÕ‰ÖÔÒâÒ Ö·é´ú Ö±Ø ÄµπÍ´ú öØîéÖÒê´ú
áœÀπÔÍ¬≤ Ö±Ø ¥ÙÀÄîêÒ áÕÇÀÒ ÇÕË∏≤ÖÍ≤Í´ú uraniumlu uyagakhiuqtauyuq atuqtauniaqquq
results from the mining shall be used only quiliqtanaqnaittumik avatimut hapirnarnaittumik.
for peaceful and environmentally friendly ÖêÒíÇ°ÕÒâÒ ïπÖ≤ Ç∂íÍ≤ÇÚîê≠î Ö±Ø Ö·é≠î
purposes. áÇÀ´ú áœÀéùÕÇÀÔÍ¬≤. PITJUTIGIYAUYUT
á∂ªÖ°Äî Pitjutigiyait NTI-aip uraniummik uyagakhiurnirmut
OBJECTIVES atuagat ukuat:
The objectives of NTI’s uranium mining policy á∂ªÖ°Úî ¥∂ﬂî ê∏ˆ›ú é´ˆîí ¥ÙÀÄîê´ú
are to: ÇÕË∏≤ÖÍ≤Í≠î ÖêÖ°´éüî ÄØÄ°ªÖÍ≤Çﬂî: • Ikayuqturluni Kamattiaqtumik
•ÄöÀÒªÍ≤Ò öØîéÖÍ¬≤ Ö±Ø Ç∂íÍ≤ÇÚîê≠î Quiliqtanaittumiglu Atuqtauniit
• Support Responsible and Peaceful Uses Utiqtarnaqtut
of Nuclear Energy ÖêÒíÇ≤Ú∏≤ú ¥ÙÀÄîê´î É±ØÒòéî
¥ÙÀÄîê´î É±ØÒòéî ÖêÒíÇ°ÕÒâÒ Utiqtarnaqtut atuqtauniaqtut quiliqtanaittumik
Nuclear energy will be used for peaceful Ç∂íÍ≤ÇÚîê´ú Ö±Ø Ö·é´ú öØîéÖÍ¬≤ avatimullu hapirnaittumik.
and environmentally responsible purposes. áœÀéùÕÇÀÔÍ¬≤. • Ikayuutauyarialgit Uraniummik
• Require Beneﬁts from Uranium •á¿ÇπÖúΩÒíÔ‰ÖÔÒéîéﬂî ¥ÙÀÄîê´ú Nalvaarhiurniq Uyagakhiurniglu
Exploration and Mining Î∂Õ∏≤Í´î Ö±Ø ÇÕË∏≤ÖÍ≤Í´î Uraniummik nalvaarhiurniq uyagakhiurniglu
Uranium exploration and mining in ¥ÙÀÄîê´ú Î∂Õ∏≤Ò Ö±Ø ÇÕË∏≤ÖÍ≤Ò ¥∂ﬂ´ Nunavuntikitjutauniaqtut angiyunik
Nunavut will bring signiﬁcant economic ΩÒïÊíÇ≤ÖÒâÒ á±Ø‰°ƒ∏≤ú ó∂ÇÕ¿ÇÊééüî maniliurnikkut ikayuutikhanik Inungnut.
beneﬁts to Inuit. á¿ÖπÖúΩ≤ú Ä¥∏¥î. • Naunaillutik Hapummiyauniaqtut Inuit
• Ensure Protection of Human Health •ΩâœÕÇéîé∂ª∏≤Ò Ä¥Äî Ä¬πÚ∏≤ú Anniaqtailiniat
Uranium exploration and mining will be ¥ÙÀÄîê´ú Î∂Õ∏≤Ò Ö±Ø ÇÕË∏≤ÖÍ≤Ò
á¿‰ÖÙ≤ÖÒâÒ áœÀπÔÍ¬éú Ωâœ«≤ÔÒê´ú Uraniummik nalvaarhiurniq uyagakhiurniglu
carried out in a manner that protects the havariyauniaqtuq pilutik hapumminiaqlugit
health and safety of the workers and of all Ä¬πÚ∏≤ú Ö±Ø Öîí∂Òê¨îíÄ¿Õ‰ÖÔÍ≤Ú∏≤ú
ÄÒö∂ÄÕÒéî Ö±Ø íØÄí ¥∂ﬂ±´Çî.Ú annaiqtailiniat anniqtailiniallu havaktut
Nunavummiut. tamaitalu Nunavunmiut.
• Limit Impacts of Uranium Exploration •ï∆¿ÔÒéîé≤Ò ÖîêíÒπ≤Ú∏≤ú ¥ÙÀÄîê´ú
Î∂Õ∏≤Çç Ö±Ø ÇÕË∏≤ÖÍ≤Çç • Aktumayuqarluanngiluni Uraniummik
and Mining Nalvaarhiurniq Uyagakhiurniglu
Uranium exploration and mining will be ¥ÙÀÄîê´ú Î∂Õ∏≤Ò Ö±Ø ÇÕË∏≤ÖÍ≤Ò
á¿‰ÖÙ≤ÖÒâÒ áœÀπÔÍ¬éú á±Ø‰°ƒúòî Uraniummik nalvaarhiurniq uyagakhiurniglu
carried out in a manner that will not cause havariyauniaqtuq pilutik ihuilitjutaunnaittumik
signiﬁcant adverse effects on people, the ∑±ØÚîê´ú ÖîêÒπ≤Ô∏Úîê´ú Ä¥∏≤ú, Ö·é´ú
Ç„·√∏≥î ÉØÀ≤ú. angiyumik nakuunngittumik aktumaqarluni
environment or wildlife. inungnut, avatimut umayunullu.
• Promote Participation of Inuit •áÔíÇéîé∂ªÖÍ≤Ò Ä¥∏≤ú
• Inuit Ilauquhimaarlugit
Inuit of affected communities will be given Ä¥Äî ÖîêÒíÇÀ≤ ¥∂¿∏≥îêî á›îΩÔÒéíÇ≤ÖÒâî
Ô¥¿∞Ò Ö±Ø ÖëéÔÒêúòî áÔíÇéíÇ∂ª∆¬éú Inuit aktumayauyunit nunalingnit
an opportunity for full and meaningful angmaumaviuniaqtut iluingayumik
participation in both the environmental íØúó∏≤ Ö·éÇç ÔÇ«ùÖÒíÇ·∆¿Ö≤ˆ≤ Ö±Ø
ÖÇƒéíÇé∆¬ü ¥ÙÀÄîê´ú ÇÕË∏≤ÖÍ≤Í≠î ilauttiaqtitaulutiglu tamarmingni avatilirinirmi
assessment process and the operations of aulaniinnilu uraniummik uyagakhiurvini
a uranium mining project. á¿‰ÖÙÀÒ.
Öœ«ù∏≤ú áÀØüîπ ¥ÙÀÄîê´ú ÇÕË∏≤ÖÍ≤Í≠î Atjinganik Uraniummik Uyagakhiurnirmut Atuagapt-
For a copy of our Uranium Mining Policy or for ÖêÖ°îí Ç„·√∏≥î Ô¥ÄîêÄ∏∂Í≤ú êïπùÖÊéúΩ≤ú ingnik uvvaluuniit allanik tuharumaguvit mighaagut
any information regarding our mineral proper- á∆¬ü ÇÕË∏≤ÖËîΩ¿‰≤Í≠î ¥∂Ìéîí Ç„·√∏≥î uyaqqatigut nanminiqutiptigut nalvaarhiurutitigulluuniit
ties or exploration agreements, please visit our Î∂Õ∏≤Í≠î ÖÚÔéûüéî, Öè íò≤ÖÍ¬ü Ä∏ê≤Öî´ angirutinik, pularlugu qaritauyakkuurvikput uvani:
website at: íòÕúΩÇéîé›çâî Ç·≤: www.tunngavik.com
www.tunngavik.com www.tunngavik.com turaqvigiluguluuniit:
or contact: Ç„·√∏≥î ÇÔÍ›ù¬ü: Keith Morrison, Atuagaliuqtilluaq
Keith Morrison, Senior Advisor óî ≠Ö‰Ω∏, Ì„·π∏≤ÒΩÒ ÇÔÇœ«« - ÇÕË∏≤ÖËîΩ≤ú, – Uyaqqanik, Urhuryuanik Gasiliniglu Munaqti
– Minerals, Oil and Gas Management ÇÒªÖ¬¿‰≤Í´ú Ö±Ø °Ω¡¿‰≤Í´ú ÖÇƒîé≤Ò Nunavut Tunngavik Incorporated
Nunavut Tunngavik Incorporated ¥∂ﬂî ê∏ˆ›ú é´ˆî P.O. Box 1269, Cambridge Bay, NU X0B 0C0
P.O. Box 1269, Cambridge Bay, NU X0B 0C0 ééÒöìÍ›ú 1269, ÄÔ¬úëîéÖÒ, ¥∂ﬂî X0B 0C0 Talafun: (867) 983-5600
Phone: (867) 983-5600 Fax: (867) 983-5624 ÇƒÇî: (867) 983-5600 ªúöÀÒ: (867) 983-5624 Kayumiktugrut: (867) 983-5624
Email: firstname.lastname@example.org ÔËΩÇÕúòî: email@example.com Qaritauyakkut titigarvia: firstname.lastname@example.org
Mining NWT NUNAVUT
A News/North report on mining Week
•Prairie Creek to expand zinc potential
•Will Tahera rise again? Shear thinks so
•MMG poised for Kitikmeot project
B2 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Nunavut’s Number One Resource is the Youth of Today.
