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					Mining
          NWT    NUNAVUT
                           A News/North report on mining Week
                                     November 2010



North a hotbed
of mineral
resources




 •Exploration spending on the rise
 •Agnico-Eagle pouring gold in Kivalliq
 •Iron ore on Chinese radar
                                                  A
                                              section
A2 NEWS/NORTH NWT, Monday, November 15, 2010                              NWT/ NUNAVUT MINING




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Spending increases
                                                                               NWT/ NUNAVUT MINING                                                         NEWS/NORTH NWT, Monday, November 15, 2010 A3




in both territories
           Meadowbank
       and diamond recovery
            drive growth
            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-
                                                                                                                                            the conference
                                                                                                                                            board.
                                                                                                                                                                  "There's a                 which are almost
                                                                                                                                                                                             completely sup-
 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
                                                                                                                                                                                             tight restrictions
 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
back home.)
    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
                                    do that.
                                                                        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
   years.



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
                                                                                                                                              resources
                           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
munity.
    The execu-
                       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



                                                                                                                                          Potential
                                                                                                                                          for over
                                                                                                                                          400 jobs
                                                                                                                                          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
                                                                                                                                                                            Board.
                                                                                                                                                                                 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
                                                                                                                                                                            Beach by.
                                                                                                                                                                                 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
                                                                                                                                                                            Kipsigak.
                                                                                                                                                                                 "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-
                                                                                                                                                                            fit."
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-
                                                                       said.
                                                                          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
cant decrease.
   Weeks before the Septem-
                                   2008?
                                       Kolebaba
                                                       "...that could
                                                                                    joint-venture with
                                                                                    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
                                   Beluga 3.
                                       Referring to
                                                          be a real                 er in the Nunavut
                                                                                    exploration indus-
Resources spent more than
$10 million looking for dia-
                                   the most prom-
                                   ising      deposit
                                                       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.
years."
   In addition to purchasing
supplies from the Koomiut
                                   be a real price driver for the
                                   company."
                                                                          "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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                                                    PRAIRIE CREEK MINE                                                      TSX: CZN
                                                          Northwest Territories                                        www.canadianzinc.com



      • Canadian Zinc owns 100% of the Prairie Creek Mine                     • Environmental Assessment Stages for Operating Permits
      • World Class high grade open-ended Mineral Resource                    • Review Board decision expected March 2011
      • Existing infrastructure, mine, mill, site facilities                  • 11% Zinc, 10% Lead, 161 g/t Silver, 0.3% Copper


                                Canadian Zinc Corporation, 9606 100th Street, Fort Simpson, NT X0E 0N0 Tel: 867-695-3963
                                              Vancouver Toll Free: 866-688-2001 • invest@canadianzinc.com
                                                                               NWT/ NUNAVUT MINING                                                          NEWS/NORTH NWT, Monday, November 15, 2010 A11




Fortune awaits Supreme Court
decision on NICO assessment
         Company spends
       $1.5 million on drilling
           this summer
            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.
    The Tlicho
government won't
                    "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
                                                  environmental
                                                                        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-


 fact file
                  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
         this summer
            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
for       Areva,
"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


     fact file
                                    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
    Lake.
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-


  fact file
                     Kiggavik by the numbers
     Company: Areva Resources Canada Inc.
     Location: 75 km west of Baker Lake
     Commodity: uranium
     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
                                                                                                                                                                    Rankin Inlet
                                                                                                                                                                                            44
                                                                                                                                                                                            35
                                                                                                                                                                                                                18%
                                                                                                                                                                                                                 14%
                                                                                                   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-
                                                                                                                                         poration's Jericho
                                                                                                                                                              quarter of 2010, suppliers in
                                                                                                                                                              Baker Lake have done $60.8
                                                                                                                                                                                                  the community has even
                                                                                                                                                                                                  prompted one bank, the First
                                                                                          "We'll      get
                                                                                      there," said Denis
                                                                                                           more work."                   diamond mine,
                                                                                                                                         located 350 km
                                                                                                                                                              million worth of business with
                                                                                                                                                              Agnico-Eagle.
                                                                                                                                                                                                  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




    Quality
                                                                                                                                                                                                  mine site.
                                                                                                                                                                                                      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
                                                                                                                                                                                                  Nunavut-based businesses.
                                                                       · 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
                                                                                                                                                                                                  Cove.
                                                                         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. igloo-sales@igloo.ca                                              E. hayriver-sales@igloo.ca                                     E. igloo-sales@igloo.ca                                  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




  fact file
         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.
                                             total project
                                            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
    (all suppliers)

