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Chamber of Mines News Briefs – August 17 - 20, 2012 [Note: News headlines are hyperlinked to their stories in this document.] News ...... 1 birthright corporation subsidiary on time to finish Cape Dyer cleanup ...... 1 Inuit workers benefit from Cape Dyer site: Qikiqtaaluk Logistics ...... 3 Reports of more killer whales in Nunavut waters ...... 4 Harper to return to Arctic ...... 4 PM Harper to visit Yukon, NWT, Nunavut, Manitoba next week ...... 5 Harper's Arctic tour to be mix of new announcements, review of past promises ...... 5 'We will never forget' ...... 6 1 year later, mourners remember fatal Resolute plane crash ...... 7 NorthwesTel banks on faster Nunavut Internet ...... 9 NWT News...... 10 Gwich’in on the open road ...... 10 Resource Development and Energy News ...... 10 Feds say no to Nunavik review of Baffinland mine ...... 10 Ottawa says no to separate Nunavik review of Mary River ...... 11 Rockfall at Diavik mine stops open pit work for a week ...... 12 Avalon inks First Nations deal; reports new hire, testing progress ...... 12 Mining News Nuggets ...... 14 Areva's uranium mine in Saskatchewan wins approval ...... 17

NUNAVUT NEWS

Inuit birthright corporation subsidiary on time to finish Cape Dyer cleanup Nunatsiaq News - August 16, 2012 “It’s a huge job, It’s just amazing what was here” SAMANTHA DAWSON The Cape Dyer DEW line site cleanup by Qikiqtaaluk Logistics Inc., a subsidiary of Qikiqtaaluk Corp., has turned out to be a huge task, but will likely finish on time by the end of next year. The site is the first time a wholly-owned Inuit firm has served as prime contractor on such a remediation project. “This is a very big cleanup, this site is the biggest cleanup that DCC [Defence Construction Canada] had to do and in terms of numbers, this is the biggest site we’ve worked on so far,” said Greg Johnson, the project director at Qikiqtaaluk Logistics. It’s the same size as the big clean-up job at Resolution Island that was completed in 2006, but with 10 to 15 more workers involved, mostly because of scattered debris that must be hand-picked over large, spread out areas, he said. The Cape Dyer airstrip, which lies at an altitude of about 900 feet and sheer cliffs over 2,000 feet high, can be seen along the coastline in the area.

Chamber News Briefs 1 There, in June 2011, QL demolished five buildings, excavated 1,393 cubic metres of contaminated soil, excavated an old landfill with another 1,500 cubic metres of soil and treated and discharged 580,000 litres of contaminated water. Most of the contaminants came from gas and oil spills, as well as from toxic building materials such as paint PCBs, asbestos and lead from the original Distance Early Warning site of the 1950s and 1960s, created with a string of others across the Arctic during the Cold War to detect long-distance bombers from the Soviet Union. The contents of 350 drums also had to be sorted and managed on the site, with the upper site 2,400 feet above sea level, during the short summer months. In 2012, four more buildings were demolished, with plans to leave one hangar in place for storage, more than 3,000 more cubic metres of contaminated soil was dug up, and 450,000 litres of contaminated water was treated. Another 150 drums need to be dealt with by debris collection crews. A milestone this year: taking down one of the billboards, a tedious task. The concrete was still in good shape, but workers had to be careful. “It could snap back and break someone’s head off, the guys doing this had to know what they were doing,” said project manager Dave Eagles, adding he wasn’t surprised at the size of the mess, considering the site operated for 30 years at a time when environmental standards remained weak. A single battery would contaminate two cubic metres of soil, said Eagle. “It’s a huge job, It’s just amazing what was here,” he said. The project director agreed. “Back in the 50’s and 60’s they didn’t realize that so they just kept putting more and more and more and that’s why we’re in the situation that we’re in now,” Johnson said. And people on site keep finding things. “We found maybe 300 drums this year that we didn’t expect to find, so there’s always extra debris around, there’s always extra material that we stumble across,” Johnson said. “A lot of this stuff is scattered, it’s rusty, it’s hard to see from a distance.” Because the Nunavut DEW line sites are in more remote locations and the logistics are more difficult, it takes longer to clean up, he said. The hardest part is getting all the materials to the site, especially if it’s a piece of machinery or something happens after the sealift departs. For the rest of the season, crews will finish covering off landfills, and trying to finish the upper site cleanup. The middle site has already been torn down, and work continues on the lower site, or the beach area. Last year there were snowstorms in September at the upper site, stalling work. “That’s why we have to put a lot of effort here now, to make sure that we can get the work done that we need to get done,” Johnson said. There are four landfills altogether; two at the upper site, a non-hazardous waste landfill and a tier-two contaminated soil landfill, meaning it is dangerous to humans and the environment. At the lower site there is also a tier-two and a non-hazardous landfill. Cape Dyer was shut down in 1989, and is one of 21 DEW line stations that were decommissioned. To clean them up will cost about $575 million. The air traffic control radar station at Cape Dyer will continue to operate.