Preparing them for the future is our number one business.
Pre-Trades Preparation/Trades Access
is an academic trades preparation program aimed to
provide the basis to enter into an apprenticeship or
to pursue other Nunavut Arctic College programs.
This program integrates guiding principles of Inuit
Qaujimaningit and recognizes the value of collaborative
learning styles unique to Nunavut.
Major employers of apprentices and tradesmen
in Nunavut are typically the territorial and local
governments, mining and the construction industry.
Pre-trades is being offered in Chesterﬁeld Inlet,
Cambridge Bay and Repulse Bay in January 2011
and is now offered in Whale Cove.
Trades Access is being offered in Cambridge Bay,
Rankin Inlet, Arviat, Iqaluit and Pond Inlet in
Introductory Mine Training
Students will be provided an opportunity to explore the
different careers that are available in Mining throughout
Nunavut and the rest of Canada. The program will develop
basic knowledge of standard terminology and practices
used in the mining industry and the milling of minerals.
Introduction to Mine Training is offered in Arviat,
September 2010 and in Baker Lake in January 2011.
This program is designed to provide students with the
basic knowledge and skills required to obtain employment
in the food industry mainly in the mining camps and other For more information on mining programs
institutional camp settings such as tourism camps and and other courses offered at
community hotels. NUNAVUT ARCTIC COLLEGE
Camp Cook will be offered in Baker Lake, contact the Registrar’s ofﬁce
Rankin Inlet and Arviat in January 2011. TOLL-FREE 1-866-979-7222
or visit your Community Adult Educator
or download an application form at
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 B3
Prairie Creek environmental
Canadian Zinc mounts
$2.5 million drilling program
by Guy Quenneville far as the season will per- – after spending $64 million
Northern News Services mit, probably until early on the project – went bank-
Thenaago/Nahanni Butte November," said Taylor. "We rupt when the price of silver
It can be argued that once are anticipating putting out a collapsed.
a mineral exploration project release at the end of the pro- Once Canadian Zinc
has confirmed resources and gram to talk about the results. receives the necessary per-
enters the permitting pro- But we're finding that the rock mits, approximately $100 mil-
cess, its momentum dissipates package is behaving similar lion will need to be spent
somewhat. to what we anticipated, which on some new infrastructure,
Canadian Zinc doesn't is good." (including a water treatment
want that to happen to its The drilling contractor was plant and accommodations for
silver-zinc-copper-lead Prai- Kamloops, B.C. based SCS 110 workers) and on upgrades
rie Creek project, located Diamond Drilling. to existing buildings (includ-
90 km southeast of Nahanni Asked if Canadian Zinc ing the power plant, waste
Butte, says Alan Taylor, the tried to maximize Northern treatment plant and mill).
company's vice-president of employment on the drilling According to a second
exploration. program, Taylor replied, "We quarter management discus-
This summer, Canadian have to a point but it's a rather sion of Prairie Creek, "The
Zinc conducted a $2.5 mil- specialized drilling program real economic and social
lion drilling project at the site, in that we are drilling deep impact of this project will be
meant both to holes here and generated through the par-
remind investors we need to have ticipation of local labour and
about the long- good quality business in the area, including
gestating project control on the the communities of Nahanni
and increase the
"It's pure operators. But
we do engage our
Butte, Fort Simpson and Fort
span, currently exploration." locals to assist on "Participation will come in
cited as 14 years matters that they the form of direct employ-
but believed to can as far as pro- ment, direct supply of goods
be closer to 20 viding services and services, and spin-off
years. indirectly for the activities."
"It's pure exploration," said drilling program. Talks on impact and bene-
Taylor of the 2010 program. "We have locals (from fit agreements between Can-
"Our strategy is that while we Nahanni Butte) building core adian Zinc and the Tthenaago
move and advance the oper- boxes at camp. We have oper- First Nation in Nahanni Butte
ation's applications through ators running back and forth and Liidlii Kue First Nation
the regulatory process – we to bring supplies and equip- in Fort Simpson are ongoing,
all know it's a slow, time- ment to and from the drill." said Taylor.
consuming process – we want It's during the mine's oper- The IBAs, as they're called,
to create a bit of higher profile ation – which will require 220 will include hiring targets for
for investors and that's why we workers – that the benefits NWT residents and NWT
decided to go raise that flow- will increase exponentially. aboriginals, though specific
through money and step out New mines typically gen- numbers have not been dis-
a kilometre and a half from erate a lot of Northern spend- closed at this time, he added.
any known drill point on the ing during construction, but "It's the whole aspect of the
mineral resource and test any in the case of Prairie Creek, operation and how the local
downward extension of it." the vast majority (90 to 95 per communities can benefit from
The program started in cent) of its infrastructure is such an operation and maxi- photos courtesy of Canadian Zinc
early August and was still already built. That's because mize the opportunity for their Alain Boisvert of SCS Diamond Drilling operates a drill at Canadian Zinc's
underway as of press time. in the early 1980s, previous participation in it," said Taylor Prairie Creek during a summer 2010 exploration program.
"...we anticipate it going as owner Cadillac Explorations of the IBAs.
Prairie Creek by the numbers
Company: Canadian Zinc Corporation
Commodities: zinc, lead, copper, silver
Location: 90 km southeast of Nahanni Butte
Current indicated resource: 5.8 million tonnes
grading 10.71 per cent zinc, 9.9 per cent lead,
0.326 per cent copper and 161.12 grams of silver
Current inferred resource: 5.5 million tonnes
grading 13.53 per cent zinc, 11.43 per cent lead,
0.514 per cent copper and 215 grams of silver
Potential mine life: More than 14 years
Projected cost: Approximately $100 million
From left: Alan Taylor, vice-president of exploration Spending as of September: approximately $20
for Canadian Zinc; Mike Duffy, senator for Prince million
Edward Island; Chief Fred Tesou of Tthenaago Projected mine production jobs: 220
First Nation in Nahanni Butte; George Betsaka; Canadian Zinc share price as of Oct. 8: $0.70
Status: under environmental assessment Don Cowan, project geologist, left, and Chris
Leon Konisenta; and Dennis Patterson, senator for
Reeves, operations assistant, log core samples at
Nunavut, pose in front of the Prairie Creek Mine
the Prairie Creek project, located 90 km southeast
during a site visit last June. Source: Canadian Zinc Corporation
of Nahanni Butte.
B4 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
¥ìî ¥∂¿ãÄÕÄî á¿‰·∆¿ÖÀî. A New City on the Move.
ÄªØù¬ùî áÕÇ¿Ê∏∂Òêî! Consider the Possibilities!
ÄÔ¬Äî ÖúªÖ¬ú ÖÚ∆¿‚∆¿ÒπØﬂÒ íÄØ∏ˆ≤î áùÖÒéíÇƒÇÒπØ±Ø≤î ¥ìÒ Iqaluit has experienced tremendous growth since the establishment of
Ö›îêÒπØ≤Ò ÅâÊ 1999-Ùé∆¬ü. ÄÔ¬Äî ÖπÊÒπØﬂÒ ¥∂¿Ë≈ã√ÕÇƒÇÒê≤ Ø∏∂ the new territory in April 1999. Iqaluit has changed from a small town
á¿‰›Ç±Ø‰îê≤ ¥∂¿ãÇÕÇ¿Òê≤ Îƒ´Ê¬∆¬ íÄØÄîêÊÒê≤. ¥∂¿ãÇÕÄî ÖÇƒÀ∏∂ÇéÚî into a bustling city in a very short time frame. Nunavut's infrastructure
á·∆¿Öﬂî ∞∏∂úòî ó∂ÇÕ¿ÇÊéî ´ï∆¿‚∆¿ÒπØ°¬ÖÒé∆¬ùî. continues to grow despite the current economic downturn.
