Mining Mineral Exploration and Geoscience 2005

NTINTI 2 colourcolour llogoogo PMSPMS 541541 BlueBlue PMSPMS 124124 YYellowellow Cover photo: Mike Young takes a Contents: break to enjoy the view over Buchan Gulf located Land Tenure in ...... 3 between and Clyde River on the Indian and Northern Affairs ...... 4 East Coast of Baffin Island. Photo Credit: Jamie Boles, Government of Nunavut ...... 6 Custom Helicopters Ltd. Nunavut Tunngavik Incorporated ...... 8 Canada-Nunavut Geoscience Office ...... 10 Summary of 2005 Exploration Activities ...... 13 ...... 13 ...... 32 Qikiqtani/Baffin Region ...... 44 About the Nunavut: Mining, Mineral Exploration and Geoscience 2005 This exploration overview is a combined effort of four partners: Minerals & Petroleum Resources Division, Government of Nunavut; Mineral Resources Division, Indian and Northern Affairs Canada; Department of Lands and Resources, Nunavut Tunngavik Inc. and the Canada-Nunavut Geoscience Office. The intent of this publication is to capture information on exploration and mining activities in 2005, and to make this information available to the public. All exploration information was gathered prior to mid-November 2005. Prospectors and mining companies are welcome to submit information on their programs for inclusion in the next Nunavut: Mining, Mineral Exploration and Geoscience. We thank the many con- tributors who submitted data and photos for this edition. Feedback and comments are appreciated.

NOTE TO READERS This document has been prepared on the basis of information available at the time of writing. The authors make no warranty of any kind with respect to the content and accept no liability, either incidental, consequential, financial or otherwise, arising from the use of this document.

2 Mining and Exploration Overview 2005 Land Tenure in Nunavut

The territory of Nunavut was created in April mineral tenure regime. Mineral rights (mineral 1999 as a result of the Nunavut Land Claims claims or leases) that existed at the time of the Agreement, the largest Aboriginal land settle- signing of the NLCA – known as grandfathered ment in Canadian history. Spanning two million rights – continue to be administered by Indian kilometres, the Territory has 25 communities and and Northern Affairs Canada (INAC) until they an approximate population of 28,000 people. terminate or the holder transfers its interests to represent 85 per cent of Nunavut’s population, the NTI regime. For both surface and subsurface creating the foundation of the Territory’s culture IOL, access to the land, through a Land Use and values. This culture is inherently connected Licence or Commercial Lease, must be obtained to the land, shaping government, business and from the appropriate Regional Inuit Association. day-to-day life. The Crown owns mineral rights to 98 per cent In addition to the creation of the new of Nunavut. INAC administers these rights through territory, the NLCA gave Inuit fee simple title to the Canada Mining Regulations (CMR). This 356,000 square km of land. There are 944 parcels includes surface IOL, for which access to the land (16% of Nunavut) of Inuit Owned Lands (IOL) must be obtained from the RIAs as explained above. where Inuit hold surface title only (surface IOL). Significantly, the NLCA is a final settlement The Crown retains the mineral rights to these lands. whereby all land claims in Nunavut have been Inuit also hold fee simple title including mineral settled with the Inuit of Nunavut, thus providing an rights to the remaining 150 parcels of IOL (sub- unmatched level of land tenure certainty. However surface IOL), which total 38,000 square km and land claims overlapping Hudson Bay and the represent approximately 2 per cent of the territory. southernmost Kivalliq are being negotiated with Surface title to all IOL is held in each region by residents of northern Quebec and northern one of the three Regional Inuit Associations respectively. (RIAs) while Inuit subsurface title with respect For more information on the location of IOL to subsurface IOL is held and administered by and Crown land in the territory take a look at the Nunavut Tunngavik Incorporated (NTI). NTI 2005 Nunavut Exploration and Activity Map on issues rights to explore and mine through its own page 28.

GUIDE TO ACRONYMS CMR – Canadian Mining Regulations CNGO – Canada-Nunavut Geoscience Office EA – Inuit Owned Lands Mineral Exploration Agreement ED&T – Department of Economic Development and Transportation, Government of Nunavut EIS – Environmental Impact Statement GSC – Geological Survey of Canada IIBA – Inuit Impact Benefit Agreement INAC – Indian and Northern Affairs Canada IOL – Inuit Owned Land KIA – Kitikmeot Inuit Association NIRB – Nunavut Impact Review Board NLCA – Nunavut Land Claims Agreement NTI – Nunavut Tunngavik Incorporated NT – RIA – Regional Inuit Association

Mining and Exploration Overview 2005 3 Indian and Northern Affairs Canada

Indian and Northern Affairs Canada (INAC) advice during environmental assessments. As an administers mineral tenure on Crown land in advocate of sustainable mineral development in Nunavut. This is done through the Nunavut Regional the territory, the division also collaborates with Office (NRO) in , Nunavut, by the Mineral partners in outreach programs such as Nunavut Resources Division and the Mining Recorder’s Mining Week and school and community visits. Office (MRO) of the Land Administration Division. Other activities supported by Mineral Resources The Mineral Resources Division manages include: sustainable mineral resource development on Indian and Northern Nunavut’s Crown land. The division collects, edits, • Co-managing the Canada-Nunavut Affairs Canada, and distributes geoscience data through targeted Geoscience Office (CNGO) together with Nunavut Regional Office research and economic geology projects and reviews Natural Resources Canada and the P.O. Box 100, Iqaluit, exploration data filed as assessment work by the Government of Nunavut; Nunavut X0A 0H0 mining industry. Mineral Resources works on policy • Participating in environmental reviews, issues related to mineral development and explo- providing technical advice and perspective; Website ration on Crown lands through the Canada Mining • Maintaining a digital archive of assessment www.ainc-inac.gc.ca/nunavut Regulations (CMR), and also provides technical data filed in Nunavut dating back to the 1940’s;

4 Mining and Exploration Overview 2005 • Maintaining a library of reference material, tenure. As well, the MRO sells claim maps, claim rock samples and press clippings; tags and assists individuals and companies in • Promoting mineral exploration within the interpreting the Canada Mining Regulations with territory through community outreach, information on how to keep their properties in publications and professional networking; good standing. • Completing targeted geoscience in Interest in Nunavut’s mineral development conjunction with CNGO and/or Industry. potential remained strong in 2005 with industry investing close to $200 million to explore for The MRO administers all other aspects of mineral commodities such as , base metals tenure on Crown land in Nunavut. Administration and uranium. It was also another busy year for of these rights is regulated by the Canada Mining prospecting permits, with 1136 permits issued by Regulations under the Territorial Lands Act. The the MRO encompassing 48 million hectares of MRO also administers coal tenure under the land, the largest area of permitted Crown land in Territorial Coal Regulations and is your main the . point of contact to acquire crown mineral or coal

STAFF CONTACTS MINERAL RESOURCES Bernie MacIsaa Manager 867 975 4290 [email protected] Jurate Gertzbein Mineral Development Advisor 867 975 4291 [email protected] Linda Ham District Geologist (Kitikmeot) 867 975 4292 [email protected] Karen Costello District Geologist (Kivalliq) 867 975 4569 [email protected] Paul “Jethro” Gertzbein District Geologist (Qikiqtani/Baffin) 867 975 4279 [email protected] Christianne Lafferty Mineral Archives Administrator 867 975 4293 [email protected] General Inquiries [email protected] Archives Orders or Inquiries [email protected] Mineral Resources Fax 867 975 4276 LAND ADMINISTRATION Spencer Dewar Manager 867 975 4280 [email protected] Sheba Pikuyak Administrative Assistant for Lands & Minerals 867 975 4294 [email protected] Jeffrey Holwell A/Land Administrative Specialist 867 975 4283 [email protected] Arlene Brett-Miles Senior Land Operations Clerk 867 975 4576 [email protected] John Craig A/Land Specialist 867 975 4285 [email protected] Lena Akulukjuk Land Operations Clerk 867 975 4282 [email protected] Karin Roock Land Operations Clerk 867 975 4275 [email protected] MINING RECORDERS OFFICE Anna North Mining Recorder 867 975 4281 [email protected] Nala Alainga A/Deputy Mining Recorder 867 975 4284 [email protected] Becky Leighfield Senior Mining Clerk 867 975 4275 [email protected] Elayne Wyatt Land Operations Clerk 867 975 4580 [email protected] Tony Tucker GIS Technician 867 975 4573 [email protected] Scottie Monteith Junior GIS Technician 867 975 4278 [email protected] Land Administration and Mining Recorders Office Fax 867 975 4286

Mining and Exploration Overview 2005 5 Government of Nunavut

The Government of Nunavut (GN), through its in many jurisdictions throughout the world. There- Department of Economic Development and fore, ED&T is committed to working with its Transportation (ED&T), welcomes the interest partners, NTI and the Government of Canada, and investment of progressive-minded mineral to make the legislation, policies and regulatory exploration and mining companies. environment of Nunavut efficient, internationally The Department envisages a vibrant and competitive and attractive to investors. sustainable minerals industry based on the “triple Current Government of Nunavut initiatives bottom line” concept, where success in the industry include: is measured by:

• adherence to best environmental practices; Nunavut Mineral Exploration • sustained flow of benefits to local residents; and Mining Strategy To collect and understand stakeholder views on a and wide range of mining and exploration issues, ED&T • return of healthy profits to shareholders. carried out consultation meetings throughout The past three field seasons have seen unprece- the territory in 2005, with participation from dented levels of exploration undertaken in Nunavummiut, Inuit Organizations, Institutions Nunavut. A number of quality discoveries have of Public Government, the Government of Canada, recently been made and there will be substantial Community Governments, other GN departments, opportunities to be realized in the territory as private Nunavut-based businesses, and Nunavut exploration continues and as exploration projects College. In addition, in southern Canada, evolve into mines. meetings were held with representatives of the ED&T is working to ensure that all Nuna- mining and exploration industries and environ- vummiut are in a position to benefit from these mental non-governmental organizations. coming opportunities, and that they have the option The views expressed in these consultations have of becoming full participants in developments in been collated and form the basis of the Nunavut the territory. Mineral Exploration and Mining Strategy, which At the same time, it is recognized that exploration will be released in early 2006. This document will and mining companies have the option of investing clarify the GN’s position on mining and exploration,

6 Mining and Exploration Overview 2005 and will guide the government as it deals with the Community Minerals opportunities and challenges that development Education and Training of the territory’s mineral wealth will bring. ED&T works with many other stakeholders, including the Department of Education, the Nunavut Prospectors’ Program (NPP) Government of Canada, and the mining and ED&T provides technical and financial assistance exploration industries, in a number of programs to Nunavummiut with demonstrated prospecting designed to inform Nunavummiut of all ages of skills to carry out their own prospecting projects. the opportunities in the minerals industries. ED&T While this program has been in existence since programs and information include: 1999, this year the amount of financial assistance available for each prospector has been increased • Nunavut High School Math and Science from $5000 to $8000 per year. Awards Program; Department of • Earth Sciences and Mining Teacher Economic Development Introductory Prospecting Course Workshops; & Transportation, Every year, ED&T geologists present a six-day • Careers in Mining school and community Minerals & Petroleum Introductory Prospecting Course to interested presentations; Resources Division residents in communities throughout the territory. • Mineral exploration company contact list for P.O. Box 1000, Since 2000, the course has been offered in each communities; and Station 1560, community, with over 400 graduates to date. • Nunavut Science Outreach Network. Iqaluit, NU X0A 0H0 Graduates of the course often apply for NPP grants, and are sought after as field assistants on Fax mineral exploration programs. (867) 975-5982

STAFF CONTACTS HEADQUARTERS Gordon Mackay Director, Minerals & Petroleum Resources Division (867) 975-5917 [email protected] Dave Smith Manager, Mineral Resources (867) 975-5914 [email protected] OFFICE Claudia Riveros Community Benefits & Education Specialist (867) 875-2298 [email protected] Francois Berniolles Resident Geologist (867) 857-2297 [email protected] Feliks Kappi-Gawor Community Mining Advisor (867) 857-2297 [email protected] Department of Economic Development & Transportation, Minerals & Petroleum Resources Division P.O. Box 120, Arviat, NU X0C 0E0 Fax: (867) 975-2986 OFFICE Resident Geologist (867) 982-7482 [email protected] Jeremy Ford Community Mining Advisor (867) 982-7482 [email protected] Department of Economic Development & Transportation, Minerals & Petroleum Resources Division P.O. Box 316, Kugluktuk, NU X0B 0E0 Fax: (867) 982-3701

Mining and Exploration Overview 2005 7 Nunavut Tunngavik Incorporated

Nunavut Tunngavik Incorporated (NTI) is the defined by latitude and longitude of the boundaries Inuit corporation responsible for overseeing as well as a map showing the proposed exploration implementation of the Nunavut Land Claims area. Applications are received during designated Agreement (NLCA). NTI’s mandate includes months and are processed at the start of the safeguarding, administering and advancing the subsequent month, at which time NTI will rights and benefits of the Inuit of Nunavut to decide whether to accept an application and issue promote their economic, social and cultural well- an Exploration Agreement. Applications are kept being through succeeding generations. The Lands confidential until the close of the application and Resources Department of NTI is responsible period in which they are received, thus ensuring for the implementation of Inuit responsibilities that all applicants are treated fairly. Further details related to the management of Inuit Owned Lands on the application process are included on the (IOL), the environment, minerals, oil and gas, application form. and marine areas. It should be noted that although the process There are two forms of mineral tenure that and documents described here normally apply, grant exclusive rights on subsurface IOL admin- NTI, as a private organization, has complete dis- istered by NTI. These are the Inuit Owned Lands cretion as to whether it will issue an Exploration Mineral Exploration Agreement (usually referred Agreement (or other agreement), what the process to as the “Exploration Agreement”, or “EA”) will be for obtaining an agreement, and what the and the Inuit Owned Lands Mineral Production terms of the agreement will be. The terms may Lease (referred to as the “Production Lease”). include, for example, NTI holding a direct interest The Exploration Agreement grants a company or in a project. individual the exclusive right to explore and Under the standard terms, successful applicants, prospect for minerals (excluding oil and gas, and upon executing the new Exploration Agreement specified substances such as construction materi- and submitting the first year’s annual fees, will be als and carving stone) on a portion of subsurface granted the exclusive right to explore for minerals IOL. This area, referred to as the “Exploration on the Exploration Area. In order to gain access Area”, is similar in many ways to a mineral claim to the land, however, the applicant must obtain a under the Canadian Mining Regulations (CMR). surface right issued by the RIA. A Production Lease grants the holder of an NTI currently has 54 active Exploration NTI Lands Exploration Agreement the right to produce minerals Agreements with prospectors and exploration PO Box 1269 from a portion of the Exploration Area known as and mining companies. These cover more than 12 , NU the Production Lease Area. per cent of the total subsurface IOL. (In addition, X0B 0C0 Since 1999, NTI has had in place a system of grandfathered claims and leases comprise approx- application that does not require staking when imately two per cent of all subsurface IOL.) Phone applying for an Exploration Agreement. Rather, Holders of Exploration Agreements are required (867) 983-5600 the application requires only a description of the to submit annual exploration work reports to Exploration Area based on latitude and longitude. NTI that remain confidential for a period of up Fax The applicant must submit to NTI a completed to three years (867) 983-5624 Application for an Inuit Owned Lands Mineral Many of the advanced exploration projects in Exploration Agreement (available upon request Nunavut fall on subsurface IOL. The following Website from NTI or from the NTI Lands Department table summarizes the current active Exploration www.ntilands.com website). The completed application should include Agreements and their locations. a description of the proposed exploration area

8 Mining and Exploration Overview 2005 PROJECT/DEPOSIT HOLDER(S) IOL PARCEL(S) EXPLORATION AGREEMENTS QIKIQTANI REGION Piling Project1 BHP-Billiton, Commander Resources BI-35 Qimmiq 1,2,4,5,6; Talik (6 EAs) Melville Comaplex HB-15, HB-16 Melville 1-2 (2 EAs) KIVALLIQ REGION Meliadine2 Comaplex, Cumberland RI-01, RI-12 Ant 1-4, Fay 1-4, W1, Tan 1-4, Felsic (14 EAs) Meadowbank3 Cumberland BL-14 Meadowbank 1-3 (3 EAs) Spi Lake Comaplex AR-16 Spi Lake Square Lake Comaplex BL-21 Square Lake Sedna 4579 Nunavut Ltd RI-01 Sedna 1 - 5 (5 EAs) Cache Full Metal Minerals WC-08 Cache SDS Adam Vary RE-27 SDS 1-3 (3 EAs) KITIKMEOT REGION Hope Bay4 Miramar Mining BB-57, BB-60 Akungani 1-3, Aimaokatuk, Tok 1-3 (7 EAs) Doris Production Lease (application) Contwoyto Tahera CO-08 Contwoyto agreements (4 EAs) Hood River Tahera CO-20 Hood River High Lake5 Wolfden CO-29 Hilk Muskox7 Gordon Addie CO-62 agreements (3 EAs) Arcadia Bay Full Metal Minerals CO-31 Arcadia Bay Rockinghorse8 Kennecott CO-44 Rockinghorse Strongbow Strongbow Resources 1800 km2 in the Kitikmeot Strongbow

Note: All projects referenced below are discussed in this report. 1. Overall project involves Crown land and subsurface IOL. 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. 4. The Boston deposit is located on surface IOL, while the Doris, Madrid, South Patch, Naartok and Suluk are on subsurface IOL, distributed among grandfathered leases and NTI Exploration Agreements. Potential extension of the Boston deposit down-dip 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. 6. The project involves Crown land, surface IOL, and subsurface IOL under NTI Exploration Agreements. 7. The project involves Crown land, surface IOL, and subsurface IOL under NTI Exploration Agreements. 8. Near the edge of the project referred to later in this report.

MINING PROJECTS There are currently two mining projects located in Inuit-owned mineral rights, Miramar’s Doris North project and Cumberland’s Meadowbank project. Both are undergoing the review process leading to permitting and construction.

