Mining Mineral Exploration and Geoscience Overview 2006 Land Tenure in Nunavut

Nunavut Territory was created in April 1999 as a and mine through its own mineral tenure regime. result of the Nunavut Land Claims Agreement Mineral rights (mineral claims or leases) that existed Agreement (NLCA), the largest Aboriginal land at the time of the signing of the NLCA – known settlement in Canadian history. Spanning two as grandfathered rights – continue to be administered million kilometres (km), the Territory has 26 by Indian and Northern Affairs Canada (INAC) communities and an approximate population of until they terminate or the holder transfers its 30,000 people. Inuit represent 85 per cent of interests to the NTI regime. For both surface and Cover photo: Nunavut’s population, creating the foundation subsurface IOL, access to the land, through a Land Jericho Diamond Mine-site – Contents: maintenance shop, diamond plant, of the Territory’s culture and values. This culture Use Licence or Commercial Lease, must be obtained accommodations and offices and fuel farm - 350 km southwest Land Tenure in Nunavut ...... 1 is inherently connected to the land, shaping from the appropriate RIA. of Cambridge Bay, Nunavut. Indian and Northern Affairs Canada ...... 2 government, business and day-to-day life. The Crown owns mineral rights to 98 per cent Photo Credit: In addition to the creation of the new of Nunavut. INAC administers these rights through Tahera Diamond Corporation Government of Nunavut ...... 4 territory, the NLCA gave Inuit fee simple title to the Canada Mining Regulations (CMR). This Nunavut Tunngavik Incorporated ...... 6 356,000 km 2 of land. There are 944 parcels (16 includes surface IOL, for which access to the land Canada-Nunavut Geoscience Office ...... 8 per cent of Nunavut) of Inuit Owned Lands (IOL) must be obtained from the RIAs as explained above. Summary of 2006 Exploration Activities ...... 12 where Inuit hold surface title only (surface IOL). The NLCA is a final settlement whereby all Kitikmeot Region ...... 12 The Government of Canada or “Crown” retains land claims in Nunavut have been settled with the the mineral rights to these lands. Inuit also hold fee Inuit of Nunavut, thus providing an unmatched Kivalliq Region ...... 30 simple title including mineral rights to the level of land tenure certainty. However, land claims Qikiqtani/Baffin Region ...... 44 remaining 150 parcels of IOL (subsurface IOL), overlapping Hudson Bay and the southernmost which total 38,000 km 2 and represent approximately Kivalliq are being negotiated with residents of two per cent of the territory. Surface title to all IOL northern Quebec and northern Manitoba About the Nunavut: Mining, Mineral is held in each region by one of the three respectively. Regional Inuit Associations (RIAs) while Inuit For more information on the location of IOL Exploration and Geoscience Overview 2006 subsurface title with respect to subsurface IOL is and Crown Land in the Territory take a look at This exploration overview is a combined effort of four partners: Minerals & Petroleum Resources held and administered by Nunavut Tunngavik the 2006 Nunavut Exploration and Activity Map Division, Government of Nunavut; Mineral Resources Division, Indian and Northern Affairs Canada; Incorporated (NTI). NTI issues rights to explore in the centre of this publication. Department of Lands and Resources, Nunavut Tunngavik Incorporated (NTI) and the Canada- Nunavut Geoscience Office. The intent of this publication is to capture information on exploration GUIDE TO ACRONYMS and mining activities in 2006, and to make this information available to the public. All exploration information was gathered prior to mid-November 2006. CMR – Canada Mining Regulations KivIA – Kivalliq Inuit Association We thank the many contributors who submitted data and photos for this edition. Prospectors and CNGO – Canada-Nunavut Geoscience Office NIRB – Nunavut Impact Review Board EA – Inuit Owned Lands Mineral Exploration Agreement NLCA – Nunavut Land Claims Agreement mining companies are welcome to submit information on their programs for inclusion in the next ED&T – Department of Economic Development and NT – Northwest Territories Overview. Feedback and comments are appreciated. Transportation, Government of Nunavut NTI – Nunavut Tunngavik Incorporated EIS – Environmental Impact Statement NTS – National Topographic System NOTE TO READERS GIS – Geographic Information System QIA – Qikiqtani Inuit Association This document has been prepared on the basis of information available at the time of writing. GN – Government of Nunavut PGE – Platinum Group Elements All resource and reserve figures quoted in this publication are derived from company news GSC – Geological Survey of Canada RIA – Regional Inuit Association releases, websites and technical reports filed with SEDAR (www.sedar.com). Readers are IIBA – Inuit Impact Benefit Agreement directed to individual company websites for details on the reporting standards used in each INAC – Indian and Northern Affairs Canada resource and reserve estimate. The authors make no warranty of any kind with respect to the IOL – Inuit Owned Land content and accept no liability, either incidental, consequential, financial or otherwise, arising KIA – Kitikmeot Inuit Association from the use of this document. KIM – Kimberlite Indicator Mineral(s)

Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 1 Indian and Northern Affairs Canada

Indian and Northern Affairs Canada (INAC) The MRO administers all other aspects of mineral administers mineral tenure on Crown land in tenure on Crown land in Nunavut. Administration Nunavut. This is done through the Nunavut Regional of these rights is regulated by the CMR under Office (NRO) in Iqaluit, Nunavut, by the Mineral the Territorial Lands Act. The MRO also administers Resources Division and the Mining Recorder’s coal tenure under the Territorial Coal Regulations Office (MRO) of the Land Administration Division. and is your main point of contact to acquire As an advocate of sustainable resource development Crown mineral or coal tenure. As well, the MRO in Nunavut, INAC’s Mineral Resources Division: sells claim maps, claim tags and assists individuals and companies in interpreting the CMR with • Participates in and provides technical advice information on how to keep their properties in during environmental reviews; good standing. • Reviews assessment reports filed by mining Interest in Nunavut’s mineral potential and exploration companies ensuring compliance remained strong in 2006 with industry investing with the Canada Mining Regulations (CMR); close to $200 million in exploration. The sustained Indian and • Co-manages the Canada-Nunavut high level for commodity prices is driving exploration Northern Affairs Canada Geoscience Office (CNGO) together for commodities such as diamonds, gold, base Nunavut Regional Office with Natural Resources Canada and metals, nickel, Platinum Group Elements (PGE), PO Box 2200 the Government of Nunavut; iron, and uranium. Overall exploration expenditures Building 918 • Maintains a digital archive of assessment data are slightly ahead of the 2005 industry investment. Iqaluit, NU X0A 0H0 filed in Nunavut dating back to the 1940’s; In February 2006, 161 prospecting permits were • Promotes mineral exploration within the issued by the MRO, encompassing over 6.4 million Email: Territory through community outreach, hectares (ha) of Crown land. At the time of writing, [email protected] publications, professional networking and over 32.8 million (32,833,687) hectares of Crown events such as Nunavut Mining Week; land in Nunavut was covered by prospecting permits, STAFF CONTACTS Website: • Completes targeted geoscience with mineral leases and mineral claims. www.ainc-inac.gc.ca/nunavut CNGO and/or Industry. MINERAL RESOURCES Bernie MacIsaac Manager 867 975 4290 [email protected] Linda Ham District Geologist 867 975 4292 [email protected] Karen Costello District Geologist 867 975 4569 [email protected] Christianne Lafferty Mineral Archives Administrator 867 975 4293 [email protected] General Inquiries [email protected] Archives Orders or Inquiries [email protected] Website www.ainc-inac.gc.ca/nunavut Mineral Resources Fax 867 975 4276 LAND ADMINISTRATION Spencer Dewar Manager 867 975 4280 [email protected] Jeffrey Holwell Land Administrative Specialist 867 975 4283 [email protected] John Craig Assistant Land Administrator 867 975 4285 [email protected] Arlene Brett-Miles Senior Land Operations Clerk 867 975 4576 [email protected] MINING RECORDERS OFFICE Anna North Mining Recorder 867 975 4281 [email protected] Nala Alainga Deputy Mining Recorder 867 975 4284 [email protected] Becky Leighfield Senior Mining Clerk 867 975 4275 [email protected] Scottie Monteith Junior GIS Technician 867 975 4278 [email protected] Land Administration and Mining Recorder’s Office Fax 867 975 4286

2 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 3 Government of Nunavut

The Government of Nunavut (GN), through its Current Government of Nunavut initiatives include: Department of Economic Development and Transportation (ED&T), envisages a vibrant Nunavut Mineral Exploration and sustainable minerals industry based on the and Mining Strategy “triple bottom line” concept, where success in the To maintain Nunavut’s position as a jurisdiction industry is measured by: of choice for mineral investment, the GN has developed the Nunavut Mineral Exploration and • the adherence to best environmental practices; Mining Strategy, which provides a framework of • the sustained flow of benefits policies and actions to be implemented to help Mineral Exploration and Mining Strategy to be to local residents; and Education and Training retain the territory’s strong position in international released in January 2007. This document clarifies ED&T works with many other stakeholders, • the return of healthy profits to shareholders. investment. Most notably, the Strategy addresses the GN’s position on mining and exploration, including the Department of Education, the The past several field seasons have seen Nunavut’s regulatory and taxation regimes, workforce and will guide the government as it deals with Government of Canada, and the mining and unprecedented levels of exploration undertaken training, infrastructure development and environmental the opportunities and challenges that arise from exploration industries in a number of programs in Nunavut. A number of quality discoveries have baseline availability. development of the territory’s mineral wealth. designed to inform Nunavummiut of all ages of been made recently and there will be substantial Over the past two years, during the preparation the opportunities in the minerals industries. ED&T opportunities to be realized in the Territory as of the Strategy, the GN consulted with stakeholders Nunavut Prospectors’ Program (NPP) programs and information include: exploration continues and as exploration projects to understand their views on a wide range of mining ED&T provides technical and financial assistance • Nunavut High School Math and Science potentially evolve into mines. ED&T is working and exploration issues. Nunavummiut from across to Nunavummiut with demonstrated prospecting Awards Program; to ensure all Nunavummiut are in a position to the territory, Inuit Organizations, Institutions of skills to carry out their own prospecting projects. • Mineral Exploration Field Assistant’s Course; benefit from these coming opportunities, and Public Government, the Government of Canada, While this program has been in existence since • Nunavut Mine Training Focus Group; that they have the option of becoming full participants Community Governments, other GN departments, 1999, this past year saw the amount of financial • Earth Sciences and Mining Teacher in developments in the Territory. private Nunavut-based businesses, and Nunavut assistance available for each prospector increased Workshops; At the same time, it is recognized that exploration Arctic College were participants in these from $5000 to $8000 per year. • Careers in Mining school and Community and mining companies have the option of investing consultations and provided strong and valuable Presentations; in many jurisdictions throughout the world. input into the Strategy. In addition, meetings were Introductory Prospecting Course • Mineral exploration company contact list Therefore, ED&T is committed to working with held with representatives of the mining and Every year, ED&T geologists present a six-day for communities; and its partners in NTI and the Government of Canada exploration industries and environmental Introductory Prospecting Course to interested • Nunavut Science Outreach Network. to make the legislation, policies and regulatory non-governmental organizations. residents in communities throughout the territory. Government of Nunavut environment of Nunavut efficient, internationally The views expressed in these consultations have Since 2000, the course has been offered in each Department of competitive and attractive to investors. been compiled and form the basis of the Nunavut community, with nearly 500 graduates to date. Economic Development Graduates of the course often apply for NPP & Transportation, grants, and are sought after as field assistants on Minerals & Petroleum mineral exploration programs. Resources Division Community Minerals PO Box 1000, Station 1560, Iqaluit, NU X0A 0H0 STAFF CONTACTS HEADQUARTERS Fax: Gordon Mackay Director, Minerals & Petroleum Resources Division 867 975 7822 [email protected] 867 975 7870 Dr. Eric Prosh Manager, Mineral Resources 867 975 7827 [email protected]

Website: ARVIAT OFFICE www.edt.gov.nu.ca Francois Berniolles Resident Geologist 867 857 2297 [email protected]

4 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 5 Nunavut Tunngavik Incorporated

PROJECT/DEPOSIT HOLDER(S) IOL PARCEL(S) EXPLORATION AGREEMENTS

Nunavut Tunngavik Incorporated (NTI) is the Inuit of the boundaries as well as a map showing the QIKIQTANI REGION Piling Project1 BHP-Billiton, Commander Resources BI-35 Qimmiq 1,2,4,5,6; Talik (6 EAs) corporation responsible for overseeing implementation proposed Exploration Area. Applications are Melville Comaplex HB-15, HB-16 Melville 1-2 (2 EAs) of the Nunavut Land Claims Agreement (NLCA). received during designated months and are NTI’s mandate includes safeguarding, administering processed at the start of the subsequent month, KIVALLIQ REGION Meliadine2 Resource Capital Fund RI-01, RI-12 Ant 1-4, Fay 1-4, W1, and advancing the rights and benefits of the Inuit at which time NTI will decide whether or not to Tan 1-4, Felsic (14 EAs) of Nunavut to promote their economic, social and accept an application and issue an Exploration Meadowbank3 Cumberland BL-14 Meadowbank 1-3 (3 EAs) cultural well-being through succeeding generations. Agreement. Applications are kept confidential Spi Lake Comaplex AR-16 Spi Lake The Lands and Resources Department of NTI is until the close of the application period in which Square Lake Comaplex BL-21 Square Lake responsible for the implementation of Inuit they are received, thus ensuring that all applicants Sedna 4579 Nunavut Ltd RI-01 Sedna 1-5 (5 EAs) responsibilities to management of Inuit Owned are treated fairly. Further details on the application Cache Full Metal Minerals WC-08 Cache SDS Adam Vary RE-27 SDS 1-3 (3 EAs) Lands (IOL), the environment, minerals, oil and process are included in the application form. gas, and marine areas. It should be noted that although the process KITIKMEOT REGION There are two forms of mineral tenure that and documents described here normally apply, NTI, Hope Bay4 Miramar Mining BB-57, BB-60 Akungani 1-3, Aimaokatuk, grant exclusive rights on Subsurface IOL administered as a private organization, has complete discretion Tok 1-3 (7 EAs) Doris Production Lease by NTI. These are the Inuit Owned Lands as to whether it will issue an Exploration (application) Mineral Exploration Agreement (usually referred Agreement (or other agreement), what the process Contwoyto Tahera CO-08 Contwoyto agreements (4 EAs) to as the “Exploration Agreement”, or “EA”) will be for obtaining an agreement, and what the Hood River Tahera CO-20 Hood River and the Inuit Owned Lands Mineral Production terms of the agreement will be. The terms may High Lake5 Wolfden CO-29 Hilk Lease (referred to as the “Production Lease”). include, for example, NTI holding a direct interest Muskox6 Gordon Addie CO-62 Muskox agreements (3 EAs) The Exploration Agreement grants a company or in a project. Arcadia Bay Full Metal Minerals CO-31 Arcadia Bay Rockinghorse7 Kennecott CO-44 Rockinghorse individual the exclusive right to explore and Under the standard terms, successful applicants, Strongbow Strongbow Resources 1800 km2 in the Kitikmeot Strongbow prospect for minerals (excluding oil and gas, and upon executing the new Exploration Agreement specified substances such as construction materials and submitting the first year’s annual fees, will be Note: All projects referenced below are discussed in this report. and carving stone) on a portion of Subsurface granted the exclusive right to explore for minerals 1. Overall project involves Crown land and subsurface IOL. IOL. This area, referred to as the Exploration on the Exploration Area. In order to gain access to 2. The project involves land held under NTI Exploration Agreements as well as grandfathered claims and leases. 3. The project involves land held under NTI Exploration Agreements and grandfathered leases. Area, is similar in many ways to a mineral claim the land, however, the applicant must obtain a 4. The Boston deposit is located on surface IOL, while the Doris, Madrid, South Patch, Naartok and Suluk are on subsurface IOL, under the CMR. The Production Lease grants the surface right issued by the Regional Inuit distributed among grandfathered leases and NTI Exploration Agreements. Potential extension of the Boston deposit down-dip holder of an Exploration Agreement the right to Association (RIA). or along strike to the north will also be on subsurface IOL. 5. The project involves Crown land and land held under NTI Exploration Agreements and grandfathered leases. Nunavut Tunngavik produce minerals from a portion of the Exploration NTI currently has 54 active Exploration 6. The project involves Crown land, surface IOL, and subsurface IOL under NTI Exploration Agreements. Incorporated Area known as the Production Lease Area. Agreements with prospectors and exploration 7. The project involves Crown land, surface IOL, and subsurface IOL under NTI Exploration Agreements. PO Box 1269, Since 1999, NTI has had in place a system of and mining companies. These cover more than 12 Cambridge Bay application that does not require staking when per cent of the total subsurface IOL. (In addition, MINING PROJECTS NU, X0B 0C0 applying for an Exploration Agreement. Rather, grandfathered claims and leases comprise The Doris North and Meadowbank projects have both recently received approval to proceed to construction and operation. Both the application requires only a description of the approximately two per cent of all subsurface IOL.) are currently undergoing permitting. Telephone: Exploration Area based on latitude and longitude. Holders of Exploration Agreements are required Wolfden’s High Lake project, consisting of the High Lake Deposits (the West Zone which is on IOL) and Ulu (grandfathered 867 983 5600 The applicant must submit to NTI a completed to submit annual exploration work reports to NTI lease) has begun the permitting process. application form, Application for an Inuit that remain confidential for a period of up to Baffinland’s Mary River iron project, located on a grandfathered lease, is proceeding with the permitting required to conduct a Fax: Owned Lands Mineral Exploration Agreement three years. bulk sample. 867 983 5624 (available upon request from NTI or from our Many of the advanced exploration projects in Lands Department website). The completed Nunavut fall on subsurface IOL. The following NTI LANDS CONTACTS Website: application includes a description of the proposed table summarizes the current active Exploration STAFF CONTACTS: MINERALS, OIL AND GAS www.ntilands.com Exploration Area defined by latitude and longitude Agreements and their locations. Carson Gillis Director of Lands and Resources [email protected] Keith Morrison Administrative Geologist [email protected]

6 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 7 Canada - Nunavut Geoscience Office