íÄØ¿ °·Øúòî íÄØÄüíÇ°¬ÖÒé∆¬ùî íØÄ∏¥öΩú ó∂ÇÕ¿ÇÊéî á·∆¿Ö¿ö∆ƒ∏≤Ú∏¥î While government accounts for much of the economic boom in Iqaluit,
other economic sectors such as the mining industry, commercial
ÄÔ¬∏≤, ÖπÚî ó∂ÇÕ¿ÇÊéÔÊéî ØòÖ ÇÕË∏≤ÖÒê¿‰Àî, ≤ÇÍÊéúΩ≤ú ÄÔ¬°ª∏≤Ò, fishing, arts and crafts and traditional hunting, provide income to
Ω∂Ç°Äî Ö±Ø ´Òª°Äî Ö±Ø áœÀπêÔÒπÇî ÖÙ∂ª∏≤Ò, ó∂ÇÕ¿ÇÊ∏∂ÊíÇﬂî ÄƒÚ∏¥î some residents of the city.
Iqaluit, Canada’s most northern city, is in the business of business,
ÄÔ¬Äî, ö∂í´ ÇÖ∏∂Òãπ∏≤ÒåÙÀî ¥∂ãÄÕÄî, á¿‰ÖÔÒâî á¿‰›¿‰≤Í´ú, while respecting our rich historical and cultural heritage. What we
Çœ«‰π∏∑Òªùî áœÀπ‰πØÕﬂî Ö±Ø Ä¿Òòπúòî áÇπêÔÒâî. ÖêÄ∏∂Çéíﬂî have to offer could be the solution to your business idea or situation.
ÜÒïüíÇÀ∏∂êÄ∏∂‰ÖÔÒâî á¿‰›∏¥î ÄªØùÕ∏¥î Ç„·√∏≥î Ô¥Äîê¨∏≤‰Õ∏¥î. Grow with us and help shape the city for the future - Iqaluit.
áÊÒã∆¿ÖÔéùéüî Ö±Ø ÜÒïúªÄ·∆¿ÖÔíÇ¬éî ¥∂¿ãÄÕÄî πﬂ≤úΩˆ≤ú - ÄÔ¬Äî.
êïπùÖúö∏≤ÊØü›î ´úæ¥î ó∂ÇÕ¿ÇÊééüî á∂ªÖËîΩÄî Ö±Ø ª¿‰ÖÙÀî êîíÍ›îé∏≤ ¥∂¿ãÇÕ≤,
ÇÔÍ›ù¬ùî ¥∂¿ãÇÕúòÚí ÄÔ¬Äî ¥∂¿∏≤ ó∂ÇÕ¿ÇÊé≤ú á·∆¿Öéîé≤Í≠î Ö∆ƒ„›ˆî
Ç·≤ 867-979-5611 Ç„·√∏≥î ªúöÀúòî 867-979-0558 Ç„·√∏≥î íò≤ÖÍ¬ü Ä∏ê≤Öî´ íòÕúΩÇéîé›çâî Ç·≤ www.city.iqaluit.nu.ca
For more information on economic opportunities and activities in our capital city, contact City of Iqaluit Community Economic Development Office
at 867-979-5600 or fax 867-979-0558 or visit our website at www.city.iqaluit.nu.ca
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 B5
to reopen Jericho
Company looking to expand mine life
by Guy Quenneville which, we're very happy order to make its reopening
Northern News Services to say, is pretty much fully economically viable, Julie
Ikaluktutiak/Cambridge Bay funded," said Strand. "When Lassonde-Gray executive
The new owner of the Shear Minerals looked at this chair replied, "We know the
Jericho Diamond Mine says acquisition, we decided we diamond quality at Jericho is
it is aiming by early 2012 to needed to prove to the street good, but the other variable
finalize its plan to reopen the that we were funded to carry is the exchange rate with the
mothballed mine. it through." U.S. dollar because diamonds
Shear Minerals – to this In March, Shear will mount are sold in U.S. dollars. And
point a junior exploration a $4 million to $8 million also, the price of the rough
company developing early drilling program at the site. diamonds."
grassroots diamond projects While Strand said it was Diamond prices took a
near Yellowknife and Chester- too early to say precisely how dive in late 2008 and in 2009,
field Inlet – purchased Jericho many people will be on site prompting mines like Rio
from CAZ Petroleum Inc. ear- and how many of them will Tinto's Diavik diamond mine photos courtesy of Shear Minerals
lier this year. be Nunavummiut she said that and De Beers Canada's Snap Pamela Strand, president and CEO of Shear Minerals, and Julie Lassonde-
Jericho, Nunavut's first dia- similarly-budgeted programs Lake diamond mine to shut Gray, executive chairman of the company, stand on site at the Jericho Diamond
mond mine, operated 350 km at the company's Chesterfield down for several weeks in the Mine, which the company acquired earlier this year, with plans to reopen it as
southwest of Cambridge Bay Inlet diamond project, located summer. soon as possible.
from July 2006 to January 20 km west of that commun- But since then, "They
2008, when its then-owner, ity, had a total workforce of 30 have come back," said Las- the beginning of production. While the company has esting looking kimberlite
Tahera Diamond Corporation, to 45 people. sonde-Gray. "The prices are And that's huge. If you look since acquired that licence, no discoveries. Right now we're
made the decision to close the "It will involve drilling in much stronger today. And at anyone else, like Stornoway work was undertaken on site processing samples and doing
60-employee mine. the pit to prove up the resource there is a general consensus Diamonds or Mountain Prov- this year in favour of focusing interpretation on that materi-
The high cost of fuel and and hopefully expand it, and in the diamond industry that ince Diamonds, the permitting on Jericho. al," said Strand.
the short 2007 operating sea- test some additional sites that rough prices will continue to process and the Previous oper- Of the 10 to 12 people
son of the Tibbitt to Contwoyto we have identified in their increase over the course of the mine financing – ators have discov- that worked on the project
Winter Road – a substantially proximity," said Strand. next three to five years. it's huge. "...there ered seven low- this year, two were Nunavum-
cheaper means of supplying "...our goal is to collect "That does mean that (Jeri- "We're on the
are a lot of
diamond kim- miut, and both worked as
fuel to the mine site compared enough information that, in cho) could potentially be eco- road to develop- berlites at Afridi, leader drillers as opposed to
to shipping by air – led to
mounting operating costs that
the tail end of next year, into
2012, we're doing that eco-
nomic today, but there are a
lot of questions that we need
ment, and we're a
long way there." questions but after drilling
12 holes itself
being driller's helpers or camp
began to significantly outpace
nomic modelling." answered before we would
put it back into production, Other projects
we need in 2008, Shear
"We did have some locals
in some key roles in the pro-
By the end of its run, Expanding the mine life not just with respect to the Before Jeri- answered." More drilling is ject," said Strand.
Jericho pumped out 780,000 When Jericho opened resource, but actually with cho became the needed, Strand No plans for work next
carats of diamonds from 1.2 under Tahera, it did so with respect to the milling and the company's chief previously told year had been made as of
million tonnes of kimberlite. a mine life of eight to nine engineering." asset, Shear Minerals was News/North. press time, but Strand added,
But Shear Minerals believes years. Shear has the existing developing two other early- The 2008 program "A lot depends on the results,
there's life yet in the property It's too early to say how infrastructure at Jericho – stage diamond projects. employed between eight and but I think we're of the opin-
and is devoting most of its many years remain in Jeri- valued at $200 million – on Last year, Shear was wait- 10 people. ion that there's a lot left to be
resources to getting it back cho's mine life, but as Strand its side, unlike most startup ing for a new land use permit At the company's Chester- found, so we're optimistic that
online, said Pamela Strand, put it, "What we're trying to projects, which need to build from the Mackenzie Valley field Inlet diamond project – a both Shear and Rio Tinto will
president and CEO of Shear do is make this a more mean- from the ground up. Land and Water Board to partnership with Rio Tinto – do some work there next year,
Minerals. ingful mine plan." "The difference is, it allow further work to pro- Shear has found 88 kimber- but the scope has not yet been
"We sort of have an 18-to- Asked if Jericho's resource may be, at most, six to nine ceed at Afridi, located 320 km lites so far. determined."
24-month business plan needs to be expanded in months for development and northeast of Yellowknife. This year, Rio Tinto fund- Cumulatively, not counting
ed a $500,000-to-$600,000 Rio Tinto's investment on the
drill program at the site. latter, Shear has spent a total
"We drilled 10 targets and of $27 million on Afridi and
have discovered some inter- the Chesterfield Inlet project.