STAFF CONTACTS: MINERALS, OIL AND GAS Carson Gillis Director of Lands and Resources [email protected] Stefan Lopatka Senior Adviser – Minerals, Oil and Gas [email protected] Keith Morrison Administrative Geologist [email protected]

Mining and Exploration Overview 2005 9 Canada - Nunavut Geoscience Office

The Canada – Nunavut Geoscience Office (CNGO) and/or sustain current levels of exploration in is a partnership between the Geological Survey of the regions studied and reported on. Projects are Canada (GSC), Indian and Northern Affairs Canada designed to make a significant contribution to (INAC), and the Government of Nunavut’s (GN) the geoscience knowledge base of Nunavut, and Department of Economic Development and address a critical knowledge gap in the current Transportation (ED&T). The mandate of CNGO geoscience database. The projects are multi-faceted is to provide accessible geoscience information and and may consist of components of ground-based expertise in Nunavut in support of sustainable field activities, including mapping bedrock and development of mineral and energy resources, surficial geology, geophysical, geochemical and informed land-use decision-making, geoscience geochronological surveys, and comprehensive education, and capacity building. In 2005, data compilation activities. In addition, the field- CNGO participated in field-based geoscience based projects include components of community projects, provided Geographic Information Systems consultations and public outreach activities. The (GIS), cartographic and Remote Predictive Mapping outreach activities are intended to increase public (RPM) support and services, and contributed to consciousness of the importance of mineral and public outreach activities. energy resources, to promote awareness of employ- ment opportunities in geosciences, and to promote CNGO PROJECTS Earth Science education for students. CNGO projects are anticipated to improve the quality of life for Nunavut residents by allowing The North Baffin Project: Surficial Geology, them to derive economic and social benefits resulting Quaternary History and Prospecting from responsible development of mineral and In 2005 CNGO, in collaboration with the GSC, energy resources in Nunavut. The purpose of each the University of Alberta, and Dalhousie University, project is to reduce risk of investment by mineral expanded the 2003 North Baffin Project from and energy exploration companies, and increase Ice Bound Lakes (NTS 37G) to Conn Lake (NTS 37E) and south Buchan Gulf (NTS 37H/South). The study area lies along the northeast coast of Baffin Island between Bylot Island and the Clyde foreland, areas with contrasting recon- structions and chronologies. The study area provides an opportunity to resolve critical issues, and will have significant implications for regional drift prospecting programs. The primary goal of the project is to reduce mineral exploration risk in the northeast Baffin Island region by improving the existing geoscience knowledge base. The project involves mapping the surficial geology at a scale of 1:100,000, as well as collection of drift, stream and bedrock samples, and detailed bedrock mapping of key localities. In 2005, more than 300 samples were collected for till geochemistry and KIM analyses; 31 stream sediment samples were collected for

10 Mining and Exploration Overview 2005 geochemistry and KIM analyses; more than 100 assess the duration of glacial transport and ice bedrock samples were collected for assay, and 90 velocity. for lithogeochemical analyses. In addition, the project collected data for about 1400 ‘ground- The Boothia Mainland Project: truthing’ sites, as part of ongoing development Bedrock and Surficial Geology of an RPM protocol, 314 paleo-ice movement This multi-year geoscience program focusing on measurements, collection of 27 cosmogenic samples the Boothia Mainland area, and including parts and 41 radiocarbon samples for geochronology of NTS map sheets 57A, 57B and 57C, was and research into glacial dynamics influencing launched in 2005. Field work in the 2005 field the surficial geology of the region. season included 1:250,000-scale bedrock mapping Based on preliminary results and regional ice in addition to local, detailed surficial mapping and reconstructions, the area was likely glaciated to ice-flow studies. The mapping follows acquisition the shelf margin by ice flowing from the Foxe Ice of an aeromagnetic survey completed in March Dome at the last glacial maximum (LGM), until 2005 (released April 2005). In advance of the the initial stages of deglaciation at ca. 14 ka. field work, a comprehensive RPM for the region Deglaciation was interrupted by a re-advance was produced, which assisted in developing a (Cockburn) at ca. 9.6 ka, forming extensive more strategic approach to bedrock mapping. in the study area. As deglaciation continued, an The region has significant exploration potential ice mass informally referred to as the paleo-Barnes for and precious-metal deposits. , retreated onto Baffin Island. Continued The study area includes part of the north-central deglaciation resulted in the damming of several Rae domain of the Northwest Churchill Province. lakes in the study area and formation of DeGeer The bedrock geology can be broadly divided into or cross- moraines. The complex glacial three main lithologic associations including: 1) history resulted from overprinting of both erosive supracrustal rocks of presumed Archean age and and non-erosive basal thermal regimes at various possibly equivalent to the Prince Albert Group; stages of the deglaciation, as well as overprinting 2) variably deformed and metamorphosed meta- of LGM-related geomorphology with those of plutonic rocks that intrude the aforementioned the paleo- and modern-day Barnes Ice Cap. To supracrustal rocks and dominate the bedrock geology resolve this, new applications were developed that of the region; and 3) rare occurrences of a marble compare the terrestrial cosmogenic nuclide - quartzite dominated succession provisionally concentrations in glaciolacustrine deltaic sediment, interpreted to be Paleoproterozoic and tentatively till, and large boulders to quantify variations in correlated with the Chantrey Group. The Archean the plateau-wide erosion rate and to qualitatively supracrustal rocks form narrow, northeast striking

Mining and Exploration Overview 2005 11 and highly dismembered belts consisting mainly a protocol that can be applied towards future of psammite, semi-pelite, metabasite, local ultramafic aggregate assessment projects in Nunavut. horizons, and sulphide-bearing (lean) iron for- In the 2005 field season, potential source areas mation. The metaplutonic rocks, inferred to be late for granular aggregate occurring within 10 km of Archean, are dominated by biotite +/- hornblende Iqaluit were provisionally identified by interpre- monzogranite, but are polyphase and range in tation of detailed air photographs. This preliminary composition from diorite to syenogranite. The data, combined with a review of previous assessment state of strain varies regionally: rocks are mainly reports and regional surficial geology data provided massive in the south-western part of the study a focus for follow-up field work. Target areas with area, and are strongly gneissic and highly strained the best potential to yield economic aggregate in the east and north. resources were visited in the field, and information Metamorphic grade varies from middle to upper was collected on the nature, extent, volume, and amphibolite facies in the southwest, to granulite physiography of the deposits, and access. Ground facies in the north and northeast. The granulite- Penetrating Radar (GPR) was employed to image facies rocks are characterized by opx-cpx-grt in the subsurface character of deposits and depth to metaplutonic rocks, and bio-grt-sil-crd-ksp in the bedrock contact. metasedimentary rocks. In the central and southern The results of the assessment identified two areas Canada – Nunavut portions of the study area, there is local preservation having high potential for resource development. Geoscience Office of granulite assemblages, suggesting that granulate The Northwest Area, located approximately five km 626 Tumiit Plaza facies rocks may have been more widespread than northwest of the existing aggregate quarry, contains Suite 202 their present distribution. good quality aggregate, including high quality PO Box 2319 gravel. The Northwest Area has an estimated Iqaluit, Nunavut Granular Aggregate Resource minimum volume of 1,000,000 m3 of gravel and X0A 0H0 Assessment Project more than 4,000,000 m3 combined sand and A supply of high-quality granular aggregate is gravel. Total potential aggregate may be in excess Telephone: vital to meet the infrastructure requirements of of 14,000,000 m3 for the Northwest Area. The 867-979-3539 any community or construction project. In 2005, second potential resource, near Tarr Inlet, contains an assessment of potential granular aggregate undifferentiated sand and gravel deposits. The FAX: resources was carried out in the area around the estimated minimum volume of deposits in the 867-979-0708 City of Iqaluit. The survey was necessitated Tarr Inlet area is almost 300,000 m3 (combined because of resource depletion and environmental sand and gravel). Preliminary results of the survey Web Page: concerns at the existing source of granular aggre- suggest the Northwest Area is the best long-term www.nunanet.com/~cngo gate for Iqaluit. The 2005 survey also developed option for aggregate supply for Iqaluit.

CONTACTS Dr. Donald James Chief Geologist [email protected] Dan Utting Surficial Geology [email protected] Celine Gilbert GIS Specialist [email protected] John Taylor GIS Specialist [email protected] Olivia Brown RPM Specialist [email protected] Dr. Alana Hinchey Regional Geology, Geochronology (NSERC Postdoctoral Fellow) [email protected]

12 Mining and Exploration Overview 2005 Summary of Exploration Activities 2005 Kitikmeot Region

The Kitikmeot region spans the western and northern mainland of Nunavut, and parts of Victoria, Prince of Wales, King William, and Somerset islands. Kugluktuk and Cambridge Bay are the largest communities in the region and provide services to exploration projects in the area. , to the south in the Northwest Territories, is also an important logistical centre. The Kitikmeot is geologically diverse. becoming Nunavut’s first diamond mine. through the regulatory process, exploration The westernmost portion is underlain Construction is proceeding on schedule work and definition drilling continued on by rocks of the Archean Bear Province. with 505 loads of mine site construction their Boston and Madrid gold deposits also The Archean Slave Province occupies materials trucked in on the winter road within the Hope Bay belt. Exploratory work part of the western mainland and is and commercial production anticipated and definition drilling continued on their overlain to the west and east by the to begin in 2006. Boston and Madrid gold deposits also Paleoproterozoic siliciclastic and carbonate Development plans for production at within the Hope Bay belt. Other com- rocks of the Wopmay Orogen; this Orogen the Doris North gold deposit (owner panies working in various locations within separates the rocks of the younger Bear Miramar Mining Corporation), in the this same belt are also enjoying successful Province from the Slave. Inliers of Paleo- Hope Bay belt, is continuing to progress programs. The Ulu and Ulu South gold proterozoic rocks are found on Victoria through the regulatory processes. The deposits being worked by Wolfden Island, overlain by the Paleozoic Arctic company submitted its Final Environ- Resources and Wolfden/Strongbow Platform sedimentary rocks that cover mental Impact Statement (EIS) to the Exploration, respectively, continue to return most of the islands. In the east Kitikmeot, Nunavut Impact Review Board (NIRB) impressive precious and base metal results. the Slave Province is separated from the in October 2005 and final technical Traditional exploration targets in the Western Churchill Province (Archean to hearings are scheduled for early in 2006. region have included massive sulphide- Paleoproterozoic) by the Paleoprotero- Diamonds and gold were the two hosted base metals. Base metal explo- zoic Thelon Orogen (ca. 1900 Ma). The primary commodities sought by companies ration at Wolfden Resources High Lake Churchill province underlies most of the in the Kitikmeot. Recent diamond advanced this VMS project and is seeing northern and north-eastern mainland. exploration covered virtually the entire increased exploration efforts and new Past producers in the region have western mainland and parts of Victoria and mineralized zones. Sabina Silver Corp- generally been small with mines at Roberts Prince of Wales islands. The Coronation oration, working east of Lupin at Hackett Bay, Ida Bay, and Ida Point, south of Gulf area of the Kitikmeot continued to River, is encouraged by good silver-zinc Elu Inlet. The Lupin gold mine, having see strong exploration activity, and the numbers from drilling results. produced over 3.1 million ounces of Boothia Peninsula and areas south of Uranium exploration is seeing a gold since 1982, is now shut down and Kugaarak in the eastern Kitikmeot were resurgence of interest in Nunavut and feasibility studies are underway for also active with a new diamond district, specifically in the Hornby Bay Basin in reclamation plans. Some cost-recovery the Franklin, being identified in 2005. the Kitikmeot. Several companies were initiatives, such as a bed and breakfast Gold continues to shine in Nunavut. active this year in the basin, including operation and a mine training facility, are Quartz vein-hosted gold, lode gold and Hornby Bay Exploration, Triex, Pitchstone being considered. iron formation gold are all being explored and Ur Energy with programs ranging Tahera Diamond Corporation’s Jericho in the Slave. In addition to Miramar from initial exploration efforts to well- Diamond Project is well on its way to advancing their Doris North project developed drill programs.

Mining and Exploration Overview 2005 13 been interpreted from airborne geophysics and approximately 3000 soil and 1000 AMARUK collected in 2004 (11,000 line-km; only rock samples were collected. The new Operator, Owners 3 per cent of the property). In 2005, an discoveries are the Locanna, Frank, Green- BHP Billiton Diamonds Inc., additional 12,000 line-km was covered by stone, and Felicia showings, with Locanna Diamonds North airborne geophysics that is currently in the defined as a linear zone extending over Commodities final stages of processing, interpretation a strike length of approximately three km. Diamonds and anomaly selection. A comprehensive Many of the prospecting samples on the Coordinates 92° 00’W, 68° 30’N till sample database of approximately 5400 four new discoveries returned values in samples taken across the property will also excess of 1 g/t Au, with high values from NTS 57A , 57B be used to determine drill targets. Locanna being 44.2 g/t Au, 20.9 g/t Au, Location and 14.2 g/t Au. Channel sampling 45 km south of ANIALIK also from Locanna returned the highest Operator, Owners values of the Anialik property and in This property consists of approximately Strongbow Exploration three areas along a 7 metre strike length 3.24 million hectares and includes the Commodities of one vein near the southern end of the Deep, Dar and Hood claims. Approxi- Polymetallic VMS corridor returned 14.4 g/t Au over 1.6 m, mately $3 million was spent in 2005 with Coordinates 51.2 g/t Au over 0.25 m, and 6.8 g/t the collection of till samples, soil samples 110° 02’W, 67° 21’N Au over 1.18 metre. and approximately 12,000 line-km of NTS Dighem Resolve airborne geophysics. 76M/06 ARCADIA BAY Fifteen kimberlite occurrences have been Location Operator, Owners Approximately 7 km west of Wolfden’s outlined from prospecting and till sampling Full Metal Minerals, High Lake; 150 km southeast of Garnet Point Resources Corp and one kimberlite, Umingmak, has been Kugluktuk defined in outcrop. Approximately 500 kg Commodities was collected from Umingmak and Proximity and similar geological setting Gold submitted for microdiamond analysis. to Wolfden Resources’ High Lake, VMS Coordinates 110° 30’W, 67° 30’N Umingmak is the first confirmed in deposit encouraged Strongbow to explore situ kimberlite in the region and is exposed on the 62,519 hectares Anialik property. NTS 76M11 in three outcrop showings. The rock is This property is located within the Anialik Location described as an olivine rich macrocrystic River volcanic belt (ARVB) in the 160 km east-southeast of Kugluktuk kimberlite with mantle derived minerals northern Archean Slave Province, This and nodules. The size of the kimberlite volcanic belt, like many in Nunavut, is an The Arcadia Bay property is an Archean has not been determined. under-explored greenstone belt in Canada. lode-gold deposit located on the Arctic Prospecting in 2005 was limited to Exploration in 2005 was completed Ocean west of . The project only a small portion of the entire Amaruk over a nine week period and consisted is approximately 140 km west of the Hope property and produced encouraging of bedrock and soil geochemical surveys, Bay belt. More than 20 veins and structures results. The multiple kimberlite float mapping, prospecting and channel sam- with over 5.0 g/t Au have been discovered occurrences discovered on the property pling. The main goal of the program was with a historic resource reported from the span an area of 62 km and demonstrate to investigate the mineral potential of North Vein as 640,650 tonnes averaging that the Amaruk property potentially the belt with the particular focus on the 7.2 g/t Au (approximately 148,000 oz). contains a sizable kimberlite field with gold potential of the associated volcanic However, this resource estimate was numerous kimberlite intrusions. More rocks. A number of new gold discoveries completed prior to 2001 and NI43-101 than 100 geophysical anomalies have were found through detailed mapping and is therefore unreliable. Arcadia has

14 Mining and Exploration Overview 2005 Diamonds North/BHP Billiton Amaruk project. Diamonds North staked 56,658 hectares of claims north of Kennecott’s permits and approached the company about a 26:74 Diamonds North/ Kennecott joint venture agreement which was formed on 380,418 hectares of land. Under the terms of this agree- ment, Kennecott will fund the initial Work on the Barrow project, approx- $5.5 million of exploration expenses. imately 44,517 hectares of mineral claims Kennecott completed 20,000 line-km of located 15 km south of Kugaaruk, included magnetic airborne surveying and collected the collection of 233 heavy mineral been explored by several mining and 223 samples from the property. Analysis samples, prospecting and ground geo- exploration companies since the 1930’s, of the airborne data identified 89 physics. Indicator minerals with diamond targeting multiple high-grade veins and anomalies of which ten are considered inclusion chemistry have been recovered shear zones located within greenstone high priority and 33 moderately high in till samples and the interpretation of and tonalite. priority. The 2005 exploration program airborne geophysical data has identified A 1,500 m diamond drilling program included ground geophysical surveying high priority targets up-ice from these was scheduled for July, 2005 with the of more than 20 anomalies and drilling mineral anomalies. Kimberlite float with objective being to upgrade near-surface, of definitive targets; results are pending. a macrodiamond was discovered while high-grade portions of the North Vein. following up a geophysical target and a 1 2 Additional drilling planned was to step-out BARROW AND DARBY 6.7 kg sample has been sent for mineral from previous intercepts at the GHX Operator, Owners analysis. vein including: 29.0 g/t Au over 5.6 m Indicator Minerals Inc., In 2005, work on the Darby project, and 12.0 g/t Au over 23.1 m. Results Hunter Exploration Group located approximately 120 km southwest from the drill program are unavailable. Commodities of Kugaaruk and consisting of 77 mineral Diamonds claims covering more than 79,726 hectares, ARNAQ Coordinates identified several kimberlite float occur- 189°30’W, 68°20’N; Operator, Owners rences that are concentrated in three 293°20’W, 67°20’N Kennecott Exploration Canada Inc., distinct trains. One of these occurrences NTS Diamonds North Resources Ltd. yielded a three kilogram peridotitic mantle 157A7, 256N6 Commodities nodule. 2,400 line-km of detailed airborne Diamonds Location 115 km south of Kugaarak; Mag/EM geophysical surveys was flown Coordinates 2120 km southwest of Kugaarak over an area interpreted as the source of 92° 00’W, 67° 30’N kimberlite indicator minerals recovered NTS The highlight of Indicator’s 2005 in 2004. Initial interpretation of this 56N, 56O exploration program was the discovery airborne data has outlined more than Location of multiple kimberlite boulder trains on 15 high priority targets. The largest target 80 km southwest of Kugaaruk its two key properties, Barrow and Darby, is interpreted as having a surface area In 2004, Kennecott Canada Exploration located in the newly identified Franklin >10 hectares, has coincident Mag/EM Inc. acquired 249,295 hectares of permits Diamond District. Both projects are signatures and is associated with one of and funded the staking of 80,940 hectares Indicator’s most advanced and are the kimberlite float trains discovered of claims immediately south of the scheduled for 2006 drilling. earlier this year.

