Established 1835 A supplement to Mining Journal ’s rising star NUNAVUT

Purple Photo:Kingston Elizabeth Nunavut: an emerging force in saxifrage, the official Canadian exploration and mining flower of anada’s remote and sparsely populated July, with less than 25cm of per year, Nunavut Nunavut Territory is on a trajectory to mostly in the form of snow. Parts of the territory capture global attention as a mining and experience 24 hours of daylight in June and exploration destination. And with its round-the-clock darkness in December. Nunavut is population explosion, it’s also gearing treeless and mostly uninhabited, although settlements Cup to put that industry to work by creating jobs and stretch as far north as Ellesmere Island. from its first mine already accounts for nearly a fifth business opportunities for its residents. As a virtually new political jurisdiction, the of the gross domestic product. More than C$395 mil- With encouraging support for mineral develop- economy of Nunavut is, in many respects, still in a lion was spent on exploration and development in ment from both national and local governments and development phase. Self-reliance in the economy is a 2011. With additional investments in mineral progressive mining policies established by the key objective for both the territorial and federal exploration, the Nunavut mining industry boosted territory’s majority indigenous population (the ‘Inuit’), governments, the attainment of which, however, is real GDP by 3.3% in 2011. In comparison, the public Nunavut is attracting significant mineral investment. met with certain challenges. While Nunavut’s sector grew moderately by only 1.9%, despite making Projected expenditures of nearly C$400 million made unemployment rate has dropped from the previous up over 40% of the economy. Nunavut the fourth-largest minerals investment year, it is still more than twice the Canadian average These investments present significant training and destination in Canada in 2011. at 16.6%. The lack of qualifications and education are employment opportunities. It is estimated several With robust exploration and a wide portfolio of cited as factors. thousand jobs will emerge over the coming years, mineral targets including gold, silver, iron, diamonds, But Nunavut is young in demographics too and making the mining industry Nunavut’s largest copper, zinc and uranium, optimism is high for mining hosts the youngest, fastest-growing population in private-sector employer. As well, the government growth in Nunavut. Subject to market conditions and Canada. The median age is 24.6 years and the recognises the substantial role that the minerals regulatory approvals, mining projects hold the potential population grew from 26,600 in 1999 to 33,300 in industry plays in developing Nunavut’s infrastructure. to invest nearly C$7 billion in Nunavut over the next 2011. Population growth is attributed about equally With new transportation networks such as roads, 10 years in constructing new mines and associated between a ‘baby boom’ and people moving from port facilities, and airstrips, Nunavut will be able to infrastructure. In recognition of this, the NWT & other provinces to take advantage of growing provide easier and cheaper access to not only Nunavut Chamber of Mines has commissioned this opportunities in Nunavut. support expanding exploration programmes and new supplement, which aims to provide up-to-date Mining holds great promise to help pave the way to mining development, but also lower the cost of living information on the Nunavut minerals industry. Nunavut’s economic self-reliance. Mineral production for communities. Photo:Kingston Elizabeth

Young territory, growing population Small Inukshuk at Sylvia Grinnell Park, Nunavut is young, politically and demographically. Created in 1999, Nunavut was carved out of the Northwest Territories by referendum to create a new autonomous territory, which in the Inuit language of Inuktitut means ‘Our Land’. The territory comprises nearly 20% of Canada’s 9,970,610km2 land mass. Its capital city, Iqaluit (pronounced ‘ee-kal-oo- weet’) is its largest community, with a population of 7,250. The ‘place of many fish’, Iqaluit is located just south of the Arctic Circle, and about 2,000km north of Canada’s capital city, Ottawa. Nunavut is flanked to the west by the Northwest Territories, to the east by Greenland, and to the south by the provinces of Manitoba, Ontario and Quebec. The climate is subject to large fluctuations in seasonal temperatures, from -30° in January to 8° in