Jericho by the numbers
Location: 350 km southwest of Cambridge Bay;
420 km northeast of Yellowknife
Company: Shear Minerals
Years in operation under Tahera Diamond
Corporation: approximately 1 year and a half
Carats produced: 780,000
Value of on-site infrastructure: $200 million
Operations staff in closing months: 60
Original mine life estimate: 8 to 9 nine years
Current estimated mine life: unknown
Cost of Shear's planned 2010 drilling program
at Jericho: $4 million to $8 million
Shear Minerals share price as of Oct. 8: $0.085
Before it closed in early 2008, the Jericho Diamond Mine, located 350 km southwest of Cambridge Bay,
Source: Shear Minerals; NNSL info
produced 780,000 carats.
B6 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
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for over 35 years
Coming soon to Iqaluit
Diavik... proud of our northern legacy.
Did you know that we employ over 500 people who call the North home?
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Did you know that since 2000 we have spent $3.3 billion dollars with
northern business? That includes $1.9 billion with Aboriginal business.
Cut & Polished For Service
And did you know that each year we invest $5 million locally – And Style In Yellowknife.
through scholarships, donations, sponsorships and by partnering with
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Rooms & Suites • Restaurant/Lounge
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Canada X1A 2P8 www.chateaunova.com
4401 - 50th Avenue Yellowknife NWT X1A 2N2
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 B7
Sabina juggles two projects
Company finds two new gold zones at Back River
by Guy Quenneville
Northern News Services
After a successful 2011
exploration season, Sabina
Gold & Silver Corporation
– which added "Gold" to its
name earlier this year – is
moving to update the prelim-
inary economic assessments
of its two mineral projects in
the Kitikmeot region.
One is the Back River gold
project, located approximately
375 km southeast of Cam-
bridge Bay and acquired by
Sabina last year from Dundee
The other is the Hackett
River silver project, also host
to some gold and located 104
km south-southwest of Bath-
This summer, during a $15
million exploration program at
Back River, Sabina discovered
two new gold zones – a dis-
covery that has "accelerated
the project beyond our expect-
ations," said Peter Manojlovic,
Sabina's vice-president of
"Of course our share price
(sitting at $4.65 in early Octo-
ber) has been rewarded for photos courtesy of Sabina Gold & Silver Corporation
that success." Chris Ipakohak, bottom, Ramona Kikpak, top left, and Martin McCallum, top right, build a ramp at the winter ice strip at Sabina Gold
Buoyed by that success- & Silver Corporation's Hackett River project, located 104 km south-southwest of Bathurst Inlet.
ful find, Sabina is looking to
release an ore resource update we looked at it as an open pit, start mining and start getting ducted by Inuit was done in for Kitikmeot labour made expanding our activities, and
on Back River – currently which is a cheaper mining payback on. " the camps, but some of them it somewhat more difficult yes, I think we're having a
host to 1.19 million ounces cost.'" Sabina will also issued an were also acquiring technical to find staff this year, said little bit more difficulty find-
of gold, measured and indi- At Hackett River, $15 mil- ore resource update on Hack- skills, said Manojlovic. Manojlovic. ing people to fill the jobs that
cated – some time in Decem- lion was also spent on explor- ett River by the "A lot of them "Looking forward, we are we require there."
ber. After that, the company ation, but more gold needs to end of the year. are working in
will update the preliminary be discovered there for it to Sabina's pro- the camps them-
economic assessment it inher-
ited from Dundee, which had
gain the same traction as Back
jects, which boast
a total labour
"It's got big selves to make
sure the camps
port and road
envisioned Back River as an "It's got a big infrastruc- force of 100 are running
underground operation. ture cost, and as soon as you people, employed properly," he
Sabina has other ideas. can pay that back, it makes 27 residents from costs..." said. "Some of
"It was looked at as an the project more robust," said the Kitikmeot them are learn-
underground operation, which Manojlovic. "The best way region – almost a ing new skills
is usually a higher cost..." said for Sabina in the short term third of Sabina's such as helping by Guy Quenneville poration vice-president of
Manojlovic. "So Sabina came to improve that project was Northern News Services exploration.
2010 labour force. with geophysical surveys."
in and took a look at it and to find higher value material Of the local workers, 11 Though Sabina has had So far, the biggest indus-
said, 'What could we do if close to surface that you could were from Kugluktuk, while several men return to work A related infrastructure try proponent of BIPAR has
Cambridge Bay and Gjoa with the company for many project with the potential to been MMG Resources Inc.,
Haven each provided another years, having both Newmont create many jobs in the area which is developing the Izok
eight workers. Mining Corporation and is the Bathurst Inlet Port and Lake base metals project near
Most of the work con- MMG Resources also vying Road Project (BIPAR). Kugluktuk.
The project is the brain- MMG's pre-feasibility
child of the Bathurst Inlet study for Izok Lake – due
Port and Road Joint Venture to come out by the end of
Ltd., co-owned by Kitikmeot the year – will include provi-
Corporation and Nuna Logis- sions for BIPAR, said Mar-
Hackett River by the numbers tics Limited, and would allow tin McFarlane, president of
companies like Sabina to MMG.
Company: Sabina Gold & Silver Corporation float supplies to and from the This summer, Nuna Logis-
Commodities: silver, lead, copper, gold, zinc region by water. tics collected environmental
Location: 104 km south-southwest of Bathurst The project's draft environ- data on the proposed project.
mental impact statement said "...that's designed to answer
BIPAR, if approved, will queries that arose from the
Current indicated resource: 43.6 million tonnes create 260 construction jobs, first round of technical assess-
at grades of 4.15 per cent zinc, 129 grams per with possibly 30 per cent of ments and community con-
tonne of silver, 0.35 per cent copper, 0.58 per positions held by Inuit. sultations that occurred two
cent lead and 0.27 grams per tonne of gold. Payroll over the three-year years ago with relation to the
Current inferred resource: 16 million tonnes with construction period is pegged BIPAR project," said McFar-
at $40 million, while oper- lane.
3.53 per cent zinc, 111 grams per tonne of silver, ations would employ 57 full "That information has been
0.24 per cent copper, 0.46 per cent lead and time workers, with a yearly collected. The consultants are
0.25 grams per tonne of gold payroll of $3.5 million. putting together reports and so
Potential mine life: 14 years "To have BIPAR happen forth. I assume that some time
Projected cost: approximately $1 billion would be very good for Sabina. next year we'll have a further
It reduces our capital cost and round of consultations," after
Projected construction jobs: 250 to 325
it also signals that mining is which the Nunavut Impact
Projected mine production jobs: 250 to 325 probably quite welcome in the Review Board will continue
Chris Ipakohak fuels up the main camp Sabina share price as of Oct. 8: $4.65 North," said Peter Manojlovic, its environmental assessment
generator. Source: Sabina Gold & Silver Corporation Sabina Gold & Silver Cor- of BIPAR, said McFarlane.
B8 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Meliadine next fact file
Meliadine by the numbers
Location: 24 km north of Rankin Inlet; 290 km
southeast of Agnico-Eagle's Meadowbank gold
mine near Baker Lake.
Company: Agnico-Eagle Mines Ltd.
Commodity sought: gold
Estimated resource: 3.3 million ounces of gold
(measured and indicated); 1.7 million ounces of
Owner of Meadowbank looks to start up second gold mine gold (inferred)
2008 Complex Minerals Spending: $20 million
to $25 million
Planned spending for drilling from Agnico-Eagle
from 2010 through early 2013: $62 million
Other planned spending from Agnico-Eagle from
2010 through early 2013: $68 million
2010 summer drilling program: $5 million
Estimated capital cost: $382 million
Estimated mine jobs: 430
Estimated mine life: 9 and a half years
Agnico-Eagle share price as of Oct. 9: $73.48
Sources: Agnico-Eagle Mines Ltd; Comaplex Minerals
by Guy Quenneville ing common shares of Coma-
Northern News Services plex that it did not currently
Kangiqliniq/Rankin Inlet own.