    Expenditures to Baker Lake               $60,784,618
    based suppliers                             6.5%

    Expenditures to NTI registered          $213,021,837
    companies                                  22.9%

    Expenditures to Nunavut-based           $227,730,601
    suppliers                                  24.5%
    Expenditures to Northern-               $423,893,824
    based suppliers (NWT,Nunavut,              45.6%
    Yukon)
                                   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.
the job.
    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
"frustrating."
    "(Maybe) if there was a lit-
tle bit more room to do social
activities, (maybe) a larger
                                                                                    www.dynonobel.com
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
nothing else."
    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
          www.kitia.ca


                                                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
                                                Kitikmeot region.
         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                   sanablak@qiniq.com
                 geoff@qiniq.com




                                                                                                       Engineered & Manufactured by
                                                                                                       SPRUNG
                                                                                                       I N S TA N T
                                                                                                       STRUCTURES®
                                                                             NWT/ NUNAVUT MINING                                                        NEWS/NORTH NWT, Monday, November 15, 2010 A17




Newmont ramps up Hope Bay
Cambridge Bay
  and other
communities
do their part
 at Hope Bay
 gold project



            by Guy Quenneville
           Northern News Services
   Ikaluktutiak/Cambridge Bay
    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-
tion season.
    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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  SERVING           THE      NORTH SINCE 1936
A18 NEWS/NORTH NWT, Monday, November 15, 2010                               NWT/ NUNAVUT MINING



Kivalliq Mine Training Society formed
                                                                                                                                    Organization aims
                                                                                                                                 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-
                                                inal       Skills
                                                                    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
Nunavut.
    The Kivalliq       activity."               nationally-man-
                                                aged program
                                                                    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

                                                                                                           AurorA College
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
                                                                                                           Program
                                                                                                                                                      Introductory Plumber/Gasfitter
                                                                                                           Heavy Equipment Operator Program
                                                                                                           (Campus-based)                             Building Trades Helper Program

                                                                                                           Heavy Equipment Operator Program           Apprenticeship programs in:
                                                                                                           (Community-based)                            Carpentry
                                                                                                                                                        Electrical
                                                                                                           Class 1 Driver Training                      Heavy Duty Equipment
                                                                                                                                                        Technician

         Because He Dreams                                                                                 Mineral Processing Training Program          Plumber/Gasfitter


                                                                                                           Fort Smith
                                                                                                           Bill Hval,
                                                                                                           Director, Trades, Apprenticeship &
                                                                                                           Industrial Training
          We invite northern contractors                                                                   Phone: 867-872-7518
          to join our business registry                                                                    Fax: 867-872-4511
                                                                                                           Email: bhval@auroracollege.nt.ca
          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
                                                                                                           Email: rvoudrach@auroracollege.nt.ca
          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


 fact file
                                                                            by Guy Quenneville
                                                                           Northern News Services
                                                                        Somba K'e/Yellowknife
                                                                    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
of Yellowknife
                       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

                                                                           room features
                                                                     Everyroom features
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
430.
    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
                                                                                                                                                                                                   real people.
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
                                                1-800-663-1144 www.coasthotels.com
                                            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 costs
    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
operating cost.
    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
                                                                                                                                                                                                            Development Agency
                                                                                                                                                                                                            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
              Nechalacho deposit

   fact file                                                                Guy Quenneville
    So what are rare earths, anyway?                                   Northern News Services
                                                                     Somba K'e/Yellowknife
                      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
                                                            of operations.
                                                                 "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
                                                                                                  released. Shortly
                                                                                                                       "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-
    costs.
                                                            earths. Simply put, they are
                                                            particularly uncommon – and
                                                                                                  by 40 per cent.
                                                                                                      Winter drill-
                                                                                                                         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




Ü£≤ò-∂îêË¿ú                                        AGNICO-EAGLE
¥∂fl±´                                              IN NUNAVUT




                         Öâé∏∑ÒëÒ/Meadowbook                                                ÄÔ¬¢ÍÀú/Meliadine

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∏≤ ΈÖÙÀÒ, íÄ∏∂ 25 í≤ú          and looking forward to the Meliadine project, which is 25
Ljπéù≤ÔÒêÒ ÇÖ∏∂ˆí áˆ∏∂ÒãπÖ≤ öÚÒ˘≤Çç                km northwest of the hamlet of Rankin Inlet and 290 km
Ö±Ø 290 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 Ççáʪçâî ÄÔ¬¢ÍÀÄî                               center of another exciting new mining region for
êîí͛ǿÍ≤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
Έ›∏¥î á∂ªÖËîΩ≤ú ï·∆¿Í´                                                         mind traditional lifestyles,
Ö±Ø ¥∂fl±´ ĪØùπ∏∑ͬùî                                                                environment and wildlife
áœÀπêÔÒπÇéî ĵ∫î, Ö·é                                                                     protection.
Ö±Ø ÉØÀ≤ú Ω✫≤Ò.