Editorial Editor Tim Peters E [email protected] This supplement is published with Mining Journal, published weekly, which is available only as part of a CONTENTS Production editor / designer Tim Peters subscription with Mining Magazine and Mining, People Sub editors Vickie Johnstone / Woody Phillips and the Environment, plus online access. An emerging force in exploration and mining 2 Editorial enquiries T +44 (0)20 7216 6060 F +44 (0)20 7216 6050 www.mining-journal.com Annual subscription – Young territory, growing population 2 Advertising production Sharon Evans E [email protected] UK and Europe £360 (580 euros) Rest of the world US$650 Diverse geology spells mineral potential 3 Advertising Published by Aspermont UK, Albert House, Minerals administration & policy 4 1 Singer Street, London EC2A 4BQ, UK. Printed by Geography and infrastructure 5 Advertisement, subscriptions and circulation director Stephens & George Magazines, Merthyr Tydfi l, UK. Supportive investment climate 5 Contact: Gareth Hector Registered as a newspaper at the Post Offi ce. Aspermont UK, Albert House, 1 Singer Street, London EC2A 4BQ, UK Mining past and present 6 Subscription records are maintained at Aspermont UK, T +44 (0)20 7216 6060 F +44 (0)20 7216 6050 PO Box 1045, Bournehall House, Bournehall Road, Key exploration projects 7 E [email protected] Bushey WD23 3ZQ Doing business in Nunavut back cover Aspermont UK, publisher and owner of Mining Journal (‘the publisher’) and each Sales manager – supplements of its directors, offi cers, employees, advisers and agents and related entities do not Richard Verth make any warranty whatsoever as to the accuracy or reliability of any information, estimates, opinions, conclusions or recommendations contained in this publication Advertisements: T +44 (0)20 7216 6068 and, to the maximum extent permitted by law, the publisher disclaims all liability E [email protected] and responsibility for any direct or indirect loss or damage which may be suff ered Chamber of Mines 6 by any person or entity through relying on anything contained in, or omitted from, this publication whether as a result of negligence on the part of the publisher or not. Government of Nunavut’s Department Reliance should not be placed on the contents of this magazine in making a com- of Economic Development & Transportation 4 Subscriptions and circulation Stuart Balk T +44 (0)20 7216 6064 E [email protected] mercial or other decision and all persons are advised to seek independent professional advice in this regard. Kivalliq Energy Corporation 5 Subscription enquiries T +44 (0)20 8955 7050 F +44 (0)20 8421 8244 E [email protected] Peregrine Diamonds 7 PO Box 1045, Bournehall House, Bournehall Road, Bushey WD23 3ZQ, UK Chief executive o cer David Nizol Cover design: Tim Peters. Photos supplied by Agnico Eagle Mines, © Aspermont UK 2012 ISSN 0026-5225 Peregrine Diamonds, MMG Resources and Elizabeth Kingston Chairman Andrew Kent

2 Mining Journal special publication – Nunavut February 2012 NUNAVUT

Diverse geology spells mineral potential Hackett River Hope Bay Nunavut’s (base metals) (gold) unavut’s diverse geology makes it Lake. The Slave Province also High Lake potential prospective for gold, silver, iron, hosts younger kimberlite (base metals) mines Ulu diamonds, uranium and base metals. intrusions, some of which are Izok (gold) (base metals) The territory encompasses most significantly diamond-bearing, Mary River of the Canadian Shield, also known eg at Nunavut’s Jericho (iron) as the Laurentian Plateau, a crust of ancient rocks diamond mine and just across the Nunavut N Roche Bay 500 million years old. The region is split into three boundary in the Northwest Territories, (iron) geological provinces: the Archean, the Proterozoic, where three mines make that territory the and the Phanerozoic. fourth-largest producer of diamonds by value Chidliak in the world. (diamonds) Archean Archean rocks in south-central Nunavut in Committee Bay Rocks of Archean age are exposed throughout the western Churchill Geological Province host (gold)

Nunavut, and undoubtedly underlie much of the many of the same deposit types, like those at Meliadine Kiggavik (gold) territory covered by younger rocks. They are Victory Lake, Noomut, Heninga Lake, and the (uranium) characterised by granite-greenstone terranes, similar Meliadine deposits. Back River in most respects to Archean cratons globally. In the northern part of the Churchill Province, (gold) Lupin Jericho Nebulitic migmatitic gneisses, which range from ultramafic volcanic rocks, quartzite and iron (gold) (diamonds) granodiorite to quartz monzonite, are among the formation characterise the Woodburn and Prince oldest rocks in Nunavut and exposed in parts of Albert groups. Proterozoic northern Baffin Island, the Melville Peninsula, and While the former hosts the Meadowbank gold Much of the Churchill Province was covered by southwest across the mainland. deposits, the less-explored Prince Albert group also extensive siliciclastic deposits in the earliest Late Archean supracrustal rocks comprise the holds significant potential for gold mineralisation, eg Proterozoic. Younger siliciclastic and carbonate rocks greenstone belts that host much of the gold and Three Bluffs deposit. of the Penrhyn Group on the southern Melville base-metal endowment of Nunavut. Western Rocks of the Prince Albert Group continue Peninsula, and their along-strike correlatives of the Nunavut’s Slave Geological Province hosts numerous northeast across the Melville Peninsula and onto Piling Group (central Baffin Island) represent a gold vein deposits, eg Ulu, George Lake, and Boston; northern Baffin Island, where they are represented by continental margin succession deposited on Archean and iron-formation hosted gold as at the former the Mary River Group. Some of the richest iron crust. These rocks are revealing elevated base-metal Lupin Gold Mine. A number of volcanogenic massive deposits in the world are found in these rocks at and gold mineralisation. sulphide deposits are known, including Izok and High Mary River and Roche Bay. On southern Baffin Island, similar contemporane- Photo:Resources MMG Photo: Ltd Agnico-Eagle ous stratigraphy (the Lake Harbour Group) contains ultramafic sills that have recently been investigated for their nickel potential. In southernmost Nunavut, basal clastic rocks and overlying volcanic and carbonate units are well exposed on the in southern Hudson Bay, as are Superior-type banded iron formations.