Chamber News Briefs 2 Inuit workers benefit from Cape Dyer site: Qikiqtaaluk Logistics “If there were no DEW lines I wouldn’t be working” Nunatsiaq News - August 16, 2012 SAMANTHA DAWSON Many Inuit are benefiting from jobs at Qikiqtaaluk Logistics Inc.’s Cape Dyer cleanup site, says project director Greg Johnson. There are about 175 to 200 people on payroll during the summer season. About 85 per cent of those workers are from Nunavut, and about 80 per cent are Inuit, Johnson said. “We’ve been providing training on site this summer for office administration, inventory and warehousing, actually using computer software to track all of our materials on site, as well as heavy equipment operation,” Johnson said. Most employees are working three-week-in and three-week-out rotations, to “give as much opportunity to as many people as possible.” Most workers are hired from , , Clyde River, , , and Hall Beach. There is also one employee from Cape Dorset. Tommy Aliqatuqtuq, a labourer who works 12-hour shifts, enjoys the work and the beauty of the surrounding area. There are no jobs for him in Qikiqtarjuaq, he said. “If there were no DEW lines, I wouldn’t be working,” he said. “I love it here.” Aliqatuqtuq said he’s treated fairly, and that “the people are really good.” He’s currently working on covering up the landfill at Cape Dyer’s upper site. “It’s gonna be covered, and it’s gonna be awesome,” he said. Tyler Iqaalik, also from Qikiqtarjuaq, is satisfied with his job. “It’s the best,” he said. But the Cape Dyer project is hard to imagine until you’ve been there “to see the magnitude of what is happening in terms of remediation,” Nunavut Premier Eva Aariak said during an August 15 visit to the site. She commended Qikiqtaaluk Logistics for the training they do in collaboration with the Kakivak Association, which provides funding to QL for skills and training. “I think these types of skills will be very handy for many years to come,” Aariak said, adding the work being done at the site was a “great contribution” to capacity building in the territory. But that doesn’t always work out for the logistics company. “We lose about 25 per cent of our staff every year and a lot of those people, because of the experience and the knowledge that they gain here, they get other jobs elsewhere that’s why they don’t come back to work for us,” Johnson said. There is a 15 to 20 per cent turnover rate every season. However, building Inuit skills and training is important to the Qikiqtaaluk Corp., Johnson said. “That’s something that’s very important that comes out of these projects and that’s something that we’d like to continue,” he said, “Without doing the training, we aren’t able to bring in new workers, future generations that will require skills here that they can use on other sites and at other locations.” People feel pride when working and being able to support their families and children, he said, especially those who come from over-crowded homes. “The ability for those people, their willingness to learn, the

Chamber News Briefs 3 pride that they have being involved in a project that’s cleaning up their land, is something that can’t be calculated,” Johnson said.

Reports of more killer whales in Nunavut waters Federal scientists say could be because of longer ice-free summers in region CBC News – August 16, 2012 The federal government is looking into why there is an increased number of killer whale sightings in Nunavut waters. Eric Kan, an area director for the Department of Fisheries and Oceans, said the increase in whales migrating north in the summer could be attributed to the longer ice-free season in the summer. Kan said the department is keeping close watch. “We're concerned, they may have been damaging or have some impact to other marine mammals. Killer whales have been known and we have some reports they do kill other marine mammals, so certainly it's a concern from our perspective,” he said. Hunters also report seeing more killer whales than they used to. The whales are being seen near the mouth of Frobisher Bay in Cumberland Sound and in Foxe Basin. Kan said they are fierce predators that go after marine mammals such as beluga and narwhal. He added that the department has been monitoring the killer whale activity in the area for six years but, so far, there is no real data on the numbers.