The Canada – Nunavut Geoscience Office and energy resources, to provide awareness of the remnants of the Foxe dome retreated onto Bedrock mapping included 1:250 000-scale (CNGO) is a partnership between the Geological employment opportunities in geosciences, and to Baffin Island. This resulted in disintegration of mapping of Precambrian units, and sampling Survey of Canada (GSC), Indian and Northern promote Earth science education for students. the Amadjuak Ice Divide, and formation of the for geochronology, geochemistry, and metal Affairs Canada (INAC), and the Government of Amadjuak Dome. In parts of the eastern Foxe concentrations in mineralized outcrops. Rock Nunavut’s Department of Economic Development The Southwest Baffin Integrated Peninsula, this affected a change of ice-flow units prospective for base — and precious metal and Transportation (ED&T). The mandate of the Geoscience Baffin Project direction of more than 90 degrees. In western mineralization include a package of mafic-ultramafic CNGO is to provide accessible geoscience The Southwest Baffin Integrated Geoscience Project Foxe Peninsula, marine incursion played a similar ± intermediate volcanic rocks, informally named information and expertise in Nunavut in support (SWBIG) included regional-scale bedrock and significant control on deglaciation, but with less the Schooner Harbour belt, that extend of responsible development of mineral and energy surficial mapping in the Foxe Peninsula area on dramatic changes in ice-flow directions. approximately 100 km from Schooner Harbour resources, geoscience education, training southwest Baffin Island (NTS map sheets 36 A to In 2006, SWBIG surficial geologists collected on the southwest coast of the Foxe Peninsula to opportunities, and to assist with Geographic C and 36 F to H) during the 2006 field season. 250 ice-flow indicator measurements, 141 samples the West Foxe Islands. Also prospective are a suite Information System (GIS) requirements of These activities, co-managed by the CNGO and the for till geochemistry and Kimberlite Indicator of mafic to ultramafic (meta-peridotite) rocks that Nunavut-based partners. In 2006, the CNGO GSC, are intended to enhance mineral exploration Mineral analysis, and made more than 1100 field intrude Paleoproterozoic metasedimentary rocks participated in multi-component field-based and development opportunities in the region by examinations that will be used as ‘ground- correlated with the <1.93 Ga Lake Harbour Group. projects, was a principal partner in development improving the level of geoscience information. truthing’ sites, essential for constructing the surficial Some of the metasedimentary units are of a web-based system of data delivery The area is underlain by supracrustal and intrusive geology map. To better understand ice flow, field conspicuously sulphide-bearing, providing (nunavutgeoscience.ca), and provided GIS, rocks having significant exploration potential for examinations also included estimating the quantity compelling exploration targets where ultramafic cartographic, Remote Predictive Mapping (RPM) base-metal mineralization. Targeted SWBIG field and type (e.g., Precambrian vs. Paleozoic) of erratics. rocks intrude a sulphide-bearing metasedimentary support, and outreach activities. activities follow acquisition of a new, detailed To quantify glacial chronology, samples were host. aeromagnetic survey of the eastern part of the collected for radiocarbon analysis, Terrestrial In addition to assessing some of the traditional CNGO P rojects Foxe Peninsula in 2006. Cosmogenic Nuclide dating, and Optically exploration targets for metals, the bedrock mapping CNGO projects are designed to ultimately improve Stimulated Luminescence dating. Chronological team also attempted to gain a better understanding the quality of life for Nunavummiut by allowing SWBIG:?Surficial Mapping and geochemical analyses are in progress. of the geological context of carving stone occur - them to gain economic and social benefits from Understanding the surficial geology and glacial SWBIG: Bedrock Mapping rences. In Cape Dorset, renowned for producing responsible development of mineral and energy history are critical aids to mineral exploration in resources in Nunavut. The purpose of each project Nunavut, especially in poorly exposed regions. is to reduce risk of investment and improve chances As part of the SWBIG project, the CNGO and of successful discoveries by mineral and energy the GSC, in collaboration with researchers from Canada – Nunavut exploration companies, and increase and/or sustain Simon Fraser and Dalhousie universities, initiated Geoscience Office current levels of exploration in the regions studied. a surficial mapping project in 2006. 626 Tumiit Plaza, Suite 202 Projects are designed to make a significant Based on observations of ice flow indicators, PO Box 2319, Iqaluit, contribution to the geoscience knowledge base marine-limit features, the distribution and Nunavut X0A 0H0 of Nunavut, and address critical knowledge gaps. identification of erratics, a complex, preliminary The projects are multi-faceted and may consist of glacial chronology of the Foxe Peninsula can be Telephone: components of ground-based field activities, constructed. At the Last Glacial Maximum, ice 867 979 3539 including bedrock and surficial geology mappping, flowed towards the east in Hudson Strait. Ice geophysical, geochemical and geochronological flow was strongly affected by the Amadjuak Ice Fax: surveys, and comprehensive data compilation Divide to the north, and possibly from the Foxe 867 979 0708 activities. In addition, field-based projects include Ice Divide to the northwest. During deglaciation, components of community consultations and public ice is inferred to have evacuated from the Hudson Website: outreach activities. The outreach activities are Strait relatively quickly. As marine inundation nunavutgeoscience.ca/cngo intended to demonstrate the importance of mineral continued around Foxe Strait and Foxe Basin,

8 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 9 Inuit art, carving is a $3 million per In 2006, the bedrock and surficial Web-based Data Delivery: year industry. Locating new sources of mapping projects were assisted by Remote www.nunavutgeoscience.ca carving stone is vital to sustaining that Predictive Maps (RPM) produced in Working with INAC, GSC and with activity. In the 2006 field season, two advance of field work. The RPM products assistance from the Northwest Territories distinct settings for carving stone were were produced by compiling and Geoscience Office (NTGO), CNGO identified. The first is deformed and integrating new and archival geophysical developed and implemented a data delivery hydrated ultramafic rock, generally and geological data in addition to project in 2006. Nunavutgeoscience.ca occurring as peridotite sills but also as remotely sensed data (e.g., Landsat maps, is intended to be the ‘single-door’, ultramafic flows, yielding a dark green to shaded relief and winter Landsat images, web-entry point for clients looking for black carving stone. The second occurrence hyperspectral data). Field work in 2006 components of geoscience data from is a skarn rock derived from metacarbonate also included obtaining measurements Nunavut. This site will help meet and formed at the contact between of properties of representative rock units demands for searching, viewing and granitoid intrusions and Lake Harbour intended to provide ‘ground-truthing’ accessing integrated spatial data and Group marble. The skarn setting produces for hyperspectral studies. other types of geoscience data (e.g., The project began in 2003 and will provide a 1) Antiform — gas-cap type replacement-style a highly valued yellow-green carving stone. assessment files, mineral occurrences, regional context and new interpretations for the mineralization; Potential new sources of both types of SWBIG:?Traditional maps (MIRAGE), geoscience data sets, mineralization in the Milne Inlet Graben 2) Fracture-controlled mineralisation in the carving stone were identified in coastal Place-Names Maps reference lists), and to place Nunavut in (MIG). Current stratigraphy and sedimentology vicinity of major, northwest-trending regions of the study area. The CNGO is committed to providing a competitive position serving a global of the basin needs to be re-interpreted new knowledge intra-graben faults; and Based on occurrences of sapphire GIS expertise to communities and mineral exploration industry. This is a in the field of Precambrian carbonates. 3) The graben-bounding White Bay Fault zone associated with metasomatized marble researchers in developing traditional multi-partnered, collaborative project Moreover, no work had been done on regional on the north side of the MIG. A variety of and granitic pegmatite in the Kimmirut place-names maps. The SWBIG study involving geologists, compilers, data controls on base-metal mineralization or regional dating methods have yielded mineralisation area, and that there are similar rocks area, which includes the Foxe Peninsula managers, and IT specialists from the patterns in metallogeny. ages for the Nanisivik ore-body that range and settings in the SWBIG study area, — Cape Dorset area, is a culturally rich CNGO, INAC (Iqaluit), GSC, NTGO, The Borden Basin is a Mesoproterozoic aulaco - from Mesoproterozoic (ca. 1.2 Ga) to there is inferred potential for sapphire region of Nunavut. To record and preserve and NTI. The first components of gen comprising three northwest- trending Paleozoic (461 Ma). occurrences in the western Foxe Inuit culture, SWBIG and the CNGO are nunavutgeoscience.ca went on line in grabens that developed on Archean (Rae A better understanding of the age and factors Peninsula region. Of particular interest assisting Norman Hallenday and Anne September 2006. domain) rocks. Carbonate strata of the Bylot influencing mineralization will be essential for with respect to the 2006 study area are Henshaw (Bowdoin College, Maine) to Supergroup in the Borden Basin host numerous directing renewed exploration in the Borden Basin. common occurrences of Lake Harbour document locations of Inuit sites, travel The Borden Basin Project: base-metal showings, including the Zn-Pb-Ag Group metacarbonate rocks in contact routes, place names, and traditional land Base-Metal Mineralization, deposit mined at Nanisivik from 1976 to 2002. Nunavut Stratigraphy with felsic intrusive rocks. The contacts uses in the SWBIG project area. This may Northern Baffin Island Base-metal showings in the MIG are hosted by Ordovician – Silurian Biostratigraphy and Hudson are locally marked by pale pink-violet provide useful background data for the Society Cliffs Formation, which is expressed as Bay Thermal Maturation Studies titaniferous diopside and blue-green spinel potential exploration projects in the region. The Borden Basin project is a collaborative a peritidal carbonate platform in the eastern part Samples from exploration wells intersecting that are interpreted to be ‘pathfinders’ project between Dr. E. Turner of of the graben, and as a laterally equivalent basinal Ordovician and Silurian rocks of the Hudson Bay at known sapphire occurrences. Laurentian University and the CNGO. laminite with local deep-water carbonate mounds offshore and Lowlands areas are being studied to in the western part. demonstrate thermal maturity and hydrocarbon The nature and age of the mineralising event at potential. The study will examine more than 400 STAFF CONTACTS Nanisivik and at base-metal showings through - conodont-bearing samples, and will result in Dr. Donald James Chief Geologist [email protected] out the basin are controversial. Ongoing work improved biostratigraphic correlations for a Kerry Brazel GIS Specialist [email protected] indicates that mineralisation is controlled by three region that may have exploration potential for Dr. Joyia Chakungal Research Scientist – PreCambrian Geology [email protected] structural phenomena, including: hyrdrocarbon resources. Thermal maturity is being Celine Gilbert GIS Specialist [email protected] Daniel Utting Regional Mapper – Surficial Geology [email protected] evaluated using conodont CAI and Rock-Eval Dr. Shunxin Zhang Research Scientist – Phanerozoic Stratigraphy [email protected] Pyrolysis data. Nunavut Geoscience Data www.nunavutgeoscience.ca

10 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 11 Summary of Exploration Activities 2006 Kitikmeot Region

CANOE LAKE GONDOR DEPOSIT 1,2 , Base Metals 1 Operator, Owners HOOD DEPOSIT ANIALIK Strongbow Exploration Inc. Operator, Owners Wolfden Resources Inc. 1,2 ; Operator, Owners Commodities Falconbridge Ltd. 1 Strongbow Exploration Inc. Copper, Zinc, Lead, Gold, Silver (a subsidiary of Xstrata) Commodity NTS Commodities Polymetallic VMS 76M/02, 03 Copper, Zinc, Lead, Gold, Silver NTS Location NTS 76M/06 25 km south of Wolfden’s High Lake; 190 km southeast of Kugluktuk 86H/09 1; Location 86H/14 2 Approximately 7 km west Location of Wolfden’s High Lake; The Canoe Lake property comprises 50-75 km southwest of Lupin 150 km southeast of Kugluktuk approximately 15,860 ha of mining leases, mineral claims and IOL within the High The proximity and similar geological Lake greenstone belt. The property is Wolfden recently expanded their land setting to Wolfden Resources’ High Lake centred on two Canada Mining Leases, holdings in Nunavut to form the VMS deposit encouraged Strongbow to currently under option from Canadian Amaqqut Group of Projects. These explore on the 62,519 ha Anialik property Natural Resources, and is host to a number projects include Izok, High Lake, Hood located within the Anialik River volcanic of known showings, including the Canoe (all base metals), the Ulu gold deposit, belt in the northern Archean Slave Lake massive sulphide occurrence and and the Gondor base metal project (60 The Kitikmeot region spans the western and stage with plans to open the mine in 2008. The Province. This volcanic belt, like many several gold showings. per cent owned with Falconbridge Ltd., northern mainland of Nunavut, and parts of George and Goose lakes gold deposits are the focus in Nunavut, is an under-explored greenstone Copper-zinc mineralization occurs as a subsidiary of the Xstrata group). The Victoria, Prince of Wales, King William, and of an active advanced exploration program. belt. Some parts of the Anialik property massive to stringer sulphides within the Gondor Deposit contains a high grade core Somerset islands. Kugluktuk and Cambridge Bay Recent diamond exploration covered parts of are on Inuit Owned Land (IOL) parcels volcanic-sedimentary pile at the same (historical resource of 4,380,000 are the largest communities and provide services the western mainland and projects were active on of land and subject to an agreement stratigraphic position as Wolfden’s High tonnes of 0.1% Cu, 1.2% Pb, 9.7% Zn, to exploration projects. Yellowknife, to the south Victoria and Prince of Wales islands. The Boothia that Strongbow negotiated with NTI. Lake VMS deposit. Limited previous 0.78 g/t Au and 64.6 g/t Ag). The in the Northwest Territories, is also an important Peninsula and areas south of Kugaaruk in the Strongbow has completed exploratory diamond drilling by earlier operators deposit could become an important logistical centre. eastern Kitikmeot had strong exploration activity work on Anialik although no work was returned values of 0.8% Cu, 4.8% Zn, source of future ore for the Lupin Mill. The Kitikmeot is geologically diverse and the with a new diamond district being identified in 2005. done in 2006. The company is currently 89 g/t Ag and 1.0 g/t Au over 1.8 m. Wolfden is planning an aggressive 2007 commodities being sought are varied with over Traditional exploration targets in the region evaluating plans for the 2007 program. In 2006, Strongbow completed a limited exploration program at Gondor. The 60 active exploration projects. In the past, mines have included massive sulphide-hosted base metals. program of mapping, prospecting and deepest hole drilled into the deposit (Roberts Bay, Ida Bay, Ida Point) in the western The Amaqqut Group of Projects include Gondor, soil sampling and are contemplating returned 20.4 m grading 10.4% Zn, 1.6% Kitikmeot have generally been small. One exception, High Lake, Hood, Izok (all base metals) and the program plans for 2007. Pb, 0.5 g/t Au and 79.4 g/t Ag. The the Lupin gold mine, produced over 3.1 million Ulu gold deposit. The High Lake deposit, the deposit is open for expansion in all oz of gold from 1982 to 2005. Current owners most advanced of these projects, is in the permitting directions. are considering re-opening the mine. process for the development of a mine. The Hackett Wolfden’s 100 per cent owned Hood Gold and diamonds were the two primary River base and precious metal deposit is also Deposit is located north of Izok and is commodities sought by companies in the returning impressive numbers host to several copper-rich deposits. Kitikmeot. A highlight on the diamond front was Uranium exploration is seeing a resurgence of Exploration at Hood was scheduled to the official opening of Nunavut’s first diamond interest in Nunavut and specifically in the Hornby begin in 2006. mine, the Jericho Diamond Mine. Development Bay Basin in the Kitikmeot with programs ranging plans for production at the Doris North gold from initial exploration efforts to well-developed deposit in the Hope Bay belt are in the permitting drill programs.

12 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 13 the permitting requirements for BRSC/WM HIGH LAKE Lake intersected 45 m of mineralization development of the Izok deposit. Operator, Owners with the best section assaying 3.29% Cu A Land Use Permit from INAC and Operator, Owners Nordic Diamonds Ltd. Wolfden Resources Inc. across 15.05 metres. This prospective Water Use License from the Nunavut Commodity horizon remains open at depth. Other work Water Board have been granted to Commodities Diamonds Copper, Zinc, Gold, Silver in 2006 involved continued engineering, Wolfden which allow construction of a NTS NTS geotechnical work, environmental new camp at Izok. Significant drilling 76L 76M/07 programs and feasibility of all Wolfden’s programs are planned for the property. Location Location northern projects. Geotechnical drilling will be completed North of Contwoyto Lake, 350 km 175 km east-southeast of Kugluktuk for engineering and final open pit mine IZOK southwest of Cambridge Bay designs. Exploration drilling to expand the analysis. In 2006, the kimberlite was The High Lake Cu-Zn-Ag-Au deposit is Operator, Owners deposit at depth where it remains open, drill-confirmed, four other kimberlites BARROW Nordic is currently developing its 100 per Wolfden Resources Inc. the most advanced, in terms of permitting, and to better define inferred resources, (Qavvik, Walrus, Beluga, Char) were Operator, Owners cent owned BRSC and WM claims located Commodities Indicator Minerals Inc.; of all Wolfden’s projects in Nunavut. will begin in the near future. intersected and more than 30 kimberlite immediately north of Contwoyto Lake Copper, Zinc, Gold, Silver Hunter Exploration Group Wolfden submitted their comprehensive A new showing, the Point Lake Zone, prospects were identified. Nineteen new and the Jericho Diamond Mine. Nordic NTS Commodity project proposal for the High Lake was found in 2006, 45 km south of, and float occurrences were identified with all completed an extensive till sampling 86H/10 Diamonds Project to the Nunavut Impact Review in the same greenstone belt as, Izok. The but one in discrete and separate locations. program that has resulted in the discovery Location NTS Board (NIRB) and Federal and Territorial 175 km south-southeast of Kugluktuk surface expression of the zone is more All are associated with at least one 57A/07 of a kimberlite boulder train on the WM regulatory authorities in November extensive than the High Lake West Zone. geophysical anomaly. The kimberlites, claim. A team of Russian geologists under Location 2006. This filing is the next step in the Part of the Amaqqut Group of Projects, Grab samples returned assays of 2.04% mainly comprised of macrocrystic hypabyssal 15 km south of Kugaarak the direction of Dr. Nick Pokhilenko regulatory process for the proposed the Izok deposit is host to one of the Cu, 9.00% Zn and 58 g/t Ag and 2.46% rock, vary from site to site. carried out the 2006 program of till High Lake Mine. In submitting the highest grade copper-zinc deposits in Cu, 7.23% Zn and 70 g/t Ag. Historical Over 1400 till samples were collected Barrow is one of Indicator Minerals’ key sampling and prospecting. Exploration documents, Wolfden requested that NIRB the world with an indicated resource of drilling (three holes) traced the mineralized from Amaruk and 240 have been projects in the newly emerging kimberlite focused on the indicator mineral trains, consider the information provided in the 14.4 million tonnes grading 2.52% Cu, horizon to the south; however, the processed to date. These results identified district in the Kugaaruk area. The property as well as the kimberlite boulder train, project proposal to be sufficiently 1.28% Pb, 12.94% Zn and 71 g/t Ag, plus prospective northern extension under four new kimberlite float occurrences, two covers 44 Mineral Claims (45,986 ha) with identified during the 2005 summer comprehensive for consideration as a full an inferred resource of 370,000 tonnes Point Lake remains open. of which indicate proximity to source. the rights being 80 per cent Indicator regional work program. The program environmental impact statement. grading 3.79% Cu, 0.27% Pb, 6.40% Zn These areas will be followed-up by further Minerals and 20 per cent Hunter will help prioritize airborne geophysical The property consists of 15 leases and 54.2 g/t Ag. Core samples from Izok Diamonds prospecting and geophysics. Detailed Exploration Group. In 2005, Indicator anomalies for drill testing. (1,710 ha) located mainly within a land indicate the deposit has potential for aeromagnetic surveying (25,000 line-km) discovered kimberlite float close to a high AMARUK CORONATION GULF claim on which both surface and subsurface significant gallium with values returned is planned over parts of the property not priority geophysical target and recovered rights belong to NTI. The indicated up to 105 g/t. Wolfden has retained Operator, Owners previously flown. Preliminary interpretation a single macrodiamond during analysis. Operator, Owners Diamonds North Resources Ltd. Ashton Mining of Canada Inc./ resource of 18 million tonnes, using a 2.5% Wardrop Engineering Inc. to complete a has identified numerous targets for drilling. Caustic fusion analysis on a 25.5 kg sample Commodity Vaaldiam Resources Ltd. CuEqv cut-off, averages 5.01% CuEqv and full feasibility study for placing the Izok To date, approximately $10 million collected from the same site yielded 176 Diamonds Commodity these values place the High Lake deposit deposit into production. This feasibility worth of data has been collected on the diamonds (five macrodiamonds, 171 NTS Diamonds amongst the highest grade undeveloped study is expected in the second quarter property and the project is being advanced microdiamonds) with an abundance of 57A, 56O NTS copper deposits in the world. Mineralized of 2007. to the drill testing stage. The discovery clear, colourless stones with good crystal Location 86P/03 zones are the AB, D and West Zones, Evaluation work to date shows that 45 km south of Kugaaruk of multiple kimberlite occurrences, some form. Location Sand Lake, WW Zone and Cairo Zone. the majority of Izok can be mined by with high diamond counts and favourable Detailed prospecting, till sampling 100 km southeast of Kugluktuk The 2006 program in the High Lake low-cost open pit mining methods and This property covers approximately 3.24 stone size distribution, and the abundance and geophysics were conducted during area had a renewed focus on exploration. suggests that the Lupin mill should be million hectares (ha) and includes the Deep, of indicator minerals with positive diamond the 2006 field season to delineate drill The Coronation Gulf Diamond District, Drilling focussed on the new showings used for processing the ore. To use that Dar and Hood claims. One kimberlite, inclusion chemistry demonstrate the targets for 2007. The diamond results southeast of Kugluktuk, covers the of Sand Lake, WW Zone and the Cairo existing infrastructure would represent Umingmak, was defined in outcrop in diamond potential of Amaruk. verify that Barrow has the potential to northern portion of the Archean Slave Zone. The most favourable hole at Sand a major reduction in capital and simplify 2005 with a 500 kg sample collected for host diamond-bearing kimberlite sources. Province: 21 kimberlites, including 11 that