Phanerozoic Paleozoic rocks cover about one-third of Nunavut. Below: mines and promising Nunavut mine projects 2012. Above: aerial view of the Izok Lake camp and drilling at Meadowbank Strata lying west and northwest of Fury and Hecla

Project Owner(s) Commodity Description Status Meadowbank Open-pit mine located in the , 300km west of Hudson Bay and Mill began commercial production in March 2010. Paid first royalty Gold Mine Agnico-Eagle Mines Gold 70km N of Baker Lake. Mine jobs: 450 payment to NTI. Proposed open-pit mine with railway and port; 936km N of Iqaluit with 5 known Submitted application for Type B Water Licence; Class A Land Mary River Baffinland Iron Mines Iron deposits. Estimated construction jobs: 3,500; Estimated mine jobs: 715 Use Permit and; 2012 Work Plan on January 12, 2012. Proposed uranium mine 80km W of Baker Lake. Draft EIS submitted on December 21, 2011; IIBA negotiations Kiggavik AREVA Resources Uranium Estimated Construction jobs: 600; Estimated mine jobs: 500 begin January 27, 2012. Work postponed indefinitely while project under review; Doris North/ Newmont Mining Gold Proposed gold mines 130km S of ; covers most of the Hope Bay Company has approved ‘Care and Maintenance’ funding for the Hope Bay Corp Greenstone Belt. Estimated mine jobs: 300 Hope Bay site. Jericho Project to reassess viability of reopening the former diamond mine, 255km SSE of Recovered first 200 ct of diamonds from mine; Type A Water Diamond Mine Shear Diamonds Ltd Diamonds . Estimated mine jobs: 150-200 Licence 8-year renewal approved on December 22, 2011. Possible gold mine, 5 deposits, the largest of which is the Tiriganiaq deposit, 25km Meliadine Gold Agnico-Eagle Mines Gold NE of . Estimated construction jobs: 600; Estimated mine jobs: 350-400 Plan to complete feasibility study in 2013. Zinc, silver, One of largest undeveloped VMS massive sulphide deposits in the world. 104km Hackett River XStrata Zinc Canada copper, lead SSW of Bathurst Inlet. Sabina announces sale of Hackett River to Xstrata in June 2011. and gold Estimated mine jobs: 300 Sabina Gold & Silver About 60km from Hackett River; adjacent to the Wishbone Greenstone belt. Goose camp anticipated to open early February, 2012; anticipated Back River Corp. Gold Consists of the George and Goose Lake deposits, holding significant gold resources. that 8 core drills will be in operation at Back River and Wishbone. Copper, zinc, 1,710ha, copper-zinc-silver-gold property, 190km ESE of Kugluktuk. Estimated NIRB required that MMG provide a comprehensive project High Lake MMG Resources Inc gold, silver mine jobs: 500 update by early January 2012. Izok Lake MMG Resources Inc Copper, zinc, High-grade zinc-copper-lead-silver deposit, 255km SW of Kugluktuk. Estimated Plan to advance to full feasibility study and permitting phase by gold, silver mine jobs: 760 end of 2012. Elgin purchased both properties from MMG Resources in July, ULU & Lupin Elgin Mining Inc Gold Located SE of Kugluktuk.Lupin mine: past production; 3.7Moz. ULU deposit: 2011. Winterisation of work camp at Lupin; Phase 1 drilling later indicated mineral resource; 751,000t this year. Indicated resource of 323Mt located next to a natural deep water harbour on the Completed Tuktu 1 drill programme. Plan to enter feasibility Roche Bay Advanced Exploration Iron east coast of the Melville Peninsula. study by end of 2012. Peregrine Diamonds Peregrine purchased remaining 51% participating interest in Chidliak Ltd Diamonds Located 180km S of . Contains 59 known diamond-hosting formations. Chidliak from BHP. Preliminary bulk sampling delayed.