As if the Meadowbank The deal gave Agnico-
gold mine wasn't enough, Eagle ownership of the Melia-
Agnico-Eagle Mines Ltd. has dine gold property, a project
expanded its Nunavut holdings that stalled under the weight
to also include the Meliadine of the 2008 market crash
gold project near and Comaplex's
Rankin Inlet. resulting dif-
But while ficulty in rais-
means the Kival-
"The town is ing money for
a 2009 drilling
liq region can
boast of another
pretty excited program.
promising min- about it." crash, in the
ing project with summer of
the potential to 2008, Comaplex
create hundreds spent $20 to $25
of jobs, Meliadine will not be million developing Meliadine
rushed into production as fast (pronounced Me-la-deen), and
as Meadowbank. hired 10 people from Rankin
photo courtesy of Agnico Eagle In July, Agnico-Eagle Inlet. The project is located
Agnico-Eagle has acquired the Meliadine gold project near Rankin Inlet from Comaplex Minerals, but entered a statutory arrange- 24 km north of the Kivalliq
the project will not be fast-tracked like the company's Meadowbank gold mine near Baker Lake. From left, ment with junior exploration regional centre and 290 kilo-
Kimbo Okpatauyak, Amos Ugjuk, Morgan Hjorth and John Kurok were among the Inuit staff at the site this company Comaplex Minerals
Please see Huge, page B9
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NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 B9
Huge opportunity for
Rankin Inlet with Sakku Procon, a joint
Meliadine, from page B8
venture between the Rankin-
metres southeast of Meadow- Inlet-based Sakku Invest-
bank. ments Corp. and southern-
Comaplex's prelimin- based mining contractor Pro-
ary economic assessment of con; MMT Enterprises; and
Meliadine, released in early Inukshuk Construction, also
2009, narrowed the mine's based in Rankin Inlet.
lifespan down to nine-and-a- Regardless of when con-
half years. The mine was said struction begins, Bussey said
to require a total workforce Meliadine presents a huge
of 430 people, with between opportunity for Rankin Inlet.
230 and 240 on site on any "I think there's going to be
given day. upwards of 600 people dur-
Denis Gourde, Agnico- ing the construction phase,
Eagle's manager of Nunavut using as much local business
operations, said that his com- as much as they can," said
pany is now busy doing its Bussey. "The town is pretty
own work to assess Melia- excited about it. It looks like
dine's potential. there's some good times for
"It's a fair-sized project, Rankin. We're looking at get-
but the exact size will depend ting new infrastructure."
on the next two years, because Not launching immediately
during the next two years, we into construction will benefit
will confirm the reserves – Agnico-Eagle because it will
because now it's only resour- give it more time to encour-
ces (a less precise accounting age Kivalliq communities to
of a project's riches)," said prepare for the opportunity,
Gourde. said Gourde.
"We didn't have the time
Summer Drilling when we started Meadow- photo courtesy of Agnico-Eagle
After two years of drill- bank because we were on, I Luke Issluk Jr. loads an ATV at Agnico-Eagle's Meliadine gold project, located 24 km north of Rankin
ing, continued Gourde, "we'll would say, an extreme fast- Inlet.
be able to size the project and track," he said.
then we'll know what's going
to be the (capital) investment
and the number of people that
will be working (there)."
Unlike Meadowbank –
which essentially went under
construction the minute that
Agnico-Eagle acquired the
property from Cumberland in
2007 – Meliadine won't be
fast-tracked, due to the drill-
ing work required.
"Construction won't start
before the next two years, but
before 2013," said Gourde.
Agnico-Eagle has com-
mitted millions of dollars to
further defining the Melia-
dine resource, with $5 million
spent on drilling this sum- Newmont Mining Corporation is committed
mer. That's just part of a total
$62 million the company has to developing the Hope Bay Project
budgeted for drilling through
early 2013. in Nunavut in an environmentally
In addition, the company and socially responsible manner.
is setting aside another $68
million to complete an under-
ground bulk sample (sched-
uled for next year); a feas- www.newmont.com
ibility study; permitting with
the Nunavut Impact Review
Board; construction (pending
the receipt of necessary per-
mits) of a 27-km gravel access
road from Rankin Inlet to the
mine; and a new hard camp at
the Meliadine site.
"They plan to use all local
contracting companies, so
there's going to be a lot eco-
nomic spin-off opportunities
for Rankin," said Kevin Bus-
sey, executive director of the
Kivalliq Mine Training Soci-
ety, of which Agnico-Eagle is
a major industry funder.
During this summer's
exploration campaign, the
number of people on site
peaked at 50, with 15 to 20
per cent of staff coming from
Rankin Inlet and other Kival-
"We're actually in the pro-
cess of ending that first phase
of drilling. By the end of
October, it will be done," said
Contracts with Nunavut-
owned companies have been
signed for work next year
B10 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Iron ore project "I'll be frank: the Baffin-
land geologic asset has world-
class geology..." said John
tonne, McCloskey pointed
To put it another way: while
to Steensby Inlet – will serve
not just the single deposit cov-
ered in the project's feasibility
faces takeover bid
Gingerich, president and CEO the study assessed the project's study but as many as six other
of Advanced Explorations net asset value at $2.7 billion, deposits over a period of pos-
Inc. Advanced is developing "These guys are offering $275 sibly 100 years.
the Roche Bay iron ore pro- million," said McCloskey. "What is a little bit differ-
ject near Hall Beach and has Shareholders originally had ent from this mining situation
Developer says offer undervalues project recently receive a promise
of $1 billion from China for
until Oct. 28 to make a deci-
sion, "at which
is most people find a mine and
mine it," said
development costs. point Nunavut McCloskey. "In
by Guy Quenneville wholly owned subsidiary of president and CEO of Baffin- "Certainly Baffinland is Iron Group can our case, we're
Northern News Services
Australian-based Iron Ore
Holdings LP, made a hostile
"I would say that the offer
a huge interest, and I would
be surprised if it doesn't get
withdraw the bid,
they can extend "We've found finding deposits
and the infra-
Baffinland Iron Mines
wants to stay on as developer
takeover bid worth $274 mil-
lion for Mary River, located
that the Nunavut Iron Group
put out doesn't even get you
developed ... We don't pre-
tend to be a Baffinland," said
the bid or they
can make the
so much up structure would
be expended to
of the $4-billion Mary River 160 km south of Pond Inlet. to the back of a very long Gingerich. bid a bit more." there." develop the num-
iron project and has asked In a letter sent out two line to get you a ticket to the The company ber one deposit.
its board of directors to nix a weeks later, Baffinland's board ballpark." Going by the numbers extended the But it would be
hostile takeover bid it claims of directors directed its share- One of Baffinland's rival Mary River's feasibility offer to Novem- used by all of
highly underestimates the pro- holders to refuse the offer. iron ore developers even study, released in early 2008, ber 8 as of press time. the deposits over the next few
ject's value. "Very simply put, it under- admits he'd be glad if his pro- used a $60-per-tonne price for Needless to say, McClo- decades or centuries. We've
In late September, Nunavut values the project," said ject's iron ore could be com- iron ore, but today's prices skey hoped the sharehold- found so much up there."
Iron Ore Acquisition Inc., a Richard McCloskey, acting pared to that of Mary River. are hovering around $150 per ers had faith in Baffinland's This year, Baffinland spent
efforts to bring the project to a total of $30 million on Mary
production. River, which included drilling
"I don't think there is much that confirmed two new iron
of a chance we won't be," he ore zones on the property,
said. bringing the grand total of
But Mary River has had zones to seven.
a rough go of things on the "We are fortunate to
financing front, due largely to have the whole region," said
bad timing. McCloskey.
"You've got to look at the Historically, 30 per cent
timing of this thing," said of Baffinland's workforce has
McCloskey. "We put the feas- been Inuit, typically coming
ibility study together in 2008. from Pond Inlet and Iglulik.
We ran a process and what Added McCloskey, "We
happened in 2008? The whole always use Northern consult-
world fell apart. You are not ants when and if necessary or
We provide full services in:
going to raise a dime when the available."
world economy is going down The company hasn't let the
the tubes. takeover bid distract it from
Fuel Storage and Distribution | Heavy Equipment Contracting "On to 2009. In 2009, big the permitting process for
companies started coming Mary River.
back." "We're really putting the
Project Management | Remote Facility Maintenance McCloskey added that pedal to the metal for our
while $4 billion may seem like environmental impact study
Hazardous Material Handling | Expediting Operations a big number, the infrastruc- (to the Nunavut Impact
ture that will be constructed Review Board)," said McClos-
Transportation (Cat Trains) to support mining at Mary key. "We'll be submitting that
River – including a railhead by the end of the year."
Mary River by the numbers
Company: Baffinland Iron Mines
Commodity: Iron ore
Location: 160 km south of Pond Inlet on Baffin
Reserves: 365 million tonnes at 65 per cent iron
Projected cost: $4.1 billion
Amount spent in 2010: $30 million
Average number of workers on site in 2008: 400
Average number of workers on site in 2009: 60
Projected construction jobs: 2,700
Projected mine production jobs: 650-700
Baffinland share price as of Oct. 12: $1.00
Source: Baffinland Iron Mines
PO Box 92, Cambridge Bay, NU X0B 0C0
P (887) 983-7500 | F (887) 983-7501
100% Suite 203 – 15023 123 Ave, Edmonton, AB T5V 1J7
inuit P (780) 447-1008 | F (780) 447-3664
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 B11
Peregrine has 50 kimberlites at
considering raise in
project ownership stake
by Guy Quenneville ing Peregrine's stake to 42
Northern News Services per cent.