14 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 15 contain diamonds, have been discovered of 1.18 carats of diamonds larger than 0.8 with ‘Iceberg’, the largest kimberlite, IC in the area. The Coronation Gulf project mm. The largest diamond recovered was estimated to encompass 11 ha. A detailed Operator, Owners encompasses 91,400 ha covering the Eokuk, a colourless aggregate crystal weighing airborne geophysical survey expanded Trigon Diamond Corporation Ltd.; James River, Kim, Ric and Vic properties. 0.08 carats. Vaaldiam collected a 100 tonne coverage from 10 to 40 per cent of the Contact Diamond Corporation Kimberlites discovered on all the properties mini-bulk sample from the kimberlite in property and identified new anomalies, Commodity in this area include the Artemisia and 2006; results are pending. bringing the total number of untested Diamonds Thrift kimberlites on the Kim property, high-priority geophysical targets to 23. DARBY NTS the Potentilla and Stellaria kimberlites Results from the first two holes (462 infill till samples which returned positive 56P/10, 56P/11 Operator, Owners on the Kikerk property and the Hydra, kg) drilled into the Iceberg kimberlite indicator anomalies across the property. HEPBURN Indicator Minerals Inc.; Location Operator, Owners Perseus, Caltha, Ric-97 and Ric-26 on Hunter Exploration Group; returned a total of 24 diamonds, including A RESOLVE helicopter-borne mag/EM Located about 90 km Diamonds North Resources Ltd. the Ric property. In addition to these Teck Cominco Limited three macrodiamonds. Property-wide survey which defined several geophysical southeast of Kugaaruk Commodity known kimberlites, Ashton has identified Commodity prospecting identified 95 new kimberlite targets was completed over the property Diamonds more than 10 indicator mineral anomalies Diamonds float occurrences down-ice from in 2005. Detailed sampling was also The IC Project is a joint venture program NTS that warrant investigation. NTS associated geophysical anomalies. The conducted and several well-defined between Trigon (49 per cent) and Contact 86J, 86K In July 2006, Ashton granted Vaaldiam 56N/06, 56N/11 float occurrences represent several visually kimberlite indicator mineral trains were Diamond Corporation (51 per cent) and Location Resources Ltd. an exclusive option to earn Location distinct kimberlite types. located. Exploration work was conducted is located in the new diamond district in 150 km south of Kugluktuk a 40 per cent interest in their wholly 200 km southwest of Kugaaruk Plans for Darby in 2007 include on the property in 2006; results are pending. the Kugaaruk area. With the addition of owned properties. Vaaldiam completed the analysis of select kimberlite float The Hepburn property is owned by 16,492 ha staked this past summer, the HOOD RIVER CLAIMS a summer exploration program over the The Darby Project includes more than occurrences, completing airborne Diamonds North and is a trans-border property now covers 62,667 ha. Contact Operator, Owners Artemisia kimberlite. This kimberlite is well 160,000 ha of 77 mineral claims and six geo physical coverage of the property and property with the majority of the property is currently exercising its option to earn Tahera Diamond Corporation exposed in outcrop and has a surface area prospecting permits. Indicator Minerals drill testing a minimum of 10 new targets. and work being conducted in the NT . up to a 60 per cent interest in the project Commodity of approximately three hectares. A 1.16 is the operator and the project is currently This project was initiated through by sole-funding a further $3 million of HEEQOU Diamonds tonne mini-bulk sample was previously under option to Teck Cominco Limited Diamonds North’s Northern Recon exploration expenditures. Operator, Owners NTS analysed in 2002 and returned a total of who can earn a 51 per cent interest by Initiative in 2003. Since starting work on Exploration on the IC block has Diamondex Resources Ltd. 76L/13 0.20 carats of diamonds larger than 0.8 spending $14 million over four years. the Hepburn project, Diamonds North established a well-defined train of Commodity Location mm. An additional 11 tonnes of kimberlite Five targets were drill-tested in 2006 had advanced the program from initial kimberlite indicator minerals with mineral Diamonds 100 km north of the Jericho drilled from seven holes returned a total and five kimberlite bodies were confirmed exploration to delineating drill targets chemistry indicative of a diamondiferous NTS diamond mine 86I/01, 86I/02, 86H/15, 86H/16 and outlined two potential kimberlite kimberlite source. Airborne geophysical The diamondiferous Tenacity kimberlite, fields. One of these targets is outlined by surveying has identified a number of Location 225 km southeast of Kugluktuky with a surface expression of approximately a circular lake and is coincident with a high-priority geophysical targets in the 80 x 100 m, was discovered on the Hood magnetic anomaly. Kimberlite indicator vicinity of the train. The results of up-ice The Heeqou property encompasses 56 River property in 2000. Subsequent minerals have been recovered in till samples. sampling, as well as the nature of the mineral claims that cover 50,554 ha and processing of kimberlite samples returned In 2006, over 24,000 line-kms of indicator minerals recovered, suggest is located 40 km southeast of the Anuri 218 diamonds measuring greater than airborne surveying were completed as multiple, local sources. kimberlite pipes and 30 km west of the 0.15 mm. These results indicate that the well as additional till sampling and target In September 2006, Trigon commenced Rockinghorse kimberlite cluster. The Tenacity kimberlite probably does not follow-up. Preliminary interpretation of a second phase of exploration which property is owned 100 per cent by have sufficient grade or size to be economic the airborne data has identified numerous included the collection of in-fill till samples Diamondex who have spent C$1.06 on a stand-alone basis. However, the high priority geophysical targets. Planning in an area of high-interest indicator mineral million to date. property is considered to have potential is currently underway for a drill program anomalies discovered on the property in Heequo was staked in 2002 and initial for additional discoveries. Although no plus additional airborne and detailed 2005. Using available knowledge and work included the collection of till samples work was conducted during 2006, geophysical surveying. research on other properties in the and surficial geologic mapping. Further Tahera continues to assess the diamond region, Trigon feels the sources of the exploration involved the collection of potential of this region. KIM trains lie within the IC property.

16 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 17 The company is conducting a more 2,000 tonnes per day. Processed tonnes Cominco 16 per cent of shares of Tahera identified with 11 anomalies selected for materials will be reported in early 2007. been insufficient exploration to define a detailed till sampling program (50 m and carats produced during the second on a non-diluted basis and 24.9 per cent further evaluation. Diamondex had a limited Both large diameter (17.5”) reverse mineral resource and it is uncertain if spacing) in anticipation of an upcoming quarter of 2006 rose to 147,000 tonnes on a fully diluted basis. work project on this ground in 2006; circulation (RC) drilling and core further exploration will result in such a drill program. and 98,600 carats respectively, from results are pending. delineation drilling were undertaken delineation. PEREGRINE Trigon is also investigating a 50 m 2 63,000 tonnes and 28,318 carats in the with a budget at approximately $13 SAKARI mineralized showing on the property, first quarter; carat production decreased Operator, Owners POLAR PROJECT million. 5,730 m (21 holes) of core Diamondex Resources Ltd; where a single grab sample in 2005 slightly to 96,500 carats in the third Operator, Owners drilling penetrated the kimberlite to a Operator, Owners Stornoway Diamond Corporation Diamonds North, returned highly anomalous levels of quarter of 2006. Tahera Diamond Corporation; maximum depth of 382 m and allowed Commodity De Beers Canada Inc. Shear Minerals Ltd. precious and base metals, including The overall expected grade of the for further interpretation of the extents Diamonds Commodity Commodity 1,220 g/t silver. The showing occurs Jericho kimberlite resource material and nature of the body. The Muskox NTS Diamonds Diamonds within a 20 m wide metasedimentary unit remains at 0.85 carats per tonne as per kimberlite is now interpreted to cover 86P/03, 86P/04, 86P/05 NTS NTS containing mineralized zones that can the October 2004 Preliminary Assessment less surface area, be more voluminous at Location 76L/04, 86I/01 56N/05, 56N/11, 56N/12 be traced for 1.7 km. Sampling, mapping, resource grade estimate. A sparkling depth and have steeper sides than previously 90 km southeast of Kugluktuk Location Location and geophysical surveying was completed highlight of production to date is the 225 km southeast of Kugluktuk thought. An updated estimate of the 190 km southwest of Kugaaruk over the zones; however, 33 grab samples recovery of a 59 carat gemstone with The Peregrine property is a joint venture in-situ tonnage of the body is 10 to 11 taken returned only modest results. Given excellent shape and good colour and between Diamondex (70 per cent) and Tahera and De Beers have a joint venture million tonnes to a depth of 200 m, and The Sakari Property, covering 16,997 ha the extent of the mineralized zone and clarity valued in excess of $400,000 US. Stornoway (30 per cent) and located in agreement on the Polar project on land 15 to 16.5 million tonnes to a depth of 300 m. and located adjacent to the Darby project, the highly anomalous initial grab sample, The company signed a formal Inuit the Coronation diamond district of the adjacent to the Jericho property. The is owned and operated by Diamonds ROCKINGHORSE further mapping and prospecting have Impact Benefit Agreement (IIBA) with western Kitikmeot. The partners have spent significantly diamondiferous Muskox North with a 50 per cent option agreement been initiated to investigate the geophysical the Kitikmeot Inuit Association (KIA) C$1.9 million to date. The property is kimberlite is situated on this property. Operator, Owners with Shear Minerals Ltd. This project Tahera Diamond Corporation; anomalies. prior to the opening of the mine. immediately west of the Vic and Kim claims, In addition to the known kimberlites, the was initiated mid-2006 and to date De Beers Canada Inc. Tahera also entered into an agreement where Ashton Mining has discovered property also hosts a number of unresolved minimal work has been completed on JERICHO DIAMOND MINE Commodity with Tiffany & Co. for the purchase and several diamond-bearing kimberlites kimberlite indicator mineral trains. Diamonds the project with the exception of till Operator, Owners marketing of the diamonds and Tiffany including the Artemisia kimberlite. In 2006, Tahera conducted a large-scale sampling on a regional grid where kimberlite NTS Tahera Diamond Corporation; provided $35 million to assist with the Earlier work by Diamondex involved kimberlite evaluation program with the indicator minerals were recovered. The Teck Cominco Limited 86I/10, 86I/11 project’s financing. Mid-November 2006, an airborne geophysical survey which exploration strategy for increasing Location partners are planning airborne geophysical Commodity Tahera announced a strategic alliance with outlined numerous anomalies, follow-up reserves in the Jericho area. The Muskox surveying at 100 m line spacing. Diamonds 160 km southeast of Kugluktuk Teck Cominco in which Teck Cominco on the anomalies, till sampling and kimberlite occupies a surface area of NTS purchased $30 million in a private geological mapping. A total of 24 high- approximately four hectares, 2.5 times The Rockinghorse property containing SANAGAK 76E/14 placement. This agreement gives Teck priority magnetic targets have been larger than that covered by the Jericho the Anuri kimberlite body is a joint venture Operator, Owners Location kimberlite. Muskox is comprised of at least project between Tahera and De Beers. Indicator Minerals Inc.; 350 km southwest of Cambridge Bay Hunter Exploration Group two volumetrically significant units, the The partners consider the property to 2006 saw an outstanding event in MKU-A and MKU-B. Approximately 865 be prospective for further discovery, as Commodity Diamonds exploration for Nunavut — the opening dry tonnes from MKU-A and 63 dry several unresolved kimberlite indicator NTS of Jericho, the Territory’s first diamond tonnes from MKU-B were extracted mineral trains have been identified. The 57F, 57G mine. Mine construction was substantially and processed in 2006. The MKU-A diamondiferous Anuri kimberlite, a Location completed during 2005 and the first unit yielded 13,890 stones representing multi-phase body that covers 3.5 ha, is Boothia Peninsula, diamonds were produced in January 2006. 455.3 carats for a recovered sample made up of two lobes that coalesce into northwest of Taloyoak Commercial production started on July grade of 0.53 carats/tonne. The MKU-B a single pipe near the surface. The western 1, 2006 and Tahera recognized its first unit yielded 692 stones representing lobe measures approximately 225 x 150 The Sanagak Project is operated by revenues from diamond production in 21.8 carats for a recovered grade of 0.35 m and the eastern lobe is interpreted to Indicator Minerals Inc. and consists of the third quarter. The mine-life is estimated carats/tonne. Diamond valuation, detailed measure 100 m 2. Drilling and drill sampling approximately 450,000 ha of prospecting at 9 years with a planned average rate of description and characterization of the provided 5,600 kg for analysis. There has permits. Kimberlite indicator minerals,

18 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 19 some with diamond indicator chemistry, property. Planning for a drill program is for Victoria Island is for small high-value TIM BEAR VALLEY were recovered in five spatially separate underway. deposits with the King Edier kimberlite Energy Sources Operator, Owners Operator, Owners areas on the property from heavy mineral having the potential of 4 - 5 million tonnes. Trigon Exploration Canada Ltd.; Adriana Resources Inc. samples collected in 2004. During 2005, VICTORIA ISLAND With important targets as the Snowy Owl ASIAK RIVER Committee Bay Resources; Commodity 99 heavy mineral samples were collected Operator, Owners kimberlite and the Southeast Galaxy Operator, Owners Indicator Minerals Inc. Uranium Diamonds North Resources Ltd. UNOR Inc. to follow up anomalies. The Boundary Commodity trend, there is potential for an additional Commodity NTS anomaly is located along the eastern Diamonds 15 to 20 million tonnes of kimberlite. Commodities Diamonds 86J/14, 86N/01, 86O/03, 86O/04 boundary of the project area. Samples Diamonds North plans to collect a 5-10 Uranium, Diamonds NTS Location NTS NTS collected east of this anomaly confirmed 56P tonne drill sample from King Eider. 130 km southwest of Kugluktuk 77F 86J/10-16, 86K/01, that kimberlite indicator minerals are Location Location 86N/01, 86 O/3-4 present outside the project area and the 90 km southeast of Kugaaruk VICTORIA ISLAND - The Bear Valley Uranium Project covers Central Victoria Island BYRON BAY, MOUNT PELLY Location company staked 42 mineral claims covering 350 km 2 along the eastern edge of the 50 km south of Kugluktuk more than 43,700 ha. Plans for 2006 This property is under agreement with This property covers an estimated Operator, Owners Hornby Bay Basin. Prospecting, sampling, Pure Diamonds Exploration Inc.; included additional heavy mineral sample Trigon, Committee Bay Resources and 440,000 ha in central Victoria Island and The Asiak River property consists of a geological mapping, and geophysical De Beers Canada Inc. collection to delineate the extent of the Indicator Minerals Inc. The TIM is trans-border with NWT. Diamonds single large claim block with a total of surveying was undertaken in 2006. Commodity indicator mineral anomalies and to acquire property comprises 32,171 ha and is North and Teck Cominco had an earli - Diamonds 90 claims covering 89,700 ha within the Previously reported uranium occurrences airborne geophysical data to identify contiguous with the IC property. A total er option agreement which terminated Hornby Bay Basin. UNOR has identified were confirmed during fieldwork. This NTS kimberlite targets. of 37 reconnaissance samples were collected in 2005. Diamonds North now holds 77A, 77B, 77C, 77D, 67C 19 diamond targets and four uranium program was part of a larger exploration and results from concentrating and picking 100 per cent interest in a total of 39 showings on this claim block since 2004. program that included work on the SIKU Location are expected by the end of the year. kimberlites on the property. South Coast of Victoria Island At Tara West, located on the east/ company’s MIE Ni-Cu-PGE project Operator, Owners Kimberlites and trends that have central area of the Asiak claim block, and the UNAD JV project. The Bear Valley Diamonds North Resources Ltd.; UALLIQ been identified are the Galaxy, Jaeger, Pure Gold Gold Minerals Inc. changed results of the 2006 surface samples from property has two main target areas: Tabb Arctic Star Diamond Corp. Operator, Owners King Eider, Pintail, Sanderling, Sand their name to Pure Diamonds Exploration a one metre wide east-west striking shear Lake in the south end of the property, Commodity Diamonds North Resources Ltd.; Piper, Snow Bunting and Turnstone. Inc. early December 2006. This company zone run up to 0.43% U 3O8 and 2.7% and the newly discovered Alpha Horizon Diamonds International Samuel Exploration Corp. More than 80 per cent of the kimberlites and De Beers Canada Inc. are working copper. The zone is traceable for 50 m located northwest of All Night Lake. Ten NTS Commodity are diamondiferous, with several bodies the High Arctic Joint Venture on several along strike within Epworth metasedi - samples collected along a 280 m 56N/05, 56N/07, 56N/10 Diamonds returning significant diamond counts projects. These properties were acquired ments. The zone continues to the east mineralized trend during UNOR’s 2005 Location NTS and favourable stone size distribution. by De Beers based on historic KIM results beneath thick overburden for 400 m to reconnaissance program in the Tabb Lake 175 km southwest of Kugaaruk 57A, 57B Exploration efforts have focussed on from stream sediment samples collected the Asiak River and is traced on the east area returned values of 0.067% U3O8 to Location The Siku property, owned and operated the 20 km-long Galaxy and 25 km-long over 20 years ago during broad regional side on the river as the Tara East 4.803% U 3O8. Two samples collected West-southwest of Kugaaruk by Diamonds North with a 50 per cent King Eider confirmed kimberlite trends, sampling programs. On the south coast showing. Little Grey Owl Lake, located during the 2006 program returned option agreement with Arctic Star The Ualliq property covers 440,000 ha two semi-parallel, northwest-southeast of Victoria Island, two projects were in the central area of block, was test- anomalous uranium mineralization. Over Diamond Corp, surrounds the Darby and is owned and operated by Diamonds trending structures 30 km apart. In 2006, active. The Byron Bay project consists drilled in 2004 by the company with the the Alpha Horizon, Fugro Airborne project on three sides and covers North with a 30 per cent option agreement Diamonds North received the complete of eight permits and the Mount Pelly best results being 0.86% U 3O8 over 0.6 m. Surveys was contracted to acquire 1,300 182,000 ha. Till samples collected from with International Samuel Exploration. 2005 diamond results for the King project consists of 21 permits centred Harzburgitic garnets, kimberlitic line-km of detailed airborne electromagnetic the Siku property have yielded indicator The project borders Diamond North’s Eider kimberlite. These results from over Cambridge Bay. A total of 238 till ilmenites and chromium clinopyroxenes data to define the horizon more accurately; minerals indicating that the Darby kimberlite Amaruk project. 2006 exploration included 1697.5 kg of drill core submitted by Teck samples were collected over the two were found in 212 till samples of the 2005 the survey confirmed the existence and field may extend onto the property. An detailed airborne geophysical surveys Cominco and 576.9 kg of drill core and projects in 2006. Sampling results indicate samples. Combined with anomalies extent of the conductor. airborne magnetic survey over the claims and detailed sampling. Targets were a 1053.6 kg trench sample submitted by that little KIMs will be recovered over from 2003-04, two major mineral trends has been initiated for drill target delineation. identified in areas with kimberlite indi - Diamonds North returned, amongst other the properties, so all permits are being have been identified that extend for seven cator minerals and a strong cut-off associated stones, a 0.31 carat diamond recovered relinquished. and 6.5 km, respectively. Results from the with several KIM clusters supports the from the trench sample. Diamonds North 2006 till sampling program are pending. possibility of multiple kimberlites on this now considers that the best potential