February 2012 Mining Journal special publication – Nunavut 3 NUNAVUT

Strait form part of the Arctic Platform that continues northward onto Ellesmere Island, whereas those to Minerals administration and policy Photo: Ltd Agnico-Eagle the southeast underlie the Foxe Basin and represent Public and Private Lands Photo:MMG the northern continuation of the Hudson Platform. Nunavut became its own territory During the Caledonian orogeny, uplift and erosion in 1999 via the Nunavut Act and the led to the deposition of a thick orogenic clastic Nunavut Land Claims Agreement Act. wedge, with elevated potential for ‘red bed’-type Major land owners are the Federal copper deposits. and Territorial Governments, In the late Devonian, east-west compression which hold Crown lands in trust (Ellesmerian orogeny) may have been the driving for the public, and private lands force behind Mississippi-Valley type mineralising owned by the Inuit, through their events that gave rise to the Polaris district zinc-lead land claims organisation Nunavut deposits mined at the in the central Tunngavik Inc (NTI). Arctic archipelago. Both the territorial and federal From the Carboniferous to the Cretaceous, governments, as well as NTI realise renewed rifting led to the formation of the Sverdrup that the minerals industry has great Basin in northernmost Nunavut characterised by the potential to grow Nunavut’s deposition of a thick clastic and carbonate succession. economy. To date, they have These strata host major reserves of gas and oil, maintained a supportive policy MMG’s High Lake deposit. Right: a miner at Agnico-Eagle’s Meadowbank operation including the past-producing Bent Horn light crude framework, intended to welcome field. investment to the territory. NTI established a positive undermapped, it is also underexplored, improving the In eastern Nunavut, a cluster of kimberlite pipes mining policy in 1997 followed by the Government of odds for exploration success. centres on Somerset Island, with exposures on the Nunavut in 2003. Nunavut benefits from Canada’s Mineral Exploration northern Brodeur Peninsula and northwestern Baffin Land tenure for minerals is administered by the Tax Credit, which helps companies raise capital for Island. Several of the Somerset Island pipes are federal government on public lands and by NTI on Inuit mining and exploration by providing a tax incentive to known to be diamondiferous. lands. Both government and the Inuit share resource individuals who invest in ‘flow-through’ shares issued The Chidliak diamondiferous kimberlites found management responsibilities which sanction explora- to finance exploration. much further south on Baffin Island’s Cumberland tion, provide regulatory approvals, and issue relevant To help make Nunavut’s tax regime more competi- Peninsula, often comprise magmatic or volcaniclastic permits and licences for exploration and mining. tive, the Government of Nunavut provides a tax rock and can contain abundant country rock and Geological mapping of the remote and large incentive to mining and exploration to offset higher mantle xenoliths. territory does lag that of most of southern Canada. energy costs through the Nunavut Fuel Tax rebate. In western Nunavut, diamondiferous pipes such This is being addressed through geological surveys Should a mine be developed, Nunavut mining as Jericho occur in the northern continuation of the conducted by the Geological Survey of Canada and companies can recover most of their initial capital Lac des Gras field in the northern Slave Province. by the Canada-Nunavut Geoscience Office – a investment before paying a significant amount of Numerous other pipes have been identified on co-operative partnership between the Federal and taxes. The income tax regime also provides rules to Victoria Island as well. Territorial governments and NTI. While Nunavut is help mitigate the negative financial aspects of fluctuating prices. Tax and royalty regimes are also principally based on net production profits rather than on the net smelter return royalties commonly found in other countries.