Mining and Exploration Overview 2005 15 obtained from five drill holes (2.1 tonnes CANOE LAKE of split core) and an additional 1.3 tonnes (including White Ice and Hadley Bay) of kimberlite collected from a trench Operator, Owners Operator, Owners Allyn Resources Inc., have all been submitted for diamond Diamonds North Resources Ltd., Strongbow Exploration Inc. analysis via caustic fusion. The collection Teck Cominco Limited Commodities of this sample followed encouraging results Commodities Copper, Zinc, Lead, Gold, Silver from the previously analyzed 680 kilogram Diamonds Coordinates Coordinates composite sample taken in 2004 that 111° 08’W, 67° 08’N yielded a 0.74 carat stone in a parcel of 110°00’W, 70°36’N to 108°30’W, NTS 71°00’N 434 diamonds, weighing a total of 1.32 76M/02, 03 NTS carats. Location 77E, 77F, 77G, 77H Three new kimberlite occurrences 25 km south of Wolfden’s High Lake; Location were discovered in 2005, increasing the 190 km southeast of Kugluktuk 330 km northwest of Cambridge Bay number of known occurrences on Victoria Island from 36 to 39. One of these new The Canoe Lake property comprises The Victoria Island projects represent occurrences is centrally located along approximately 15,860 hectares of mining Diamonds North’s most advanced projects. the Galaxy trend and intersected 2.1 and leases, mineral claims and Inuit Owned The Blue Ice property covers over 80,940 17.15 metres (true widths) of kimberlite Lands within the High Lake greenstone hectares and straddles the Nunavut/NT and 5.3 metres (true width) of brecciated belt. The property is centred on two border. The geology consists of Ordo- kimberlite. The second discovery located Canada Mining Leases, currently under vician carbonate platform rocks overlying on the south-eastern portion of the King option from Canadian Natural Resources, the Proterozoic Shaler Group shale and Eider structure consists of multiple and is host to a number of known show- Elice Formation sandstone; diabase dykes hypabyssal kimberlite dykes with true ings, including the Canoe Lake massive cut only the Proterozoic rocks. Teck widths of < 1 m each. sulphide occurrence, and the Bamako and Cominco Limited is the operator on the Seventy-five reverse circulation drill holes Tuk Lake gold showings. Copper-zinc property and funded more than $4.5M tested 31 discrete geophysical targets, mineralization occurs as massive to of exploration in 2005. many of which were located “off-trend” stringer sulphides within the volcanic- Kimberlites and trends that have been of the Galaxy and King Eider structures. sedimentary pile at the same stratigraphic identified on Victoria Island are the Galaxy, One additional kimberlite was intersected, position as Wolfden’s High Lake VMS Jaeger, King Eider, Pintail, Sanderling, located approximately 500 metres north- deposit located 25 km to the north. Sand Piper, Snow Bunting and Turnstone. west of the King Eider body. Additional Limited previous diamond drilling at Exploration efforts since 2002 have 2005 work included 11,700 line-km of Canoe Lake by Texasgulf and Noranda focussed on the 20 km-long Galaxy and new airborne magnetic surveying and Exploration returned values of 0.8% 25 km-long King Eider confirmed kim- collection of 200 till samples. Cu, 4.8% Zn, 89 g/t Ag and 1.0 g/t berlite trends, two semi-parallel, north- Au over 1.8 m. On the Bamako gold west-southeast trending structures 30 km showing, limited drilling by BHP Minerals apart. The majority of the work in 2005 intersected 15.3 g/t Au over 2.6 m. involved the King Eider kimberlite and The Tuk Lake gold showing is represented drilling indicates that the body is at least by a grab sample that returned a value 180 metres long, up to 50 metres in of 96.4 g/t Au. width and remains open to depth. Detailed prospecting programs, A mini-bulk sample of approximately bedrock mapping, rock sampling and 2.8 tonnes of King Eider kimberlite ground based magnetic and electro-

16 magnetic surveys were completed over ground geophysical grids established in 2005. Reconnaissance prospecting was completed throughout the claim block to assess a number of airborne geophysical targets defined through a 2004 airborne magnetic and EM survey. Allyn is presently working to earn a 51 per cent interest in the property, by spending $3 million over a five-year period. Once vested at 51 per cent, Allyn can increase its interest to 60 per cent by spending an additional $2 million over the ensuing two-year period.

COMMITTEE BAY NORTHEAST 90 km long strike length of the Committee northern Saskatchewan and the Thelon Bay greenstone belt. Numerous positive, basin in the eastern Arctic. Operator, Owners Allyn Resources Inc., strong and linear to highly deformed Uranium mineralization in the base- Strongbow Exploration Inc. magnetic anomalies have been identified. ment rocks is associated with graphitic Commodities horizons within the Epworth metargillites, COPPERMINE (Coppermine, Asiak) Gold shear zones in the hornblende/biotite Coordinates Operator, Owners gneiss and quartz/hematite veining in the Hornby Bay Exploration Ltd. 92° 00’W, 66° 30’N metagranites. Several areas within the NTS Commodities Hornby Bay sandstone have been discov- Diamonds, uranium 56J, 56K ered to have low grade uranium miner- Coordinates Location alization associated with clay/ hematite 300 km north of 114° 20’W, 67° 20’N to 116° 00’W, 66° 50’N alteration zones. The unconformable contact between the sandstone and the The Committee Bay Northeast project, NTS basement rocks is the focus of exploration the SR claim block, is located within the 86J, K, O, N for high grade uranium deposits. A rel- Committee Bay greenstone belt within Location atively large area of silica-clay alteration central Nunavut. Correlative rocks to the 80 km south of Kugluktuk has been discovered in the southern south contain the Meadowbank iron This property covers 214 claims (216,833 section of the Coppermine block. formation-hosted gold deposit. hectares) with 90 claims on the Asiak Work in 2005 included the collection In 2004, Goldak Airborne Surveys block and 124 claims on the Coppermine of 227 grab samples, 187 float samples, completed a 5731 line-km survey, flown block. The property lies in the eastern 766 till samples, 766 soil samples and at a flight line spacing of 200 metres, of section of the Hornby Bay Basin within 6500 line-km of MEGATEM airborne tri-axial magnetic gradiometer work over the Archean Bear province. Helikian and geophysical surveying and 240 line-km portions of the Committee Bay Northeast Hadrynian rocks of the Coppermine Holo- of ground geophysical surveys were Project area. In 2005, the remainder of the cline nonconformably overlie Aphebian conducted over 25 grids. Thirteen holes SR claim block was surveyed by Goldak basement rocks. The Helikian sandstone were drilled, for a total of 5135 m, and 3,946 line-km of tri-axial magnetic defines a middle Proterozoic basin on uranium targets and intersected gradiometer surveying was completed. This equivalent to the Athabasca basin in favourable geology. airborne survey covers an approximate

Mining and Exploration Overview 2005 17 The Asiak claim block lies within GEORGE LAKE/GOOSE LAKE the north-western trending “diamond ( Joint Venture) corridor” and is prospective for kimberlite Operator, Owners pipes. Airborne geophysics has been used Dundee Precious Metals, to target potential diamondiferous pipes Kinross Gold and detailed till sampling has been Commodities employed to search for associated Gold indicator minerals. Coordinates 107° 26’W, 63° 56’N Resources) purchased the property in NTS 1996 and conducted a major drilling Operator, Owners 76G/10, 76G/13, 76G/14 program in 1997. In 1999, Kinross Coronation Minerals Location acquired the option from a merger group Commodities 100 km south of Bathurst Inlet including Kit Resources and Wheaton Copper, Nickel, River Minerals Ltd. Early 2004, Kinross Platinum group elements The Back River Joint Venture quartz-vein and Miramar Mining Corporation final- Coordinates hosted gold deposits are found within ized a joint venture agreement on these 116° 30’W, 67° 30’N Archean banded iron formation within two projects and Miramar designed NTS greywacke folded into an anticline, with an exploration program to add to the 86K the apex of the fold forming a hinge production capacity of Hope Bay. Location 40 km southwest of Kugluktuk zone near surface. In February, 2005, However, in 2005, the ground was Dundee Precious Metals bought an option optioned to Dundee Precious Metals and Coronation Minerals’ property covers to earn a 60 per cent interest in the Back 2005 was a busy year for the company. 30,655 hectares and is believed to be highly River project with a commitment to Exploration activity consisted of both a prospective for world class copper-nickel- complete an exploration program on the winter and summer diamond drill pro- platinum group metal ore bodies. The properties totalling $25 million before gram totalling approximately16,000 m, Muskox layered ultramafic intrusion has August 2006. To date, over $10 million airborne mag-EM geophysical surveys recently become the focus of considerable has been spent. The project is comprised on George, Goose and Boot lake deposits exploration activity for its platinum group of 45 mineral leases on subsurface IOL, totalling 6500 line-km, reconnaissance metals (PGM) mining potential. Regional subject to grandfathered mineral claims prospecting to explore property-wide for gravity studies suggest that most of the and leases. The most important properties new discoveries and mapping verification intrusion lies under cover rocks (i.e. the of the project comprise the George Lake of previous work. Coppermine River Basalts) and is there- and Goose Lake deposits with an indi- fore under-explored. The most prospective cated mineral resource of approximately target on the property is a gravity anomaly 1.4 million ounces Au and an inferred target that is arcuate-shaped and measures resource of 600,000 ounces Au. approximately 2 km by 10 km. This gravity Mineralization is found at George Lake, anomaly, coincident with an airborne Goose Lake, Boulder Pond and Boot magnetic anomaly, may represent a large Lake and occurs in both the high-grade intrusive body containing economic hinge fold zone and the greywacke zone concentrations of nickel, copper, and within the core of the fold. PGM’s. There are at least 12 documented Gold exploration in the George Lake copper-silver occurrences as well as encour- area began in 1982 and drilling began aging indications for gold and platinum. in 1985. Arauco Resources (later Kit

18 Mining and Exploration Overview 2005 both laterally and vertically. Total drilling amongst the highest grade undeveloped HACKETT RIVER in six showings (Boot Lake, A Zone copper deposits in the world. In 2005, Operator, Owners West, A Zone East, Finger Lake West, a renewed focus on exploration resulted Sabina Silver Corporation Cigar Lake and East Cleaver) totalled in three newly identified mineralized areas, Commodities approximately 9300 m in 2005. Sand Lake, WW Zone and Cairo Zone, Gold, Silver, Zinc, Copper, Lead An updated mineral resource estimate in addition to the known AB, D and Coordinates by Wardrop Engineering Inc. for Sabina, West Zones. 108° 30’ W, 65° 55’ N at a zinc-equivalent cutoff grade of 3%, Significant mineralization continued NTS demonstrates that the Boot Lake, East to be intersected at depth in the West 76F/16 Cleaver and Main Zones contain a com- Zone. Deep drilling in this area extended Location 75 km south-southwest of bined resource of 51.6 million tonnes. the deposit by approximately 150 metres Bathurst Inlet This includes an Indicated Mineral at depth. Hole HLW-05-171 intersected Resource of 37 million tonnes with an three zones of high-grade mineralization The Hackett River silver-zinc property average grade of 4.66% zinc, 3.79 ounces and assayed 4.72% Cu, 1.96 g/t Au and hosts three significant massive sulphide per ton silver, 0.63% lead, 0.34% copper 22.66 g/t Ag across 8.0 metres, 1.52% deposits; East Cleaver, Boot Lake and and 0.011 ounces per ton gold. The Cu across 10.45 metres and 4.40% Cu, Main Zone (also called “A” Zone). resource estimate, based on drilling done 2.18% Zn, 0.82 g/t Au and 66.72 g/t Significant mineralized showings, Knob in 2004 and earlier, indicates an Indicated Ag across 27.0 metres. A broad zone of Hill Zone, Downie, Finger Lake and Jo metal content of >150 million ounces of stringer and massive sulphides associated Zone, are also found. Hackett River is silver and 1.7 million tonnes of contained with an extensive zone of alteration (massive one of the largest undeveloped massive zinc. anthophyllite-magnetite and dalmationite) sulphide deposits in Canada. was also intersected, suggesting that this All deposits and showings are located HIGH LAKE hole intersected the “feeder” for the West at approximately the same stratigraphic Operator, Owners Zone deposit and that there is potential interval and occur over a 6 km long Wolfden Resources Inc. for significant expansion at depth. Prior to strike length. The East Cleaver, Boot Lake Commodities this drilling, the West Zone was calcu- Copper, Zinc, Gold, Silver and Main Zone deposits are hosted within lated to host a high-grade poly-metallic a Mineral Horizon Member characterized Coordinates mineralization resource of >10 Million 110° 51’W, 67° 23’N by the presence of marble and/or calc- tonnes. NTS silicate, chert and variable quantities of The three new discoveries were iden- 76M/7 sulphides. The Boot Lake, Finger Lake, tified by follow-up on areas of mapped Location Main Zone and Jo Zone deposits and intense alteration and/or airborne con- 175 km east-southeast of Kugluktuk showings are hosted within a southward ductors identified in the 2002 airborne dipping stratigraphic sequence. The Knob Significant advancements were made at geophysical survey. The Cairo Zone, Hill Zone and East Cleaver deposit are the High Lake Cu-Zn-Ag-Au property located along strike from the West Zone, found within an overturned anticline through both exploration and develop- hosts similar mineralization and alteration. that plunges steeply to the west. ment. The property consists of 15 leases Two holes drilled to test the Cairo Mineralization in each of the three (1,710 hectares) located mainly within Zone intersected up to 3.71% Cu across massive sulphide deposits consists primarily a land claim which reserves both surface 2.0 metres. The WW Zone is located of coarse grained pyrite, pyrrhotite, and subsurface rights to NTI. The indi- approximately one kilometre west of the sphalerite, chalcopyrite, galena and rare cated resource, using a 2.5% CuEqv West Zone. The Sand Lake Area is host tetrahedrite and trace arsenopyrite. cutoff, averages 5.01% CuEqv and these to some of the largest and most extensive Locally, mineral zoning is well developed, values place the High Lake deposit airborne conductors on the entire High

Mining and Exploration Overview 2005 19 trains are present on the property. Exploration work in 2005 included prospecting and till sampling magnetic targets chosen from 2004 high resolution airborne geophysical survey, prospecting and till sampling.

HOPE BAY PROJECT (Eastern Contact, Twin Peaks, North Lahti) Operator, Owners Maximus Ventures, Miramar Mining Corp Commodities Gold Coordinates 106° 30’W, 68° 00’N NTS 76O, 77A Location 160 km southwest of Cambridge Bay Lake Property. All three new zones will HOOD RIVER be drill tested in 2006. Maximus Ventures Ltd. has an option to Operator, Owners In November 2003, Wolfden released earn a 75 per cent interest in the Eastern Temex Resources Corporation, its Strategic Plan for the High Lake Mine 4763 NWT Ltd. Contact and Twin Peaks target areas in Project. The (EIS) to satisfy requirements Miramar Mining Corporation’s Hope Bay Commodities of (NIRB) is expected at the beginning Diamonds Belt. The Eastern Contact zone encom- of the second quarter of 2006. The pre- Coordinates passes several high-grade quartz vein liminary underground mine plan on the 112° 00’W, 66° 33’N gold showings near the eastern granite- West Zone is completed and open-pit NTS greenstone contact that defines the limit models for the AB and D Zones are 76L/5, 11, 12, 13, 86I/9 of the greenstone belt. In 2005, 11 holes being refined prior to incorporation into Location were drilled on this property. Three veins the pre-feasibility study which will be 120 km southeast of Kugluktuk were drilled and gold grade results in completed in early 2006. The future the drill core were significantly less than mine plans involve the infrastructure from The Hood River property consists of assays obtained from surface grab samples the Mill Facility that will be 182,115 hectares in three claim blocks and the veins were narrower than those shipped in 2006. The location of the with Temex as the operator and earning a seen in outcrop. proposed port site to service the High 70 per cent interest. The property is under- Lake Project is Grays Bay in the lain by deeply eroded, amphibolite faces, Coronation Gulf. A recent report on the Archean aged granite-greenstone rocks range of expected ice conditions and within granitic gneiss complexes intruded length of shipping season was completed by later granitic and mafic/ultramafic for Wolfden by D. F. Dickins Associates complexes. The region is cross-cut by Ltd. diabase dykes of up to six ages. Several diffuse kimberlite indicator mineral

20 Mining and Exploration Overview 2005

Further drilling was conducted on inferred resource of 3.6 M oz of 6.9 g/t. The Doris deposit is situated at an the Twin Peaks at the north end of the Miramar Mining Corporation controls inferred inflexion in the Hope Bay Hope Bay belt; results are pending. This most of the Hope Bay belt (approximately structural break and consists of a steeply showing is hosted by argillaceous sedi- 0101,175 hectares) and has been exploring dipping, over 3 km long quartz vein ments and conglomerates that overlie the belt since 1999. Large portions of the system in folded and metamorphosed volcanics and syenitic intrusives adjacent ground are Inuit-owned and adminis- pillow basalts. At the north end, the veins to a major lineament. Twin Peaks has been tered by NTI. In mid-November 2005, are folded to create a high-grade anticlinal interpreted as having the potential to Newmont Mining Corporation of Canada hinge zone lying close to the surface (Doris host similar large-scale gold deposits at Ltd. took a 9.9 per cent position in North). Gold is found at quartz veins or near the volcanic-sedimentary contact. Miramar and the additional funds and and wall-rock contacts and is associated involvement will enable Miramar to with dark-coloured tourmaline-pyrite septa HOPE BAY PROJECT consider larger production strategies for or ribbons. (Doris North, Madrid, Boston) Hope Bay belt. In May 2005, a Part 5 review of the Operator, Owners Work in 2005 consisted of six different Doris North Project under the Nunavut Miramar Hope Bay Ltd. initiatives, including permitting of the Land Claims Agreement (NLCA) was Commodities Doris North Project, definition and approved by the Minister for INAC. Gold expansion drilling on the Naartok and The NIRB held technical meetings Coordinates Doris Central deposits, regional exploration mid-August to review the (EIS) and 106° 30’W, 68° 00’N including diamond drilling in the Madrid Miramar submitted their final EIS NTS 76O/9,10,15,16, 77A/2,3,6,7,10 Corridor, regional exploration and map- October 31, 2005. NIRB has scheduled ping work to satisfy assessment require- final public hearings late January to Location 130 km southwest of Cambridge Bay ments, and ongoing resource modelling early February 2006 in Cambridge Bay of the Boston deposit. and with a positive review, Miramar The Hope Bay project was again the largest exploration project in Nunavut with a $15.5 million 2005 exploration program. This project, 100 per cent owned by Miramar Mining Corporation, is within the Hope Bay greenstone belt that at 80 km long in a north-south direction and 7-20 km wide is one of the most prospective undeveloped belts in Canada. Located in the northeast corner of the Slave Province, the Hope Bay belt is a typical Archean greenstone belt, comparable to the Yellowknife, Kirkland Lake and other prolific gold belts. Significant gold deposits defined on the project include Doris, Madrid (with Naartok and Suluk) and Boston. Current resource estimates are 5.4 M oz of gold with measured and indicated resources of 1.8 M oz at 9.9 g/t Au and an

Mining and Exploration Overview 2005 21 would then enter the regulatory phase HORNBY PROJECT IC1, LO2, TIM3 of the permitting process and file appli- cations for various licences and permits. Operator, Owners Operator, Owners Ur-Energy Inc. Trigon Exploration Canada Ltd., Drilling at Doris Central encountered Contact Diamonds1, 2; significant mineralization including 54 Commodities Uranium, Diamonds Trigon Exploration Canada Ltd. g/t Au over 4.4 metres. Most of the Committee Bay Resources, Coordinates Doris Central deposit has now been Indicator Minerals Inc.3 116° 45’W, 67° 20’N drilled off at 25 m centres and resource Commodities NTS limits are reasonably well established. Diamonds 86N/2, 3, 6, 7 At the Madrid deposit, 2003 resource Coordinates Location 89° 00’W, 67° 30’N1,3; estimates define indicated resources of 90 km southwest of Kugluktuk 565,000 oz of gold grading 4.9 g/t 88° 00’W, 67° 00’N2 and inferred resources of 1,886,000 oz Ur-Energy’s Hornby Project of the NTS of gold of similar grade. Most resources, Mountain Lake and Dismal West prop- 56P, 46M, 46C including significant gold showings erties consist of 589 claims covering Location 90 km southeast of Kugaaruk Naartok (with two zones, the Naartok 52,466 hectares that lie along the East and Naartok West) and Suluk, lie northern fringes of the Hornby Bay within the northern 2 km of the 11 km Basin. Ur-Energy is conducting a two- Trigon Exploration and Contact Diamonds Deformation Zone or Madrid Corridor. phase exploration program on the have joint ventures projects IC and LO. Naartok area infill in 2005 consisted Hornby Project properties, with the The IC property is centred 90 km of approximately 6,020 metres of second phase work being contingent upon southeast of the hamlet of Kugaaruk drilling in 17 holes and returned some obtaining encouraging results from the and staked in the winter of 2004. This spectacular results such as drill hole initial work. Phase one work involved project covers approximately 357,000 05PMD328 (11.5 g/t Au over 66.5 m surveys combined with mapping and acres, 90 kilometres southeast of Kugaaruk at a depth of 275 m below surface). The prospecting to detect conductors such and adjoins the Amaruk Project of Naartok area is currently drilled off on as graphitic horizons and conductive Diamonds North and BHP Billiton as 25 m spacings to a depth of approxi- mineralized zones. 3250 line-km GEO- well as Trigon's TIM Project. A recon- mately 200 m and at 50 m spacings to a TEM EM/mag surveys were flown at naissance till sampling program was depth of approximately 300 m below 300 m line spacings by Fugro Airborne conducted on both the IC and LO claim surface. Surveys over the entire project. The blocks, approximately 175,235 hectares The Boston deposit, located near the completion of ground geophysics and 100 kilometres northwest of Repulse Bay south end of the belt, is associated with assessments is ongoing, permitting and and 80 kilometres south of the IC Project. a flexure in the Hope Bay structural related processes have been initiated Pyrope garnets and chromites with break. Gold and sulphides (mostly and are anticipated to be prior to the upper mantle affinities were found in pyrite) are found in clots within quartz start of the spring 2006 drilling season. several locations, with a concentration veins and within the wall-rock halo. of grains observed within a discrete area Measured and indicated resources are at the center of the IC block. In 2005, 687,000 oz at 15.4 g/t and inferred a summer program of 5,200 line-km resources are 900,000 oz at 10.9 g/t. airborne geophysics, till sampling, field Field work at Boston in 2005 was limited reconnaissance and prospecting was to re-logging drill holes and resource completed. Interpretation of the airborne modelling using 2004 drilling results. magnetic survey resulted in the selection of 34 anomalies and 226 heavy mineral