Panniqtuuq/Pangnirtung "That decision will have
Opportunities for Nuna- to come later on this quarter,"
vummiut to gain skills at said Holmes.
Peregrine Diamonds' Chidliak Workers discovered 34 new
diamond project near Pang- kimberlites at Chidliak this
nirtung will only increase in summer, bringing the total
the next two number of kim-
to three years, berlites discovered
as there's a lot thus far to 50.
of grassroots "...we're "I haven't seen
left to do at still very too many other
projects in the
photo courtesy of Peregrine Diamonds
the site, says world that have
the company's produced that
Simeonie Nauyuq of Pangnirtung works on a generator at one of two camps for Peregrine Diamond's
vice-president many (in one Chidliak diamond project, located 133 km from Pangnirtung.
of exploration. season)..." said
"The longer the project Holmes. "In 2008, we found going to see a significant the developer gets the money ing eight workers hired from ance, as well."
runs, the more experience and three. In 2009, 13. So 34 this number of those producing for it). Pangnirtung and Iqaluit.
skills that the people working year is a quantum leap. (For) (stones)." "It's still pretty early for "They were involved in a More training
on the project have an oppor- next year, we're still very that," said Holmes about the range of things," said Holmes. In January, Peregrine
tunity to acquire," said Peter enthusiastic, because we've What's next first assessment. "There were geophysical began talks with its drilling
Holmes. only flown 20 per cent of the Chidliak is still two to three It's not until a larger bulk operators who were working contractor, Saskatoon-based
This year, the Vancouver- property with airborne geo- years away from a preliminary sample is pulled from Chidliak with magnetometers on grids. Boart Longyear Inc., about
based exploration company physics (a method by which economic assessment. – a sample in the range of 200 It measures the magnetic training several candidates as
spent $15.3 million at the companies acquire data about Most mineral exploration to 1,000 tonnes, as opposed field. We trained individuals driller's helpers.
Chidliak project, located 133 the shape of a deposit)." projects go through a series of to the 15- to 20-tonne sam- as operators of those. Wild- Last May, three men from
km from Pangnirtung. Whether the newly discov- three economic assessments, ples being drawn now – that life monitors. Environmental Pangnirtung were sent to
The diamond play is a joint ered kimberlites actually con- each discussing in increasing Peregrine will have enough assistants, archaeological Haileybury, Ont. – the oper-
venture with BHP Billiton, tain diamonds is not known detail the project's financing, information for an economic assistants. ations centre for Boart Long-
owner of the Ekati Diamond yet. construction and operation: evaluation of the project. "We also had a geotechnic- year's surface coring oper-
Mine. "Until we actually see the the preliminary economic "I'd like to see one within al assistant working in Iqaluit ations – for two weeks of
Under the terms of the joint results from the lab, we can't assessment (also known as the the next two to three years," as well as assisting the people classroom-based training.
venture, BHP now has the tell," said Holmes. "Based on scoping study), the pre-feas- said Holmes. doing the core logging. And While this year's program
option to raise its ownership what we've seen already and ibility study and the bankable This year's exploration you have people working in at Chidliak did not offer them
stake in Chidliak by seven per initial results this year, we're feasibility study, after which program required a total of support roles in camp main-
cent, to 58 per cent, render- pretty confident that we're comes construction (provided 48 people at its peak, includ- tenance and kitchen assist- Please see Southern, page B12
A Component of the PSAC
A Component of PSAC
Serving Northerners for over 40 years.
Representing diamond workers,
hamlet and housing workers and
Public Service employees.
Visit us on the web at: www.unw.ca
Call: 873-5668 in Yellowknife
or Toll Free at: 1-877-906-4447
B12 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Southern training for
Peregrine, from page B11 fact file
an opportunity to train on site,
next year, Peregrine plans to Chidliak by the numbers
install the men at a new, third
Chidliak camp where they will Company: Peregrine Diamonds (49%); BHP
job shadow driller's helpers. Billiton (51%)*
"What we actually want to
do is bring these guys on as Commodity: diamonds
a third man on a drill rather Location: 133 km from Pangnirtung
than trying to put them in Exploration budget in 2009: $9.2 million
cold to the driller's helpers Exploration budget in 2010: $15.3 million
roles, where they're supposed Peak number of workers in 2010: 48
to effectively starting work
immediately." Nunavummiut on site: 8
In addition, Peregrine is Kimberlites discovered so far: 50
considering sending two more Kimberlites discovered in 2010 alone: 34
individuals from Pangnirtung Peregrine share price as of Oct. 14: $2.33
to Corona College in Grand
Falls-Windsor, NL to receive * BHP Billiton's ownership stake was under
training as camp managers. review as of press time
Source: Peregrine Diamonds
photo courtesy of Peregrine Diamonds
Patricia Qiyuaqjuq of Pangnirtung examines a core sample at Chidliak. There
were eight people from Pangnirtung and Iqaluit on site this year.
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NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 B13
Future mine details to be released Factor in Newmont Min-
ing Corporation – which spent
$140 million developing the
Hope Bay gold project located
MMG Resources spends $15 million on Kitikmeot base metals projects 130 km southwest of Cam-
bridge Bay this year – and
by Guy Quenneville Resources, the Canadian sub- slow approach to updating its to MMG's substantially business Kikiak Contracting getting enough people for
Northern News Services sidiary of China Minmetals pre-feasibility study on Izok increased budget (which is cleaning up a DEW line MMG's own projects is prov-
Kugluktuk/Coppermine Corp. Lake. McFarlane said the company site for Indian and Northern ing difficult.
MMG Resources Inc. The study should be The company tripled the hopes to at least maintain next Affairs Canada, employing 20 "The biggest challenge is
expects to release the pre- released by MMG in late Nov- amount of exploration dollars year), there were more of those people from across the Kitik- finding more workers," said
feasibility study for its Izok ember or early December. on both projects, said McFar- jobs available for residents of meot region, said Havioyak. Havioyak.
Lake base metals project near MMG already has some lane. Kugluktuk and, increasingly,
Kugluktuk by the end of the
The study – the second
tentative numbers for the
estimated $1.25-billion pro-
ject, including an operations
While the resource at High
Lake – which contains the
same types of metals as Izok
According to Donald
Havioyak, approximately 15
in a series of workforce of 380 Lake – is less defined than people from those hamlets Izok Lake by the numbers
increasingly people. the more advanced Izok Lake, found work at Izok and High
specific eco- "The biggest This sum- the aim of exploration at both Lake this year. Company: MMG Resources Inc., the Canadian
nomic assess- mer, MMG spent sites was essentially the same: "We have more people
ments – will challenge is approximately $15 to beef up the resource count working than last year," said
subsidiary of China Minmetals Corp.
Commodities: zinc, lead, silver, copper
mates on the
finding more million on explora-
tion work at both
to make the projects more eco-
nomically viable and possibly
who works as a community Location: 255 km southwest of Kugluktuk
project's mine workers." Izok Lake, located move toward production. relations officer for MMG Current resource estimate: 14.9 million tonnes; 12.8
life, capital 255 km southwest The results from that drill from his home community. per cent zinc, 2.5 per cent copper, 1.3 per cent lead
cost, operations of Kugluktuk, and program were still being com- "Our time frames have and 68 grams per tonne of silver
staff and overall plan to mine its less-developed sister pro- piled as of press time. been longer. So locals are Estimated cost: $1.25 billion
zinc, copper, lead and silver. ject High Lake, located 190 coming in to my office, and
"I think that will be the km southeast of the commun- Exploration jobs there's more awareness of Estimated construction jobs: 400 to 500
interesting news that (people) ity. Compared to when a mine the company (among) locals Estimated mine production jobs: 380
will want to know about. At That represents a substan- is in production, exploration and (people from) Cambridge Kugluktuk and Cambridge Bay residents currently at
this stage, we just don't have tial increase over the com- programs, depending on their Bay." Izok Lake (and sister project High Lake) : 15
anything that we can tell pany's spending in 2009, when size, can only provide a frac- MMG's projects aren't the Status: pre-feasibility study due in late November, early
you, because it's still being MMG, like many other com- tion of the number of mine only things creating economic
assessed," said Martin McFar- panies, cut down on spending jobs to Nunavut residents. opportunities in the region. December
Source: MMG Resources Inc.