Land Claims Agreement The Nunavut Land Claims Agreement (between the Inuit of the Nunavut Settlement Area and the Government of Canada) is the largest Aboriginal land settlement in Canadian history. The agreement gives Inuit fee simple title to 356,000km2 of land. There are 944 parcels of Inuit-Owned Lands (IOL), where Inuit Some 40% of all Agnico- hold surface title only. Eagle’s Meadowbank The Government of Canada or ‘the Crown’ retains employees are Inuit the mineral rights to these lands. Inuit also hold fee NUNAVUT Photo: Agnico-Eagle Ltd simple title – including mineral rights – to 150 parcels Mining & Mineral Exploration of subsurface IOL, which total 38,000km2 and represent around 2% of the territory. • more than 50 years of mining history In essence, the Nunavut Land Claims Agreement • $300 million exploration spending annually “The provides Inuit with a combination of surface and • major new gold mine at Baker Lake subsurface rights, cash and the right to participate in • major deposits of gold, silver, zinc, copper, iron Government the management and regulation of (land and water) ore, diamonds and uranium of Nunavut surface rights, wildlife, land and water use, and • over 100 active exploration projects environmental impact reviews. provides a Inuit also receive a high level of certainty through • fully settled land claim tax incentive the legal requirement of the land claim for major Please visit our website for more information: project developers to negotiate with them Inuit www.edt.gov.nu.ca or call 1-888-975-5999 to mining Impact & Benefit Agreements (IIBAs), which address and such benefits as training, employment and business for all major projects. When combined with Department of exploration” clarification of title and guaranteed participation in Economic Development & resource management and development, IIBAs have Transportation helped encourage many native peoples to support mining development.

4 Mining Journal special publication – Nunavut February 2012 NUNAVUT Geography and infrastructure upplying infrastructure to the vast, Supportive investment remote territory of Nunavut is costly. Most of what is available has come about climate Activity at Peregrine as a direct result of mining. The mining According to the Conference Board of Canada’s Diamonds’ Chidliak site sector has contributed not only to 2011 Territorial Outlook, the economic future in the Baffin Region: horizontalS and vertical assets such as roads, bridges, of Nunavut is positive. Strong resource-sector a DC-3 aircraft buildings and even recreational facilities through exploration and development contributes to (bottom) lands near community relations initiatives, but also has begun economic growth. Thanks to its relatively the Aurora camp, development of broader asset classes such as power, healthy fiscal situation, Nunavut will not have to while here a helicopter telecommunications and data-transfer stations, ports, cut back to the same extent as many other conducting airborne airstrips and railways. governments in Canada (and elsewhere). Nuna- geophysics vut’s economy is less exposed to the same risks Photos: Peregrine Diamonds Shipping as provinces. Current developments in the The Canadian Coast Guard has several ‘heavy’ and north are tied more to robust demand for raw ‘medium’ ice breakers in their fleet, which are capable materials in emerging markets, such as China of year-round operation in the high Arctic. Service and India, than to a recovery in the US or other covers the entire Canadian Arctic archipelago from advanced economies. 60ºN latitude, toward the North Pole and those Nunavut has managed to avoid the stops and waters of Ungava Bay and Hudson Bay, south of the starts that have marked the economic recovery parallel of 60ºN latitude. of the provinces. Thanks to growing demand for These ships also provide ice-breaking assistance to raw materials, Nunavut has forged ahead at an the Sealift ‘dry cargo’ ships which move general impressive pace, and was ranked fourth in merchandise on behalf of Nunavummiut and ensure Canada for mineral potential on the latest that transportation requirements of private and all survey of mining companies conducted by the federal government agencies are met. Canada’s (and Fraser Institute. High commodity prices have the world’s) only ice-breaking ore-carrying ship, the rejuvenated investor interest in the region. A MV Arctic, was built to service the and number of companies are preparing to develop Polaris mines. Ongoing hydrographic surveys, mines, re-examine known mineral deposits, and combined with experience gained at these sites, make new discoveries. confirm that marine shipping is now both economi- cally and environmentally viable throughout most of proposed 1,475km route from Churchill, Manitoba to government-owned, community airports, most mining the Arctic Islands. Rankin Inlet, includes as many as 63 bridges, and has sites have developed airstrips of their own. These an estimated cost of C$1.3 billion, with C$7 million sites vary in length and surface-type, but can Roads in annual maintenance costs. The development of accommodate various sizes of aircraft from Though most of the communities in Nunavut have a road networks is seen as key to fostering mineral helicopters to Twin Otter and Dash-8 aircraft to local network of unpaved roads, there are currently production and would bring long-term economic larger Hercules transport aircraft and Boeing 737 jets. no existing highways connecting communities to one benefit to Nunavut on the whole. The government clearly recognises the substantial another or to southern Canada. This is due to the role that the minerals industry can play in Nunavut’s enormous distances between communities, their Airports development. Nor has this fact been lost on the Inuit. remoteness, and the existence of permafrost, which While shipping remains one of the most important With new and improved infrastructure, Nunavut will makes construction of roads difficult and expensive. means of transportation, particularly for cargo, air be able to provider easier and cheaper access to The largest and most promising road development travel is viewed as the most expedient. While a support expanding exploration programmes and to is the proposed Manitoba-Nunavut Highway. The number of exploration sites are relatively close to assist in bringing new mines into production.