22 till samples were collected in the area of 41 mineral claims but for assessment and JAMES RIVER the anomalies; results are pending. claim maintenance purposes, the property (North James River) A 10 m by 5 m elongated area of felsen- has been reduced to nine claims in three Operator, Owners meer float was discovered, comprised of separate blocks covering 8,031 hectares. Pure Gold Minerals Inc., rusty angular brecciated blocks of quart- Bard Ventures Ltd. Six holes (570.7 m) were recently zite containing abundant fracture-filling drilled along the Silver Bullet structure Commodities and disseminated sulphide mineralization. Gold and one hole totalling 122 metres was A grab sample returned 1220 g/t Ag, Coordinates drilled to test an additional nearby target. 1.5 g/t Au, 0.70% Cu, 2.51% Zn and 110° 45’W, 67° 35’N Gold-bearing quartz veins were inter- 0.69% Pb. The mineralization appears to NTS sected in three of the six holes with the best be associated with a major contact between 76M/10 result being 23.2 g/t Au over a 0.7 metre two magnetically distinct lithologies. Location (not true thickness) intersection. Another Further prospecting and sampling work 30 km northwest of Wolfden’s High hole, oriented to intersect the vein approxi- is being planned for the spring of 2006. Lake, 175 km east-southeast of mately 25 metres along strike, intersected The TIM property comprises 32,171 Kugluktuk multiple vein sets and returned 3.8 g/t hectares and is contiguous with the IC The North James River property covers Au over 1 metre and 0.7 g/t over 1 m. property and close to the central indicator part of the western limb and northern These drill results confirm, and expand anomaly. A total of 37 reconnaissance extension of the High Lake Greenstone results from the 2004 surface sampling samples were collected over this property Belt. Wolfden Resources High Lake deposit program. A program of VLF/EM geo- and results are presently being concen- lies three kilometres east of the southern physical surveys was planned for 2005; trated and picking results are expected claim of the North James River property, results are pending. by the end of the year. This property is while the Arcadia gold deposit (Full Metal an agreement with Trigon and a joint Minerals) is located approximately 20 JERICHO DIAMOND PROJECT venture comprising Committee Bay kilometres to the north. The original Operator, Owners Tahera Diamond Corporation Resources and Indicator Minerals Inc. North James River property consisted of Commodities Diamonds Coordinates 111° 29’W, 66° 00’N NTS 76E/14 Location 350 km southwest of Cambridge Bay

In 1992-93, Lytton Minerals and New Indigo Resources staked the Jericho, Contwoyto, and Burnside claim group (176,854 hectares) around the northern end of . Extensive air- borne geophysical surveys were flown and thousands of till samples were collected. Drilling in 1995 resulted in the discovery of kimberlite and in 1996, the JD/OD-1, or Jericho pipe, was outlined. A decline

Mining and Exploration Overview 2005 23 was driven into the Jericho pipe in 1997 JERICHO CLAIMS and 14,555 tonnes of kimberlite was mined (Polar Project, Rockinghorse Property) for bulk sampling. Of this bulk sample, Operator, Owners 9,435 tonnes were processed at the Lupin Tahera Diamond Corporation, former mine-site with 10,535 carats De Beers Canada Inc. recovered. Commodities Tahera entered the environmental Diamonds review process in 2000 for the develop- Coordinates ment and operation of the Jericho diamond 111° 29’W, 66° 00’N mine. The company received federal NTS approval in 2004 for the project to 76E/14 proceed and signed a formal Inuit Location Impact Benefit Agreement (IIBA) with 350 km southwest of Cambridge Bay the Kitikmeot Inuit Association (KIA). Tahera also entered into an agreement Exploration efforts were concentrated next 24 months to develop a mineral with Tiffany and Co. for the purchase on increasing reserves in the area within resource estimate for the Muskox kim- and marketing of the diamonds, with trucking distance of the Jericho diamond berlite. Based on the encouraging results, Tiffany providing $35 M to assist with plant. The neighbouring Polar project, the 2006 program budget is expected the project’s financing. a joint venture with De Beers Canada to be approximately $12 million, and will Highlights of 2005 include that the Inc., with the Muskox kimberlite is a include a significant drilling component, Jericho diamond mine construction significant property. This kimberlite including a large diameter reverse circu- schedule is on track for substantial represents the best potential to increase lation drilling project, and extensive core completion by year-end. Commercial reserves in the Jericho area; Tahera has delineation. production is planned for the end of the the option to earn a 50-75 per cent The construction of an all-weather first quarter of 2006. The project is interest from De Beers. In addition to access road is being considered from the planned to be approximately nine years the known kimberlites, the Polar property Jericho kimberlite to the Muskox body. (until 2014) and current proven reserves also hosts a number of unresolved kim- This road would pass by Tahera’s JD-3 are defined as 2.6 million tonnes averaging berlite indicator mineral trains that indicate diamondiferous kimberlite which lays 1.2 carats. The mine will be an open pit further discoveries are possible. approximately half way between the mine for years one to four, processing The Muskox kimberlite occupies a Jericho and Muskox kimberlites; the eco- 330,000 tonnes per year on site, fol- surface area of approximately four nomic potential of the JD-3 is unknown. lowed by underground mining. hectares, which is 2.5 times larger than The Anuri kimberlite joint venture, that of the Jericho kimberlite, and is located 90 kilometres northwest of the made up of at least two volumetrically Jericho mine-site on the Rockinghorse significant units, both of which are property, contains the highly diamon- highly diamondiferous. A 3,692-kg sample diferous Anuri kimberlite, a 3.5-hectare derived from a combination of Tahera’s multi-phase body made up of two kim- spring drilling program (four holes, 915 m) berlite lobes that coalesce into a single and a De Beers sample (two holes, 500 m) pipe near the surface. Tahera drilled five was processed by caustic dissolution at holes and collected 1,900 kg, of which SRC. one half has been sent for caustic fusion A large-scale evaluation program, processing. Initial results have been including drilling, is planned over the encouraging. its three millionth ounce in May of that Muskox Intrusion is a layered mafic LUPIN year. In 2003, the mine was placed on intrusion associated with the Coppermine Operator, Owners care and maintenance, followed by stope Volcanics and the Mackenzie Dyke Swarm, Kinross Gold Corporation and pillar removal in 2004, and mine which together comprise the Mackenzie Commodities closure mid-2005. Igneous Event. Adriana owns the Gold Mine-site facilities and the airstrip are McGregor Lake Property and M1-M11 Coordinates still operational at the site, reclamation claims were staked on the Muskox 111° 14’W, 65° 46’N work is being undertaken and feasibility Intrusion on August 31, 2005. The NTS studies are being considered with the McGregor Lake property is approximately 76E/11, 14 KIA and other organizations for future 9,470 hectares in size. The company Location 300 km south of Kugluktuk uses of the site. considers the base of the Muskox Intrusion in the McGregor Lake area to Kinross acquired the Lupin underground MIE represent a corridor of opportunity for gold mine from Echo Bay Mines early Operator, Owners accumulations of sulphides containing 2003 and operated it until the closure Adriana Resources copper, nickel, platinum and palladium. this year. Gold in iron formation was Commodities Reconnaissance sampling in 2005 discovered in 1961 by the Canadian Nickel Nickel, Copper, Cobalt, was conducted to confirm anomalous Platinum, Palladium, Gold Company (Canico). The rocks were values along the East and West walls of repeatedly deformed and mine site strati- Coordinates the Muskox Intrusion. Selected grab 115° 15’W, 67° 00’N graphy consisted of two steeply-plunging, samples ranged from (MIE-08) 82 ppm NTS steeply-dipping anticlines separated by a Cu, 51 ppm Ni, 13 ppb Pt, and 10 ppb 86J/11, 14, 86O/3 syncline. Three primary ore zones were the Pd, to (MIE-05) 2.73% Cu, .036% Ni, Location West (west limb of the western anticline), 2175 ppb Pt, and 14,828 ppb Pd on 90 km south of Kugluktuk Central and East zones (west and east the East Wall, and to (MIE-16) 1.41% limbs of the syncline). Two other ore Adriana Resources’ main property, known Cu, 2.28% Ni, 790 ppb Pt and 938 ppb bodies, McPherson 1 and 2, occurred in as the MIE property, is approximately Pd on the West Wall. The company is different iron formation lenses, several 540 km2 in size and is centered over the currently compiling historic information dozen metres west of the West Zone. northern half of the exposed portion of on this property and preparing an In 1979, Canico optioned the property the Muskox Intrusion, which is part exploration program that will include to Echo Bay Mines, who bought it the of the Mackenzie Igneous Event. The both geophysics and drilling. following year. Underground exploration and mine construction commenced shortly afterward and the mill was com- missioned in April 1982. In 1998, the mine was placed on care and maintenance due to low gold prices. In this period, the mine milled 10.46 Mt with an average grade of 9.9 g/t, producing 2.84 million ounces. The mine re-opened in April 2000 and at the end of the year, proven and probable reserves were estimated at 1.652 Mt grading 8.9 g/t. The mine reached a milestone in 2001 by pouring

Mining and Exploration Overview 2005 25 MEGATEM II survey and follow-up MOUNTAIN LAKE, DISMAL LAKE ground geophysics (magnetic, resistivity, Operator, Owners time and frequency domain EM). An 81 Triex Minerals Corporation, line-km GEOTEM survey was completed Pitchstone Exploration Ltd. over a test area of the Dismal Lake project. Commodities Other work on the projects included core Uranium rehabilitation, sampling, re-logging, Coordinates 116° 51’W, 67° 18’N ground and airborne radiometric survey- ing, geological mapping and prospecting. horizons within the property with 48 of NTS 86N/7 Results from the 2005 exploration pro- 205 rock grab samples returning greater that 1 g/t Au with three highest values of Location gram are being compiled and integrated 100 km southwest and 150 km with historic geological and drill data. 25.8 g/t Au, 29.5 g/t Au, and 26.2 g/t west-southwest of Kugluktuk Au. Further compilation and interpretation REGAN LAKE PROPERTY of exploration results will be used to define The Mountain Lake project, approximately Operator, Owners priority drill target areas for 2006. 100 km southwest of Kugluktuk, and Strongbow Exploration Inc. SANAGAK nearby Dismal Lake project, approximately Commodities 150 km west-southwest of Kugluktuk, Gold Operator, Owners Indicator Minerals Inc., are located in the Hornby Bay Basin. Coordinates 107° 45’W, 65° 10’N Hunter Exploration Group Uranium mineralization is hosted within NTS Commodities a unit of the mid-Proterozoic Dismal Diamonds 76G4 Lakes Group. The Mountain Lake project Coordinates Location comprises eight mineral claims totalling 94° W, 74° 45’N Approximately 70 km southwest of 6,647 hectares and the Dismal Lake Goose Lake NTS project comprises seven permits and 14 57F, G claims totalling 119,729 hectares. Claims Strongbow’s Regan Lake gold property Location and permits on the properties straddle consists of 9,860 hectares on IOL in the Boothia Peninsula, northwest of the NT/NU border. The properties are Back River area of the Slave Province. held in 50:50 joint ventures with Triex, Past exploration in the area has focussed The Sanagak Project, operated by the operator of both projects. on two occurrences of folded sulphidic Indicator Minerals Inc. (IME), consists During the 1970s and 1980s, Esso iron formation in the south-eastern part of approximately 450,000 hectares of Resources Canada and Cominco Ltd. of the property. The property hosts over prospecting permits located on the drilled 190 holes (approximately 19 km of oxide and silicate iron formation Boothia Peninsula, northwest of the 22,000 m) on the Mountain Lake project. within the same sedimentary rocks as community of Taloyoak. An inferred resource of 8.2 million the gold-bearing iron formations of the Kimberlite indicator minerals, some pounds U3O8 with an average grade of George and Goose lakes gold deposits with diamond indicator chemistry, were

0.23 % U3O8 has been estimated at approximately 70 km to the northeast. recovered in five spatially separate areas depths between 28 and 136 metres. In 2005, 14 days were spent con- on the property from heavy mineral Two types of mineralization have been ducting bedrock mapping and rock and samples collected in 2004. During the recognized – stratabound sandstone- soil geochemical surveys. Mapping has 2005 summer program, 99 heavy mineral hosted and discordant fracture filling. produced a revised structural interpre- samples were collected to follow up Work in 2005 over the Mountain tation for the area. The geochemical the anomalous samples. One of these Lake property included a 684 line-km surveys confirm gold in iron formation anomalies is located along the eastern

26 Mining and Exploration Overview 2005 boundary of the project area (“the width of 3.2 metres. Additional historic Ravine showing where prospecting has Boundary Anomaly”). numbers are 28 g/t Au over 4.75 metres, returned assays of 36.2 and 26.0 g/t Au. During the 2005 field program, 12.86 g/t Au over 8.87 metres, 4.08 g/t Rubbly gossanous quartz veins to the IME collected heavy mineral samples Au over 15.27 metres, 15 g/t Au over 4 north and south yielded Au values between immediately east of the Boundary metres and 10 g/t Au over 5 metres. For 22.8 and 89.1 g/t (2.6 oz/ton). Anomaly to determine if kimberlite 2005, Tradewinds had a 4,000 m drill indicator minerals are present outside program planned with an expense of ULU SOUTH the project area. These samples were flown approximately $800,000. Operator, Owners to the SRC laboratory for expedited Strongbow Exploration, Wolfden Resources processing and analysis. Results confirmed ULU the presence of indicator minerals east Operator, Owners Commodities Gold of the property and a staking campaign Wolfden Resources Inc. Coordinates to capture the areas of interest was Commodities 110° 55’W, 66° 45’N completed in late 2005. The company Gold NTS staked 42 mineral claims covering more Coordinates 110° 59’W, 66° 54’N 76L/10 than 43,700 hectares. Location Plans for 2006 include additional NTS 76L/15,14 300 km southwest of Cambridge Bay heavy mineral sample collection to further Location delineate the extent of the indicator The Ulu South property consists of 300 km southwest of Cambridge Bay mineral anomalies and the acquisition approximately 32,000 hectares of Inuit of airborne geophysical data to identify Wolfden is the current owner and operator Owned Lands subject to the NTI Agree- kimberlite targets. of the Ulu gold deposit hosted in amphi- ment covering the southern part of the bolite facies mafic metavolcanic rocks of High Lake volcanic belt in the northern TURNER LAKE the High Lake volcanic belt. Gold was Slave Structural Province. The property Operator, Owners first discovered at Ulu in the late 1980s ties immediately onto Wolfden Resources’ Tradewinds Ventures by BHP-Utah Mines Ltd (now BHP Ulu gold project and the Ulu South Commodities Billiton). The deposit, which remains open property is considered prospective for Gold for expansion, has a geological resource gold and base metals as well as diamonds. Location of 565,000 ounces of gold contained in In September 2004, Strongbow and Bathurst Inlet 1.34 Mt grading 12.91 g/t Au between Wolfden entered into an agreement under The Turner Lake Property covers 1012.5 surface and the 360 meter level using a which Wolfden may earn up to a 60 per hectares located near Bathurst Inlet in the 5 g/t cut-off grade and a 1.5 meter cent interest in the property by spending Kitikmeot District of Western Nunavut, minimum mining width, indicating $5.0 million over five years. Wolfden Canada. The mineral assemblage of the 3,650 tonnes per vertical meter. A ramp undertook a compilation of available Turner Lake Property is virtually identical has been completed to the 155 m level on exploration data to identify priority to that of the former Lupin gold mine the Flood Zone, including development areas for exploration work in 2005. located 200 km to the southeast. and the driving of an escapeway/fresh Previous work includes extensive mapping, air raise. The mine site contains a runway, airborne and ground geophysics, trenching camp, power generation, fuel farm, and and drilling, exposing at least three high- machinery and equipment for the mining grade shoots of gold mineralization. In and transportation of ore. 1989 detailed channel sampling returned The property has excellent exploration an average grade of 4.5 g/t over a true potential as demonstrated by the untested Davidson, A., Sanford, B.V., Okulitch, A.V., and Roest, W.R. (comp.) 1997, Thelon Wildlife Geological Map of Canada: Sanctuary Geological Survey of Canada, Map D1860A Baker Lake H u d s o n S t r a General compilation derived from i t Geology of Nunavut by Eric de Kemp, March 8, 1999 Chesterfield Inlet Base map derived from National Atlas of Canada, 2 million scale. http://www.nunanet.com/~cngo http://nwt−t no.inac−ainc.gc.ca Whale Cove http://www.gov.nu.ca This map is for review purpose only! GN, INAC, & C−N GO 1 accept no responsibility for the accuracy of the data. Arviat September, 2005 Government of Nunavut Resident Geologist Office 6 CONTACTS

Bernie MacIsaac Community Manager of Mineral Resources Nunavut Boundary H u d s o n Indian and Northern Affairs Canada Iqaluit, Nunavut Rivers macisaacb@inac−ainc. gc. ca 60°0’0"N

Dave Smith Oil and Gas B a y Dept. of Economic Development Exploration Permit & Transportation Government of Nunavut

60°0’0"N Other Iqaluit, Nunavut Production License dsmith@gov. nu. ca Significant Discovery License

C−NGO Project Areas Lithology For a copy of this map please contact: Queen Maud Gulf MBS Intrusive Rocks John Taylor, Prospecting Permits GIS Specialist Thelon Wildlife Sanctuary Coast Line Metamorphic Rocks Canada−Nunavut Geoscience Office National Parks

Volcanic Rocks 55°0’0"N Lakes jtaylor@nrcan. gc. ca Inuit Owned Lands −Surface Sedimentary Rocks Ice Inuit Owned Lands −Sub Surface Sedimentary & Volcanic Rocks 55°0’0"N 50°0’0"N 50°0’0"N 45°0’0"N

105°0’0"W 100°0’0"W 95°0’0"W 90°0’0"W 85°0’0"W 80°0’0"W 150°0’0"W 140°0’0"W 125°0’0"W 110°0’0"W 90°0’0"W 75°0’0"W 60°0’0"W 50°0’0"W 40°0’0"W 35°0’0"W 30°0’0"W