                          öÀÚÒΩÒãflî Ä¥¿∞î ê≤πÌ∆¬ùî ΈπØ≤Í≠î ééÒöÌé´∏¥ú Çflˆ:
                          We encourage everyone to submit your resumes to:
                          hrmeadowbank@agnico-eagle.com

                          agnico-eagle.com
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
                                                              ÖêÖ°ˆî                                            Atuagat
 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               ΈÖÙÕ‰ÖÔÒâÒ Ö·é´ú Ö±Ø ÄµπÍ´ú öØîéÖÒê´ú
                                                    áœÀπÔͬ≤ 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 áœÀéùÕÇÀÔͬ≤.                           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 öØîéÖͬ≤ Ö±Ø Ç∂íÍ≤ÇÚîê≠î              Quiliqtanaittumiglu Atuqtauniit
 • Support Responsible and Peaceful Uses                                                            Utiqtarnaqtut
   of Nuclear Energy                                ÖêÒíÇ≤Ú∏≤ú ¥ÙÀÄîê´î ɱØÒòéî
                                                        ¥ÙÀÄîê´î ɱØÒòéî ÖêÒíÇ°ÕÒâÒ                    Utiqtarnaqtut atuqtauniaqtut quiliqtanaittumik
     Nuclear energy will be used for peaceful           Ç∂íÍ≤ÇÚîê´ú Ö±Ø Ö·é´ú öØîéÖͬ≤                 avatimullu hapirnaittumik.
     and environmentally responsible purposes.          áœÀéùÕÇÀÔͬ≤.                             • 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 ĬπÚ∏≤ú                   Anniaqtailiniat
     Uranium exploration and mining will be             ¥ÙÀÄîê´ú Î∂Õ∏≤Ò Ö±Ø ÇÕË∏≤ÖÍ≤Ò
                                                        ΈÖÙ≤ÖÒâÒ áœÀπÔͬéú Ω✫≤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        ĬπÚ∏≤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
                                                        ΈÖÙ≤ÖÒâÒ áœÀπÔͬéú 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
                                                        ÖǃéíÇé∆¬ü ¥ÙÀÄîê´ú ÇÕË∏≤ÖÍ≤Í≠î                ilauttiaqtitaulutiglu tamarmingni avatilirinirmi
     assessment process and the operations of                                                          aulaniinnilu uraniummik uyagakhiurvini
     a uranium mining project.                          ΈÖÙÀÒ.
                                                                                                       havaktuni.

                                                    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≤Öͬü 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 Öǃîé≤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          ÇƒÇî: (867) 983-5600 ªúöÀÒ: (867) 983-5624   Kayumiktugrut: (867) 983-5624
 Email: kmorrison@tunngavik.com                     ÔËΩÇÕúòî: kmorrison@tunngavik.com             Qaritauyakkut titigarvia: kmorrison@tunngavik.com
Mining     NWT    NUNAVUT

                              A News/North report on mining Week
                                        November 2010




Diamonds still
sparkling for
Northern miners




•Prairie Creek to expand zinc potential
•Will Tahera rise again? Shear thinks so
                                                     B
                                                 section
•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
                September 2011.

                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.

                Camp Cook
                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

                                                                                  www.arcticcollege.ca
                                                                                 NWT/ NUNAVUT MINING                                                   NEWS/NORTH NWT, Monday, November 15, 2010 B3




Prairie Creek environmental
assessment underway
                      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
project's life-
                       "It's pure                   operators. But
                                                    we do engage our
                                                                          Butte, Fort Simpson and Fort
                                                                          Liard.
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.