February 2012 Mining Journal special publication – Nunavut 5 NUNAVUT Mining past and present Photo: Ltd Agnico-Eagle ith its large land mass and airstrip was the main transportation link to the diversity of geological community of , until the community provinces, recognition of its established its own airport in 2010. potential for base metals (such as copper, iron, nickel, silver, Polaris lead-zinc mine (1982) Wlead, zinc), precious materials (gold and diamonds), Polaris, on , was the world’s hydrocarbons (oil and gas) and radioactive elements most northerly base-metal mine. The joint venture The Meadowbank mine has gold (uranium) had already been detected in various company included exploration properties and was reserves of 3.7Moz and employs over 700 people locations of the territory in the years leading to owned by the operator Cominco (77.5%) and Teck Nunavut’s creation in 1999. Zinc had the highest value Corp.( 22.5%). Cominco undertook 21 years of high fifth-largest gold producer in Canada. In 1994, it of all the metals produced, totalling C$267.8 million in Arctic exploration before bringing the mine into produced 3.4t of gold, 71.5t since start-up. Ore 1998. Canada’s total zinc production was C$1.5 billion production in 1981. Extraction of the zinc and lead reserves contained more than 22t of gold, with a in the same year. concentrate was from underground using mecha- limited prospect of significantly adding to them. nized, longhole and sub-level open stoping, with Lupin had made a number of changes in mining North Rankin Inlet nickel mine (1957) access to the workings by a ramp. techniques to overcome the challenges of mining at The first mine in Nunavut operated from 1957 to By 1999, the Polaris and Nanisivik sites were the depth, including a new mining method; sublevel 1962. Early in the 1950s, nickel deposits were two remaining operating mines in Nunavut. Although retreat under consolidated fill. Further improvements discovered on the shores of what was to become located in the high Arctic, they were viable in large followed, in a continuous effort to limit the increase Rankin Inlet in the Hearne (Churchill) Province. The part due to their location near tidal water. They in mining costs with depth. Korean War had caused the world price of nickel to became some of the lowest-cost zinc producers in rise sharply, and this mine shipped its first ore in the world at that time, and made the region the (2006) 1957. This operation was significant not only for its largest producer of zinc in Canada. The original Jericho mine was the first diamond mine mineral output, but for pioneering the use of sea to open in Nunavut. The original site was built by transport in the high Arctic. Local Inuit made up 70% Lupin gold mine (1982) Tahera Diamond Corp for C$200 million. The of the workforce for the North Rankin nickel mine. The Lupin gold mine was the world’s most northerly property was located in the These Inuit were the first professional miners to gold mine outside Russia, 88km south of the Arctic (northern Slave craton). A total of 1.6Mt of kimberlite work in Nunavut, and played a key role in Canada’s Circle and 287km southeast of Kugluktuk (formerly was mined between 2006 and 2008. An additional mining history. Coppermine). Despite its remote location, it was the 65,000ct remained accessible in a 156,000t surface