Alert

Quttinirpaaq National Park

D N 100 50 0 100 200 300 400 A L Kilometers k) N ar E m Scale 1: 10,400,000 E en R (D Lambert Conformal Conic Projection, Standard Parallels 49°N G and 77°N, North of Latitude 49°N, Central Meridian 95°W Eureka

n n d s a s l a e I c h b e t O i z a E l e e n Q u c

i t c r A

Grise Fiord 75°0’0"N B a

Melville f Island f i Polaris n Resolute B a y

Sirmilik National Park Pond Inlet 75°0’0"N Somerset Island Nanisivik

Prince D a of v Wales Clyde River i Island Brodeur s Peninsula S t

r 70°0’0"N

B a a f f i i n t Victoria Island Boothia I s Peninsula l a n d

Nunavut Tunngavik Inc.. Government of Nunavut Auyuittuq 70°0’0"N Resident Geologist Office Lands Office Taloyoak National Park Cambridge Bay Hall Beach Kugluktuk Kugaaruk

Foxe 65°0’0"N Bathurst Inlet Queen Maud Gulf Migratory Bird Sanctury Repulse Bay Government of Nunavut Basin Headquarters

65°0’0"N Iqaluit Geological boundaries from the Ukkusiksalik Canada−Nunavut N National Park Indian and Digital Geology of Canada U Geoscience N T Northern Affairs Canada compilation by Wheeler, J.O., A V U Office Northern Affairs Canada Cape Dorset Office Hoffman, P.F., Card, K.D., Office Davidson A Sanford B V 55°0’0"W 45°0’0"W 40°0’0"W 35°0’0"W 120°0’0"W 130°0’0"W 140°0’0"W 145°0’0"W 4 Coronation Gulf Diamonds different properties covering over Agreement. A prominent kimberlite The Coronation Gulf Diamond District, 200,000 hectares in the north Slave indicator mineral train is on the property southeast of Kugluktuk, covers the area of western Nunavut. Stornoway is and till samples collected by Strongbow in northern portion of the Archean Slave the operator on all but two of them. The 2003 and 2004 have returned hundreds Province and 21 kimberlites, including nine properties are the Jubilee, Jewel, of indicator minerals. The mineral train eleven that contain diamonds, have been Peregrine, Sceptre and Tiara projects, is well cut off, indicating that a bedrock discovered in the area. The first kimber- Aqua and Diva projects, Bear and Kikerk source for these minerals is likely located lite, the Potentilla, was discovered in 2001 properties. within the property. The 2005 program and started a 1.6 million hectare staking The Jubilee property is a joint venture was planned to ground truth several geo- rush which encompassed the majority between Stornoway, Earth Star Diamonds physical targets and boulder prospect for of this diamond district. Numerous and International Samuel Exploration kimberlite float within the mineral train. companies are working in this area either Corporation and covers 16,705 hectares. Strongbow Exploration Inc. and on wholly owned properties or as joint The Jewel property covers 3,103 hectares Tahera Diamond Corporation planned venture projects. and is wholly owned by Stornoway, drilling of at least one priority potential Ashton Mining of Canada holds a 100 although Strongbow could earn a 35 per kimberlite target on the Tenacity South per cent interest in five properties and cent interest by spending $25 million. diamond project. This property comprises these are the Vic, Kim, Ric, Eokuk and The Peregrine property is a joint approximately 5,500 hectares and is James River properties. Ashton also has a venture between Stornoway (30 per cent) located adjacent to Tahera’s Hood River 52.5 per cent interest and a right to earn and Diamondex Resources Ltd (70 per property that hosts the diamondiferous an additional 7.0 per cent interest in the cent) and covers 62,496 hectares with a Tenacity kimberlite. The Tenacity South 15 mineral claims, representing 15,400 total of $1 million being spent. In 2005, property is located on IOL in which hectares of the Kikerk Lake project with Diamondex negotiated financing which Strongbow controls 100 per cent of the Caledonia Mining Corporation and resulted in Barrick Gold Corporation now mineral rights, subject to an agreement Stornoway Diamond Corporation. holding 10.95 per cent of Diamondex, with NTI. Kimberlites that Ashton has discovered who received $11.52 million. This deal Shear Minerals operates one project include the diamondiferous Artemisia and makes Barrick a major shareholder and in the region with their Coronation Thrift kimberlites on the Kim property, will significantly increase the potential Diamond Project property consisting of the Potentilla and Stellaria kimberlites of Diamondex’s exploration properties. 58 claims in three non-contiguous claim on the Kikerk property and the Hydra, The Sceptre and Tiara properties cover groups, totalling 32,174 hectares. Shear Perseus, Caltha, Ric-97 and Ric-26 on 39,541 hectares and are a joint venture advanced the project to the drill-ready the Ric property. between Stornoway Diamond Corporation stage in 2002 and determined four Ashton approved a total budget of (40 per cent), International Samuel medium-priority targets following ground $1.4 million for exploration in the region Exploration (36 per cent), New Cantech geophysical data and supporting kim- in 2005, including its contribution to the Ventures Ltd. (24 per cent) and Dasher berlite indicator mineral anomalies from summer program for the Kikerk Lake Energy (eight per cent). Stornoway has till samples. The core claims in the property. The exploration program the option of earning up to 60 per cent property are in good standing for 10 years. focussed primarily on this property. by funding $7 million in expenses and Shear is evaluating possible options for Ground geophysical surveying, indicator issuing shares by the end of 2006. the drill testing of these targets. mineral sampling, and further drilling was Strongbow’s 100 per cent owned Nordic Diamonds Ltd. and Interna- planned to investigate the nature of the Blue Lake diamond property is located tional Samuel Exploration Corporation Stellaria diamondiferous kimberlite pipe. approximately 180 km southwest of have a joint venture agreement on the Stornoway holds varying interests Kugluktuk. The property comprises BRSC project located immediately to the (between 30 and 100 per cent) in nine 3,595 hectares of IOL subject to the NTI north of Contwoyto Lake. The property

30 Mining and Exploration Overview 2005 lays approximately half-way between the announced early in 2004 identified Lac de Gras region in the NT and the anomalies suggestive of kimberlites. How- Coronation Gulf diamond region. There ever, Allyn Resources concentrated their are 11 diamond bearing kimberlite pipes efforts on their other Nunavut projects Pacifica Resources Ltd, to control the located within 10 km of the BRSC in 2005. Yava base-precious metal property. In 2005, property boundary, the most significant The Musk gold-silver-copper-zinc-lead Pacifica Resources’ main exploration focus being the Jericho kimberlite about 7 km project in the Back River area of the was the base precious-metal Selwyn Project to the south. Three high priority drill Coronation Gulf was optioned to in Yukon. Pacifica expected that their targets were selected from 2004 with Strongbow Exploration from Noranda exploration focus would shift off the the expectation of a spring 2005 start. A Inc. The Musk Project comprises a single Selwyn property to the Yava Project regional sampling program was conducted mining lease as well as 21,000 hectares but encouraging results in the Yukon in 2005 on the BRSC project and Nordic of mineral claims and 8,558 hectares of re-focussed the company’s efforts to Diamonds’ 100 per cent owned WM IOL. Drilling and detailed evaluation in continue with that project. claims, a project that lies immediately the 1980’s outlined a VMS deposit of Rhonda Corporation and De Beers north of the Jericho project. Kimberlite 415,000 t grading 1.4 g/t Au, 324 g/t Canada Inc. have a joint venture agree- float was discovered on the WM claims. Ag, 1.1% Cu, 1.4% Pb, and 9.8% Zn. ment for the Tree 1 claim over the Knife Also active in the Kitikmeot region is Strongbow Exploration notified Noranda kimberlite pipe; this claim covers 2530 Kaminak Gold Corporation, a new mineral early in 2005 that it would not pursue hectares. De Beers budgeted $1.32 million exploration company that formed through its option to earn a 100 per cent interest for the 2004 program and drilling that year the combination of the non-diamond in the Musk mining lease. The existing provided more information on the internal assets of privately held Hunter Explo- Musk camp was used in 2005 as a base to geology and suggested the presence of ration Group together with the non- support continued exploration of other an additional volcaniclastic unit. diamond assets of Shear Minerals Ltd. projects. Strongbow’s 100 per cent owned Hope Kaminak now holds one of the largest land The Muskox Ni-Cu-Co-Pt-Pd-Au Bay project is comprised of five mineral positions in Canada devoted to metallic project owned and operated by Prize claims (4,121 hectares) located at the mineral exploration and commodities Mining Corporation, formerly Muskox northeast end of the Hope Bay volcanic sought include gold uranium and nickel. Minerals Corporation, hosted by the belt, approximately 125 km southwest of With this agreement with the other 1.27 Ga Muskox Intrusion, a layered Cambridge Bay, NU. The property lays companies, Kaminak is able to use the mafic/ultramafic complex. The Muskox three km north and along strike of technical databases of both Shear Minerals Intrusion was first discovered in 1956 Miramar’s Doris gold deposit. Past Ltd. and Indicator Minerals for non- by INCO, and was examined between exploration of Strongbow’s ORO claims diamond exploration. Projects active 1969 and1988 by various companies. has included detailed bedrock mapping, include the Lach, Bathurst, Needle Lake The Yava Zn-Cu-Ag-Au deposit, airborne and ground geophysical surveys, and BR properties. located between the Hackett and Back prospecting and drilling although drill Rivers on map sheet 76G/12, has not intercepts have returned uneconomic gold Inactive projects seen active exploration since 1976. values. A work program was not under- Several projects in the Kitikmeot were However, it is one of the major massive taken in 2005 but Strongbow considers inactive in 2005. The Inulik property sulphide deposits in the Slave Province. the ORO claims to be of strategic value owned by Allyn Resources is a gold, base The deposit contains two zones, a massive due to their proximity to the Doris metal and diamond project 120 km zone and a zone of stringer sulphides. deposit. The property contains several southeast of Kugluktuk. Three separate In 2004, exploration was re-activated untested areas of interest that warrant claim blocks (ALS/AT, ALN/MARS and by Expatriate Resources Ltd., who later further investigation, particularly once TE) cover over 196,279 hectares. Results reorganized and created a new company, the Doris deposit is in production.

Mining and Exploration Overview 2005 31 Kivalliq District

The Kivalliq District includes the eastern Exploration for uranium was once West gold property which Comaplex mainland, and several again occurring in the Kivalliq. Work in operates. smaller islands. The communities of Rankin 2005 was limited to airborne geophysics, Large land positions in the western Inlet, Baker Lake, and Arviat are often mapping, prospecting, and community Kivalliq acquired in the diamond rush are used as staging points for exploration consultations. now being considered for their uranium projects. Scheduled and charter air services, The Thelon Basin is relatively under- potential. Recognizing the multi- expediting services, and other supporting explored and it has not yet been pro- commodity value of their permits in and businesses are available in these centres. spected using modern technologies. about the Thelon Basin, De Beers entered Rocks of the Archean - Proterozoic Historic uranium exploration work was into agreements with two companies in Western Churchill geological province mostly reconnaissance work done in the 2005. Cameco optioned 14 permits underlay much of the Kivalliq. Sedi- boom years of the 1970s and 1980s. south of - 2,300 square mentary rocks of the Hudson Platform Gold and diamonds were the leading kilometres termed the Aberdeen are found on islands within Hudson Bay. commodities sought. Cumberland Property, located 150 km west of Baker Past producing mines in the District are Resources continued to advance its Lake. In consideration for $1.8 million the North Rankin Nickel Mine at Rankin Meadowbank Project through the reg- in uranium exploration expenditures over Inlet and the Cullaton/Shear Lake gold ulatory process toward construction. four years, Cameco can earn a 60 per mine north of . The most active diamond project was the cent interest in the property. More than 35 exploration projects Churchill Project, operated by Shear Majescor announced an agreement were active in 2005, targeting a wide Minerals. Comaplex, De Beers, Diamonds with De Beers on permits covering 9,000 range of commodities: gold, diamonds, North, Dunsmuir, Peregrine, Indicator square kilometres, 50 km west of Baker Ni-Cu-PGE’s, base metals, and uranium. Minerals, BHP and Kennecott had indi- Lake in October. The permit area, called Current exploration targets include lode vidual diamond exploration programs the Baker Lake property, has both diamond and iron formation hosted gold, epi- in 2005. and uranium potential and the agreement thermal gold, quartz pebble conglomerate provides for separate options for the two hosted gold, mafic – ultramafic Ni-Cu- Emerging Projects commodities. The land package under PGE deposits, diamondiferous kimber- in the Kivalliq option to Majescor consists of 51 mineral lites, unconformity associated uranium, The diverse mineral potential throughout permits in the Archean Rae Craton. iron oxide-copper-gold (IOCG), and the Kivalliq has led to industry partner- Thirteen of the permits have been set volcanogenic massive sulphide mineral- ships. Some partnerships are based on aside for uranium exploration while the ization. the parties having mutual interest in the rest have been retained for diamond target commodity. Others are based on the exploration. Six target areas were partners having different exploration defined by De Beers’ 2004 regional effort interests. which generated more than 350 samples. Shear Minerals, Stornoway Diamonds Five of the targets were followed up in and BHP Billiton have a partnership on the the fall of 2005 by detailed till sampling Churchill and Churchill West properties. and airborne geophysics. The program for In 2005, international gold company 2006 will be established by the partners Gold Fields Limited concluded purchases upon receipt of the 2005 till sampling to secure 19.8 per cent of Comaplex results. The 13 permits retained for Minerals through a series of open market uranium are located on the projected transactions and private placements. The southwest-trending extension of the companies also entered into a technical Kiggavik trend. They contain known assistance agreement on the Meliadine uranium showings which appear to be

32 Mining and Exploration Overview 2005 closely associated with the Snowbird over 10 g/t Au and 27 per cent in Tectonic Zone. Seven occurrences and excess of 3 g/t Au. small deposits of uranium, known from The geological setting southeast of the 1970s, form a north-easterly trend Baker Lake suggests a favourable environ- in the south-eastern corner of the Baker ment for the discovery of iron-oxide- Lake permit area. This trend correlates copper gold deposits (IOGC). Docu- with the Snowbird Tectonic Zone and mented mineralization includes fracture the showings are hosted by rocks of the controlled U-Cu-Ag-Au-Se and U-Cu- Baker Lake Group. Uranium mineraliza- Mo-Pb-Zn hosted in the Baker Lake tion is epigenetic and hosted mainly by sediments and underlying basement sedimentary units. The common metallic rocks, diatreme breccia U-Cu-Zn- Au association is U+Cu+Pb+Ag. COGEMA mineralization in basement gneisses, and Resources Inc.’s Kiggavik uranium micro-fracture U-Cu-Ag mineralization deposit, first discovered in 1977, contains hosted in arkose peripheral to alkaline some131 million lbs of uranium. These dykes. deposits are located less than 20 kilo- Early in 2005 Brilliant Mining metres north of Majescor’s Baker Lake Corporation entered into an agreement property. with Falconbridge to acquire 100 per cent to semi-massive pyrrhotite, pentlandite, Kaminak Gold Corporation has 100 interest in 15 prospecting permits forming and chalcopyite mineralization in an per cent of the non-diamond rights to the Chesterfield Property east of Baker equigranular gabbro dyke. Previous 3.44 million hectares of the Churchill Lake. The area is considered prospective sampling by Falconbridge yielded a best Diamond Project, plus an additional 2.06 for the discovery of Ni-Cu-PGE deposits assay of the 6.84% Ni, 0.22% Cu, 0.02 million hectares in the Kivalliq and eastern as it covers the Chesterfield segment of g/t Pt, 1.20 g/t Pd, and 0.16 g/t Au. Kitikmeot. Taking advantage of strategic the craton-scale Snowbird Tectonic Zone. Historic sampling at the Cone Hill gold agreements with diamond explorers, they Rift related ultramafic and mafic differ- occurrence returned a high value of 15.9 have gained access to a database of entiated intrusive complexes, ca 1900- g/t Au. Site visits confirmed the presence archived till samples. Two properties within 1800 Ma aged, are co-incident with a of highly altered and sulphidized iron their portfolio are the Sy Property in regional scale gravity anomaly. This formation horizons for over 7 km along the Archean Yathkyed Greenstone Belt setting is similar to that associated with strike. Sampling this year returned a high and Baker Lake IOGC Project. the Raglan, Quebec and Thompson, value of 131.2 g/t Au. The Chesterfield The 101,200 hectare Sy Property is Manitoba nickel districts. Property also contains several uranium prospective for gold mineralization A 333 line-km helicopter borne electro- showings along the unconformity between analogous to that documented on the magnetic and magnetic survey was flown the Baker Lake Group and underlying Meliadine properties. Gold mineraliza- over the Bowell Island Ni-Cu-Pd-Au Archean rocks. tion is related to a regionally extensive occurrences in 2005. Following a summer Developing diamond exploration northeast-southwest trending shear zone, field program, 12 claims covering 11,497 projects are Stornoway’s Hyde and occurring in quartz veins cross cutting hectares were staked to cover anomalous Aumaluuktuuk properties. Ground targets greenschist facies iron formation. Broad mineral occurrences, including the Bowell continue to be developed through gen- areas of carbonate altered mafic volcanics Island occurrence. These claims fall into erative grassroots exploration by the are also host to several gold-bearing the Falconbridge agreement. Brilliant’s strategic partnership of Indicator Minerals, zones. Past workers collected 155 surface 2005 sampling returned high assays of Hunter Group, Committee Bay Resources, samples along an 11 km iron formation 1.83 % Ni, 0.99% Cu, 0.14 g/t Pt, and Stornoway, and Trigon Exploration on trend, with nine per cent containing 0.29 g/t Pt associated with disseminated claims and permits in the Kivalliq.