20 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 21 guide 2007 drilling. confirmed high grade uranium CAMECO OPTION COPPERMINE RIVER 1, UNAD 2 The Hot Creek showing, numerous mineralization (7.281% U3O8) from Operator, Owners Operator, Owners large sandstone boulders with uranium- subcrop from the Tabb Lake area. Cameco Corporation; UNOR Inc. 1, 2 ; copper mineralization over 1.5 km, was Previous exploration work conducted UNOR Inc. Adriana Resources Inc. 2 discovered in the north/central area of in the late 1970's reported anomalous Commodity Commodity Uranium Uranium the claim block. The zone of interest is uranium mineralization in the basement NTS NTS three kilometres wide and lies along the rocks and overlying Hornby Bay sandstone. mineralized boulders located 40 km western margin of a major graben that northwest of the Mountain Lake deposit. KENDALL RIVER 86N/01-06 86J/10, 86J/11, 86J/12, DISMAL LAKE PROPERTY 1; 86J/13, 86J/14, 86K/16, displaces the Dismal Lake/ Hornby Bay During 2006, the Joint Venture followed Operator, Owners Location WEST DISMAL PROPERTY 2 Triex Minerals Corp.; 86N/01, 86O/04 contact. This structural setting and style of up on the GEOTEM survey flown in 2005 110 km southwest of Kugluktuk Pitchstone Explorations Inc.; Location mineralization is analogous to that of Operator, Owners with 730 line-km of airborne radiometrics 1, 2 Aramis Ventures Inc. 100 km South-southwest Triex Minerals Corporation ; In October 2006, UNOR announced it the Mountain Lake deposit located 40 1, 2 and 100 line-km of ground magnetics, of Kugluktuk Pitchstone Exploration Ltd. ; Commodity had entered into an option agreement km to the west. Hot Creek is a top priority Ur-Energy Ltd. 2 each at 200 m line spacing, and 400 soil Uranium with Cameco Corporation on 190 uranium The Coppermine River Property consists for 2007 drilling. Commodity samples. Potential drill targets within NTS mineral claims staked by Cameco in 2006 of two claim blocks referred to as the Detailed mapping and ground magnetic Uranium the Dismal Lake sandstone were identified, 86N/01, 86N/02 and covering 208,600 ha in the western Coppermine Block and the East Block, surveys were completed over the NTS and will be evaluated further in 2007. Location Hornby Bay Basin to the west of the with a total of 144 claims covering 125,000 Alteration Zone located in the southern 86N/05, 86N/06, 86N/11, 86N/12 1; 100 km southwest of Kugluktuk Coppermine Property. To earn a 60 per cent ha in the Hornby Bay Basin. This basin offers panhandle of the claim block. Complex 86M/08 2 HEPBURN - NORTH HEPBURN PROJECT interest, UNOR must incur exploration unconformity type uranium deposit potential silicification and clay alteration within the Location Sandstone boulders in the Kendall and development expenditures of $3.0 and is relatively under explored in relation Hornby Bay sandstone is controlled by 110-140 km west of Kugluktuk Operator, Owners River train are from the same unit of Uranium North Resources Corp. million by March 31, 2010, of which a to the Athabasca Basin. Potential for other a series of cross faults intersecting the the Dismal Lakes Group that hosts the Commodity minimum of $2.0 million must be incurred uranium deposit types on the property southeastern marginal fault of a major Triex Minerals Corporation has a 50 per Mountain Lake Deposit. A total of 145 Uranium on or before June 30, 2008. UNOR is include IOCG and vein type deposits. graben. Two holes were drilled to test cent interest in seven exploration permits radioactive boulders form a tightly NTS the operator on the Cameco Option, The structural setting of the property the zone at depth. The basal contact is and 14 claims forming the Dismal Lake defined northeast-trending train 3,400 m 86J, 86K Coppermine, and Asiak properties, subject area is similar to that of Cameco’s Eagle approximately 800 m deep and multiple Property. The permits are located in both long and up to 230 m wide. The boulders Location to the guidance of a joint UNOR/Cameco Point deposit of the Athabasca Basin. fault zones with clay-dravite alteration the Nunavut and Northwest Territories. are angular to sub-angular and contain On the NWT/NU border, 150 km Technical Committee and the Strategic UNOR has discovered several uranium and anomalous uranium occur within Pitchstone Exploration Ltd. holds the south-southwest of Kugluktuk disseminated uranium oxide minerals with Alliance Agreement between the parties zones on the Coppermine River claims the sandstone. Dravite, a boron-rich remaining 50 per cent of the permits. The minor pyrite and chalcopyrite. A regional covering the UNOR operated projects. including Contact Lake, Wolf Creek, Bog, mineral, is found in many of the uranium area was explored for uranium in the late The Hepburn, North Hepburn project structure parallels the train immediately Hot Creek, and Alteration Zone Lake. deposits in the Athabasca Basin. The 1970’s and several uranium boulder and overlies segments of the Hornby Bay to the south. The boulders were discovered In 2006 UNOR drilled 10 additional Alteration Zone will also be a top priority frost heave anomalies within sandstone Basin. These are trans-border proper - by regional exploration in the 1970s by holes on the southern panhandle of the for 2007 drilling. were discovered 30 — 50 km to the south ties between Nunavut and NWT with Esso Resources Canada, but the property claim block. These 10 holes, plus 17 On the northwest corner of the of the permit area. The area contains the North Hepburn property within was not drill-tested. historical drill holes by BP Minerals, all company’s Coppermine claim block, favourable lithology and structure required Nunavut. Diamonds North holds 50 In August 2006, Triex and Pitchstone intersected uranium mineralization that ground geophysical surveys outlined two to host sandstone unconformity style per cent interest on five claims of the acquired the Kendall River claims from occurs over an area of 800 x 200 m. All well-defined airborne magnetic anomalies uranium mineralization in a setting similar North Hepburn project. Six uranium Aramis Ventures, a private Alberta company. 10 holes had uranium mineralization in for kimberlitic targets. Results from the in nature to the Mountain Lake uranium occurrences with up to 0.82% U3O8 As operator, Triex completed 388 line-km core with the best intersection in the first 2006 till sampling are pending. deposit located approximately 70 km to have been previously identified. At BB of airborne radiometrics, 124 line-km

six holes being 0.12% U 3O8 across 9.1 m. The UNAD project covers 19,427 ha the east. Lake, lake sediments have returned ura - of ground magnetics, and collected 1200 Assaying results from the remaining four of land adjacent to the Coppermine Triex and Pitchstone entered into a nium values ranging from 23.7 ppm to soil samples. From the 2006 results, the holes are pending. A ground magnetic River project and is a 50:50 joint venture joint venture with Ur-Energy on the West 115 ppm U3O8. This is reported as the company is working to define follow-up survey and three lines of IP/resistivity project between UNOR and Adriana Dismal property in 2006. The claims highest known uranium concentration targets for 2007 work. were completed and will be used to Resources. In 2006, the companies cover part of an historic field of uranium in a lake sediment sample in the region.

22 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 23 values were returned in drill core from holes at Three Bluffs. Using a lower cut-off projects within Nunavut. The Back River previously defined mineralized zones at MOUNTAIN LAKE 1; COMMITTEE BAY NORTHEAST 2 testing the Jenny Lake area, northwest grade this inferred mineral resource is deposits are quartz-vein hosted gold the two major deposits and to conduct MOUNTAIN LAKE OPTION Operator, Owners of the main deposit. This prospect is expanded to 5.1 million tonnes grading deposits found within Archean banded further exploratory work over targets at Operator, Owners Strongbow Exploration Inc. open to the north and west. 4.0 g/t Au for 657,000 oz. About 85 iron formation within greywacke units Boulder Pond, Boot Lake and on the Triex Minerals Corporation 1, 2 ; Commodity 1, 2 In 2006, Triex entered into an per cent of these resources are within folded into an anticline, with the apex George Lake claim groups. Seventy-nine Pitchstone Explorations Ltd. ; Gold Ur-Energy Inc. 2 arrangement with Ur-Energy on 41 claims 120 m of surface and the bulk of the of the fold forming a hinge zone near holes (24,030 m) in both step-out and NTS Commodity covering about 38,545 ha, herein referenced high grade gold mineralization is along 56J, 56K surface. infill drilling were completed. 7546 Uranium as the Mountain Lake option, that adjoin a shallow plunging structure. The most important properties of line-kilometres of airborne geophysics Location NTS the eight claims hosting the Mountain For 2006, Committee Bay budgeted 300 km north of Baker Lake the Back River area are the George Lake was conducted, bringing to the total of 86N/02, 86N/03, 86N/06, 86N/07 Lake deposit. $3 million to follow up on 2005 results. and Goose Lake deposits with combined geophysical data collected in 2005 and Location Phase 1 of the program involved drilling The Committee Bay Northeast project indicated resources of 1.4 million oz Au 2006 to 14,1045 line-km. Several EM and 100 km southwest of Kugluktuk Gold, Precious Metals (3,500 m) followed by a further Phase 2 is located within the Committee Bay and inferred resources of 600,000 oz Au. magnetic anomalies have been defined drilling of high priority targets. Drilling greenstone belt. Correlative rocks to the Gold mineralization occurs in both the which are being integrated and interpreted COMMITTEE BAY The Mountain Lake properties are at Anuri outlined a broad alteration zone south contain the Meadowbank iron high-grade fold hinge zone and greywackes with geological mapping, structural studies located within the Hornby Bay Basin. Operator, Owners (up to 20 m wide) and gold over a 400 m formation-hosted gold deposit. In 2004, within the fold core. Much of the gold and review of historical sampling. Dundee Committee Bay Resources Ltd. Stratabound uranium mineralization is strike-length adjacent to a major structural Goldak Airborne Surveys completed a occurs as fine grains on sulphide boundaries, is also collecting environmental baseline Commodity hosted within sandstone of the zone. The alteration zone is geologically 5731 line-km survey of magnetic although visible gold, generally as small data (hydrological, meteorological and Gold Proterozoic Dismal Lakes Group. Past and geochemically similar to a high grade gradiometer work over portions of the (<1 mm) isolated specks, is common in fish studies, bathymetry) and metallurgical NTS workers completed 190 drill holes gold and silver-bearing boulder train project area. In 2005, the remainder of the clearly defined bands within the iron testwork is being conducted. 56J, 56K (approximately 22,000 m) on the project discovered at Anuri in 2004. Drill core claim block, approximately 90 km strike formation. Disseminated gold also occurs Location HACKETT RIVER and defined the Mountain Lake uranium 300 km north of Baker Lake intersections in 2006 also contain highly length of the Committee Bay greenstone and associated minerals are arsenopyrite, deposit. This deposit contains an inferred anomalous silver, copper, bismuth and belt, was surveyed by Goldak conducting pyrrhotite, pyrite, quartz and Fe-Mg-Al Operator, Owners Sabina Silver Corporation resource of 8.2 million pounds U 3O8 The Committee Bay Greenstone Belt is tungsten. 2007 drilling will expand upon 3,946 line-km of magnetic gradiometer silicates. Commodities with an average grade of 0.23% U 3O8 over 300 km long and is geologically this program and continue to search for surveying. Numerous positive, strong and Occurrences within the George Lake Silver, Zinc, Gold, Copper, Lead contained in 1.6 million tonnes of rock. comparable to the gold-producing higher grade zones within the Anuri trend. linear to highly deformed magnetic deposit area include Locale 1, Locale 2, NTS The depth of mineralization is between greenstone belts of Red Lake, Timmins The West Plains gold showing is in anomalies were identified. This project Lone Cow, GH, Boot Lake, Boulder 76F/15, 76F/16 28 and 136 m. The deposit is not fully and Kirkland Lake. Committee Bay the southwest corner of the Committee was inactive in 2006; however, Pond, Needle Lake, Bath 1 claim and Location delineated and the estimated resource Resources holds greater than 360,000 ha Bay Greenstone belt approximately 65 km Strongbow is evaluating plans for the the Slave occurrences. Five showings 90 km South-southwest does not include mineralization reported of land with prospective geology and southwest of the Raven occurrence. 2007 program comprise the Goose Lake deposit — of Bathurst Inlet in 2006. An updated resource model is con trols over 85 per cent of the belt. Mineralization is hosted in sheared iron Llama Lake, Round Pond, Goose Neck, currently being developed using the 2006 In 2005, Committee Bay spent over $9 formation and localized within a flexure GEORGE LAKE/GOOSE LAKE Goose South (or Goose Lake showing) The Hackett River silver-zinc property (BACK RIVER PROJECT) drill results integrated with historical million on exploration. This work included in the shear zone. 2006 drilling at West and Goose Tail. hosts at least eight known massive sulphide data. Triex and Pitchstone are 50:50 detailed grid work and ground magnetic Plains confirmed a high grade gold zone Operator, Owners Gold exploration in this area began occurrences; of these the most significant Dundee Precious Metals Inc. partners in the Mountain Lake property, surveying over high priority targets, and that is open down-plunge and to depth in 1982 and various companies have are the East Cleaver, Boot Lake and Commodity with Triex as operator. drill testing of the Raven and Three and extends over 200 m along strike and worked the deposits. Early 2005, Dundee Main Zone (also called “A” Zone) with Gold Triex completed 20 drill holes on the Bluffs zones. Significant mineralization to 80 m below surface. This zone also purchased the option to earn a 60 per cent other significant showings being the Knob NTS property in 2006. Results confirmed the was outlined at Raven, Three Bluffs, West coincides with a strong EM anomaly that interest in the project and by year-end Hill Zone, Downie, Finger Lake and Jo 76G/09, 76G/10, 76G/13, 76G/14 uranium mineralization within the Plains, Antler and Anuri, although the total extends for eight km along strike. had invested $20.8 million. Mid-2006, Zone. The property covers nine mining Location deposit, and extended it below Fran Lake. number of zones with gold potential on Drilling returned intersections of 13.14 100 km south of Bathurst Inlet the company purchased a 100 per cent leases with an aggregate area of 12,250 Grades of 0.1 to 0.3% U 3O8 over widths the belt exceeds 60. A near surface high g/t Au over 8.0 m, 19.65 g/t Au over interest and this year conducted an ha. Hackett River is one of the largest of one to 4.5 m define the main deposit, grade inferred mineral resource of 1.3 2.0 m and 8.39 g/t Au over 2.05 m. The Back River Joint Venture project is extensive exploration program spending undeveloped massive sulphide deposits in with an envelope of 0.03 to 0.1% U 3O8 million tonnes grading 10.2 g/t Au for Further exploration and drilling are owned and operated by Dundee Precious over $17 million. This work was Canada. over 10 – 30 m widths. Anomalous uranium 417,000 oz has been defined by 49 drill planned for 2007. Metals and is one of the larger gold conducted to delineate extensions of

24 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 25 Sabina recently expanded the indicated Zone deposits and showings are hosted focus of 2006 work. Mineralization is structure or structural zone. Current structural break. A new zone, BN, with (Startling Lake) and 23.5 g/t (Arnaud resources to be 205 million oz silver and within a southward dipping stratigraphic associated with silicified shears which estimates are: total indicated resources a style of mineralization not previously Lake). Visible gold has been noted in 4.3 billion pounds Zn with 305 million sequence. The Knob Hill Zone and East can be traced to 200-250 m within a three of 17,834,00 tonnes at 6.0 g/t Au (3.4 recognized at Boston, was discovered in quartz veins from each of these occurrences. pounds Cu, 644 million pounds Pb and Cleaver deposit are found within an kilometres zone of sheared and brecciated M oz Au) and inferred resources of 2006 north of known Boston resources In 2005, Kaminak discovered additional 433,000 oz Au, all at above a 5.0 oz/t overturned anticline that plunges steeply siliceous basalts and sediments. 34,197,000 tonnes at 4.9 g/t Au (5.4 M (B2, B3, B4). Thirteen holes (3,785 m) anomalous mineralization within the Gela Ag-equivalent grade cut-off. This new to the west. oz Au). were drilled at BN and the pending Lake showing with a high of 5.21 g/t Au HOPE BAY PROJECT (DORIS resource estimate is based on 300 drill Silver Wheaton became a major NORTH, MADRID, BOSTON) The Doris deposits (Doris North, results will help define a second phase of obtained with 5.27% Cu and 0.18% Bi. holes with an aggregate length of 63,745 shareholder of Sabina Silver in December Doris Central, Doris Connector) occur production following the proposed Doris This new polymetallic showing, the Gela Operator, Owners m. The company has also retained Wardrop 2006, stepping in to invest $12.87 million at an inferred inflexion in the Hope Bay North Project. The current Boston Lake Copper-Bismuth Zone, represents Miramar Mining Corporation Engineering to develop a NI 43-101 in the company. Following closure of the structural break. Gold occurs within a resource, not including 2006 drilling, is a newly-defined gold target in the North Commodity Commodity compliant preliminary economic financing, Silver Wheaton will own 14.2 Gold steeply-dipping quartz vein system in 2,312,000 tonnes of 10.7 g/t Au indicated Slave Region. Kaminak planned a 2006 assessment based on the strength of per cent of Sabina, and can boost its folded and metamorphosed pillow and 2,431,000 tonnes of 9.5 g/t Au follow-up program to include geophysical NTS these new estimates. interest to 19.9 per cent if all warrants 76O/09, 76O/10, 76O/15, basalts. At the north end of the system inferred. surveys and reconnaissance-scale Sabina had significant results from their were to be exercised. Additionally, Silver (Doris North), the veins are folded into prospecting designed to generate drill 76O/16, 77A/02, 77A/03, LACH GOLD-COPPER PROPERTY 2006 drill program. The exploration Wheaton acquires the right of first refusal 77A/06, 77A/07, 77A/10 a doubly plunging anticline with the high- targets. Operator, Owners highlight was the partial delineation of on the sale of silver production from Location grade hinge zone lying close to the surface. Kaminak Gold Corporation LUPIN a new discovery called the “Boot Lake any of Sabina’s projects, and the right 130 km southwest of Cambridge Bay Measured and indicated resources are Commodities Deep” trough. The structure contains true to maintain its percentage interest by 1.169 million tonnes at 19.3 g/t Au Operator, Owners Gold, Copper, Bismuth Wolfden Resources Inc. width drill intercepts up to 50 m wide participating in any future financings. The Hope Bay Gold Project covers most (726,000 contained ounces) and inferred NTS Commodity grading 12% Zn and 300 g/t Ag. 17,293 of the entire Hope Bay greenstone belt resources are 1.634 million tonnes at 14.5 76N/06 Gold m (53 holes) were drilled as both infill HOOD RIVER and consists of mineral claims, mineral g/t. (for 766,000 contained ounces). The Location NTS and stepout work as all three main deposits Operator, Owners leases and Inuit Owned Land (IOL) Doris North project is currently in the 100 km northwest of Bathurst Inlet 76E/11, 76E/14 remain open. In a recent deep stepout Golden River Resources Exploration Agreements with a combined permitting process with a mine scheduled Location hole at Boot Lake, assays include 42.95 Commodity total area of approximately 110,151 ha. to open mid-2008 with a two-year Kaminak Gold Corporation owns 100 Gold 300 km south of Kugluktuk m of 8.35% Zn and 180.5 g/t Ag with a The belt was again the focus of the largest mine-life. per cent of three prospecting permits second hole containing 49.85 m of 9.18% NTS exploration project in Nunavut in 2006 The Madrid deposit area hosts the totalling 44,000 ha that are highly Kinross acquired the Lupin underground 76L/13 Zn and 141.6 g/t Ag. with Miramar Mining Corporation spending Rand, Naartok (Naartok East, Naartok prospective for hosting fault-related gold gold mine from Echo Bay Mines in 2003 Location All deposits and showings are located over $31 million. West) and Suluk showings. The Madrid mineralization. The property hosts over and operated it until the closure in 2005. 100 km north of the Jericho at approximately the same stratigraphic diamond mine The belt, 80 km long in a north-south Trend corridor hosts the Rand Spur, 30 individual untested gold occurrences Gold in iron formation was discovered interval and occur over a 6 km-long direction and seven to 20 km wide, is in Marianas, Patch 7 and Patch 14 zones. with minimum assays of at least 10.0 g/t in 1961. The rocks were repeatedly strike length. The East Cleaver, Boot Golden River Resources has an agreement the northeast portion of the Slave Gold mineralization is structurally Au. It straddles the Bathurst Fault Zone, deformed and mine site stratigraphy Lake and Main Zone deposits are hosted with Tahera Diamond Corporation to Structural Province. The belt and its controlled by a complex, large-scale a major zone that separates Archean consisted of two steeply-plunging, within a Mineral Horizon Member explore for gold and base metals on the deposits are classified as typical Archean zone traced for 11 km of intense strain greenstones from younger Proterozoic steeply-dipping anticlines separated by a characterized by the presence of marble Tahera ground in the Contwoyto Lake lode-gold-type, comparable to the prolific and alteration termed the Deformation sedimentary rocks and is traceable for syncline. Three primary ore zones were the and/or calc-silicate, chert and variable and Hood River area. Several auriferous Abitibi Belt of Central Canada. These belts Zone. Most resources lie within the over 500 km. Gold occurrences are spatially West (west limb of the western anticline), quantities of sulphides. Mineralization in iron formations are found on these are typically isoclinally folded, contain northern 2 km of this zone. The 2006 related to the fault zone and hosted in Central and East zones (west and east each of the three massive sulphide deposits properties. Golden River also has full belt-parallel shear zones and the drilling, infill and expansion, indicates brecciated quartz and iron-carbonate rich limbs of the syncline). Two other ore consists primarily of coarse grained pyrite, access to Tahera’s extensive geophysical deposits are characteristically associated the potential for much larger-scale veins which also carry arsenopyrite, galena, bodies, McPherson 1 and 2, occurred in pyrrhotite, sphalerite, chalcopyrite, galena and geochemical databases on this ground. with large-scale regional structures. operations than previously recognized. chalcopyrite, pyrite, sphalerite and bornite. different iron formation lenses, several and rare tetrahedrite and trace arsenopyrite. Several areas within the properties Significant gold deposits defined on The Boston deposit, one of the largest Previous government mapping dozen metres west of the West Zone. At Locally, mineral zoning is well developed, returned favourable gold up to 33 g/t this property include Doris North, Madrid known gold resources in the belt, is initiatives have returned encouraging gold the time of mine closure in 2005, Lupin both laterally and vertically. The Boot from sampling by the company in 2004. and Boston. All deposits and showings located near the south end of the belt and assays in this area; 143.6 g/t (Patton had produced over 3.37 million oz of Lake, Finger Lake, Main Zone and Jo The Penthouse Zone was the main occur within or in proximity to a major associated with a flexure in the Hope Bay Lake), 57.0 g/t (Gela Lake), 34.4 g/t gold at an average of 0.259 oz/ton Au.