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B14 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Diamond mines spend billions
with Northern companies
More than 3,000 workers employed
by big three in 2009; Ekati, Diavik, and
Snap Lake drive Northern economy
by Guy Quenneville In 2009 alone, $179 mil- From July 1, 2008 to June
Northern News Services lion went to Northern and 30, 2009 – BHP’s fiscal year
Somba K'e/Yellowknife aboriginal businesses – 67 per – Ekati generated 3.2 million
It's been more than a dec- cent of overall spending dur- carats.
ade since the NWT entered ing the year.
the world arena of diamond When it comes to jobs, Diavik
producers. Taking the most Ekati employed 2,022 direct Rio Tinto's majority-
complete, up-to-date num- employees and contractors in owned Diavik Diamond Mine
bers available, here's a look 2009. – which is operated by Diavik
at how the Ekati, Diavik and If one goes by the NWT Diamond Mines Inc. and is
Snap Lake diamond mines Bureau of Statistics' numbers, located about 300 km north-
have helped bolster the NWT Ekati workers accounted for east of Yellowknife – began
economy. more than nine per cent of the commercial production in
NWT's labour force in 2009. 2003.
Ekati Demographically, NWT The mine's 2010 mid-year
BHP Billiton's Ekati Dia- aboriginal residents made up socio-economic agreement
mond Mine, located 310 km 22 per cent of BHP's total was released earlier this year.
northeast of Yellowknife, workforce. From 2000 to the end of
opened in October 1998 as Factor in other NWT resi- June 2010, Diavik spent $1.9
the NWT's first-ever diamond dents, and the percentage of billion with aboriginal com-
mine, paving the way for Rio Northern workers was 43 per panies – 41 per cent of all
Guy Quenneville/NNSL photo Tinto's Diavik Diamond Mine cent. expenditures.
Yellowknives Dene First Nation Chief Ted Tsetta (Ndilo), left, listens as elder in 2003 and De Beers Can- Aboriginal workers made Factor in all other NWT
Alfred Baillargeon, right, says a prayer to commemorate the start of under- ada's Snap Lake Diamond up 50 per cent of all Northern businesses, and Diavik spent
ground mining at the Diavik Diamond Mine in March. Mine in 2008. workers. $3.3 billion with Northern
From 1999 to the end of Notably, BHP’s workforce businesses – 72 per cent of
2009, BHP spent $1.1 billion was comprised of 18 per cent total spending.
with aboriginal businesses. women, an increase by four In the first half of 2010
Adding in all other NWT per cent from the previous alone, $43.9 million was spent
WESCLEAN The North’s Largest Janitorial Supply House businesses, BHP spent $3.4 calendar year. with aboriginal firms – 28 per
billion with Northern busi- In terms of training, as of cent of total expenditures.
Northern Sales Ltd. Serving you since 1975 nesses – 81 per cent of all the end of 2009, 36 individ- Factor in all other NWT-
•We feature a complete line of environmentally friendly products expenditures during that time, uals were in various stages of based businesses, and that
•Rental and leasing for all industrial cleaning machines according to BHP's 2009 trades training at Ekati. percentage grows to 67 per
Ekati year-in-review. The mine was also home cent.
•Custodial courses on request
Mid-year socio-economic to 30 graduates of its Mineral When it comes to jobs,
•Wesclean chemical products manufactured in the Northwest Territories numbers for 2010 were not Processing Plant Technician as of the end of June, Diavik
•We ship throughout the North: air freight, barge, truck and winter road released as of press time. program. employed a total of 881 direct
and contract employees.
Suppliers For All Your Decorating Needs Including: Demographically, 30 per
cent of those workers were
•Blinds, Draperies, Window •Paints and Wall Coverings aboriginal, but when other
Shades, Shutters and Accessories •Windows, Doors & Flooring NWT residents are factored
in, Northerners accounted
Two Locations To Serve You: for 62 per cent of the overall
HAY RIVER YELLOWKNIFE TM Aboriginal workers made
up nearly half of all Northern
875-5100 873-6833 Beautiful ﬂooring begins with us
Any Natural Gas inquiry, please call 777-3422 workers.
15 INDUSTRIAL DRIVE 8 ELLESMERE DRIVE or in the event of an emergency By the middle of this year,
call our 24-hour telephone number 777-IGAS (4427).
Brad@WescleanNWT.com www.WescleanNWT.com 16 trades apprentices were
working at Diavik, of which
14 were Northern and 11 were
For the first six months of
2010, rough diamond produc-
tion was 3.2 million carats.
In all of 2009, Diavik pro-
duced 5.6 million carats.
De Beers Canada's Snap
Lake Diamond Mine – Can-
ada's first fully underground
mine, located 220 km north-
east of Yellowknife – began
commercial production in
Since construction began
at Snap Lake, to the end of
2009, De Beers spent $630
million with aboriginal com-
panies – 45 per cent of all
expenditures during that time,
according to De Beers Can-
ada's 2009 socio-economic
report for Snap Lake.
Factor in other NWT busi-
nesses, and De Beers spent
Please see $48 million, page B15
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 B15
$48 million budgeted
for De Beers
Diamond, from page B14 Diavik supplement person
years by recording the actual
$978 million with Northern number of employees, De
companies – 70 per cent of all Beers only provides person
numbers for 2010 were not
years in its socio-economic
Simply defined, a per-
Access to Inuit-Owned Lands – Kivalliq Region
released as of press time. son year represents one per-
In 2009 alone, $116 mil- son working 2,184 hours per Applications for access to Inuit-owned lands (IOL) and instructions for
lion went to Northern and year – averaged to 42 hours their completion are available through the KIA Lands Office. Once an
aboriginal businesses – 74 per a week.
cent of overall spending dur- In 2009, the overall application has been received along with the appropriate fees, maps and
ing the year. workforce totalled 431 per- other accompanying documents, it will be reviewed by KIA Lands
This year, De Beers is son years. NWT aboriginals Administration. The application will then be sent to the appropriate
investing approximately $48 accounted for 21 per cent of Community Land and Resource Committee (CLARC) for review and
million in construction activ- that total. Including all other recommendation. The applicant will be notified of the decision within a
ity at Snap Lake, including NWT residents, Northerners reasonable period of time.
new accommodations for accounted for 38 per cent of
workers. person years.
Each permit carries with it a set of environmental, cultural/archeological,
In its socio-economic Aboriginals accounted for and enforcement terms and conditions which must be adhered to.
report, De Beers measures its 57 per cent of all Northern Failure to comply with these terms and conditions may result in the
employment statistics in terms person years. cancellation of the permit and removal from the land. Depending
of person years, as do BHP Total 2009 carat produc- on the type, location, and/or season of the proposed operation,
and Diavik Diamond Mines tion from Snap Lake was special terms or conditions may be added to the standard permit.
Inc. However, while BHP and 443,543 carats.
fact file Jose Kusugak, President KIA
Northern and aboriginal The application process for commercial and residential leases is similar
to that above, although the review process is more extensive.
mine employment in 2009
To request an application, or for more information contact:
EKATI Veronica Tattuinee Lands Administrator
Luis Manzo Director of Lands
Ph: 867-645-5731 Ph: 867-645-5734
Northern 876 (43%) Fax: 867-645-3855 Fax: 867-645-3855
Aboriginal 435 (49.7% of
Non-Aboriginal 441 (50.3% of
Non-Northern 1,146 (57%)
Northwest Territories and Nunavut
Total 2,022 Association of Professional Engineers and Geoscientists
DIAVIK 201, 4817 – 49th Street, Yellowknife, NT X1A 3S7
Northern 552 (55%)
Aboriginal 279 (51% of
Non-Aboriginal 273 (49% of
Non-Northern 459 (45%)
NAPEG administers the NWT Engineering and Geoscience Professional Act and the
SNAP LAKE Nunavut Engineers and Geoscientists Act and has been empowered to regulate the
Snap Lake numbers are in person years.*
practices of engineering and geoscience and to govern the Acts and by-laws and to
Northern 162.5 (38%) establish and maintain standards of knowledge, skill, care and professional ethics in
order that the interests of the public may be served and protected.
Aboriginal 92 (57% of
Northern total) Look for the Designation
Non-Aboriginal 70.5 (43% of
Non-Northern 268.7 (62%) P.Geoph.
* A person year represents one person who worked 2,184 For information on registration or to conﬁrm that a company or individual is
hours per year – or 42 hours a week. licensed to practice in the Northwest Territories and/or Nunavut,
Sources: BHP Billiton; Diavik Diamond Mines Inc.; De Beers
contact NAPEG at (867) 920-4055.