Mining and Exploration Overview 2005 33 The Aberdeen Project consists of 14 and pitchblende in metasediment-dom- ABERDEEN1, TURGAVIK2 permits optioned from De Beers in August inated assemblages of possible Archean Operator, Owners 2005 while the Turgavik Project consists age. The graphite-lacking basement Cameco1, 2 of 131 claims east and north of Aberdeen lithologies have a well developed and De Beers Canada Inc.1 Lake, staked in late 2004. Total acreage regionally extensive regolith. Illite, chlorite Commodities for these two active projects is in excess of and hematite-dominant alteration is Uranium 323,760 hectares. The Deep Rose Project prevalent in the host rocks. Current Coordinates 98° 30’W, 64° 20’N has been dormant since 1998. Past explor- resources identified are: Kiggavik zones ation work had identified uranium min- 14,872 tonnes uranium at a grade of NTS 66B - Aberdeen eralization coincident with some graphitic 0.38%, representing 39 million lbs U3O8. 66A/5, 2, 66B/8, 9, 15, 16 - Turgavik horizons within rocks of the Amer Group, The Sissons Project is located about Location mineralized boulders. 20 km southwest of Kiggavik. It includes 125km west of Baker Lake Cameco’s 2005 field program con- three areas of uranium mineralization: sisted of airborne geophysics (MEGATEM, Andrew Lake, End, and Jane with deposits radiometrics, magnetics, and hyper- identified in the former two. Geophysically, DEEP ROSE spectral), prospecting and sampling on the two deposits are characterized by Operator, Owners the Aberdeen and Turgavik projects. gravity and resistivity lows, centred along Cameco Processing and interpretation of the faults. Negative gravity anomalies reflect Commodities airborne survey data is underway. the alteration associated with mineral- Uranium ization. Sudoite, a Mg-rich chlorite, Coordinates 1 KIGGAVIK AND coincides with mineralized areas. 99° 40’W, 64° 52’N 2 SISSONS PROPERTIES Uranium mineralization occurs as NTS Operator, Owners coffinite and pitchblende within the Andrew 66B/13 Cogema Resources Inc1,2 Lake and End deposits. The End deposit Location Daewoo1,2 180km west of Baker Lake JCU (Canada) Exploration was discovered in 1987, Andrew Lake in Company Ltd.2 1988. Resources of 13,598 tonnes The project areas are situated along the Commodities uranium at 0.28% for 35 million lbs U3O8 eastern margin of the Paleoproterozoic Uranium with 1 tonne gold and 0.7 tonnes plat- Thelon sandstone Basin near the Kiggavik Coordinates inum are identified in the End deposit. uranium deposit. The area is underlain 97° 50’W, 64° 20’N At the Andrew Lake deposit, the near by older Paleoproterozoic metasediments, NTS vertical Andrew Lake Fault strongly con- metavolcanics and granitoid rocks and the 66A/5 trols the mineralization. Current resources younger cloastic sediments of the Thelon Location identified are 22,160 tonnes uranium at

Group. A thick regolith of several 10s 75km west of Baker Lake 0.44%, for 57 million lbs U3O8 with 3.1 t of meters has been mapped by previous gold and 2.6 t platinum. workers along the unconformity contact The properties are situated on the east In 2005 COGEMA continued its between the Thelon sediments and side of the Paleoproterozoic Thelon Basin, care and maintenance program on the underlying basement rocks. Uranium less than two kilometres from the present Kiggavik camp and core storage areas. mineralization has been identified in day limits of the Thelon sandstone out- The program included community the Andrews Lake and Kiggavik areas. crops. Regional exploration on this side consultations and bringing a small Mineralization and associated alteration of the Thelon basin began in 1974, with group of Baker Lake residents to the in the immediate project area is largely the Kiggavik zones discovered in 1977. site in August 2005. unknown. Uranium mineralization occurs as coffinite

34 Mining and Exploration Overview 2005 program included 5,000 line-km of air- COMMITTEE BAY PROJECT borne geophysical (EM and Magnetic) Operator, Owners surveys to cover significant project areas. Committee Bay Resources and Detailed griding and ground magnetic Gold Fields Exploration Ltd. surveying occurred over high priority BAKER LAKE GOLD PROJECT Commodities targets, and drill testing of the Raven Gold Operator, Owners and Three Bluffs zones. Tanqueray Resources Coordinates The summer program included drilling Commodities 90° W, 67° N at Three Bluffs to test shallow targets Gold NTS along strike, as well as deeper targets Coordinates 56K, 56O, 56J and 56P beneath the reported inferred resource 96° 40’W, 64° 20’N Location delineated in 2004. Initial drill testing NTS Northeast of Baker Lake of several other prospects including Raven, 66A/4, 7, 10 The Committee Bay greenstone belt is one West Plains, and Betwixt were also com- Location 35 km west of Baker Lake of the largest unexplored greenstone pleted. Drill testing of the Anuri target belts in North America. The 300 km was attempted late in the summer but Tanqueray’s project area covers 106,000 long, northeast-trending belt comprises encountered difficulties. hectares in an area 10 km wide by 70 km Archean supracrustal rocks of the Rae Prior to the 2005 drill program, a long over the southern Archean Wood- domain of the Western Churchill Province. near-surface high grade inferred mineral burn Group. The exploration target is Rock types include komatiitic to basaltic resource of 1.9 million tonnes grading Archean lode gold in iron formation. volcanic rocks, intermediate to felsic rocks, 8.0 g/t Au for 487,000 ounces has been The 2005 exploration program and banded iron formation. defined by 49 drill holes at Three Bluffs. included 400 line-km of ground mag- Committee Bay Resources currently Using a lower cut-off grade this inferred netics and 100 line-km of ground EM, holds 0.65 million hectares along the mineral resource is expanded to 5.1 geological mapping, prospecting, and greenstone belt. The company’s $8 million million tonnes grading 4.0 g/t Au for 1200 m of drilling. Five gold occurrences 2005 exploration program had spring 657,000 ounces. About 85 per cent of have been identified: Ayak Gossan, and summer components. The spring these resources are within 120 m of Jaegar Main and Extension, Ayak Mouth, and Ayak West. Seven of 11 holes intersected gold mineralization. The most significant discovery occurred in the drill testing of the Ayak Gossan zone – identified through ground HLEM surveying over a large magnetic anomaly. Drill intersections of 10.53 g/t Au over 1.14 m core length and 15.06 g/t Au over 1.0 m core length were reported. To date only a small portion of the project area has been explored. Plans for 2006 include EM and magnetic airborne surveys, with further ground surveys and diamond drilling.

Mining and Exploration Overview 2005 35 over 5.46 m core length, 36.22 over CHURCHILL DIAMOND PROJECT 2.43 m core length. Some mineralized intercepts from the North zone are Operator, Owners Shear Minerals (51%); 3.57 g/t Au over 1.45 m and 11.63 Stornoway Diamond Corp. (35%); g/t Au over 0.48 m. BHP Billiton Diamonds Inc. (14%) The West Plains gold showing is in Commodities the southwest corner of the Committee Diamonds Bay Greenstone belt approximately 65 Coordinates km southwest of the Raven occurrence. 91° 30’W, 63° 30’N Two drill holes in the West Plains area NTS tested the northeast extent of a 3 km 55N, O, J long EM geophysical anomaly. Both Location holes intersected a thick silicate iron 70 km north of Rankin Inlet surface and the bulk of the high grade formation with patches of pyrrhotite that gold mineralization is along a shallow corresponds to low grade gold values. The Churchill Diamond Project is com- plunging structure. The Lowlands showing is located 1.2 km prised of mineral rights to more than The company’s 2005 drill program southwest of those holes and intersected 3.64 million hectares located near the at Three Bluffs was successful in tracing a 45 m wide zone of silicate iron formation communities of Rankin Inlet and Chester- the high grade gold mineralization to containing broad bands of semi-massive field Inlet. It is situated within the depths in excess of 320 m over a strike pyrrhotite cut by centimetre to meter Western Churchill Province and is under- length of 600 m. Drill intersections are scale quartz veins. These veins are locally lain by rocks of the metamorphosed interpreted to correspond to the north banded and contain up to 15 per cent Archean Rankin Inlet Group and sur- and south limbs of a folded, mineralized pyrrhotite. The best reported assays are rounding Archean gneisses. The Archean iron formation that contains an inferred 14.76 g/t Au over 8.73 m core length bedrock is intruded by Proterozoic diabase resource of 8 g/t Au for 487,000 and 25.33 g/t Au over 3.07 m. The high and biotite-lamprophyre dykes and over- ounces. Gold also occurs along the limbs grade zones are silica flooded with fine lain by the Paleoproterozic Hurwitz of the fold where iron formation is in grain pyrrhotite disseminated throughout. Group. The Proterozoic Pyke Fault may contact with dacite and metasedimentary Regional mapping and prospecting be an important structure controlling rocks. along the entire belt with detailed map- gold mineralization at Meliadine and A number of intersections with visible ping along the Raven-Anuri trend was could also be a favourable structure for gold did not return high assay values. The completed over the summer. The Raven kimberlite emplacement. Meliadine’s company states this reflects the nuggety - Anuri trend is believed to be a highly Aya dyke is a ca. 1792 Ma ultramafic effects of the gold distribution at Three prospective metamorphic “pressure- lamprophyre. The Parker Lake UML (or Bluffs. Spring drilling at the Raven occur- shadow” located northeast of a large Akluilak) dyke, located approximately rence (20 km west of Three Bluffs) tonalitic intrusion. 120 km northwest of Rankin Inlet, yielded encountered two mineralized zones. These For 2006, the company is planning an age of ca. 1832 Ma and may represent zones are characterized by multiple quartz more work at Three Bluffs and further a feeder dyke to the Proterozoic (ca. veins with abundant visible gold, euhedral evaluation of targets defined through 1850 Ma) CIF volcanic rocks. Narrow arsenopyrite and minor pyrrhotite over surface sampling. Three Bluffs work will kimberlite dykes (Peter and K-L) inter- widths of two to 10 m, concentrated include infill and deeper drilling along sected during drilling of the Meliadine along the sheared contact of a gabbro with the high grade trend designed to expand gold deposit yielded ages of ca. 192 Ma intermediate volcanics. Assays reported the gold resource and a ground geophysical (U-Pb on perovskite) and ca. 214 Ma from the South zone are 12.6 g/t Au program along strike of the resource area. (Rb-Sr on phlogopite).

36 Mining and Exploration Overview 2005 Shear discovered 17 kimberlites in 2005 before completing its 52-hole 2005 drill program. This brings the total number of kimberlites drilled on the property to 39. In addition, two kimberlite outcrops were located in 2005 through ground work and prospecting. The 2005 drill program commenced in April and con- tinued through to the end of September with 4,631 m of drill testing 44 spatially separate geophysical targets. Final pro- cessing of the 2004 till samples was completed in mid-2005. Indicator mineral counts from detailed till sampling con- tinued to refine areas of interest within the larger mineral corridors: Josephine, Sedna and North. Ground prospecting was conducted within the Josephine River and Sedna kimberlite indicator mineral corridors covering an area in excess of the core areas of the property and to the kimberlites identified on the property 75 sq km. A total of 30 kimberlite boulders better define the indicator mineral trains to-date. Mineral Services identified 16 were recovered. These include two and the up ice cut off. Since 2000, more targeted areas that host high interest occurrences of kimberlite float with visible than 7,100 surface samples have been garnet populations with above average pyropes and coarse grained macrocrystic collected from the property and all have counts indicating the source is likely olivine textures. Macro and micro dia- been processed with more than 55,000 nearby. The area in which KD900 is monds were reported from analysis of microprobe analysis. This sampling located lies immediately up ice of two drill core and surface samples. continues to refine the source areas of such areas identified by Mineral Services. Drill tested kimberlites 05KD900-01 interest for future drilling. The study also concluded certain indi- and 05KD209-01 have yielded macro A recent report for the company by cator mineral dispersions at Churchill are diamonds from initial caustic fusion Mineral Services Canada Inc. (Mineral narrow and also of limited length (less analysis. The first diamond at surface, a Services) used advanced indicator mineral than 3 km). clear, octahedron measuring 0.44 x 0.40 composition techniques to filter the In 2005, a dense sampling grid was x 0.36 mm was recovered in a 69.8 kg Churchill Diamond Project database. The completed within the Sedna Corridor. sample of pyrope garnet bearing beach results were incorporated in the selection Preliminary results have shown increased sands at the Churchill Diamond Project. of 2005 drill targets, and detailed sam- total counts of pyropes indicating closer The pyrope bearing beach sands were pling plans. Mineral Services reports the proximity to source. For example, one discovered by detailed prospecting, and known kimberlites discovered in the last sample (05RMT252) had anomalous occur in a narrow higher interest area two years did not explain the pyropes in pyrope counts (> 60) and is located up-ice within the larger Josephine River kim- till samples. Based on their findings, the of two 2004 anomalous samples con- berlite indicator mineral corridor. unexplained till garnets, which include taining 19 and 24 pyropes respectively. In 2005, a total of 1,877 till samples most G10’s recovered to date, are very Increasing detail will enable the targeting were collected on the Churchill Property likely derived from a colder, high interest of subtle geophysical targets within these in order to infill the sampling density in geotherm (37mW/m2) than garnets in areas for the 2006 drill program.

Mining and Exploration Overview 2005 37 resolution magnetic survey, flown over CHURCHILL WEST FERGUSON LAKE PROJECT DIAMOND PROJECT 60 per cent of the newly staked claims. Operator, Owners The survey identified numerous conductive Starfield Resources Inc. Operator, Owners anomalies within 450 m of the surface. Shear Minerals (51%), Commodities Ground crews prospected and sampled Stornoway Diamond Corp. (35%) Nickel, Copper, Cobalt, outcrops along nine conductive VTEM and BHP Billiton (14%) Platinum, Palladium trends having strike lengths of two to Commodities Coordinates eight km. Analysis of rock samples along Diamonds 96° 51’W, 62° 52’N these trends show that they are geo- NTS Coordinates chemically anomalous in Cu+Ag, Cu+ 94° 30’W, 63° 15’N 65I/9-15, 65J/14 and 16, 65O/1, 65P/3 and 4 Ni+Co, Cu+Zn+Pb+Ag, and Au+Ag. NTS Location Starfield’s geophysical consultant iden- 55M, N 160 km south of Baker Lake tified 250 anomalies for follow-up as Location potential kimberlite targets. Regional tills 75 km northwest of Rankin Inlet Starfield acquired this property in 1999, samples were collected on 2x2 km and conducted geophysical surveys, and 4x4 km grids across the entire property. This 208,016 hectare land package is completed 84,000 m in drill holes Delineation drilling of the West Zone situated immediately west of the Churchill between 1999 and 2004. The 2005 drill and 119 Zone continued to intersect Property. Two kimberlites were discovered program will bring the total to approx- Cu-Ni-PGE mineralization and low in 2003 from drilling, one of which was imately 108,000 m. During 2005 Starfield sulphide PGE mineralization. So far, a diamondiferous. increased the size of its Ferguson Lake strike length of 4.2 km (from the West In 2005, a 3,658 line-km high reso- mineral claim holdings by 200 per cent Side of Ferguson Lake to the 119 Zone) lution airborne magnetic-electromagnetic to 521,400 hectares. The property now along a ground geophysical conductor survey was flown. The south-eastern extends approximately 125 km east-west coincident with the mineralization has portion of the property is an area of and 71 km north-south at its widest been tested. An additional 3.8 km remains high interest as 98 isolated magnetic section. untested. Drilling continued to encounter targets were identified in earlier surveys. The Ferguson Lake deposit is a Ni- the low-sulphide PGE enriched horizons Processing of the data is underway, and it Cu-PGE deposit hosted by moderate to and a lower PGE-enriched sulphide lens. will be used to guide 2006 exploration weakly foliated tholeiitic gabbro-horn- To date in the pit area of the West Zone, efforts. blendite layered intrusions. The deposits drilling along a 1 km strike length, has are considered to be of magmatic origin, traced the footwall PGE mineralization, having formed as immiscible sulphide with intermittent low-sulphide bonanza segregations during emplacement. The grades of two PGE’s and/or lower foot- sills were emplaced along an east-west wall sulphide lens mineralization. trending structure interpreted by Starfield Starfield uses both borehole and ground personnel as a regional suture based on SQUID geophysics to guide its drilling 3D magnetic inversion. Gabbro hosting in the West Zone and Pit Area. For 2006 the Cu-Ni-PGE mineralization is exposed Starfield plans to continue its exploration 1.8 km along strike on the West Zone and development plan, including and may extend another 16.6 km west. continuing environmental and site Starfield followed up its 2004 airborne development studies, metallurgical geophysical survey with a regional 9624 testing and resource evaluation. line-km helicopter VTEM and high

38 Mining and Exploration Overview 2005 KEEWATIN PROJECT KMD PROJECT MATRIX PROJECT Operator, Owners Operator, Owners Operator, Owners BHP Billiton; Ripple Lake Diamonds Inc. Pacific Ridge Exploration Ltd., Tri-Origin Exploration Commodities Hunter Exploration Group Commodities Diamonds and Newmont Canada Ltd. Copper, Gold, Silver, Lead, Zinc Coordinates Commodities Coordinates 99° 45’W, 65°N Gold 97° 15’W, 60° 20’N NTS Coordinates NTS 55M/9, M/16, 55N/12, N/13 98° 00’W, 61° 37’N 65A/5, A/6, A/11, A/12 Location NTS Location 130km northwest of Rankin Inlet 65H/12 and 65G/09 Approximately 150 km Southwest of Arviat The Property is located within the Location northern Hearne domain of the Western 175 km west of Arviat Tri-Origin formed an option agreement Churchill Province. It consists of Archean with BHP Billiton in September 2004 rocks of the Hearne Craton and overlying In May 2004, Pacific Ridge and Hunter to explore the latter’s properties in the supracrustal rocks are intensely reworked entered into an option agreement with Kivalliq region for gold and Sedex-type during the 1.8 - 1.9 Ga Trans Hudson Newmont whereby Newmont can earn base metal deposits. The Keewatin Project Orogen. The Thirst Lake minette dyke a 60 per cent interest in the Matrix lies in a sedimentary basin of Protero- occurs near the southeast portion of the Property, located west of South Henik zoic age, surrounded by Archean rocks. property. It was discovered in 1994, and Lake in southern Nunavut. Gold The basin consists of siliciclastic rocks of sampling showed it to be diamondiferous, mineralization is hosted by basal quartz the Upper and Lower Hurwitz Group, although few macrodiamonds have been pyrite pebble conglomerate of the Paleo- with iron formation rimming much of reported. proterozoic Hurwitz Group. Initial work the basin. Reconnaissance field work by In 2004, the company collected 344 by Hunter identified three gold-bearing Tri-Origin in 2003 yielded several sediment sample concentrates. A pyrope pyritic conglomerate zones with grab anomalous Au values (up to 18.7 g/t Au). aureole was identified, with two elongated samples assaying up to 16 g/t Au. Strati- In 2005 the Company conducted a 138 trends and one discontinuous trend. Three form horizons with up to 20 per cent line-km AeroTEM survey at 200 m line sets of G9 pyropes were analysed for pyritic pebbles have been identified along spacing. EM conductors were delineated, trace elements. Based on nickel in garnet a 3 km trend of Hurwitz Group quartz coincident with magnetic responses. thermometry, a small portion of the pebble conglomerates. The Hurwitz Drilling is planned for 2006. garnets fall in the diamonds stability field. Group may be analogous to the African Additional ground was acquired based Witwatersrand Group sedimentary rocks, on the 2004 findings. known to host approximately 1 billion A 3,166 line-km airborne EM/Mag ounces of gold. and resistivity survey was flown in 2005. Exploration activities conducted on the Numerous airborne anomalies were Matrix Property in 2005 include airborne detected and detailed analysis and inter- geophysical programs of magnetics, pretation is underway. radiometrics, and NewTEM, followed The company collected a variety of by mapping, prospecting and drilling. sediment sample types in 2005: 714 tills, Drill results are pending. Newmont staked 21 lake sediments, and 15 glaciofluvial. 38 mineral claims in late 2005, adding The samples are being processed and 46,288 hectares to the project. indicator mineral results are pending.