26 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 27 Wolfden became the owner of Lupin properties of the known zones and map g/t Au. There was no work on the of high assay values. This drilling did large-scale gold deposits at or near the to follow-up on anomalies identified from in 2006 subject to a one per cent Net the extent of important host rocks (e.g. property in 2006 but Strongbow is not test the depth extent of this zone and volcanic-sedimentary contact. the 2005 airborne electromagnetic survey . Smelter Return Royalty payable to Kinross. banded iron formation) was flown over evaluating plans for the 2007 program. this is a priority for Strongbow. Surface The Eastern Contact-Twin Peaks The economic potential of the The company is currently completing an the property. sampling confirmed mineralization with agreement was amended March, 2006 Muskox Intrusion was first recognized assessment of the mine. Following this, The BR Property consists of four claim SILVERTIP 11 of 19 grab samples returning high grade at which time Maximus dropped the in the 1950’s by Inco Limited exploring Wolfden intends to begin an underground blocks (BR 1, 2, 3 and 9) totalling Operator, Owners precious and base metal values ranging Eastern Contact area and added the for native copper in the Coppermine drill program to define the resources and 4,180 ha. Iron formation has been mapped Strongbow Exploration from 1.98 to 15.7 g/t Au, 380 to6,162 Chicago area. The option property now area. Since then, various companies complete a study regarding the potential intermittently over a 3-km strike-length. Commodities g/t Ag, 0.55 to 5.5% Pb and 1.18 to comprises eight Crown claims, three have spent more than $20 million on to re-start the operation in 2007. Based on historical mapping and Gold, Silver, Lead, Zinc 18.0% Zn. Crown leases, three pending Crown leases exploration. High-grade copper, nickel aeromagnetic work, this belt of iron NTS The Minou showings, located and portions of two NTI Exploration and PGE occurrences were historically 76B/13, 76C/16 NEEDLE LAKE GOLD, BR GOLD formations is complexly folded and can be approximately 2.5 km southeast of the Agreements, totalling 11,147 ha. Required sampled along the walls of the Intrusion Operator, Owners traced along strike for over 23 km. This Location Pale showings, are in altered felsic expenditures remain at $7.5 million, now but targets have not been drilled. 120 km South-southwest Kaminak Gold Corporation property has potential to host base metal pyroclastic rocks. Previous mapping and to be incurred by April 30, 2009. The McGregor Lake Property is centred of George Lake Commodity mineralization. sampling by Cominco returned values Geophysical surveys (magnetic and over part of the Intrusion where highly Gold The Silvertip project covers over 15 km up to 17.8 g/t Au, 76 g/t Ag, 3.1% Pb horizontal loop EM) along with mapping anomalous Ni-Cu-PGE mineralization NTS REGAN LAKE of prospective volcanic stratigraphy and 24.7% Zn. Strongbow conducted and 3,000 m of drilling was planned for occurs in the walls. Additionally, the 76G/03 Operator, Owners along the western flank of the Back River limited prospecting of this showing and various portions of the properties during southern part of the property is situated Strongbow Exploration Inc. Location Intrusive Complex. Strongbow maintains seven of 12 grab samples returned values 2006. over a major northwest-trending structural Approximately 90 km south of Commodity a 100 per cent interest in six mineral of 1.86 g/t to 14.6 g/t Au and 8.8 g/t corridor which intersects the base of the George Lake Gold claims (6198 ha) which include the to 71.8 g/t Ag, as well as anomalous Nickel - Copper – PGE Intrusion. Adriana considers the base to NTS Kaminak Gold Corporation owns 100 Minou gold/silver showing and maintains values of Pb and Zn. represent a corridor of opportunity for 76G/04 per cent of the Needle Lake Property the right to earn a 100 per cent interest MIE massive sulphide accumulations of copper, Location TWIN PEAKS, CHICAGO which consists of two claims (2066 ha) in a seventh mineral claim (1033 ha) that Operator, Owners nickel, platinum and palladium, similar Approximately 80 km Adriana Resources that are host to numerous high-grade covers the Pale gold/silver showing. Operator, Owners to the Russian Norilsk deposit. Twenty southwest of George Lake Maximus Ventures Ltd.; surface gold showings. This property Strongbow acquired the Silvertip Commodities line-kilometres of data were collected Miramar Mining Corporation Nickel, Copper, Cobalt, includes showings of the Needle, Jed, Strongbow’s Regan Lake gold property property in 2006 after conducting an by a SQUID PEM geophysical survey Commodity Platinum, Palladium, Gold Wolverine, Feline and Erin Zones, and consists of 9,860 ha on IOL in the Back evaluation of the property, partly because and outlined a zone of high conductivity Gold NTS is strategically located 70 km southeast River area. Past exploration has focused of significant polymetallic concentrations in-line with the interpreted “keel” of NTS 86J/11, 86J/14, 86O/03 of the Dundee’s Back River Project and on two occurrences of folded sulphidic reported by Cominco in the 1970’s. the Intrusion. Modelling of the data is 76O/10, 76O/15 Location 220 km south of Miramar’s Hope Bay iron formation in the south- eastern part The 2006 program confirmed the nature Location 90 km south of Kugluktuk underway in preparation for a 2007 project. Historical exploration (1983- of the property. The property hosts over of mineralization at the showings and 160 km southwest of Cambridge Bay drill program. 1989) discovered five gold occurrences 19 km of iron formation within the established that the currently known Adriana added to their land holdings on The All Night Lake Property covers within the folded iron formation. Grab same sedimentary rocks as those at mineralized horizons have significant Maximus Ventures Ltd. had an original the Mackenzie Igneous Event (MIE) the layered series and roof zone of the samples assayed up to 23.59 g /t Au George and Goose lakes gold deposits. potential to identify new target areas. option on the Eastern Contact and Twin project over the Muskox Intrusion. The Intrusion and is being explored for across 2.11 m. A total of 13 holes (1,287 Mapping and rock and till sampling in Mineralization at the Pale showing Peaks target areas in Miramar Mining Muskox Intrusion is a layered mafic chromitite-PGE reef-style mineralization, m) were drilled. Results at the Needle 2005 produced a revised structural consists of quartz veining and locally Corporation’s Hope Bay Belt with intrusion associated with the Coppermine similar to the reefs of the South African Zone include 9.46 g/t Au over 3.43 m interpretation for the area. Geochemical significant sulphide mineralization, Miramar as the operator. The Twin Peaks Volcanics and the Mackenzie Dyke Bushveld complex. This zone has not been of core length and 11.58 g/t Au over surveys confirmed gold in iron formation hosted within a thick, north-westerly- showing at the north end of the belt is Swarm, which together comprise the explored thoroughly in the past, partly 2.02 m. Further drilling is needed to define horizons within the property with 48 of striking sequence of variably silicified hosted by argillaceous sediments and Mackenzie Igneous Event. The project because of poor outcrop exposure. Sixteen this prospective gold zone. A 530 line-km 205 rock grab samples returning greater and carbonate altered felsic volcanic rocks. conglomerates that overlie volcanics and covers more than 630 k m2 and is comprised line-kilometres of SQUID PEM data and airborne magnetic/electromagnetic survey that 1 g/t Au with three highest values The mineralization is in a structurally syenitic intrusives adjacent to a major of two properties, McGregor Lake and All a further 1,200 line-km of airborne designed to determine the geophysical of 25.8 g/t Au, 29.5 g/t Au, and 26.2 complex northwesterly-plunging zone lineament. Twin Peaks has been interpreted Night Lake. 2006 exploration consisted geophysics were collected on the property as having the potential to host similar of mapping, prospecting and sampling with results and interpretation pending.

28 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 29 Kivalliq Region

The Kivalliq District includes the eastern and iron formation hosted gold, epithermal commodities with strong base metal At a gold target located eight kilometres KEEWATIN PROJECT mainland, Southampton Island and several gold, quartz pebble conglomerate hosted and uranium prices fuelling increased Base Metals southwest of this area, a VLF-EM anomaly smaller islands. The communities of gold, mafic - ultramafic Ni-Cu-PGE deposits, exploration interest in Nunavut. Operator, Owners was delineated over a length of 1,200 m. BHP Billiton; Rankin Inlet, Baker Lake, and Arviat are diamondiferous kimberlites, unconformity The most advanced project in the GREYHOUND LAKE Previously reported values of up to 18.7 Tri Origin Exploration Ltd. often used staging points for exploration associated uranium, iron oxide-copper- Kivalliq is Cumberland Resources’ Operator, Owners and 4.8 g/t Au from grab samples of Commodities projects. Scheduled and charter air services, gold (IOCG), and volcanogenic massive Meadowbank Gold Project. In November Intrepid Mines Ltd.; boulders and outcrop, respectively, are Aura Silver Resources Inc. Copper, Gold, Silver, Lead, Zinc expediting services, and other supporting sulphide mineralization. 2006, the Minister of Indian Affairs and associated with it. Drill hole EL-06-7 was Commodities NTS businesses are available in these centres. Exploration for uranium increased Northern Development accepted the drilled to a depth of 40 m to test the VLF-EM Copper, Lead, Zinc, Silver 65A/05, 06, 11, 12 Past producing mines in the Kivalliq significantly in 2006. The majority of the Nunavut Impact Review Board’s (NIRB) anomaly at the head of the gold-bear - NTS Location were the North Rankin Nickel Mine at new land acquisitions within Nunavut in recommendation that development of ing boulder train. The hole intersected 66A/08 Approximately 120 km Rankin Inlet and the Cullaton/Shear 2006 target geological settings favourable the Meadowbank gold project should southwest of Arviat four zones, each about 1.6 m in length, Location Lake gold mine north of Nueltin Lake. for uranium mineralization in the Kivalliq. proceed. The project certificate was issued Approximately 50 km from Baker Lake of quartz-carbonate veined rock containing More than 45 exploration projects There were field programs involving in December 2006 The Keewatin Project lies in a sedimentary one to two per cent pyrrohtite and minor were tracked in 2006, targeting a wide airborne geophysics, diamond drilling, The Greyhound Property is a high grade basin of Proterozoic age, surrounded amounts of chalcopyrite. Fracture surfaces range of commodities: gold, diamonds, mapping, prospecting, and community silver and base metal prospect located in by Archean rocks. The basin consists of were also plated with pyrite. These Ni-Cu-PGE, uranium, and base metals. consultations. the central Churchill region of Nunavut. siliciclastic rocks of the Upper and Lower prospective zones within the hole have Current exploration targets include lode Gold and diamonds were the leading The prospective area contains a mineralized Hurwitz Group, with iron formation many similarities to the mineralization horizon within an Archean greenstone rimming much of the basin. observed in gold-bearing boulders at belt where samples of bedded sulphide- Tri Origin completed a program of surface, however no significant gold values mineralized boulders have returned assays surface prospecting and sampling, VLF- were returned from assaying. of 0.48% Pb, 0.1% Zn, 0.33% Cu, 1,632 EM and reconnaissance scintillometer Copper-bearing float was encountered g/t Ag (47.6 ounces per ton) and 0.58% geophysical surveying and preliminary at several of target areas. The best copper Pb, 1.41% Zn, 0.59% Cu , 3,400 g/t Ag drilling to investigate previously defined analysis was from a grab sample of a (99.16 ounces per tonne). The horizon base metal and gold targets. Uranium boulder at target KW-04 which assayed that hosts these high metal values is poorly mineralization was identified during the 1.49% Cu, 21 g/t Ag and 0.33 g/t Au . exposed as intermittent sub-crop rubble program, occurring in 24 boulders, some and sparse outcrop along a strike length within the northern parts of the property in excess of 12 km. that were prospected for copper and zinc Aura Silver initiated its first phase of (KW-07 target). Grab samples from two exploration on the property in 2006, of these boulders located 60 m apart, contracting a MEGATEM airborne survey returned assays of 8,500 ppm and 3,380 with Fugro Airborne Surveys Ltd. The ppm uranium. These boulders were found property is now under option to Intrepid 30 m from a strong airborne EM conductor Mines Ltd. that has not been drilled.

30 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 31 four new kimberlite outcrops and over sharply (more than 4400 grains were found HYDE PROJECT Diamonds 30 locations with kimberlite float in 127 samples), whereas chrome-spinel, Thirteen high interest G10 indicator Operator, Owners chrome-diopside and olivine occur in Stornoway Diamond Corporation AUMALUUKTUUK PROJECT mineral dispersion trains remain unsourced amounts of single grains. Commodity Operator, Owners in the Josephine Corridor and to date, 43 Within some local areas, pyrope anomalies Diamonds Stornoway Diamond Corporation kimberlites have been identified on the are associated with geophysical (magnetic NTS Commodity property. Two kimberlite types have now and electromagnetic) anomalies distinguished 55D/10, 11, 14 Diamonds been recognized. Type A is characterized from the 2005 helicopter-born airborne Location NTS by strong magnetic response, fine grained EM/Mag and resistivity survey completed 65P/09, 10, 15, 16 100 km southwest of Arviat with dominantly magmatic textures low by Fugro. Further compilation and Location indicator mineral abundancies (rare garnet The Hyde Project consists of eight interpretation of the results is on-going. 50 km south of Baker Lake but lots of ilmenite), poor mineral permits covering 151,200 ha in south The Aumaluuktuuk Project consists of chemistry and high geotherm, with central Nunavut. A geophysical survey NANUQ PROJECT 60 claim blocks covering 55,200 ha. were discovered. A summer program dike is about 1.5 m wide with a vertical generally a low diamond carrying capacity. was flown on the property in 2005 and Operator, Owners Stornoway maintains a 100 per cent followed, with 30 more drill holes dip. The mini-bulk sample weighed 5.8 Type B has a subtle magnetic response, resulted in numerous anomalies followed Peregrine Diamonds Ltd. interest in the property and is the operator. intersecting five new kimberlites, 6715 tonnes, with results expected early is medium grained, with two generations up in 2006 by ground checks and till Commodity Diamonds An airborne geophysical survey was line-km of ground geophysics, prospecting 2007. 157 diamonds were recovered of olivine macrocrysts, high indicator sampling. Stornoway maintains a 100 per flown on the property in 2005. The and till sampling. from a 44.35 kg grab sample. mineral counts (common pyrope garnets cent interest in the project. NTS 56 G anomalous results from the survey were Till sample PST-03, collected late in the A magnetic signature greater than six and less ilmenite) and cold geotherm. This Location ground checked and locally till sampled 2005 field season returned 162 micro- kilometres long marks the Kahuna dike. type has a moderate to high diamond KMD PROJECT 250 km northeast of Baker Lake in 2006. diamonds with kimberlite fragments in It is subtle high response, trending 035 o. carrying capacity. The four dikes Operator, Owners the oversize fraction. A ground magnetic It was drill tested in three locations discovered in 2006 are Type B kimberlites. Ripple Lake Diamonds Inc. The property is underlain predominantly CHURCHILL DIAMOND PROJECT survey, followed-up with drill testing in along 4.5 km of strike length. Drill hole Commodity by undifferentiated granitic and gneissic Diamonds Operator, Owners 2006 confirmed a vertically dipping dike KD-26A intersected an 11.4 m interval CHURCHILL WEST rocks of Archean age and minor granulite- Shear Minerals Ltd.; DIAMOND PROJECT over a 150 m length. From 22.8 kg drill of coarse grained highly macrocrystic NTS facies likely of Paleoproterozoic age. A Stornoway Diamond Corporation; Operator, Owners 55M/09, M/16, 55N/12, N/13 core sample 303 diamonds were recovered. pyrope-bearing kimberlite. This hole was greenstone belt, possibly correlative with BHP Billiton International Samuel Location The discontinuous magnetic signature drilled at a -70 o dip across the kimberlite Archean Prince Albert and Woodburn Commodity Exploration Corp.; 130 km northwest of Rankin Inlet Damonds extends over 500 m, trending at 040 o. that is interpreted as a four metre-wide Shear Minerals Ltd.; Lake groups, occurs in the central part NTS The Notch kimberlite dike was vertical dyke. In order to test the northern Stornoway Diamond Corporation; The Property is located within the northern of the property and can be traced on 55N, O, J discovered by prospecting along a magnetic and southern extensions of the Kahuna BHP Billiton Hearne domain of the Western Churchill aeromagnetic maps over 70 km. Location feature. It has a similar discontinuous trend, additional holes were drilled two Commodity Province. It consists of Archean rocks Paleoproterozoic (ca. 1.8 Ga) calc- 70 km north of Rankin Inlet magnetic signature extending more than kilometres to the south (KD-25) and Diamonds of the Hearne Craton and overlying alkaline plutonic rocks of the Ford Lake three kilometres at 015-020 o. A mini-bulk 2.5 km to the north (KD-32/32a) of NTS supracrustal rocks are intensely reworked batholith occur in the northernmost The Churchill Diamond Project is sample of 6.1 tonnes was collected, with the main Kahuna dyke; both locations 55M, N during the 1.8-1.9 Ga Trans Hudson Orogen. part of the property. The near-vertical comprised of mineral rights to more 836 diamonds recovered. intersected macrocrystic kimberlite. Location The Thirsty Lake minette dyke occurs near Wager Bay shear zone cuts the northern than 3.64 million hectares located The Jigsaw kimberlite dike is east- Samples were collected from two surface 75 km northwest of Rankin Inlet the southeast portion of the claim area. part of the property in an east-west between the communities of Rankin west trending, and has the highest G10 pits, total weight 3.6 tonnes. Results are This 208,016 ha land package is situated Ripple Lake Diamonds has completed direction and displays dextral shear sense Inlet and Chesterfield Inlet. As operator, abundancies in its associated mineral expected in early 2007. immediately west of the Churchill Property, the mineralogical analysis of 752 samples indicators.Follow-up till sampling was Shear conducted a multi-season program train. Prospecting along the mineral During the summer 850 follow-up with Shear as the operator. Two kimberlites collected within the KMD property/Brown completed in 2006. Results are pending. in 2006. It consisted of a spring drilling train resulted in its discovery. It has a thin till samples were collected and an on-site have been identified on the property to Lake area in 2005. Kimberlite indicator Ground magnetic surveys were undertaken and ground geophysics program: eight discontinuous magnetic signature over processing and observation lab was date. Follow-up till sampling was conducted minerals (pyrope, chrome spinel, chrome- over select areas to prioritize possible drill drill holes and 145 line-km of ground one kilometre long. Based on the pits established to expedite indicator mineral in 2006 and results are pending. diopside and olivine) were found in 156 of targets. geophysical surveys. Two new kimberlites excavated for the min-bulk sample the determinations. Prospecting located the submitted samples. Pyrope predominates BHP maintains an option in the project.