                                                                            fact file
                                                                                   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
                                                                            per tonne
                                                                            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
                                                                            per tonne
                                                                            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




                                                                                                                                                     Nick Newbery
     ¥ìî ¥∂¿ãÄÕÄî Έ·∆¿ÖÀî.                                                   A New               City on the Move.
     ĪØù¬ùî áÕÇ¿Ê∏∂Òêî!                                                       Consider the Possibilities!
    ÄÔ¬Äî ÖúªÖ¬ú ÖÚ∆¿‚∆¿ÒπØflÒ íÄØ∏ˆ≤î áùÖÒéíǃÇÒπرØ≤î ¥ìÒ                     Iqaluit has experienced tremendous growth since the establishment of
    Ö›îêÒπØ≤Ò ÅâÊ 1999-Ùé∆¬ü. ÄÔ¬Äî ÖπÊÒπØflÒ ¥∂¿Ë≈ã√ÕǃÇÒê≤ Ø∏∂                the new territory in April 1999. Iqaluit has changed from a small town
    Έ›Ç±Ø‰îê≤ ¥∂¿ãÇÕÇ¿Òê≤ ΃´Ê¬∆¬ íÄØÄîêÊÒê≤. ¥∂¿ãÇÕÄî ÖǃÀ∏∂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∏≤ÖÒ꿉Àî, ≤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 ăÚ∏¥î            some residents of the city.
    ¥∂¿ãÇÕ´ÇíÄî.
                                                                               Iqaluit, Canada’s most northern city, is in the business of business,
    ÄÔ¬Äî, ö∂í´ ÇÖ∏∂Òãπ∏≤ÒåÙÀî ¥∂ãÄÕÄî, ΈÖÔÒâî Έ›¿‰≤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 Έ›∏¥î ĪØùÕ∏¥î Ç„·√∏≥î Ô¥Äîê¨∏≤‰Õ∏¥î.                Grow with us and help shape the city for the future - Iqaluit.
    áÊÒã∆¿ÖÔéùéüî Ö±Ø ÜÒïúªÄ·∆¿ÖÔíǬéî ¥∂¿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≤Öͬü 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




Shear Minerals
to reopen Jericho
Diamond Mine
        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
                                                                                                                                                                               labourers.
began to significantly outpace
revenues.
                                    nomic modelling."                  answered before we would
                                                                       put it back into production,       Other projects
                                                                                                                                we need                  in 2008, Shear
                                                                                                                                                         found nothing.
                                                                                                                                                                                   "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.


                                                                                                                                            fact file
                                                                                                                                                        Jericho by the numbers

                                                                                                                                            Location: 350 km southwest of Cambridge Bay;
                                                                                                                                            420 km northeast of Yellowknife
                                                                                                                                            Company: Shear Minerals
                                                                                                                                            Commodity: diamonds
                                                                                                                                            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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                                                                                                 Serving the North
                                                                                                 for over 35 years
                                                                                           Coming soon to Iqaluit




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      Did you know that since 2000 we have generated 5,500 person years
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      northern business? That includes $1.9 billion with Aboriginal business.
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      Diavik Diamond Mines Inc.
      5007-50th Avenue
      Yellowknife, NT                                                                                1-877-839-1236
      Canada X1A 2P8                                                                              www.chateaunova.com
      diavik.ca
                                                                                    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
       Kinnguak/Bathurst Inlet

    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
Precious Metals.
    The other is the Hackett
River silver project, also host
to some gold and located 104
km south-southwest of Bath-
urst Inlet.
    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
exploration.
    "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


                                                                                                                                          Bathurst Inlet
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
                                    River.
                                                                      jects, which boast
                                                                      a total labour
                                                                                          "It's got big              selves to make
                                                                                                                     sure the camps
                                                                                         infrastructure
                                                                                                                                          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."
                                                                                                                                                 Kinnguak/Bathurst Inlet
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

                                                                       fact file
                                                                                                                                          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
                                                                        Inlet
                                                                                                                                          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




for Agnico-Eagle
                                                                                                                                  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-
                                                                                                                                the acquisition
                                                                                                                                means the Kival-
                                                                                                                                                     "The town is                 ing money for
                                                                                                                                                                                  a 2009 drilling
                                                                                                                                liq region can
                                                                                                                                boast of another
                                                                                                                                                     pretty excited               program.
                                                                                                                                                                                     Before the
                                                                                                                                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
  year.                                                                                                                         to acquire all of the outstand-



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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-
liq communities.
    "We're actually in the pro-
cess of ending that first phase
of drilling. By the end of
October, it will be done," said
Gourde.
    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
                                                                                                                                            out.
                                                                                                                                                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
        Mittimatalik/Pond Inlet
                                    Australian-based Iron Ore
                                    Holdings LP, made a hostile
                                                                       land.
                                                                          "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."


                                                                                                                                              fact file
                                                                                                                                                      Mary River by the numbers
                                                                                                                                              Company: Baffinland Iron Mines
                                                                                                                                              Commodity: Iron ore
                                                                                                                                              Location: 160 km south of Pond Inlet on Baffin
                                                                                                                                              Island
                                                                                                                                              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
       oWned
                                                                                          www.kitnuna.ca
                                                                               NWT/ NUNAVUT MINING                                                            NEWS/NORTH NWT, Monday, November 15, 2010 B11




Peregrine has 50 kimberlites at
Chidliak
            BHP Billiton
        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
exploration
left to do at        still very                  too many other
                                                 projects in the
                   enthusiastic."
                                                                                                                                                                                                    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.