Mining and Exploration Overview 2005 39 MEADOWBANK PROJECT Operator, Owners Cumberland Resources Commodities Gold Coordinates 96° 00’W, 65° 04’N NTS 66H/1, 56E/4 Location 75 km north of Baker Lake

The Meadowbank gold deposits occur tuff, with subordinate orthoquartzite and reserves and resources about the Goose within the Archean Woodburn Lake green- ultramafic schist. Sulphides (pyrrhotite and Island and Portage proposed pit areas, stone belt, approximately 75 km north of pyrite) and gold occur within a structural some grassroots exploration, and con- Baker Lake, and represent the third largest fabric associated with early progressive tinued its environmental baseline studies undeveloped gold resource in Canada. isoclinal folding. Alteration includes and impact assessments. The stratigraphy consists of quartzite sericitization, sulphidation, silicification Drilling on the northern and southern overlying komatiite, which in turn over- and carbonatization. flanks of the Goose Island deposit lies intercalated felsic to intermediate Cumberland Resources continues to returned mineralized intersections which volcanic rocks and iron formation. advance its Meadowbank projects towards are expected to increase the quality and size Regionally, four phases of deformation open pit production. Six near-surface of the Goose Island reserves and resources. are recognized. The stratigraphy is folded gold deposits have been identified in the Mineralized intercepts on the southern into a northwest-trending, isoclinal, project area: Goose Island, Third Portage flank occur over better than expected recumbent anticline sandwiched between and North Portage, Vault, Bay Zone, and widths (3.2 g/t Au up to 10.97 g/t Au two large granitoid intrusions. PDF. The Connector Zone links the over 2.48 to 9.13 m). Six of 11 holes Mineralization is hosted by interbedded Third and North Portage deposits (three drilled on the northern flank are expected iron formation and felsic to intermediate zones collectively termed “Portage to extend the deposit 50 m to the north. Zone”). In early 2005 updated resource Two other holes returned grades of 10.09 figures were released as part of a feasi- g/t Au and 14.90 g/t Au at depths of bility study. Based on open-pit mining 22 m and 19 m below the surface. methods, measured and indicated gold Summer drilling discovered a new resources stood at 23.3 million tonnes near-surface zone - Cannu Gold Zone, at 4.4 g/t Au, for 3.3 million contained 350 m north of the company’s planned ounces from the Portage, Goose Island Portage Pit. Assay highlights include: and Vault zones. 21.36 g/t Au over 1.75 m at 72 m The 2005 exploration program consists below surface; 9.49 g/t Au over 3.12 m of a two-phased program, including a at 100 m below surface; and 7.06 g/t planned 9,000 metre diamond drilling Au over 7.44 m at 28 m below surface. program, and grassroots exploration along The new zone is along trend of the the 25 kilometre Meadowbank gold trend. Portage and Goose Island reserves. It may The company completed geotechnical contribute to increasing the resource studies, infill drilling to increase gold and reserves of the project.

40 Mining and Exploration Overview 2005 and sericite alteration. deposit and the remaining 20 per cent on MELIADINE WEST PROPERTY Early in 2005, Comaplex released a reconnaissance regional targets: 2083 m Operator, Owners new resource figure based on an under- (13 per cent) on shallow targets within Comaplex Minerals (78%), ground, narrow, high grade mining 3 km of the deposit, and 946 m (6 per Cumberland Resources (22%) scenario for the Tiriganiaq Zone, capped cent) on two widely spaced assessment Commodities high gold assays at 60 g/t, and increased targets. Gold the cut-off grades for load definition. Drill testing of mineralization in the Coordinates 92° 11’W, 63° 01’N Tiriganiaq Main contains an indicated Western Deeps intersected the gold resource of 2,467,000 tonnes at 10.8 g/t bearing structure at 575 m vertically NTS 55J/13, 55K/16, 55N/1 Au (contained ounces 853,000) and below surface, assaying 13.4 g/t Au Location inferred resource of 417,000 tonnes at over 3.3 m. The tenure of gold values 30 km north of Rankin Inlet 12.7g/t Au. The West zone contains an from intersections in the 1000 zone of inferred resource of 725,000 tonnes at Western Deeps is greater than previously The Meliadine West deposits are hosted 13.43 g/t Au. Total contained gold in reported drill holes. The best value within the Archean Rankin Inlet Group, all categories is 1,335,000 ounces. reported to date is 16.0 g/t Au over in the hanging wall of the Pyke Break In December 2004, Gold Fields Ltd. 6.2 m (11.7 g/t over 6.2 m if cut to 60 Deformation Zone. Stratigraphy in the announced the purchase of 11.4 per cent gmt Au). area strikes east-southeast and is overturned interest in Comaplex in an open market Ten geotechnical holes were completed with south-facing tops. From north to transaction. The companies entered into to the north of the Tiriganiaq deposit. south (oldest to youngest), the stratigraphy a further private placement agreement in These holes are designed to test the includes the Sam Formation (metatur- March 2005, whereby Orogen Holdings overburden characteristics at three bidites), Upper Oxide Formation, and Limited, an indirect wholly owned sub- potential portal locations, one of which Tiriganiaq Formation wackes and silt- sidiary of Gold Fields Limited, purchased will provide future underground ramp stones. These structurally overlie, but 2,428,571 shares at a price of $3.50 for or shaft access. Condemnation drilling stratigraphically underlie, Wolf-Wesmeg aggregate gross proceeds to Comaplex was also completed in areas of possible Formation mafic and ultramafic rocks of $8.5 million. On closing of this infrastructure placement. with the inter-layered Lean and Lower transaction, Orogen (Gold Fields Ltd.) Surface sampling and prospecting Lean Iron Formations, and the Falcon increased its ownership to 7,628,571 continued along the 70 km Meliadine Formation variolitic flows. South of the shares of Comaplex, representing 19.8 West property. Approximately 155 line- Pyke Break, Sandhill Formation siltstones per cent of issued and outstanding km of magnetics have been completed and wackes, and Sic Sic Formation poly- shares in the company. The companies on two zones of the far eastern portion of mictic conglomerate are the dominant also entered into a technical assistance the property (CWM claims). A surface rock types. programme whereby Gold Fields will gold occurrence was discovered - the The largest mineral resource on the second geological staff and provide Akpik (Cloudberry) Zone. It has been Meliadine West property is the Tiriga- engineering consultation on the Meliadine covered by 39 line-km of magnetics on niaq Zone. Gold mineralization in the West Project. 12.5 and 25 m line spacings. The Aklak zone is found in quartz-vein stock works, The 2005 drill program finished in Targets, 5 km southeast of the Akpik laminated veins and sulphidized iron September. A total of 15,851 m in 48 Zone, was also covered by ground mag- formation in complexly folded and drill holes was completed. Of that, 18 netic surveys (116 line-km) and detailed sheared iron formation, sedimentary and holes totalling 11,333 m (72 per cent) surface sampling. Plans are to mobilize a volcanic rocks. Gold is associated with were completed on Western Deeps portion drill to this area for spring 2006 drilling. quartz-ankerite veins, variable pyrrhotite, of Tiriganiaq deposit, three holes totalling coarse-grained, euhedral arsenopyrite, 1122 m (7 per cent) on the main

Mining and Exploration Overview 2005 41 additional 199 till samples and carried MELIADINE EAST PROPERTY NANUQ PROJECT out prospecting and staking of select areas Operator, Owners Operator, Owners within the original permit grouping in Cumberland Resources Peregrine Diamonds Ltd. 2005. As of January 2006 the project and Comaplex Minerals Commodities area covers about 146,600 hectares. BHP Commodities Diamonds Billiton maintains a back-in option on Gold Coordinates the property. Coordinates 91° 00’ W, 65° 30’ N 91° 00’ W, 65° 30’ N NTS NANUQ NORTH PROPERTY NTS 56 G Operator, Owners 56 G Location Peregrine Diamonds Ltd, Location 250 km northeast of Baker Lake and Indicator Minerals 30km northeast of Rankin Inlet Commodities The property is underlain predominantly Diamonds The Meliadine East property is the eastern by undifferentiated granitic and gneissic Coordinates extension of the Meliadine West property. rocks of Archean age and minor granulite- 91° 00’ W, 65° 30’ N The target of exploration is an economic facies likely of Paleoproterozoic age. A NTS mesothermal lode gold deposit. H. A. greenstone belt, possibly correlative with 56 H/2, 3, 6, 7 Simons Ltd. completed an independent Archean Prince Albert and Woodburn Location preliminary engineering study of the Lake groups, occurs in the central part 300 km northeast of Baker Lake Discovery prospect on the Meliadine of the property and can be traced on East property in 1996 and estimated an aeromagnetic maps over 70 km. The Nanuq North Property is comprised inferred resource of 1,386,300 tonnes Paleoproterozoic (ca. 1.8 Ga) calc- of more than 32,780 hectares of mineral at 6.8 g/t Au (approximately 300,000 alkaline plutonic rocks of the Ford Lake claims located adjacent to the northern ounces) for the deposit. The Discovery batholith occur in the northernmost boundary of the Nanuq Project. The gold mineralization is hosted by oxide part of the property. The near-vertical claims were staked to capture the iron formation and is associated with shear zone cuts the northern potential source(s) of one of two kimber- abundant quartz-carbonate veining and part of the property in an east-west lite indicator mineral trains with diamond elevated sulphide contents (arsenopyrite, direction and displays dextral shear sense inclusion chemistry identified by Dunsmuir pyrite and pyrrhotite). Cumberland indicators. between 2001 and 2004. Several samples completed a mapping and prospecting In 2003, Dunsmuir flew a 12,000 yielded pyrope garnets with kelyphite rims program on the property in 2005. line-km high resolution airborne and one sample yielded a pyrope garnet magnetometer survey at 150 m line- with a kimberlite mantle, indicating a spacing and collected 472 till samples close proximity to source. The project was to compliment previously acquired till not active in 2005 pending resolution sample results. KIM’s recovered from on land tenure issues. the property include G9 and G10 pyrope garnets, diamond inclusion field eclogitic garnets, diamond inclusion field and kimberlitic chromites, chrome diopside and olivine. Following up on its 2004 FALCON TM airborne gravity gradiometer and magnetic survey and till sampling, the company collected an

42 Mining and Exploration Overview 2005 The second was to ground truth the TASIQ PROJECT THELON PROJECT project’s historic database by examining Operator, Owners Operator, Owners known showings and boulder trains. Diamonds North Resources Ltd. Titan Uranium Exploration Inc. And third, locate historic rock cairns Commodities Commodities identifying proposed drill hole locations Uranium Uranium and re-establish using GPS. Coordinates Coordinates Prospecting and sampling on the 99° 45’W, 65°N 99° 45’W, 65°N Company’s Wolverine Permit in 2005 NTS NTS resulted in the locating of additional 66B, 66G, and 66H 66B, 66G, and 66H mineralized boulders which refined the Location Location 150km northwest of Baker Lake 150km northwest of Baker Lake limits of two near-source boulder trains. Drill targets are located at the head of After the assignment of permits in February The project area covers seven uranium uraniferous boulder trains defined by 2004, Diamonds North recognized the prospects north of Aberdeen Lake numerous mineralized boulders ranging open ground was a function of permit totalling about 68,800 hectares. The up to several per cent uranium. Previous regulations. Till sampling conducted in potential exists for high grade uranium work has identified uranium mineralization 2004 yielded kimberlite indicator minerals, mineralization similar to the “uncon- in boulders of glacial till with grades including pyrope garnet, chrome diopside formity type” deposits being mined in ranging from .05% to 2.7% (U3O8). and an ilmentite with possible kimberlite the Athabasca area of Saskatchewan and Unconformity vein-type mineralization attached. Diamonds North then staked the Kombolgiie area of Australia. Titan’s has been located in pebbles and boulders. the 181,710 hectare block in 2004. 2005 field program had three objectives. Analysis of samples from two target areas Follow-up work in 2005 included 95 The first was to establish the level of returned uranium concentrations greater till samples. Processing of these samples community support for uranium explo- than 30%. Pebbles of unconformity-vein is underway. ration and developments in Baker Lake. type mineralization at SN-176 assayed 380,000 ppm uranium. Prospecting around Area 4 identified more than 2800 mineralized phosphatic sandstone and breccia boulders. Past work includes regional geological mapping, prospecting, 13,612 line-km of airborne radiometric, magnetic and electromagnetic surveying, and detailed lake-bottom geochemical sampling. Detailed surveys undertaken to date include ground geophysical, geochemical and scintillometer prospecting. Pending regulatory approval, the company has plans for a drilling program on its seven target areas in 2006.

Mining and Exploration Overview 2005 43 Qikiqtani/Baffin Region

In the Qikiqtani/Baffin Region, explo- Canada Inc. has by far the largest land Melville Peninsula. By 2004 BHP ration has being increasing significantly position on Baffin Island for diamond Billiton had discovered nine kimberlites each year since 2001. The main focus of exploration and has discovered a series on the Qilalugaq property near Repulse exploration in this region is diamonds. of sheet-like kimberlite bodies on the Bay. BHP Billiton has picked up The north-western half of Baffin Island Baffin property. De Beers also has prospecting permits covering the islands and the Melville Peninsula have been the prospecting permits covering most of just south of central Baffin Island in the main focus of diamond exploration in Devon Island and is planning an explo- Foxe Basin. Strongbow Exploration has the Qikiqtani Region, although De Beers ration program for 2006. In 2004, found a total of 10 kimberlite bodies on Canada Inc. and Stornoway Diamond Patrician Diamond Corp. discovered Wales Island in Committee Bay. Corporation are pursuing diamond diamond-bearing kimberlite bodies on There is a diversity of commodities, exploration in the High Arctic. the Borden Peninsula south of Arctic Bay. other than diamonds, being sought in Having optioned the OZ property on On the Melville Peninsula, Stornoway the Qikiqtani region. True North Gems the Brodeur Peninsula from Kennecott Diamond Corporation has discovered a has optioned the only known sapphire Canada Exploration Inc., Diamondex total of nine diamondiferous kimberlite occurrence in Nunavut and is testing Resources Ltd. is proceeding ahead with bodies within the Tremblay Corridor the economic viability with a mini bulk exploration on the property. De Beers and has the largest land holdings on the sample. The company is also looking for more occurrences of sapphire and other precious gemstones in the Lake Harbour Group of sediments. Commander Resources has had encouraging results in its quest for gold on the southern margin of the Piling Group of sediments on central Baffin Island and Intrepid Minerals will be searching for “Broken Hill” type silver deposits on southern Baffin Island. The increased value of iron ore has enticed Baffinland Iron Mines Corporation to revive their Iron project. The company hopes to be able to double the tonnage of the deposit through diamond drilling and to bring the deposit to the feasibility stage in three years. In the High Arctic, on Axel Heiberg Island, James Bay Energy Corp. has coal licences and did preliminary surface sampling last year. Southern Baffin Island near and Cape Dorset has also seen some preliminary prospecting and sampling for building stone by the Torngait Ujaganniavingit Corporation of Labrador. The company is examining the marbles of the Lake Harbour Group.

44 Mining and Exploration Overview 2005 ALEXIS PROPERTY Operator, Owners BHP Billiton; Stornoway Diamond Corp Commodities Diamonds Coordinates 86° W 67° N NTS 46K, 46L, 46M and 46N Location Between Repulse Bay and Committee Bay at the base of the Melville Peninsula

The Alexis property consists of 1.25 AVIAT PROJECT from the Hunter Group. The Hunter million hectares of mineral claims. These Group carries a 10 per cent interest in Operator, Owners claims where staked in the fall of 2004 the property. Stornoway Diamond Corp, surrounding and adjacent to BHP Billiton’s BHP Billiton, The Aviat 2 (AV2) kimberlite was Qilalugaq property. BHP Billiton and Hunter Exploration Group discovered in the summer of 2003, Stornoway Diamond Corp. hold a 50:50 Commodities followed by the discover of Aviat 3, 4, and interest in the property. Approximately Diamonds 5 (AV3, 4 and 5) in 2004. The company 600 till samples were collected during Coordinates discovered three new kimberlite outcrops the 2004 field season. BHP Billiton 69° 30’N 83° 20’W (AV6, AV7 and AV8) from prospecting. completed field work in 2005. No NTS The occurrences are all hypabyssal kimber- details are available at this time. 47D/04, 05, 06 and 47C/08, 01 lite visually similar to kimberlites AV1 Location to AV5, inclusive, all of which proved Melville Peninsula significantly diamondiferous from initial Aviat North 30 km west of Igloolik test work. The three new discoveries are The Aviat Project, located on the Melville located in close proximity to the other Peninsula, consists of 1.82 million hectares known kimberlites, within approximately of prospecting permits and mineral 6 km of AV1. AV1 has undergone the claims. Stornoway Diamond Corporation most advanced assessment from drilling is the operator and carries a 70 per cent to date and has returned a sample grade of interest in the project. The first kimberlite, 0.83 carats per tonne from the processing Aviat 1 (AV1), was discovered by Hunter of approximately 10.4 tonnes of kimber- Exploration Group in 2001 and optioned lite (all sieved stones >0.85 mm). to Northern Empire Minerals and Approximately two tonnes of surface Stornoway Ventures Ltd. The latter two material was collected from AV6, 7 and companies combined in July 2003 to 8 for diamond analysis, with final results form Stornoway Diamond Corporation. expected by year-end. Similar sized (several In the same month, BHP Billiton bought tonnes) samples of kimberlite collected a 20 interest share in the Aviat Project at surface from each of AV2, AV3, AV4

Mining and Exploration Overview 2005 45 and AV5 will also be processed by dense if successful, the company can spend BAFFIN ISLAND PROJECT media separation in 2006. another $500,000 to increase its share A total of 29 drill holes (approximately Operator, Owners in the property to 50 per cent. During Intrepid Minerals Corp./BHP Billiton 2880 m) were completed during the the 2004 field season Intrepid Minerals summer program. Three geophysical Commodities conducted a reconnaissance program Silver, Lead, Zinc targets were drill tested without inter- that included prospecting and sampling Coordinates secting kimberlite. One hole was drilled at and collected 15 samples. 70°W 67°30’N AV1 and extended the known kimberlite In 2005, the company continued NTS body 170 m to the west of previously its reconnaissance exploration and the 26M and 26N reported intersections. The remaining program took place east of the area Location holes focused in the vicinity of the AV2 340 km northwest of Iqaluit explored in 2004. The field program through AV6 and AV8 occurrences. took place over a two week period in Multiple kimberlite intersections ranging In June 2004, Intrepid Minerals and BHP August and the exploration team worked from 0.1 m to 23.6 m were encountered Billiton signed a joint venture agreement out of the Commander Resources camp at those occurrences. Drilling suggests the to explore BHP Billiton’s property on at Dewars Lake. Thirty rock samples bodies are sheet-like in nature, although Southern Baffin Island for “Broken Hill” and 12 heavy mineral concentrates were actual dimensions and orientations have type Ag-Pb-Zn deposits. Intrepid Minerals collected and reconnaissance mapping not yet been determined. Kimberlite AV7 will earn a 30 per cent interest in the of the area was performed. could not be drilled during the summer property after spending $500,000 and, drill program due to its proximity to a lake. Results from caustic analysis of drill core samples collected from the Aviat Project in 2005 are anticipated in early 2006. Prospecting to follow-up anomalous indicator mineral results derived from the 2004 till sampling program has discovered almost 350 locations with kimberlite boulders, not counting the new kimber- lite outcrops mentioned above. Although no mineralogical or geochemical studies have been made of these new boulder showings, based on the distribution and field descriptions, spatially related boulders are thought to represent a minimum of five trains coming from discrete source bodies that have not yet been identified. The significance of numerous, more isolated, boulder occurrences is not known at this time. Detailed till sampling was completed in 19 priority areas outside of the known boulder trains, where anomalous till samples with high diamond potential pyrope garnets were recovered in 2004.