32 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 33 strong potential for uranium. These the Baker Lake Basin. The 2006 program NANUQ NORTH PROPERTY Energy Sources holdings were transferred into a new included community consultations, Operator, Owners company Uranium North. Five properties prospecting, sampling, and drilling. Dunsmuir Ventures Ltd.; ABERDEEN occur in the Kivalliq: Amer, Amer Lake, The 694 Zone consists of fracture Indicator Minerals Inc. Operator, Owners Tasiq, South Baker and Kazan. controlled uranium mineralization in Commodity Cameco Corp.; The Amer Lake property is the most basement gneissic rocks. Six mineralized Diamonds De Beers Canada Inc. advanced prospect, and comprises four north-south fracture arrays have been NTS Commodity prospecting permits, issued February mapped, with grab samples of frost heaved 56H/02, 03, 06, 07 Uranium 2006. Historical work identified uranium bedrock assaying up to 16.4% U 3O8. Location NTS mineralization in outcrop, drill core, and Drilling confirmed the mineralized 300 km northeast of Baker Lake 66A and B boulders at the Main, Faucon, Horned fractures continue at depth, but are narrow Location The Nanuq North Property is comprised Pitz Lake property. Permits were issued Stornoway collected a 200 kg sample Lake, Split Lake, Uranerz Grid 1 and with variable uranium grade. 120 km West-northwest of Baker Lake of more than 32,780 ha of mineral claims in late 2005. To date, no drilling has for caustic fusion and mineral indicator Showing B locations. Work is planned Drilling at the historically known KZ located adjacent to the northern been reported. analysis and 4.2 tonne sample for dense Cameco entered into an agreement to for 2007. zone targeted the depth extension of boundary of the Nanuq Project. The media separation (DMS) analysis from the explore 14 prospecting permits held by De uranium mineralization associated with claims were staked to capture the potential QILALUGAQ PROJECT A28 kimberlite, part of the Q1-4 complex Beers Canada in 2005. In 2006, Cameco BAKER BASIN silicified and hematite altered sandstone source(s) of one of two kimberlite Operator, Owners (Qilalugaq 1, 2, 3, and 4 pipes which completed detailed and regional scale Operator, Owners within and adjacent to a structurally Stornoway Diamond Corporation; indicator mineral trains with diamond coalesce to form a body with an ground traverses, mapping, prospecting Pacific Ridge Exploration Ltd.; controlled diking system. Three holes BHP Billiton Kaminak Gold Corporation inclusion chemistry identified by approximate area of 14 ha), identified and sampling for petrography and intersected the mineralized structure Commodity Commodity Dunsmuir between 2001 and 2004. by BHP Billiton. While collecting the geochemistry studies. with uranium grades of 0.56% U 3O8 Diamonds Uranium Several samples yielded pyrope garnets larger kimberlite samples, mantle xenoliths Through the integration of bedrock over 5.5 m, 0.50% U 3O8 over 2 m, and NTS NTS with kelyphite rims and one sample in the cobble size range were recovered. structures with magnetics, and EM 0.27% U 3O8 over 5.2 m. 46 L, M 55M/10-15 yielded a pyrope garnet with a kimberlite In 2006, 469 till samples were collected. signatures, targets were identified for The Lucky 7 is a new discovery, a Location Location mantle, indicating a close proximity to Additional kimberlite float was found follow-up prospecting. Planning is uranium mineralization occurring in 10 km north of Repulse Bay, 60 km southeast of Baker Lake source. The project was not active in 2006 extending across the Rae Isthmus outside of known bodies. Prospecting underway for the 2007 field season, bleached Kazan sandstone associated pending resolution on land tenure issues. resulted in the discovery of two new including the conversion of some of the Pacific Ridge Exploration (operator) and with a northerly trending structure, In July 2006, Stornoway Diamonds kimberlite dikes, Naujaat 1 and 2. These prospecting permits into mineral claims. partner Kaminak Gold Corporation hold coincident with a 100–200 m wide by PITZ LAKE announced plans to potentially earn a 50 kimberlites represent two separate parallel 206,400 ha along the southern edge of 500 m long radiometric anomaly. Chip Operator, Owners per cent interest in the 416,000 ha linear structures and have been traced at AMER, AMER LAKE, TASIQ, Kennecott Canada Ltd. Qilalugaq Property from BHP Billiton surface over strike lengths of SOUTH BAKER, AND KAZAN Commodity subject to certain expenditure approximately 3000 m and 600 m, and Operator, Owners Diamonds requirements. Prior to July 2006, 11 average 4.5 m and 2.3 m in width, Uranium North Resources Corp. NTS kimberlites had been discovered by BHP respectively. A 200 kg sample of Naujaat Commodity 65P/15, 66A/2 Uranium Billiton. 1 was collected for microdiamond deter - Location Stornoway conducted a three week mination by caustic fusion analysis and NTS 40 km south of Baker Lake 66H/7, 9, 10 reconnaissance field program in 2006. a further 950 kg of material for macro - Location Kennecott holds 14 claims in the Pitz It focussed on resolving some outstanding diamond extraction by DMS. Samples 140 km North-northwest Lake area. The company submitted the quaternary issues, infill till sampling on of Naujaat 2 were also extracted for of Baker Lake requisite applications and supporting unsourced indicator mineral trains, microdiamond analysis. Results are documentation to obtain a Land Use ground geophysics on seven grids over pending. After review of exploration data and Permit and Water License for a prospecting, known kimberlite bodies, prospecting, historical data, Diamonds North till sampling, and drill program on the and collection on mini-bulk samples from determined approximately 1.6 million known kimberlites. ha of its Nunavut land holdings had a

34 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 35 sampling and channel sampling returned historical uranium exploration data for surface sampling programs to better In light of recent trends in the uranium and brecciated dirty quartzites. GARY LAKE values of 0.27% U 3O8 over 3.9 m and the Baker Lake area and design of a field define the source of the high-grade price, AREVA has initiated a viability study Forum and Superior are reviewing Operator, Owners 0.19% U 3O8 over 3.1 m. Drill core samples program. The geological compilation uranium bearing boulder train. of this combined project. A community assessment files and compiling a Uravan Minerals Inc. returned values of 0.14% U 3O8 over 1.6 m and analysis work has resulted in the consultation office was opened in Baker comprehensive geological database of the Commodity and 0.32% U 3O8 over 3.4 m in sandstone. identification of high priority areas across KIGGAVIK PROJECT Lake in October 2006. region. An aggressive exploration is Uranium Four kilometres northeast of Lucky 7, the property and the selection of seven Operator, Owners anticipated over the next two years, NTS the '7-1' zone has been outlined by a 300 target blocks for airborne geophysical Areva Resources; KIGGAVIK NORTH AND including airborne geophysics, ground 66F/02, 07, 08-10, 16, m long and 100 m wide grid-controlled surveying. The seven blocks were covered Dae Woo; KIGGAVIK SOUTH geophysics, prospecting, geological 66G/05, 06, 12 JCU (Canada) Exploration radiometric anomaly. Frost heaved as part a broader 9,287 line-km geophysical Operator, Owners mapping and alteration studies in Location Company Ltd. Forum Uranium Corp.; mineralized sandstone boulders in a survey of De Beer’s uranium and diamond preparation for a drilling program. 240 km northwest of Baker Lake Commodity Superior Diamonds Inc. north-south trend occur within the permits at Baker Lake. The heli-borne Uranium Commodity radiometric anomaly. Assays of the survey consisted of magnetics, EM, and Uravan Minerals added to its land holdings NORTH THELON PROJECT NTS Uranium Operator, Owners mineralized boulders range from 0.81% radiometrics. in the Garry Lake area with the staking 66A/05 NTS Bayswater Uranium Corporation; to 1.83% U 3O8, average 1.29% U 3O8. of an additional 153,277 ha in 2006. Location 66B/01, 66A/04, 05, 06, 11, 12 Strongbow Exploration Inc. Uranium mineralization appears as BUGS PROPERTY The Gary Lake claim block covers the 75 km west of Baker Lake Location Operator, Owners Commodity disseminated blebs and thin bedding Thelon-basement contact as well as 85 km west and Ur-Energy Inc.; Uranium parallel black seams of pitchblende extending into the basin. The land The Kiggavik project area consists of the northwest of Baker Lake J.D. Charlton NTS within coarse grained Kazan sandstone. package was acquired on the strength of Kiggavik and Sissons properties. Areva is Commodity 66F/01, 02, 15, 16, 66G/07 Additional work is planned for 2007. exploration assessment records, favorable the operator of the project on behalf of In a 2006 summer staking venture, Uranium Location basement metasedimentary rocks partners Dae Woo (Kiggavik and Sissons), Forum acquired over 66,670 ha of NTS 175 km northwest and 220 km BAKER PROPERTY belonging to the upper Amer Group, and JCU (Canada) Exploration Company prospective ground near the Kiggavik- 65K/03 west-northwest of Baker Lake Operator, Owners overlying coarse-grained sandstones of Ltd. (Sissons). Sissons Project. Forum and Superior Majescor Resources Inc.; Location the Thelon Formation, regional-scale A 20 km linear trend, Kiggavik have entered into a Letter of Intent The property covers two blocks of permits, De Beers Canada Inc.; 400 km west of Arviat Uranium World Energy Inc. fault zones and previously discovered Trend, is the dominant control of uranium to form a 50:50 Joint Venture, with totaling 144,868 ha along a northeasterly The 11 Bugs Claims (1 to 11) cover uranium bearing basement boulder train. mineralization in the area. This trend is Forum as the Operator, and an Area of trending exposure of basement rocks Commodities Uranium, Diamonds ultrapotassic Christopher Island volcanic The most significant results from a fault controlled linear trend, striking Interest that encompasses approximately within the north Thelon Basin. During 2 NTS suite rocks, forming what appears to be previous exploration on the property northeast and gently convex to the 39,850 km of the northeastern 2006, an airborne radiometric and 65O, P, 66A a collapsed, faulted cauldera. This was the discovery in 1981 and 1982 of northwest, lying between the Thelon margin of the Thelon Basin, including magnetometer survey was flown over the Location unconformably overlies Proterozoic 19 mineralized boulders, defining a three and Sissons Lake faults. It hosts seven the Kiggavik North and Kiggavik permit area, with initial field investigations. 50 km to 140 km west of Baker Lake radioactive granites and older gneissic kilometre-long uranium-bearing boulder uranium deposits: Kiggavik (Main, Centre South claims. In November 2006, the Data interpretation and integration basement rock. Historical work by train, oriented parallel to the interpreted and East), Bong, Andrew Lake, End, joint venture acquired additional claims with historical data is underway, with The Baker Lake uranium project consists Cominco Ltd. in the 1976-80 period ice flow direction of 330 o. These boulders and Jane. Resource figures are: in the Schultz Lake area, bringing the follow-up ground-work planned for 2007. of two continuous blocks totaling 19 resulted in the discovery of uranium and have been interpreted as unconformity- total project area to 101,562 ha. Strongbow and Bayswater are jointly • Kiggavik zones - 14,872 tonnes owned by De Beers Canada Exploration thorium mineralization in waterlain tuffs associated type mineralization and yielded uranium at a grade of 0.38%, The companies consider the Kiggavik exploring the North Thelon Project under Inc. Majescor has an option to earn up and lapilli tuffs, as well as in extensive, assays ranging from 0.87% U 3O8 to North and Kiggavik South claims to be the terms of the Canada Uranium Joint representing 39 million lbs U 3O8; to an 80 per cent interest in the project east-west younger bostonite dykes. 27.12% U 3O8 with an average of 7.19% • End deposit - 13,598 tonnes uranium situated in favourable structural and Venture, announced in January 2006. from De Beers. In August 2006, Targets for uranium mineralization are U3O8. Uranium soil anomalies collected at a grade of 0.28% for 35 million lbs lithological environments at the margin Majescor spun out its Baker Lake uranium the basal Christopher Island waterlain and in the area define the geometry of this of and within the Thelon sandstone U3O8 with one tonne gold and 0.7 rights for a major stake in a new uranium lapilli tuff horizons forming synvolcanic train, and also suggest the presence of a tonnes platinum; basin covered areas where uranium company, Uranium World Energy Inc. pods in basement paleodepressions. second train located several 100 m to • Andrew Lake deposit - 22,160 mineralization and alteration were MPH Consulting Limited of Toronto Ur-Energy acquired the claims from the west of the original train. tonnes uranium at 0.44$ for 57 discovered in previous exploration has been retained by Majescor to conduct J.D. Charlton in 2006. A prospecting The 2006 summer program included million lbs U 3O8 with 3.1 tonnes campaigns. The Schultz Lake uranium a comprehensive technical review of the program is planned for 2007. airborne geophysical work and additional gold and 2.6 tonnes platinum. occurrences are located within hematitized

36 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 37 the Itza Formation. Intense silicification complete extent of the mineralization NUELTIN LAKE and anomalously low uranium values Gold has yet to be determined. Operator, Owners define a depleted alteration halo at the The exploration programs on Baker Cameco Corporation BAKER LAKE GOLD apex of the RAD boulder train. The Lake during the 2004, 2005 and 2006 Commodity source of the RAD lease uraniferous Operator, Owners field seasons resulted in the new gold Uranium Tanqueray Resources Ltd. boulder train was not identified in the discovery of the Ayak Gossan zone and NTS Commodity widely spaced, phase one drill holes. approximately seven other surface zones 65B/04, 65C/04 Gold Additional infill holes will be included of high grade gold tenure. The mineralized Location NTS in the 2007 program. zones returned more than 100 surface 325 km West-southwest of Arviat RUBY HILL PROPERTY THELON BASIN 66A/02, 03, 07, 10, 11 Drilling on Titan's R-22 property samples with values ranging from 10 g/t Operator, Owners Operator, Owners Location The Nueltin Lake project consists of 30 included two holes that both intersected gold, up 190 g/t gold including more Western Energy Corporation Titan Uranium Inc. 45 km west of Baker Lake claims staked in 2006 and one staked in complexly interbedded feldspathic than 50 samples returning greater than Commodity Commodity 1998. In 2006 Cameco completed a sandstones and graphitic mudstones with Tanqueray's 100 per cent owned Baker 20 g/t gold. The ongoing exploration Uranium Uranium high resolution aeromagnetic, radiometric, uranium values in the eight to 10 ppm Lake Gold Project covers 117,998 ha, every year continues to identify new areas NTS NTS and gradiometre, survey, covering 3300 66F/01, 05-08, 66G/07 66B/15, 66G/01, 02, 08, 66H/05 range, spiking as high as 96 ppm over spanning an area 70 km long and greater or upgrades known zones. The 2006 line-km over the claims. The geology 0.3 m near the top of hole R22-06-02. than 10 km wide of the southern Archean exploration included the surface Location Location consists of an early Proterozoic sequence Approximately 200 km 150 km northwest of Baker Lake These geochemically anomalous uranium Woodburn Group. This is the southern re-sampling of Ayak Gossan between drill intruded by granitic plutons. Uranium northwest of Baker Lake values are considered significant and portion of the same group of rocks that hole AG06-05 and drill hole AG06-06. and gold mineralization has been observed The project area was previously explored warrant follow-up drilling. Field crews hosts Cumberland Resources’ Meadowbank One outcrop sample returned 190 g/t in sulphide-rich (mainly pyrrohtite and Western Uranium has exploration rights by Westmin Resources and its joint- successfully covered all Thelon claims Gold property. AU, the highest grade gold sample pyrite) boulders. A field program is on nine prospecting permits, issued in venture partner CEGB Exploration with ground prospecting. This work An induced polarization (IP) survey found to date on the property. planned for 2007. February 2006, covering 143,669 hectares Canada (now part of Cameco). Multiple resulted in the discovery of several new was carried out in the spring of 2006 to in Nunavut. These permits are located geochemical and geophysical anomalies boulder trains on four of its properties. further enhance the selection of the CHURCHILL PROJECT SOUTHWEST KIGGAVIK, along the north and north-east perimeter were delineated, many to drill-stage, but drilling targets. A total of four zones Operator, Owners CENTRAL KIGGAVIK, ITZA LAKE, TURQAVIK Kaminak Gold Corporation AMER LAKE EAST AND WEST of the Thelon sandstone basin. were not drill-tested. were selected for drilling including An airborne deep-penetrating Titan completed a field program in Operator, Owners three zones that had not been drilled Commodity Operator, Owners Cameco Corporation electromagnetic (EM) and magnetic 2006; including prospecting, ground (Vein 25, Musk Ox and the East Silver Gold Bayswater Uranium Corporation Commodity survey using Fugro’s proprietary radiometric surveys, with drill testing on Zone). Drill targets were selected based NTS Commodity Uranium 55N, O, J MEGATEM II airborne system was two of the seven properties. Five holes on the combination of high grade gold Uranium NTS completed over the entire property during were completed on the RAD lease and values from previous surface samples, Location NTS 66A and B 70 km north of Rankin Inlet the latter part of the summer of 2006. claims, and two holes completed on the the new IP survey and previous drill 65O/15, 66B/01-03, 08, Location 66G/01, 02, 66H/05-07 The survey consisted of 3700 line-km R-22 property. 100 km west of Baker Lake results from the 2005 program on the Kaminak Gold Corporation retains 100 Location flown at 300 m line spacing. Preliminary Assays from drill hole RAD-06–05 Ayak Gossan zone. per cent of non-diamond rights covering 135 km west and 140 km results from this survey have identified a confirmed the presence of uranium values In 2006, Cameco completed detailed and A 10-hole 1089 m diamond drilling the Churchill Diamond Project currently northwest of Baker Lake number of strong conductors along in bedrock. Collared up-ice from a regional scale ground traverses, mapping, and surface exploration program was operated by Shear Minerals Ltd. As part Bayswater Uranium acquired the claims structural corridors that appear to be mineralized boulder train in the Outcrop prospecting and sampling for petrography completed in the summer. Assay results of this agreement Kaminak has free access in late 2006. A compilation of historical similar to the types of conductors 6 area, this vertical hole encountered and geochemistry studies over the 131 confirm the expansion of the area of gold to any data collected for diamond data is underway, with plans for field associated with unconformity-type several intervals containing visible uranium claims of the Turqavik project. Through mineralization discovered in 2005 on the exploration, including over 71,000 work in 2007. uranium deposits found in the mineralization, pitchblende as fracture the integration of bedrock structures Ayak Gossan zone. The 2005 and 2006 line-km of airborne geophysics and Athabasca Basin. Data interpretation and filling on massive pick sandstone (of the with magnetics, and EM signatures, targets drilling programs have defined an area of 7,500 archived till samples. Kaminak integration with historical data is Oora Lake Formation). Most of the holes were identified for follow-up prospecting. gold bearing stratigraphy with a down identified several high-priority gold targets underway, with follow-up ground-work on the RAD property intersected silicified dip length of approximately 350 m and on the Churchill Property. planned for 2007. feldspathic sandstone interpreted to be strike length of approximately 180 m. The