            Your
       Northern Union.

        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
northern workforce
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
year.
    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
                                                                                                              Cambridge Bay.
                                                                                                                 According to Donald
                                                                                                              Havioyak, approximately 15
                                                                                                                                                fact file
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
include esti-
mates on the
                  finding more                 million on explora-
                                               tion work at both
                                                                     to make the projects more eco-
                                                                     nomically viable and possibly
                                                                                                              Kugluktuk-born Havioyak,
                                                                                                              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.
lane, president of MMG             and, more specifically, took a       The good news is, thanks              North of Kugluktuk, local



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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
                                                                                                                                                                                                 workforce.
                 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
                                                                                                                                                                                                 Aboriginal.
                                                                                                                                                                                                     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.

                                                                                                                                                                                                           Snap Lake
                                                                                                                                                                                                    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
                                                                                                                                                                                                 2008.
                                                                                                                                                                                                    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
construction
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
spending.
    Mid-year socio-economic
numbers for 2010 were not
                                  years in its socio-economic
                                  report.
                                     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.
                                                                                                                                                                Sincerely
    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
                                                                                 lmanzo@kivalliqinuit.ca                                 vtattuinee@kivalliqinuit.ca
   Aboriginal                             435 (49.7% of
                                          Northern total)
   Non-Aboriginal                         441 (50.3% of
                                          Northern total)
   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
                                                                                                    www.napeg.nt.ca
   Northern                                     552 (55%)

   Aboriginal                               279 (51% of
                                          Northern total)
   Non-Aboriginal                           273 (49% of
                                          Northern total)
   Non-Northern                               459 (45%)

   Total                                            1,011

                                                                       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
                                                                                                            P.Eng.
   Non-Aboriginal                 70.5 (43% of
                                                                                                            P.Geo.
                                  Northern total)
                                                                                                           P.Geol.
   Non-Northern                   268.7 (62%)                                                             P.Geoph.

   Total                          431.2
  * 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
                                                          Canada
                                                                                               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-
                                                                                                                                         ity."
                                                                                                                                             Interviews are being con-
                                                                                                                                                                           "Everybody's got a story to
                                                                                                                                                                           tell."
                                                                                                                                                                               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
munities.
    The project – Abandoned
                                       The funding for the
                                   study – nearly $300,000 to
                                                                     or their hunting
                                                                     region was affect-  anti-mining...,                Sandlos said
                                                                                                                     the researchers
                                                                                                                                         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,"
                                                                     said Sandlos.
                                                                                           we're not                 don't have an
                                                                                                                     agenda..
                                                                                                                                         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
fact file
                                                                                                     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.
   Mining
   Uranium exploration and mining in Nunavut will bring
                                                                  covering it and
                                                                  I'm pretty sure
                                                                                                                and safety –                  board of direc-
                                                                                                                                              tors changed its
                                                                                                                                                                 Lake.
                                                                                                                                                                     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.
                                                                                                                                                                            Explore the possibilities...
                                                                                                                                                     Knight Piésold




                                                                                                                                                                                  Engineering and Environmental
                                                                                                                                                                                       Services Worldwide
                                                                                                                                                                                    Environmental First Nations
                                                                                                                                                                                          & Social Consultations &
                                                                                                                                                                               Impact Assessments Aboriginal Knowledge
                                                                                                                                                                                    Environmental Sustainable
                                                                                                                                                                                        Permitting Development
                                                                                                                                                                                      Mine Waste Geotechnical
                                                                                                                                                                                     Management Engineering
                                                                                                                                                                                      Hydrology & Mine Closure &
                                                                                                                                                                                     Hydrogeology Reclamation
                                                                                                                                                                              Project Management Heap Leach
                                                                                                                                                                                    & Construction Pad Design &
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                                                                                                                                                                                   Tailings & Water Rock Mechanics &
                                                                                                                                                                                      Management Open Pit Stability

                                                                                                                                                                                Knight Piésold is proud be working with
                                                                                                                                                                               Baffinland Iron Mines Corporation on the
                                                                                                                                                                             Mary River project and Avalon Rare Metals Inc.
                                                                                                                                                                                       on the Thor Lake project.

                                                                                                                                                                                      www.knightpiesold.com
                                                                                                                                                                                       North Bay • Vancouver
                        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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