46 BAFFIN ISLAND PROPERTY BAUMANN PROJECT Operator, Owners Operator, Owners De Beers Canada Inc. Stornoway Diamond Corp. Commodities Indicator Minerals Inc. Diamonds Commodities Coordinates Diamonds 80°W 70°30’N Coordinates NTS 85°00’ W 78°00’ N 47E, 47/H, 37C, 37H, 37F, 37G NTS Location 49C, D, E, F 150 km north of Igloolik Location 200 km north of

De Beers Canada Inc. has been exploring The Baumann Project is composed of 87 BELUGA SAPPHIRE PROJECT for diamonds on Baffin Island since 2001 prospecting permits on Ellesmere Island. Operator, Owners and has performed extensive till and stream The property was optioned to Stornoway True North Gems Inc. sampling, ground and airborne geo- Diamond Corp. in March of 2005. Seemeega Aqpik physics, reverse circulation drilling and Stornoway can earn a 41 per cent interest Nowdluk Aqpik diamond drilling. In 2004 De Beers in the property by spending $1 million Chris Lloyd followed a kimberlite indicator mineral before 2009 and incurring 100 per cent Commodities train and found a kimberlite float train. of the cost of staking mineral claims. In Sapphires/Fancy Sapphires De Beers has significantly increased its the 2005 field season 123 heavy mineral Coordinates 69°53’ W 62°49’ N land holding on Baffin Island and Devon samples were collected on the property. Island and exploration on Devon Island No results were available at the time of NTS 25k/13 will begin in 2006. writing. Location Work on Baffin Island during the 2005 3.5 km southwest of Kimmirut field season included: mapping and kimberlite float prospecting; The sapphires discovered near the Hamlet 1454 m of drilling; 6547 line km of of Kimmirut on Southern Baffin Island AeroTEM survey and 23 line-km of are hosted in a desilicified syenitic peg- ground gravity surveys over two grids. matite lens in the marbles of the Lake The kimberlite float prospecting produced Harbour Group of sediments. The sap- 604 individual pieces of float which phires were discovered by Nowdluk suggest multiple high interest kimberlite Akpiq in 2001 while out hunting. The sources may be present on the property. claims were staked in 2002/2003 by The drilling intersected several sheet- Nowdluk and his brother Seemeega. In like kimberlite bodies at the head of the November 2003, True North Gems kimberlite float train. No results on the optioned the Beluga Sapphire occurrence diamond content of the kimberlites from the brothers. At that time there were were available at the time of writing. two known occurrences of sapphires, with the Beluga occurrence being the main showing and the Narwhal being the second occurrence.

Mining and Exploration Overview 2005 47 BORDEN PROJECT BORDEN PROJECT, BORDEN Operator, Owners PENINSULA BAFFIN ISLAND Indicator Minerals Inc. Operator, Owners Commodities Patrician Diamonds Inc. Diamonds Commodities Coordinates Diamonds 83°W 72°30’N Coordinates NTS 80° W 70°30’ N 47H, 48A NTS In 2004, True North Gems recovered Location 48B/8 a 4.29 t bulk sample from the Beluga 110 km south east of Arctic Bay Location deposit. Regional till sampling and 90 km south east of Arctic Bay prospecting programs were also con- The Borden Project is located on the ducted and the company discovered 4 Borden Peninsula and is comprised of In 2003, Patrician Diamonds Inc. additional sapphire occurrences. The results 12 prospecting permits. This project is staked a package of claims (35,416 of the bulk sample were very encouraging part of an option agreement between hectares) 90 km south of Arctic Bay on with the recovery of rough sapphire Committee Bay Resources and Indicator the Borden Peninsula. Kimberlite bodies from the 2004 bulk sample being 790.7 Minerals Inc. were discovered on the property during grams/t. The grade of gem quality and In 2004, heavy mineral samples staking in the spring of 2003. During near-gem quality sapphires was 33.1 yielded kimberlite indicator minerals in preliminary field work in the summer of grams/t and 115.0 grams/t respectively. one area of the property. In 2005, 30 2004 angular kimberlite float was An independent evaluation of a portion of heavy mineral specimens were collected found in three separate locations and the sapphires that were processed showed to identify the source of the indicator caustic fusion recovered five diamonds an average price of US$570.85/t. The minerals. No results were available at from 162 kg of kimberlitic material, the deposit has produced natural blue, yellow the time of writing. largest diamond being 0.31 carats. and colourless sapphires to date. In 2005, True North continued with exploration on the Beluga sapphire occurrence. Work included extraction of approximately 110 t of sapphire bearing material from the Beluga occurrence, detailed mapping and prospecting of the claims. No results from the bulk sample were available at the time of writing. In November True North Gems announced the discovery of a new sapphire occurrence, the Aqpik Occurrence. The sapphire is colourless, with the largest piece recovered being 49 carats. True North Gems believes the Aqpik Occur- rence is a new style of sapphire mineral- ization within the same unit that hosts the other sapphire occurrences.

48 Mining and Exploration Overview 2005 During June of 2005, Patrician 140 heavy mineral samples in 2004 to Diamonds Inc. contracted McPhar FURY, SARCPA, GEM AND follow up anomalous sample results on KINGORA PROPERTIES Geosurveys Ltd. to carry out a high the Gem and Fury properties and resolution airborne magnetic survey Operator, Owners ground prospecting to examine high Strongbow Exploration Ltd. over its Borden Peninsula property. priority ground geophysical anomalies NDT Ventures Ltd. Approximately 3,700 line km were Stornoway Diamond Corp. defined during 2003 field work. flown in August 2005. Preliminary results BHP Billiton However, no further work is currently were received in September. The data Commodities planned for the Fury, Gem and Sarcpa showed a number of magnetic features Diamonds properties, although the Sarcpa property of high priority interest that occur in Coordinates will be retained due to its strategic position proximity to strongly anomalous kimber- 69°30’ W 66°30’ N on the Melville Peninsula. The company lite indicator mineral concentrations in NTS planned to follow up several till geo- stream sediments. Because of the lateness 47/A, 47B, 47D, 47E, and 47O chemical samples which returned of the season, no follow up of the airborne Location anomalous nickel and copper values in results was done. These targets will be a Melville Peninsula and Baffin Island the Kingora property in 2005. priority for evaluation during the 2006 field season. In May 2004, Navigator Exploration In 2005, Patrician Diamonds was Corp. and Strongbow Resources Inc. granted 12 prospecting permits on Cape combined to form Strongbow Explor- Dorset and plans to collect till samples to ation Inc. Strongbow Exploration along “follow up reports of high concentrations with NDT Ventures Ltd can each earn a 30 of indicator garnets.” per cent interest in these four properties from Stornoway Diamond Corp. and BHP Billiton. Strongbow Resources and NDT Ventures hold the four properties on the Melville Peninsula and just north of the Melville Peninsula on the coast of Baffin Island. The company collected

Mining and Exploration Overview 2005 49 However, the company surmises because JACKSON INLET EAST AND WEST MARY RIVER IRON of the high number of KIM within the ORE DEPOSITS Operator, Owners five clusters that there may be other Twin Mining Corporation and Operator, Owners kimberlite bodies hidden under shallow Stornoway Diamond Corp. Baffinland Iron Mines Corp. overburden. Commodities Commodities During the summer of 2004, Twin Diamonds Iron Mining outlined 42 anomalies through Coordinates Coordinates 88° 16’W 73° 15’N airborne geophysical surveys on the 79° W 71°18’ N Jackson Inlet East property. Eighteen of NTS NTS 58D/1,8 the anomalies were considered signifi- 37G/05 Location cant and crossed up to five flight lines Location 120 km west of Nanisivik (250 m). On the Jackson Inlet West 160 km south of Pond Inlet property, seven anomalies crossing five Diamond exploration on northern Baffin flight lines were outlined in the same The iron deposits at Mary River on north Island dates back to the early seventies, survey. central Baffin Island were first discovered when Diapros and Cominco uncovered The exploration program in 2005 by Murry Watts and Ron Sheardown in kimberlites on both the Brodeur consisted of 14,754 line-km of airborne 1962. Between 1963 and 1965 exploration Peninsula and to the west on Somerset gradiometer survey, minor till sampling work took place on the claims and five Island. A second phase of exploration and reverse circulation drilling. The drilling high-grade iron deposits were identified. began shortly after the diamond rush program was designed to investigate Most of the exploration work was per- arose in the NT, with Lumina Invest- the presence and quality of kimberlites formed on the No.1 Deposit. This work ment and Cyclone Capital conducting on the Jackson Inlet property. Drilling included 3,319 m of core drilling, tracing work in the region. Twin Mining tested the Freightrain kimberlite with of the iron formations through airborne Corporation acquired the property three holes, the Cargo 1 kimberlite with and ground geophysics, geological from privately-held Helix Resources in seven holes and 14 aeromagnetic mapping and trench sampling of each of June 2000. anomalies with 20 holes. At the time of the identified deposits. A bulk sample Since acquiring the property in 2000, writing no results were available. was also taken for metallurgical testing. Twin Mining has added substantially to Three gravel airstrips were also con- its land holdings on the Brodeur Penin- structed and a haul road was established sula and has at least four kimberlite bodies, between Mary River and Milne Inlet, as including the Freightrain and Cargo 1. well as topographic and hydrographic In February 2004, Twin Mining surveys conducted by the Government of announced that they had discovered 12 Canada of Milne Inlet. A full feasibility new clusters of kimberlite indicator study was performed to access the viability minerals (KIM) from their work in 2003. of the deposit and the deposit was deter- Seven of the 12 clusters of KIMs are mined at that time to be uneconomic. located on the eastern half of Twin The property remained dormant until Mining’s new claim block and several of 2004 when Glimmer Resources and Baffin- the clusters correspond with airborne land Iron Mines Ltd combined to form magnetic anomalies and intersecting Baffinland Iron Mines Corporation. structures. The remaining five KIM The drilling of Deposit No. 1 in 2005 clusters are within three to six kilometres was designed to in-fill drilling conducted of the Freightrain and Cargo 1 pipes. in 2004 within approximately one km

50 Mining and Exploration Overview 2005 of the axis of the fold between the south 2005 however, due to delays the work and north limbs of the deposit, as well will now be completed in 2006. Work as to step out at depth in certain areas. Operator, Owners includes removal of the remaining infra- The widely spaced 2004 program had Canzinco Ltd structure, limited maintenance of cover been successful in more than doubling Commodities material, finalization of the placement of Zinc, silver the drill-indicated strike length delineated some cover material, removal of contami- in the 1960s to about 2.5 km, more than Coordinates nated soils from certain targeted areas 84° 25’W, 73° 03’N doubling the depth of Deposit No. 1 and the commencement of post closure NTS and adding substantially to the thickness monitoring. Beginning in 2007 and for 48C/01 of the deposit with the discovery of a minimum of five years, geotechnical Location an Upper Zone. The 2005 program and environmental monitoring of the site Borden Peninsula, Baffin Island extended the depth of Deposit No. 1 to will be conducted to ensure the integrity more than 450 m measured from the The Nanisivik Mine went into production of the reclamation work. top of the ridge line on the north limb. in 1977. In the last year of production In June 2003, Canzinco entered into The objective of the 2005 program was (2002) the Nanisivik Mine produced an agreement with Wolfden Resources for to build on the success of the 2004 516,544 tonnes of ore at a grade of the purchase of the Nanisivik industrial program and develop a new resource 10.0% Zn and 42 g/t Ag. Production complex, including milling equipment calculation that would incorporate all of came to a halt due to low metal prices and related infrastructure, four diesel the drilling information. The ultimate goal at the end of September. In June 2004 electric generators, the ship loading facility of the program is to test the feasibility the Nunavut Water Board (NWB) gave and the concentrate storage building. of a 10 million tonne per year operation its approval to proceed with a closure In return, Wolfden agreed to reclaim the at Mary River for at least 25 years. and reclamation plan. The closure and industrial complex site to the regulators’ reclamation activities at Nanisivik were satisfaction. initially anticipated to be finished in

Mining and Exploration Overview 2005 51 OZ SERIES CLAIMS AND PROSPECTING PERMITS Operator, Owners Diamondex Resources Ltd. Kennecott Canada Exploration Ltd. Commodities Diamonds Coordinates 87° 00’W 73° 08’N NTS 48C/4,5,6,11, 58D/8, 48G/11,12,13,14, 48H/8,9 48 B/2,3,4 Location 110 km west of Nanisivik In May 2005, Diamondex announced it had signed a letter of intent to acquire a 100 per cent interest in Kennecott’s Oz claims and prospecting permits on the Brodeur Peninsula of Baffin Island. has allocated $800,000 to drill these from the Hamlet of Repulse Bay. Kennecott discovered three diamon- newly defined geophysical targets. To date To date, a cluster of nine kimberlite diferous kimberlite bodies on the property: Kennecott and Diamondex have spent bodies have been reported on the the Tuwawi, Nanuk, and Kuuraq. $9.5 million on the Brodeur project area. Qilalugaq property. One of the kimber- The Tuwawi kimberlite is the largest lite bodies (Qilalugaq) warranted a mini of the three (250 m x 150 m). It was QILALUGAQ PROJECT bulk sample. 9.37 tonnes of material was drilled and produced 1520 kg of drill Operator, Owners sampled and produced a grade of 0.25 core as a mini bulk sample. Three hundred BHP Billiton carats/t. This grade was sufficient to and nineteen diamonds were recovered Commodities warrant a larger bulk sample. The next bulk Diamonds from this sample and showed a coarse sample was extracted using a helicopter diamond distribution similar to Twin Coordinates portable reverse circulation drill. This drill 87° W 67° N Mining’s Freightrain kimberlite. Little makes a hole 8.5 inches in diameter and NTS information has been released about the can extract approximately 10 tonnes of 46K, L, M, N two other kimberlites. material with a drillhole 100 m long. A Location This season Diamondex flew 21,225 237 tonne bulk sample was collected. 10 km from Repulse Bay line-km of fixed wing magnetic surveys At the time of writing results were still and 2,800 line-km of Fugro Resolve air- BHP Billiton’s Qilalugaq project consists pending. The Qilalugaq kimberlite may borne surveys over previously identified of 405 mineral claims on the southwest be a composite body composed of up to airborne magnetic targets. Diamondex end of the Melville Peninsula. The property four separate intrusions. also collected 661 till and stream samples lies between Repulse Bay in the south In May 2005, BHP Billiton completed and recovered several kimberlite float and Committee Bay to the northwest. a 10 hole drill program. No results were boulders up to 30 cm in diameter. The Work on the property started in the available at the time of writing. boulders were found down-ice from several area in 2000. In 2004 a 45 person camp airborne geophysical targets. Diamondex was established approximately eight km

52 Mining and Exploration Overview 2005 turbidites. The area is considered spending $8.0 million on the Falcon- QIMIQ PROJECT prospective for Broken Hill-type, VMS bridge permits by the end of 2011. Operator, Owners and mesothermal gold deposits. Exploration in 2004 was concentrated Commander Resources Inc. Previously reported exploration in on the Malrock Lake (local name) area BHP Billiton the south Piling Group is limited. In where drilling and surface sampling Falconbridge Ltd. Nunavut Tunngavik Inc. 1985 Petro-Canada conducted a lake recovered significant, although disconti- Commodities sediment survey covering NTS sheets nuous, gold values in the iron formations. Gold 27B, 37A and D. Comaplex Minerals The silicate iron formation is very similar Coordinates Corporation carried out geological and in the style of mineralogy and mineral- 73° 00’W 87° N geochemical surveys in those areas in ization to the Musselwhite Mine in north- NTS 1991. Exploration in the north Piling western Ontario and the Homestake Mine 37A/9,10, 27B Group previously attracted Cominco in in South Dakota. Location 1976, 1991 and 2001 and Noranda in In the spring of 2005, the camp was 270 km northwest of Iqaluit 1993. BHP Billiton and Falconbridge moved westward to Dewars Lake area. The Piling Group is a lower Proterozoic received prospecting permits covering Exploration was concentrated in the Ridge supracrustal assemblage that is part of the south margin of the Piling Group in Lake area and the Durette Prospect. the Foxe Fold Belt; the northern extent 2000. BHP Billiton also obtained ten At the Durette Prospect chip and of the Trans-Hudson Orogen that NTI leases covering the Inuit Owned channel sampling during the 2005 field stretches from Melville Peninsula to the Lands (IOL) in the area. Under an agree- season has outlined a zone 500 m in west coast of Greenland. The southern ment signed in 2003, Commander strike length and open in all directions. margin of the Piling Group comprises a Resources can earn a 100 per cent interest The best samples collected and assayed at diverse lower package of siliciclastics, in the gold rights to the property by the Durette Prospect are 28.9 g/t over volcanic flows and volcaniclastics and spending $10.2 million on BHP Billiton’s 2.0 m and 18.0 g/t over 2.0 m. The an upper succession of greywacke- permits by the end of 2012 and by mineralization, a quartz stockwork with

Mining and Exploration Overview 2005 53 arsenopyrite-pyrrhotite, is above the perform surface sampling of the coal THE STRAND FIORD COAL PROJECT iron formations and seems to be hosted seams on the island. No work was under- in a strong east-west structure that is Operator, Owners taken on the coal licences in 2005, but James Bay Energy Inc. coincident with a strong EM conductor. the company has plans to examine the Commodities Commander Resources indicates that Coal coal seams in 2006. drilling will take place on the Durette Coordinates Coal occurrences are not uncommon Prospect next season. 87° W 67° N in Canada’s High Arctic islands. Coal is The Ridge Lake Prospect is a struc- NTS found in four formations within the turally thickened sheared and mineralized 46K, L, M, N Sverdrup Basin: the Upper Devonian Okse iron formation and may be part of the Location Bay Formation, the Upper Triassic or 515 km north of Resolute Bay on same structure hosting the Durette Lower Jurassic part of the Heiberg Axel Heiberg Island Prospect. This season, diamond drilling Formation, Lower Cretaceous at the Ridges Lake Prospect has revealed James Bay Energy Corp. has held the formation and the Upper Cretaceous and a zone 600 m long in the Lower (sulphide coal licences that cover the Kangut Penin- the Tertiary Eureka Sound Formation. facies) Iron Formation. The best inter- sula of Strand Fiord on Axel Heiberg These coal and hydrocarbon resources section was 21.3 g/t over 4.24 m. The Island in Canada’s High Arctic for several were examined in the late 1970s and mineralization intersected with drilling years. Axel Heiberg Island lays immediately early 1980s by several of the larger the Lower Iron Formation seems to west of Ellesmere Island within the petroleum companies. Assessment reports correlate with surface showings. The Sverdrup Basin. In 2004, a team went describing this work can be obtained showing is open in all directions. to Axel Heiberg Island in order to through the Mineral Archives in Iqaluit.

54 Mining and Exploration Overview 2005 WALES ISLAND PROJECT Operator, Owners Stornoway Diamond Corp. Strongbow Exploration Inc. BHP Billiton Commodities Diamonds Coordinates 80° W 70°30’N NTS 47B/3, 46M/15,16 Location 225 km north of Repulse Bay

Exploration permits granted in February 2003, on Wales Island, located in Committee Bay, are held jointly by Stornoway Diamonds Corp. (operator), Strongbow Exploration and BHP Billiton. An airborne geophysical survey was flown during the 2003 field season and identified a series of targets. Two of these targets were drilled in 2004 resulting in the discovery of two kimberlite bodies. The 2005 program on Wales Island started in August and included drilling, ground geophysics and till sampling. Eight new kimberlite bodies were discovered, five through diamond drilling and three with prospecting, bringing the total to 10 kimberlite bodies discovered on Wales Island. Work performed this season included 19 drill holes (1366 m), ground geophysics over 20 targets and 61 till samples. Seven hundred and eight kilograms of drill core and 70 kg of outcrop material will be tested for diamonds by caustic fusion.

Mining and Exploration Overview 2005 55 Mining Mineral Exploration and Geoscience 2005

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