38 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 39 The Sedna Region displays highly- anomalies have been outlined across the project area. In June 2006, Newmont and pyrite) and gold occur within a The 2006 drill program also discovered MELIADINE EAST deformed, gold-bearing banded-iron- Churchill Property and remain to be planned a 1,200 m drill program on the structural fabric associated with early the Goose South zone, located approximately formation over at least a six kilometre followed-up. property; however, logistical problems progressive isoclinal folding. Alteration 400 m south of the Goose Island deposit. Operator, Owners Comaplex Minerals Corp.; strike-length. Limited prospecting at Sedna prevented the drill program from being includes sericitization, sulphidation, Drill intersections yielded encouraging Resource Capital Fund resulted in the discovery of several gold MATRIX GOLD PROJECT completed. As a result, numerous priority silicification and carbonatization. Six gold grades over narrow to moderate Operator, Owners Commodity anomalies in banded-iron-formation targets remaining untested. In August of near-surface gold deposits have been widths within a similar structural and Gold outcrop. Kaminak Gold Corporation; 2006, Newmont terminated the option identified in the project area: Goose stratigraphic setting as the Goose Island Pacific Ridge Exploration Ltd. NTS During 2006, drilling, prospecting agreement on Kaminak’s Matrix Gold Island, Third Portage and North deposit. Commodity 55J/13 and 14 and mapping activities were undertaken Project. Kaminak retained 100 per cent Portage, Vault, Bay Zone, and PDF. The Meadowbank is forecast to produce an Gold Location on the property. Five drill holes, totaling ownership of the additional claims and Connector Zone links the Third and average of 330,000 ounces of gold per NTS 30 km northeast of Rankin Inlet 459 m tested the first three of several prospecting permits which are in good North Portage deposits (three zones year over an eight year mine life based on 65H/11, 12, 65G/9 geophysical and geochemical targets in the standing. The original option agreement collectively termed “Portage Zone”). a feasibility study and subsequent due On October 26, 2006, Cumberland Location Sedna area. The most significant result 175 km west of Arviat between Kaminak and Pacific Ridge In early 2005 updated resource figures diligence completed in December 2005. Resources sold its 50 per cent interest in came from drill hole KCF-01. This hole Exploration Ltd. has now been revived were released as part of a feasibility study. In September 2006, NIRB made a positive Meliadine East to Resource Capital Fund collared in banded-iron-formation and Kaminak Gold Corporation is exploring for the project area. Based on open-pit mining methods, recommendation on the Meadowbank III L.P. and Resource Capital Fund IV intersected a number of sulphide-bearing the lower units of the Proterozoic measured and indicated gold resources Project and based on this, Cumberland L.P. (collectively RCF). The Meliadine quartz veins. Visible gold was noted along Hurwitz Basin in the southern Kivalliq. MEADOWBANK PROJECT stood at 23.3 million tonnes at 4.4 g/t moved the project closer to production. East project was not active in 2006, but the margin of one such vein at a depth of The geological setting of the project Operator, Owners Au, for 3.3 million contained ounces The company has since secured at least remains a going concern for the partners. 30 m. An assay of this material yielded area is considered analogous to that Cumberland Resources Ltd. from the Portage, Goose Island and $254 million for its gold loan facility and 7.06 g/t Au over a core length of 0.69 hosting the billion ounce Witwatersrand Commodity Vault zones. has raised approximately $87 million in MELIADINE WEST Gold m. Poor drilling conditions caused the gold mineralization in South Africa. Initial The 2006 exploration program focused equity financing to be used for development Operator, Owners hole to be shut down prematurely at a work done by the Hunter Exploration NTS on gold resources and reserves. The Cannu of Meadowbank, $23 million from the sale Comaplex Minerals Corp.; 66H/01, 56E/04 Resource Capital Fund depth of 45 m while still in banded iron Group identified three gold-bearing pyritic zone, a potential open pit gold zone, was of its Meliadine East and West interests in Location Commodity formation. This target is modeled to have conglomerate zones with grab samples discovered in the fall of 2005 and an October 2006. In November 2006, the 75 km north of Baker Lake Gold a length of approximately 800 m. assaying up to 16.0 g/t Au. During the inferred mineral resource estimate was Minister of Indian Affairs and Northern NTS A detailed mapping and prospecting 2006 season, geological mapping and The Meadowbank gold deposits occur reported in early 2006: 440,000 tonnes Development accepted the NIRB 55K/16, 55N/01 and program followed the drill program to prospecting done by Newmont uncovered within the Archean Woodburn Lake at 6.0g/t Au, for 85,000 contained ounces. recommendation that development of the 02, 55O/04 further evaluate these drill results and also new surface gold showings yielding greenstone belt, approximately 75 km The Cannu zone gold mineralization Meadowbank gold project should proceed. Location generate new targets. Prospective rock assays up to 10.56 g/t Au. An additional north of Baker Lake, and represent the represents a potential 350 m northern Prior to freeze-up, Cumberland staged 24 km northeast of Rankin Inlet types and associated nickel geochemical 56,000 ha were staked, adding to the third largest undeveloped gold resource extension to the proposed Portage open the necessary equipment and supplies at in Canada. The stratigraphy consists of pit, which contains an estimated 1.59 million Baker Lake for the construction of a Comaplex is continuing to proceed with quartzite overlying komatiite, which in turn oz of reserves. With the addition of Cannu, four season access road to Meadowbank, an ambitious program to assess the overlies intercalated felsic to intermediate continuous mineralization has been defined pending receipt of the necessary permits. potential development of the Meliadine volcanic rocks and iron formation. over a strike length of approximately Mining operations from three, shallow property. Total drill meterage completed Regionally, four phases of deformation 2.15 km in the Portage area. Systematic open pits could commence in late 2008 in the 2006 exploration program was are recognized. The stratigraphy is folded infill and step-out drilling completed during or early 2009 subject to the receipt of 18,043 m in 75 holes. Of this amount, into a northwest-trending, isoclinal, the 2006 program was successful in permits and licenses. 16,124 m (89%) in 62 holes were recumbent anticline sandwiched between defining four distinct, high grade lenses completed in the Tiriganiaq zone. The two large granitoid intrusions. of mineralization (Keel, 305, Core and remaining 1,919 m was drilled in 13 shal - Mineralization is hosted by interbedded East lenses) at the Cannu zone and an low holes on the reconnaissance Aklak iron formation and felsic to intermediate improved Cannu resource estimate will and Aqpik targets on the far east end of tuff, with subordinate orthoquartzite and be determined. the property. ultramafic schist. Sulphides (pyrrhotite

40 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 41 Property. Starfield is currently advancing TARGET 87 Nickel - Copper – PGE its hydrometallurgical testing program. The program includes grindability testing, Operator, Owners BHP Billiton; FERGUSON LAKE PROJECT flotation-concentrate production, and Jaguar Nickel Inc. Operator, Owners PLATSOL process evaluation of Starfield Resources Inc. Commodities ‘hydrometallurgically-produced’ Nickel, Cobalt, Copper, Commodities concentrate. Platinum, Palladium Nickel, Cobalt, Copper, A new, all-season, base camp and related Platinum, Palladium NTS facilities was built near the West Zone. 65F/14 NTS The main objective of the 2006 drill more selective, narrow vein mining On October 26, 2006, Cumberland During 2006, the mineral claims hosting 65I/09-15, 65J/14, 16, Location program was to confirm continuity of methods. A gold price of $450 US per Resources sold its 22 per cent interest 65O/01, 65P/03, 04 the Ferguson Lake sulphide resources, 385 km west of Arviat mineralization in the 1000 and 1100 ounce has been assumed in the mine inMeliadine West to Resource Capital Location new base camp, and the proposed airstrip lodes within the Tiriganiaq deposit. Some planning analysis. Fund III L.P. and Resource Capital 160 km south of Baker Lake were surveyed in preparation for The Target 87 property consists of two minor meterage was allocated to testing From surface to 150 m (potential Fund IV L.P. (RCF). application of a mining lease to cover prospecting permits, which host a poorly the 1050 lode below the main deposit open pit, applied cut-off 2.5 g/t Au), Starfield Resources acquired this property this part of the property. exposed large gabbro complex. Jaguar and to test the upper portion of the the calculated indicated resource is 4.2 SY PROPERTY in 1999, increasing its mineral claim Geological mapping, in conjunction Nickel Inc. Is exploring the property for shallow west plunging 1150/1250 lodes. million tonnes at 7.5 g/t Au, (1,009,000 Operator, Owners holdings by 200 per cent in 2005. The with recent geophysical interpretation on large volume magmatic sulphide deposits, Regional prospecting and sampling to contained oz) plus an inferred resource Kaminak Gold Corporation property now extends 125 km east-west the west side of Ferguson Lake, indicates pursuant to an exploration agreement the west of the Tiriganiaq deposit was of 3.244 million tonnes at 4/1 g/t Au Commodity and 71 km north-south at its widest the layered intrusion extends at surface with BHP Billiton whereby the Company Gold also completed. Efforts were concentrated (432,000 contained oz). Below 150 m section. The Ferguson Lake deposit is a from the South Discovery Zone to the may earn a 51 per cent interest in the on the Musket Bay structure, which hosts (potential underground, applied cut-off NTS Ni-Cu-PGE deposit, hosted by moderate West Zone South over a distance of 6.8 km. subject properties. Jaguar Nickel has 65I/14, 15 the same iron formations and structural 6.5 g/t Au), the indicated resource estimate to weakly foliated tholeiitic gabbro- In addition to the on-going drill entered into an exploration alliance with Location deformation as the Tiriganiaq deposit at is 0.507 million tonnes at 11.3g/t Au hornblendite layered intrusions. program, exploration crews completed BHP Billiton for the exploration and 250 km west of Whale Cove a location approximately 8 km to the west (84,000 contained oz), plus inferred The focus of the 2006 program was detailed follow-up and reconnaissance development of nickel mining properties of Tiriganiaq. This area is a target for resources of 3.188 million tonnes at 10.9 The property covers over 48,000 ha of the delineation drilling of the ‘potential scale geological mapping, prospecting/ in Canada, Alaska, the mid-continental the 2007 surface exploration program. g/t Au (1,120,000 contained oz). The total the Archean greenstone belt known as pit area’ and selected parts of the 4.2 km rock sampling, and till sampling. This United States and Greenland, excluding Comaplex is currently in the process ounces of gold are 1,193,000 (indicated) the Yathkyed Lake Greenstone Belt. long West Zone where previous work has program focussed on priority targets and certain properties currently held by of compiling and validating information and 1,552,000 (inferred). Kaminak has a 100 per cent interest in identified 8.7 million tonnes of indicated target areas identified in property scale BHP Billiton. from its 2006 program to update the Comaplex is presently developing the non-diamond rights. resources and an additional 53.2 million airborne magnetic-VTEM geophysical The Target 87 project area has received amount and classification of the engineering information for the deposit Fugro Ltd. completed a 1,156 line-km tonnes of inferred resources at a 1% surveys and in rock and till surveys very little exploration attention historically. resources in the Tiriganiaq deposit. The that will lead to the completion of a airborne magnetic and electromagnetic Cu+Ni cut-off grade. Eight kilometres of completed in 2005. A total of 138 rock The area is spatially related to the Snowbird most recent resource estimate for the scoping study by early 2007. Some issues survey over the property in 2006. The continuous geophysical conductors have samples from outcrop have been submitted Tectonic Zone which is a suture zone Tiriganiaq deposit was released in to be included are: costing and associated survey successfully defined the extent of been outlined in the West Zone with only for assay and infill till sampling resulted between tectonic plates that is spatially January 2006, prepared by Snowden information related to a proposed known horizons of gold-bearing banded- 4.2 km continuously drilled. in 781 samples being collected. New associated with large mafic and ultramafic Mining Industry Consultants. Preliminary exploration decline into the deposit, iron-formation and outlined a new 30 km Starfield completed 24,000 m of drilling mineralized outcrops were discovered, intrusions which themselves are prospective mine planning and cost estimation studies scheduled for late 2007; upgrading and long magnetic trend which is also in 2006. Over 5400 one metre core samples and anomalous base metal and palladium hosts of nickel and copper mineralization. were undertaken so that reasonable cut-off extension of the existing road between interpreted as a highly deformed banded- were submitted for analyses and assay. till target patterns were further confirmed Jaguar Nickel announced an airborned criteria could be applied in the estimate. the deposits and the camp, with possible iron-formation. This previously unknown The results will be compiled, integrated in the 2006 regional program. VTEM electromagnetic and magnetic The analysis suggests that open pit surface infrastructure work in the area trend also reveals a number of co-incident with previous drill results, and released survey in 2006. Six hundred line kilometres mining may be possible to approximately of the proposed portal; determination electromagnetic anomalies that could with an updated resource estimate during of flight lines detailed the gabbro complex 150 m below surface. Snowden sug - of the potential benefits of building a represent sulphide-bearing horizons. 2007. The geological and resource models at 300m line spacing. Follow-up ground gests it is likely that a small portion of the 27 km all-weather road between Rankin being developed will form the basis of work of prospecting, rock and till sampling underground resource may be mined by Inlet and the deposits site. an assessment of the Ferguson Lake was conducted.

42 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 43 Qikiqtani/Baffin Region

The majority of exploration programs central and southern portions of Baffin Evaluation of the sapphire potential in the Qikiqtani Region focused on Island as well as the High Arctic. continues in the Kimmirut area. There is Diamonds diamondiferous kimberlites. The north- The largest individual exploration also interest in coal on Axel Heiberg and western half of Baffin Island and the project focused on iron deposits in the Ellesmere islands in the High Arctic with ALEXIS Melville Peninsula all have been the focus Mary River area. several companies and individuals having infrastructure, four diesel electric Operator, Owners BHP Billiton; of diamond exploration for the last few In central Baffin, iron formations are obtained coal exploration licenses. Base Metals generators, the ship loading facility Stornoway Diamond Corporation years, with more interest developing in the being explored for their gold potential. and the concentrate storage building. NANISIVIK MINE Commodity In return, Wolfden agreed to reclaim Operator, Owners Diamonds the industrial complex site and immediate Canzinco Ltd. (Breakwater Resources) NTS Commodities area to the regulators’ satisfaction. 47A, 47B Zinc, silver POLARIS Location NTS Between Repulse Bay and Igloolik 48C/01 Operator, Owners on the Melville Peninsula Teck Cominco Ltd. Location Borden Peninsula, Baffin Island Commodities The Alexis property consists of 1.25 Lead, Zinc million ha of mineral claims. These claims The Nanisivik Mine went into production NTS where staked in the fall of 2004 surrounding 66H/08 in 1977. Production ended in 2002 and adjacent to the Qilalugaq property. Location with low metal prices. In the last year of BHP Billiton and Stornoway Diamond Little Cornwallis Island, production, the mine produced 516,544 90 km northwest of Resolute Bay Corp. hold a 50:50 interest in the property. tonnes of ore grading 10.0% Zn and 42 Approximately 600 till samples were g/t Ag. In June 2004 the Nunavut Water The Polaris mine, on Little Cornwallis collected during the 2004 field season. Board (NWB) gave its approval to proceed Island and the most northerly mine in BHP Billiton completed field work in with a closure and reclamation plan. These the world, commenced production in 2005. No details are available at this closure and reclamation activities were 1980. The principal metals extracted were time for 2006. initially anticipated to be finished in 2005; zinc, lead and calcium, at a production however, the work was delayed and was level of 152,700 tonnes in 1997. Zinc AVIAT completed in 2006. Work included comprised a little over 12% of the ore Operator, Owners Stornoway Diamond Corporation; removal of the remaining infrastructure, mined and lead accounted for about BHP Billiton; limited maintenance of cover material, 3.5%. Further studies and exploration Hunter Exploration Group finalization of the placement of some activities determined that the deposit Commodity cover material, removal of contaminated was not economically viable. The mine Diamonds soils from certain targeted areas and the closed in 2002; Teck Cominco set NTS commencement of post closure monitoring. about to decommission the mine and 47C, D Beginning in 2007 and for a minimum of reclaim the site. Hazardous materials Location five years, geotechnical and environmental from the site were transported to 120 km northeast of Hall Beach, monitoring of the site will be conducted southern Canada for recycling or disposal Melville Peninsula to ensure the integrity of the reclamation and reclamation was completed in 2004. work. Site monitoring, particularly related The Aviat Joint Venture is a partnership In 2003, Canzinco entered into an to water quality to ensure that metal between Stornoway (70 per cent), BHP agreement with Wolfden Resources who levels continue to be well below allowable Billiton (20 per cent), and Hunter purchased the Nanisivik industrial complex, levels, will continue through to 2011. Exploration Group (10 per cent) that including milling equipment and related covers approximately 1.6 million ha