B16 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
Study measures impact engaging in that type of activ-
Interviews are being con-
"Everybody's got a story to
Many aboriginal people
of former mines
ducted with as many aborig- and organizations are eager
inal people as possible about to document important times
their experiences with the when there was a lot of change
mines as former workers and and development in their com-
as affected residents, such as munities, continued Keeling.
hunters and trappers. "They see it as an oppor-
Federal research council funding $300,000 initiative In Hay River and Fort
Resolution, 45 interviews were
tunity for their kids and the
future to really understand
conducted. The responses what was going on in the com-
by Paul Bickford ciate professor of history, and First Nation on the Hay River The project is in its third were varied. munities at that time."
Northern News Services Dr. Arn Keeling, an assistant Reserve and the Hay River year and has two or three "A lot of people worked at The project will produce an
NWT professor of geography, vis- Metis Council. more years to go. It involves these mines," he said. "They oral history archive for each
A multi-year research pro- ited Hay River, Fort Resolu- "For each one of these case archival research and the col- were really proud of the work community, including audio
ject is analyzing the effects tion and Yellowknife earlier studies, there was lection of wide- they did at the mine. At the recordings and transcripts.
three now-defunct mines had this year and spoke to News/ a First Nation liv- ranging oral his- same time, some people are "It will be our information
on nearby aboriginal com- North about their project. ing near the mine "We're not tory. angry about what they would after it's done," said DKFN
The project – Abandoned
The funding for the
study – nearly $300,000 to
or their hunting
region was affect- anti-mining..., Sandlos said
describe as the mess that was
left behind. It really varies,
Chief Louis Balsillie.
Sandlos has gotten the
Mines in Northern Canada –
is focusing on five case stud-
date – comes from the Social
Sciences and Humanities
ed by the mine,"
we're not don't have an
even in individuals. They
might be angry about environ-
sense that some people are
interested in new opportun-
ies, including mines at Pine Research Council of Canada, "They weren't pro-mining." "We're not mental damage that was done, ities in mining.
Point and Port Radium, and a federal funding agency. always right next a nti-m in ing. yet they would say it was great "But they're also wary
Giant Mine in Yellowknife. The research is being to the mine, but, We're not try- working at the mine… It's a about some of the risks asso-
The study is being led by conducted with the assist- in one way or another, these ing to convince people not to really complicated story." ciated with a mining economy
two researchers from Memor- ance of aboriginal organiza- communities were impacted engage in mining," he said. "Some people with fond – having it shut off suddenly,
ial University of Newfound- tions, including Deninu Ku'e by a mine for better or for "We're not pro-mining, either. memories, some people with more environmental prob-
land. First Nation (DKFN) in Fort worse, or a combination of the We want to stand back and not so fond memories of the lems potentially and so on,"
Dr. John Sandlos, an asso- Resolution, K'atlodeeche two as we're finding out." look at the pros and cons of place," Dr. Keeling added. he said.
NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 B17
NTI stands by uranium policy
Organization wants Inuit to benefit from exploration
by Emily Ridlington Inc., an exploration company environment were protected. which already has one million
Nunavut Tunngavik Inc.'s uranium policy,
Northern News Services based in Saskatchewan, is So far, NTI has signed shares in Kivalliq Energy –
Nunavut looking to set up an explor- memorandums of under- has the option of gaining a 25
released Sept. 18, 2007 With an environmental ation operation to see if a standing with two companies per cent per cent participating
review underway for a pro- uranium mine is viable in the developing uranium projects. interest or a 7.5 per cent net
posed mine site at Kiggavik region. The first was with Kivalliq profit royalty from the mine.
The objectives of the policy are to: near Baker Lake, NTI is As the organization that Energy Corporation, which is But the MOUs also make
1. Support Responsible and Peaceful Uses of Nuclear standing by its uranium policy owns and administers Inuit developing the Lac Cinquante clear that the projects are not
Energy and looking to see what the lands under the Nunavut deposit, about 210 km north to have negative impacts on
Nuclear energy will be used for peaceful and future brings. Land Claims Agreement, NTI of Baker Lake. Then came an the environment or the people
"Nunavut is banned uranium agreement with Forum Uran- of the region.
environmentally responsible purposes. full of uranium mining in the ium Corp., which is exploring "The key message here is
2. Require Benefits from Uranium Exploration and and it is only a
matter of dis- " ... health early 1990s.
In 2007, the
the North Thelon Project, pos-
itioned 60 km west of Baker
health and safety - that is our
top priority," Eetoolook said.
Uranium exploration and mining in Nunavut will bring
covering it and
I'm pretty sure
and safety – board of direc-
tors changed its
These agreements give
He said the people of
Nunavut need to be protected
significant economic benefits to Inuit. it will be mined that is our mind and issued Inuit land claim beneficiaries whether they live or work near
eventually here," a uranium policy the chance to cash in on these the mine.
3. Ensure Protection of Human Health said James top priority." that would allow projects, should they actually Ensuring exploration and
Uranium exploration and mining will be carried out in Eetoolook, act- Inuit to bene- go into production. NTI's deal mining is done safely is the job
a manner that protects the health and safety of the ing president of fit from the with Kivalliq Energy states of Barry McCallum, manager
workers and of all Nunavummiut. Nunavut Tunngavik Inc. resource and industry while that once a feasibility study on of Nunavut affairs for Areva
Areva Resources Canada ensuring workers and the the project is drafted, NTI – Please see Safer, page B18
4. Limit Impacts of Uranium Exploration and Mining
NORTH OF 60
Uranium exploration and mining will be carried out in a
manner that will not cause significant adverse effects
on people, the environment or wildlife.
5. Promote Participation of Inuit
IS OUR BACKYARD
Inuit of affected communities will be given an
opportunity for full and meaningful participation in
both the environmental assessment process and the
operations of a uranium mining project.
Source: Nunavut Tunngavik Inc.
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B18 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING
'Safer than being in your
own home:' McCallum
NTI, from page B17 priority if the mine was to to deal with the issue whether
Resources Canada, which is open, said Eetoolook. the uranium mining will be
developing the Kiggavik uran- He said the benefits should happening or not," he said.
ium project, located 75 km stay in the territory and go to Eetoolook said he wants to
west of Baker Lake. Inuit. ensure the public knows there
"The industry works very "It has happened in the are ways for people concerned
hard to maintain high stan- past where Inuit were not con- about the potential exploration
dards and that is something sidered and we did not have to get in touch with the Nuna-
that has improved dramatic- full participation," he said. vut Impact Review Board, the
ally over the last four dec- Since 2008, Areva has Nunavut Planning Commis-
ades," said McCallum. spent $35 million on the Kig- sion and the Canadian Nuclear
Uranium mining has been gavik project with $9 mil- Safety Commission.
going on in Saskatchewan for lion of that being spent on In the last 18 months, there
more than 50 years, with the contracts with Northern sup- have been three tours of com-
province accounting for 30 pliers. munity information sessions
per cent of the world's annual Depending on when the in the Kivalliq region.
uranium production. McCal- environmental review is com- "The environmental assess-
lum said organizations such pleted and market conditions, ment process is very inclu-
as the Saskatchewan Mining the mine could open in 2015, sive with many opportunities
Association monitor the safety said McCallum. for people to comment," said
practices and performances of While they may have McCallum.
its mines. a uranium policy in place, Nunavummiut living in
photo courtesy of Areva Resources Canada
"Uranium mines are safer Eetoolook made it clear this the Kivalliq region can attend
than being in your home," he does not mean NTI is throw- another round of commun-
Areva Resources Canada's Kiggavik community liaison committee meets in said. ing their support behind the ity information sessions dur-
Baker Lake on July 27. Ensuring Inuit benefit from project. ing the first two weeks in
the resource and industry is a "The policy directs us how November.
DISCOVERY STARTS HERE
photo courtesy of Areva Resources Canada Inc.
Nunavut Tunngavik Inc. established a uranium
policy in 2007 to ensure mining and exploration is
done in an environmentally- and socially-respon-
For more information, please visit our website or call us at: (867) 669-2636 sible way. They can apply the principles of the
policy to projects such as the proposed Kiggavik
www.nwtgeoscience.ca uranium mine near Baker Lake by Areva Resour-
ces Canada Inc. This photo of the camp was taken
in July 2009.
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NWT/ NUNAVUT MINING NEWS/NORTH NWT, Monday, November 15, 2010 B19
Mine your own business
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Discovery Mine image from the NWT Archives: n-1979-052-1910. Rock images courtesy of Bob Wilson.
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B20 NEWS/NORTH NWT, Monday, November 15, 2010 NWT/ NUNAVUT MINING