Photo: Ltd Agnico-Eagle stockpile at the time of its closure. Nanisivik lead-zinc mine (1976) The Nanisivik lead-zinc mine was likely the last Meadowbank gold mine (2010) community mine built in Canada. Nanisivik, wholly The best-known gold deposits are at the Meadow- owned by Conwest Exploration, lies at the northern bank mine. Early in 2010, Agnico-Eagle Mines Ltd end of Baffin Island, near the community of Arctic commissioned Nunavut’s first gold mine, 75km north Bay. The mine was managed by Strathcona Mineral of Baker Lake in the Kivalliq Region (Churchill Services. Production began in 1976 using mainly Province). The mine is expected to extract 8,500t/d room-and-pillar underground mining methods with (350,000oz/y) gold until 2019, and has a gold reserve open-pit operations at various satellite deposits later of 3.7Moz (32.2Mt at 3.5g/t). The mine employs 738 in its life. Although the site ceased operation in 1990s, people (of whom nearly 40% are Inuit), and supports the mine continues to maintain a water licence and its a variety of secondary businesses in Baker Lake and elsewhere in Nunavut. KEY EXPLORATION PROJECTS Despite Nunavut’s huge size and remote location, the Northern Mining is the strongest territory is experiencing a boom of exploration contributor to the Northern Economy revealing many mineral deposits. Gold … and we keep it that way by encouraging and promoting Significant gold exploration includes the Meliadine the minerals industry. Through the strength of our project, also owned by Agnico-Eagle Ltd. This project is favourably located on the coast of Hudson Bay, membership, we: 20km northeast of the jet-serviced community of • are the leading advocate for responsible and sustainable Rankin Inlet. There are five known deposits, the largest of which is the Tiriganiaq deposit. mineral exploration and development The Hope Bay project has proposed gold mines • champion for community benefits 170km southwest of Cambridge Bay and covers most • are key organizers of the two largest conferences North of 60: of the Hope Bay Greenstone Belt area (northeast o Geoscience Forum, Yellowknife Slave structural province). Significant gold deposits on o Nunavut Mining Symposium, Iqaluit this property include the Doris, Madrid and Boston deposits. Sabina Gold & Silver Corp’s Back River Proj- ect, also in the Kitikmeot Region, is adjacent to the Through our offices in Nunavut and the NWT, Wishbone Greenstone belt and consists of the let us work for you too. George and Goose Lake deposits. Both of these sites hold significant gold resources. The Lupin gold deposit, recently bought by Elgin [email protected] Mining Inc, was in production from 1982 to 1998 and www.miningnorth.com then again from 2000 to 2005. Its past production is estimated at more than 3.7Moz of gold at an average

6 Mining Journal special publication – Nunavut February 2012 NUNAVUT grade of 0.259oz/t. Several of the Lupin zones have not yet been mined, with at least five additional zones warranting follow-up exploration.

Diamonds Known locally as ‘the little diamond mine that could’, the Jericho Diamond project was recently purchased by Shear Diamonds Ltd. The property, covering around 26,300ha, lies 255km south-southeast of Kugluktuk. The presence of high-Cr G10 garnets in some of the dispersions suggests there may be undiscovered kimberlites in close proximity to Jericho that are likely diamondiferous. Shear’s continuing One of the largest undeveloped VMS massive Iron review of historical datasets has confirmed compelling sulphide deposits in the world is the Hackett River During 2011, several iron exploration projects were evidence of undiscovered kimberlites in certain areas deposit, located 104km south-southwest of Bathurst active primarily in the Qikiqtaaluk (Baffin) Region. outside the immediate mine area. Inlet in the Kitikmeot region. The project was Baffinland Iron Mines Corp’s (ArcelorMittal Group) In the eastern Arctic, Peregrine Diamonds Ltd’s recently purchased by Xstrata Zinc, and includes four Mary River has been intermittently explored since its 100%-owned Chidliak project is located on the Hall potential open-pit mine zones. initial discovery in 1962. Peninsula of Baffin Island, 120km north-northeast of The deposit is still working towards development, Iqaliut. The majority of the 59 kimberlites discovered Uranium with several new high-grade iron occurrences at the project to date are associated with magnetic The Kivalliq region has seen unprecedented growth in discovered showing surface sample grades of 61-70% high anomalies. Peregrine expects to begin collecting mineral exploration activity over the past few years. iron. Successful bulk sampling and subsequent a bulk sample from several key kimberlites in 2013 to Although much of this is directed at gold, the blast-furnace testing in 2009 proved the Mary River obtain parcels of diamonds for valuation. discovery of deposits of uranium 80km west of Baker ore to be of world-class quality. This site, 936km Lake are thought to have significant potential. The north of Iqaluit, includes a proposed open-pit mine Base metals Proterozoic Thelon Basin is considered to have the with future development of a railway and ports. Base-metal mining has been made possible owing potential to host uranium deposit similar to those in Across the Foxe Basin, Advanced Exploration Inc to the availability of transportation. Originally, the Athabasca Basin. AREVA Resources Canada Inc’s forged strategic alliances with two major steel and production had come from the Polaris and Nanisivik proposed project is undergoing environmental iron-ore consumers in China in order to advance its mines, both MVT deposits. assessment. The components include three mine sites Roche Bay magnetite-iron project. The project has an Exploration in the northern Slave Province has (Kiggavik, End and Andrew), milling facilities, an indicated resource of 323Mt at 28.07% iron and lies identified several Archaean volcanogenic massive access road from site to Baker Lake, and a dock site next to a natural deep-water harbour on the east sulphide (VMS) deposits, although the remoteness of at Baker Lake. coast of the Melville Peninsula. these deposits has impeded their development. Experience gained in operating the world’s only Above: exploration camp ice-breaking ore-carrier to the Polaris and Nanisivik sites at the Izok and mines, complemented by new hydrographic surveys, High Lake base-metal has revealed that commercial marine shipping from deposits, both owned the North Slave coast is viable. The implications of by MMG Resources this are enormous for the long-term development of Photos: MMG Resources the region’s base-metal deposits. The Izok deposit, discovered in 1974, is the largest known undeveloped zinc-copper deposit in North America. Located 90km west of the Lupin mine, it is owned by MMG Resources Inc. Exploration has revealed at least 18.5Mt of polymetallic reserves, including the newly discovered Inukshuk deposit with grades of 14.6% zinc, 2.5% copper, 1.6% lead and 77.7g/t silver. The 1,710ha High Lake base-metal A DC-3 aircraft landing deposit, 190km south-southeast of Kugluktuk, near Aurora camp, includes 21 potential polymetallic zones adjacent to Chidliak project the site. Photo: Peregrine Diamonds