44 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 45 in the property by spending $1 million was recovered in kimberlite float. Further ration that included detailed airborne before 2009 and incurring 100 percent work discovered eight kimberlite outcrops magnetic/EM surveys, as well as of the cost of staking mineral claims. In and five areas of kimberlite float. Airborne detailed gravity and magnetic ground the 2005 field season 123 heavy mineral magnetic work over the property outlined grids over the previously discovered samples were collected on the property. No several anomalous areas that are interpreted Tuwawi kimberlite. Stream sediment and results were available at the time of writing. to be possible kimberlites. till sampling identified numerous kimberlitic The Borden Project was a priority for boulders which were sent for diamond BORDEN PROJECT Patrician for the 2006 field season where the analysis. This work defined several high- Operator, Owners company planned a program of prospecting priority targets for follow-up in 2006. Indicator Minerals Inc. of the Melville Peninsula in eastern in late 2005. Both kimberlites are located and sampling in addition to collecting The 2006 work, budgeted at $0.9 Nunavut. The property has been BAFFIN ISLAND PROJECT at the south end of a series of boulder Commodity larger samples of some of the known million, included follow-up till and stream Diamonds Stornoway's main project since 2003 Operator, Owners trains which, together, form a train over kimberlites in order to better evaluate sampling, detailed ground based magnetic NTS and was the principal focus for 2006. Pure Diamonds Exploration Inc.; 50 km long. Both are also the sources their diamond potential. No results geophysical surveys and the prospecting De Beers Canada Inc. 47H, 48A Till sampling has narrowed the areas of of the boulder trains that led to their were available at the time of writing. of magnetic trends within a 40 km2 area Commodity Location interest on the project from ~ 2.2 million discovery. Mineral chemistry analysis surrounding the three known kimberlite Diamonds 110 km south east of Arctic Bay ha in 2004 to just under 1.6 million ha indicates that the kimberlites are highly BRODEUR bodies. Two new kimberlite outcrop, NTS in 2006. prospective for diamonds. Micro diamond The Borden Project is located on the Operator, Owners subcrop and boulders were located 47E, 47H, 37C, 37H, 37F, 37G Diamondex Resources Ltd.; The Tremblay Corridor is a 70 km by analyses from the Aliguja and Amon trains Borden Peninsula and is comprised of 12 by prospecting along the geophysical Location Kennecott Canada Exploration Ltd. 8 km zone of high indicator mineral returned 263 and 234 micro diamonds prospecting permits. This project is part of expression of the structure known 150 km north of Igloolik Commodity concentrations that hosts all the known from 99.3 and 136.2 kg, respectively. an option agreement between Committee to host the Kuuriaq intrusion, interpreted Diamonds kimberlites on the property. Eleven Pure Diamonds Exploration Inc. and With an ice direction from north to Bay Resources and Indicator Minerals Inc. to be a steeply dipping, sheet-like body NTS kimberlite bodies have been discovered to De Beers Canada Inc. are working on the south, the sources of the majority of the In 2004, heavy mineral samples 48C/04-06, 48C/11, with a potential strike length of 5.5 km, date: AV1, AV1 West, AV2 Upper, AV2 Baffin Island Project, part of the High boulder trains has yet to be discovered. yielded kimberlite indicator minerals in 58D/08, 48G/11-14, 400 m of continuous outcrop, 1.2 to 2.2 m Lower, AV3, AV4 AV5, AV67, AV8 Upper, Arctic Joint Venture between the companies. The results from the 2006 Baffin one area of the property. In 2005, 30 48H/08, 48H/09, 48B/02-04 wide, were also found along this structure. AV8 Middle, and AV8 Lower. All bodies The Baffin Island Project is the most Island Exploration Program will be heavy mineral specimens were collected Location The investigation of a magnetic have proven significantly diamondiferous advanced within the venture and was the reviewed in detail in anticipation of the to identify the source of the indicator 110 km west of Nanisivik anomaly 180 m x 100 m led to the with average grades of 0.86 c/t. focus of exploration for De Beers in this area. continuation of exploration in 2007 . minerals. No results were available at discovery in outcrop of Katigia, a dyke-like In 2006, Stornoway drilled a total of Exploration in 2006 included 4,300 line the time of writing. The Brodeur property is centered on kimberlite body. Kimberlite boulders were 1,833 m (22 holes) and intercepted kilometres of airborne magnetic and BAUMANN PROJECT the northern half of the Brodeur also found. Kimberlite fragments were kimberlite with true thicknesses up electromagnetic surveys, prospecting, Operator, Owners BORDEN PROJECT Peninsula of Baffin Island in Nunavut. recovered directly over another magnetic Stornoway Diamond Corporation; to 5.25 m. In the Tremblay Corridor, geological mapping, ground geophysics Operator, Owners The property comprises 32 optioned anomaly not associated with any known Indicator Minerals Inc. Patrician Diamonds Inc. the intercepted rocks are tentatively and 1100 m of diamond drilling. The claims and six prospecting permits trends and located three kilometres Commodity interpreted to represent shallowly-dipping program keyed in on the core area of Commodity totalling 163,608 ha. Diamondex can earn northwest of Kuuriaq Diamonds Diamonds (eight to 20 o), stacked sheets as eight the project where a kimberlite boulder up to 100 per cent on the property, An aggregate total of nearly 600 kg NTS NTS distinct kimberlite bodies with associated train had been discovered. subject to an agreement with Kennecott of kimberlite was collected from the 49C, 49D, 49E, 49F 48A, 48B zones of kimberlite breccia were intercepted Diamond drilling resulted in the Canada Inc. The property hosts three recently discovered sites described Location Location and intersected in an area 1.5 by 3.5 km. discovery of a new kimberlite termed known diamond-bearing kimberlite above. Results are pending. Upon 200 km north of Grise Fiord 90 km southeast of Artic Bay Additional work included prospecting “Aliguja”. This discovery was at the bodies: Tuwawi, Nanuk and Kuuriaq. receipt, the results will be incorporated that identified 122 new kimberlite head of a boulder train defined by The Baumann Project is composed of 87 Patrician Diamonds Inc. acquired the The largest kimberlite, Tuwawi, with into design a delineation drilling program boulder occurrences, and the collection detailed prospecting and geological prospecting permits on Ellesmere Island. property covering 35,416 ha on the Borden a surface expression of approximately scheduled for the second quarter of of 2,100 till samples to follow-up on 15 mapping. The Aliguja kimberlite dyke is The property was optioned to Stornoway Peninsula in 2004. Kimberlite bodies were four hectares is interpreted to increase in 2007. A mini-bulk sample will also be unsourced indicator mineral trains with over two kilometres east of, and on trend Diamond Corp. in March of 2005. discovered on the property during the size with depth. In 2005, Diamondex collected from Tuwawi. promising diamond inclusion chemistry. with, the Amon kimberlite discovered Stornoway can earn a 41 per cent interest initial staking and a 0.31 carat diamond spent C$1.91 million on initial explo -

46 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 47 Kimberlites are found in the MIRAGE, TIMMIJUUQ “Jackson Inlet cluster” of kimberlites with at least four bodies, including the Operator, Owners Island, part of the High Arctic Joint new discoveries were made through drilling Peregrine Diamonds Ltd. Freightrain and Cargo 1. The cluster is Venture between the companies. The and three were discovered as subcropping Commodity manifested as three dark brown circular Muskox Project consists of 175 permits dykes near the W1 kimberlite that was Diamonds patches within a 500 by 600 m halo of covering 3,350,296 ha and all of Prince first discovered in 2004. Approximately NTS tan colouration. The Freightrain kimberlite of Wales Island. The proposed budget 708 kg of kimberlite core and 70 kg of 26L, 26M, 36I, 36P (Mirage), contains gem-quality diamonds. 15P (Timmijuuq) for the project in 2006 was $1,250,000 surface subcrop were submitted for Location and 727 till samples were collected. geochemical and diamond analysis. MIP Results from this work has revealed that 400 km North-northwest of Iqaluit PRINCE CHARLES ISLAND Operator, Owners (Mirage); 200 km west of Iqaluit four of the kimberlite bodies are weakly Contact Diamond Corporation; (Timmijuuq) Operator, Owners diamondiferous and samples from the Stornoway Diamond Corporation BHP Billiton remainder of the kimberlite bodies were Commodity The parent company of Peregrine Diamonds Commodity barren of diamonds. The Wales Island Diamonds Diamonds EDEN POINT PROJECT JACKSON INLET EAST AND WEST Ltd. underwent corporate re-organization partners have reviewed the exploration NTS NTS Operator, Owners Operator, Owners in October 2005 when its metal properties results received to date and as of May 26E/04, 26E/05, 36H/01, 36H/08 36N, 36O, 37A, 37B Pure Diamonds Exploration Inc.; Twin Mining Corporation; were separated from its diamond properties. 2006 have no plans for further exploration De Beers Canada Inc. Stornoway Diamond Corp. Location Location Properties held by Dunsmuir were of the property as of May 2006. Commodity 225 km northwest of Iqaluit Islands west of Baffin Island Commodity amalgamated into Peregrine Diamonds Diamonds Diamonds in Foxe Basin The MIP project is a joint venture between in early 2006. In the Baffin area, two areas Energy Sources NTS NTS Contact Diamonds and Stornoway of prospecting permits (issued February BHP Billiton maintained prospecting 48E, F, G, H, 58E, F, G, H, 59A, B 58D/01, 58D/08 Diamond Corporation located in south 1st , 2006), the Mirage and the Timmijuuq permits covering the islands just south of STRAND FIORD COAL PROJECT Location Location Operator, Owners 250 km north to 450 km east of Resolute central Baffin Island. Following initial properties, in the west and east parts of central Baffin Island in the Foxe Basin. 120 km west of Nanisivik James Bay Energy Inc. Bay, including Resolute Bay area research that resulted in a focus on areas southern Baffin Island, respectively, were Twin Mining entered into a letter of Baffin Island, the companies conducted the subject of exploratory work conducted WALES ISLAND Commodity The Eden Point Project is part of the High agreement dated March 2006 with field work in 2005; work consisted of an in 2006. Reconnaissance exploration Operator, Owners Coal Arctic Joint Venture between Pure plans to incorporate a new subsidiary, aeromagnetic survey, prospecting, claim activity was conducted on this two properties; Strongbow Exploration Inc.; NTS Stornoway Diamond Corporation: 46K, 46L, 46M, 46N Diamonds Exploration Inc. and De Beers Diamondco, which will acquire all of staking and till sampling. no results were available at the time of BHP Billiton Canada Inc. This project is comprised of Twin Mining's diamond exploration Aeromagnetic results directly led to writing. Location Commodity 515 km north of Resolute Bay on 243 permits totaling just over four million assets, the Brodeur property on Baffin the staking of approximately 30,353 ha Diamonds Axel Heiberg Island hectares. The property covers all of Devon Island and the TORNGAT property in in this area. One of the three claim blocks MUSKOX HILL PROJECT NTS Island not affected by the Ice Cap and Nunavik, Quebec. Completion of the staked contains fourteen discrete geophysical Operator, Owners 46M/15, 46M/16, 47B/03 James Bay Energy Corp. has held the coal portions of Cornwallis and Little Cornwallis transaction is subject to receipt of all anomalies varying in size from 125 m to Pure Diamonds Exploration Inc.; licences that cover the Kangut Peninsula De Beers Canada Inc. Location Islands. During 2006, De Beers, as operator requisite regulatory approvals. 800 m in diameter. All of the anomalies 150 km north of Repulse Bay of Strand Fiord on Axel Heiberg Island of the joint venture, conducted regional Twin Mining acquired the property are found in a single cluster and in an area Commodity in Canada’s High Arctic for several years. Diamonds sediment sampling program and collected from privately-held Helix Resources in considered to be structurally permissive to In September 2005, Strongbow and This island lies immediately west of 991 samples. Only small portions of the June 2000. Since then, the company has kimberlite intrusion. The anomalies were NTS partners Stornoway and BHP Billiton Ellesmere Island within the Sverdrup 67G, 67H, 68A, 68B, 68C, 68D samples collected has been examined to added substantially to its land holdings on drilled in August 2006 but failed to announced the discovery of eight new sedimentary basin. In 2004, the company Location date for indicator minerals. Positive kimberlite the Brodeur Peninsula to hold 5,107 km 2 intercept kimberlite although the kimberlites on Wales Island, bringing team went to Axel Heiberg Island to 400 km north of Gjoa Haven indicator minerals were recovered from in total. 270 tonnes of samples has been geophysical targets were explained. No the total number of known kimberlite sample coal seams. The company still several of the early samples and initial results analysed resulting in over 50 carats of further work is planned at this time. Pure Diamonds Exploration Inc. and De occurrences on the property to 10. The holds the licences although the property suggest two sources for the mineral trains. diamonds with the largest diamond Beers Canada Inc. are working on the new discoveries were made during an has been inactive recently. recovered being 1.557 carats. Muskox Hill Project on Prince of Wales exploration drilling program. Five of the

48 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 49 drilling highlights include a hole which are 28.9 g/t Au over two metres and holes tested the Brent showing and gold returned 15.13 g/t Au over 1.67 m and 18.0 g/t Au over two metres, with two mineralization up to 6.14 g/t Au over a step-put hole drilled 150 m southwest chip samples at the Durette Showing one metre was intersected 45 m vertical of the first hole and returned 2.02 g/t Au returning values of 41.4 and 46.95 g/t depth beneath surface exposures that over 2.09 m. These results suggest that Au. Drilling at the Durette Showing carried high-grade gold. the system is open. A second mineralized intersected 9.61 g/t over 1.56 m at a Coal is found in four formations within the second occurrence. The sapphires A total of 548 samples of sawn core, zone at Ridge Lake contains gold and depth of 14.30 m. This trend is open and Iron the Sverdrup Basin: the Upper Devonian are natural blue, yellow and colourless. ranging from 10 cm to one metre in arsenopyrite over a strike length of 250 m. continues to the west. Another sampled Okse Bay Formation, the Upper Triassic True North Gems recovered a 4.29 length, have been shipped to Vancouver Six grab samples from this zone contained showing five kilometres south-east of the MARY RIVER IRON ORE DEPOSITS or Lower Jurassic part of the Heiberg tonne bulk sample in 2004 from the for detailed geological, mineralogical, 1.34 to 9.23 g/t Au. Durette Showing returned values of 3.98 Formation, Lower Cretaceous Isachsen Beluga deposit and the company discovered petrographic and geochemical analysis. The Malrok Prospect, located 30 km g/t Au and 0.23% copper. Prospecting Operator, Owners Baffinland Iron Mines Corp. formation and the Upper Cretaceous and four additional sapphire occurrences. west of Ridge Lake, contains gold that outlined an area of 200 m with sulphide- Commodity the Tertiary Eureka Sound Formation. The results of the bulk sample were is found on surface and through drilling bearing (up to 60% pyrrhotite, pyrite Gold Iron These coal and hydrocarbon resources encouraging with the recovery of rough over a strike length of approximately 2 km. and chalcopyrite) iron formation and NTS were examined in the late 1970s and early sapphire averaging 790.7 c/t. The grade CENTRAL BAFFIN Surface samples returned gold values of mafic volcanic boulders. (BAFFIN ISLAND GOLD) 37G/05 1980s by several of the larger petroleum of gem-quality and near-gem quality up to 212 g/t and drilling results down At Qim 5, 20 km east of Ridge Lake, Location companies and this work has been written sapphires was 33.1 c/t and 115.0 c/t Operator, Owners to 50 m depth included 9.15 g/t Au over a grab sample containing 48.29 g/t Au Commander Resources Inc.; 160 km south of Pond Inlet up in assessment reports. respectively. An independent evaluation 6.0 m, 15.12 g/t gold over 3.0 m, and was found 150 m southeast of a 2004, BHP Billiton; of a portion of the sapphires that were Falconbridge Ltd.; 12.1 g/t Au over 3.3 m. The iron 100 g/t Au channel sample. The Brent The iron deposits at Mary River on Gemstones processed showed an average price of Nunavut Tunngavik Incorporated formation-hosted gold mineralization Showing was discovered in 2006, five north central Baffin Island were first US$570.85/t. Commodities extends down-dip from surface for at kilometres southwest of Ridge Lake: it discovered by Murray Watts and Ron BELUGA SAPPHIRE PROJECT Prospective outcrops, trenches and drill Gold least 130 m. is a 1400 m long shear zone with quartz Sheardown in 1962. Between 1963 and Operator, Owners core intervals were identified during 2005 NTS The Durette Prospect is outlined over veining, arsenopyrite and pyrrhotite. 1965, exploration work identified five True North Gems Inc. drilling. The 2006 drilling program 37A/09, 37A/10, 27B an area of at least two kilometres and is Analytical results from 66 grab samples high-grade iron deposits. Other work at Commodities consisted of 40 holes (1,482 m) and Location comprised of the 2369 Prospect and along the length of the shear zone this time included the construction of 3 Sapphires/Fancy Sapphires concentrated on several high priority 360 km northwest of Pangnirtung Durette Showing. The best channel samples range up to 113.95 g/t Au. Two drill gravel airstrips, the establishment of a NTS targets hosting visible, colourless to 25K/13 deep blue, pink and yellow sapphires. The property is underlain by a sequence Location Numerous pods exhibiting mineralogical of Lower Proterozoic sedimentary and 3.5 km southwest of Kimmirut similarities to the main Beluga sapphire volcanic rocks. The Bravo Lake iron The sapphires discovered on Southern occurrence were identified. The intermittent formation hosts 15 known gold Baffin Island are hosted in a desilicified pods ranged in thickness from less than occurrences including Ridge Lake, syenitic pegmatite lens in the marbles of 0.5 m and up to 9.5 m and were intersected Malrok, Durette, QIM 5 and the the Lake Harbour Group of sediments. from near-surface intervals to depths of newly- discovered Brent showing. The sapphires were discovered by more than 35 m. Drilling has also The Ridge Lake prospect is 3.5 km long independent prospector brothers confirmed the widespread presence of within a prominent east-west structural Nowdluk and Seemeega Akpiq in 2001. several minerals spatially associated with corridor defined by strong folding, In 2003, True North Gems optioned the Beluga sapphire mineralization, in intense local shearing and alteration. the Beluga Sapphire occurrence from each of the Beluga, Muktuk and Drill results from 2004 to 2006 indicate the brothers. At that time there were Bowhead occurrences. Drilling of other there is a broad low-grade sheet of gold two known occurrences of sapphires, known sapphire occurrences has been mineralization across a central zone with the Beluga occurrence being the deferred pending completion of the which contains several higher grade main showing and the Narwhal being geochemical and heavy mineral analysis. shoots plunging southwest. Recent

50 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 51 leases covering 4,440 ha. The iron than previously recognized. The ROCHE BAY formations belong to the Prince Albert aeromagnetic signature of the C deposit Operator, Owners Group and consist of highly suggests a length of 5,100 m and a width Roche Bay plc metamorphosed and deformed volcanic over 600 m, above previous estimates of Commodity and sedimentary rocks. 4,270 m in length and 122 m in width. Iron In 2006, Roche Bay plc announced The Company has stated it is cognisant NTS that an aeromagnetic survey was flown of the fact that the potential quantity and 47A/06, 47A/05 by Goldak Airborne Surveys of Saskatoon grade of targets are conceptual in nature Location 60 km southwest of Hall Beach over the company's Adler, B and C bodies, and that limited exploration drilling has located on the eastern side of the Melville been conducted to date on its leases. Roche Bay plc (website: www.rochebay.gi) Peninsula (Eastern mining leases). Plans are underway to conduct further is actively evaluating magnetite iron Interpretation of the results suggests that drilling and metallurgical test work. deposits on the Melville Peninsula. They the Eastern mining leases could contain have seven 21-year renewable mining significantly more magnetite iron deposits

haul road between Mary River and Milne 2006 drilling of Deposits Nos. 2 and 3 Aker Kvaerner E&C completed a Inlet and topographic and hydrographic was designed to provide data for a scoping scoping study in 2006 for Deposit No. surveys conducted off Milne Inlet by the study to assess the potential of these 1 which provided cost estimates and an Government of Canada. However, a full deposits; this study is being prepared in economic analysis for a 10 million tonnes feasibility study performed at that time to conjunction with the feasibility study. per year production rate of the Mary River access the viability of the deposit determined The scoping study will investigate the Project. A feasibility study is currently the resources to be uneconomic. implications of subsequent expansion of being prepared by the same consultants Baffinland Iron Mines Corporation these satellite deposits using much of and this study is scheduled for completion re-initiated work on the property in 2004. the infrastructure established for the in late 2007. Successful exploration to date Drilling in 2005 tested the feasibility of a development of Deposit No. 1. has encouraged Baffinland to consider an 10 million tonne per year operation for The highlight of the 2006 drilling expanded production rate for this feasibility at least 35 years. In 2006, Baffinland program was a continuous core interval study of 12.5 to 15 million tonnes per year. completed 7,067 m in diamond drilling, of 169.8 m, true thickness approximately In 2006, Baffinland also collecte d including geotechnical drilling and in-fill 140 m, of massive specular hematite in significant data including metallurgical drilling on Deposit No. 1, step out Deposit No. 3. Assays are pending. The testing, resource modeling, land and drilling on Deposit No. 2 and first-time hole ended in mineralization and ended marine transportation studies, potential drilling on Deposit No. 3. The because of technical drilling difficulties. port assessments, environmental baseline geotechnical drilling for Deposit No. 1 The current interpretation is that collection, socioeconomic assessments, tested foundation conditions for Deposit No. 2 is the faulted westerly traditional knowledge studies, renewable infrastructure and provided data to extension of Deposit No. 3 and that energy studies and iron ore market assist in pit slope optimization. Deposit No. 3A is the easterly extension reconnaissance. Baffinland has commenced Deposit No. 3 is located approximately of Deposit No. 3. negotiations of the Inuit Impact and 700 m south of Deposit No. 2 and Benefits Agreement (IIBA) with the about 3.5 km east of Deposit No. 1. Qikiqtani Inuit Association.

52 Mining and Exploration Overview 2006 Mining and Exploration Overview 2006 53 Nunavut Mining Mineral Exploration and Geoscience Overview 2006