Chidliak project, May 2011, Baffin Island, Nunavut, Canada

201-1250 Homer Street Vancouver, BC V6B 1C6 Tel: 604-408-8880 Fax: 604-408-8881 Email: [email protected] www.pdiam.com TSX:PGD

February 2012 Mining Journal special publication – Nunavut 7 Doing business in Nunavut

NWT & Nunavut Chamber of Mines Aboriginal Affairs and Northern Development Canada 4910 – 50th Street Nunavut Regional Office PO Box 2818 PO Box 2200 Yellowknife, NWT X1A 2R1 Iqaluit, NU X0A 0H0 Tel: +1 (867) 873 5281 Tel: +1 (867) 975 4500 Fax: +1 (780) 669 5681 Fax: +1 (867) 975 4276 E-mail: [email protected] E-mail: [email protected] Website: www.miningnorth.com Website: www.aandc-aadnc.gc.ca/nu

NWT & Nunavut Chamber of Mines – Nunavut Canada-Nunavut Geoscience Office Unit 116, Astro Hill Complex 626 Tumiit Plaza, Suite 202 PO Box 1019 PO Box 2319 Iqaluit, NU X0A 0H0 Iqaluit, NU X0A 0H0 Tel: +1 (867) 979 5291 Tel: +1 (867) 975 4412 Fax: +1 (780) 669 5681 Fax: +1 (867) 979 0708 E-mail: [email protected] Website: www.cngo.ca Website: www.miningnorth.com Fisheries and Oceans Canada Government of Nunavut Canadian Coast Guard Department of Economic Development and Transportation Ottawa, ON Minerals and Petroleum Resources Tel: +1 (613) 993 0999 Building 1104A, Inuksugait Plaza Fax: +1 (613) 990 1866 PO Box 1000, Stn. 1560 E-mail: [email protected] Iqaluit, NU X0A 0H0 Website: www.ccg-gcc.gc.ca Tel: +1 (867) 975 7800 Fax: +1 (867) 975 7870 Nunavut Tunngavik Incorporated E-mail: [email protected] PO Box 1269 Website: www.edt.gov.nu.ca Cambridge Bay, NU X0B 0C0 Tel: +1 (867) 983 5600 Fax: +1 (867) 983 5624 Website: www.ntilands.tunngavik.com

Acknowledgements The basic statistics on Nunavut’s mining exploration and production, trade and use were collected by the NWT & Nunavut Chamber of Mines, the Government of Nunavut, Aboriginal Affairs and Northern Development Canada, and Natural Resources Canada unless otherwise noted. Market quotations were taken mainly from published market reports. Corporate data and photos presented were obtained by the authors directly from company officials through correspondence and media releases, or were taken from websites and annual reports. The NWT & Nunavut Chamber of Mines is grateful to everyone who has contributed information in the preparation of this publication.

Subscription enquiries: PO Box 1045, Bournehall House, Bournehall Road, Bushey WD23 3YG, UK Tel: +44 (0)20 8955 7050 Fax: +44 (0)20 8421 8155 E-mail: [email protected] Mining Journal, published weekly, is available only as part of a subscription with Mining Magazine, Mining, People and the Environment and online access. Published by Aspermont UK, Albert House, 1 Singer St, London EC2A 4BQ, UK Printed by Stephens & George, Merthyr Tydfil