Harper to return to Arctic Sun Media – August 17, 2012 JESSICA MURPHY OTTAWA - Prime Minister Stephen Harper heads to the Far North next week, with his annual trek focusing on the Western Arctic and developing the region's natural resources. The five-day north of 60 trip gears up in Whitehorse Monday, with stops at copper and gold mine Minto Mine and Norman Wells, an oil drilling and exploration hub, in the . The prime minister then heads to , Nunavut, where two years ago he announced a new $81 million high Arctic research station would be built in the hamlet perched on the coast in the . The tour wraps in Churchill, Man., where Harper is to take part in Operation Nanook, alongside 1,250 navy, army and air force personnel for an annual northern sovereignty exercise. Harper has spent a week every summer in the Arctic since he became prime minister, an annual trip meant to assert Canada's presence in the region. But despite the attention the prime minister has paid to the Far North, opposition MPs and environmentalists say he's failed to address chronic concerns in the North and hasn't laid out a long-term plan to develop and protect the region. NDP Western Arctic MP Dennis Bevington said Friday the Harper's northern strategy is falling short, despite seven years of Arctic promises and photo-ops in northern vistas. And even significant investments are a drop in the bucket of what's really needed, Bevington said, citing the $150 million Ottawa recently committed for an year-round Arctic highway between and Tuktoyaktuk, N.W.T., which could cost up to $300 million to build. He also said the federal government has so far failed to address the problem of the high cost of living in Canada's northern communities. Sierra Club Canada's executive director John Bennett said with the warming climate changing the Arctic faster than predicted, the government needs to commit to more environmental research into the way Arctic weather is fluctuating. "We really need to know - even for the benefit of those who want to

Chamber News Briefs 4 extract the resources - what the climate is going to be like and what the conditions are going to be like in five or ten years," he said.

PM Harper to visit Yukon, NWT, Nunavut, Manitoba next week Prime Minister's seventh northern tour to run Aug. 20 to Aug. 24 Nunatsiaq News - August 17, 2012 Prime Minister Steven Harper will visit Yukon, the Northwest Territories, Nunavut and northern Manitoba next week for his seventh annual northern tour, the prime minister’s office said Aug. 17 in a communiqué. The tour will run from Aug. 20 to Aug. 24, the PMO said. The PMO release does not state the date when Harper will visit Nunavut and northern Manitoba. Harper last visited Nunavut this past February, when he announced $27 million to boost basic adult education across the three territories, at an event held at the Ukkivik residence in . This year’s Operation Nanook exercise is focused on two locations: Inuvik and the Mackenzie Delta, and in Churchill, Manitoba, Hudson Bay and Hudson Strait. Harper usually visits Operation Nanook exercises on his summer northern tours. “Canada’s North is a fundamental part of our heritage and our national identity and a region with unlimited potential,” Harper said in the communiqué. The release also says Harper’s trip this year will focus on Arctic sovereignty, environmental protection, social and economic development, and “improving and devolving Northern governance.”

Harper's Arctic tour to be mix of new announcements, review of past promises Canadian Press – August 17, 2012 Stephanie Levitz OTTAWA - Prime Minister Stephen Harper will be packing his bags this weekend before embarking on a tour of the Arctic. Making a swing through the North has become an annual ritual for the prime minister; next week's trip is his seventh multi-day visit. He leaves on Monday for stops in Yukon, the Northwest Territories, Nunavut and northern Manitoba, where he'll be observing part of Operation Nanook, the military's annual Arctic summer exercise. The prime minister's trip is expected to be a mix of new announcements and reminders about old contributions. "Every year we go up, we do try to highlight all the areas the government is trying to do work in," said Harper's chief spokesman Andrew MacDougall. The ramp-up of economic and military activity in the North has been a signature element of the Conservative government strategy since it came into power in 2006. In 2007, Harper laid out a strategy which divided the government's approach to the North into four categories: sovereignty, economic and social development, environmental heritage and governance. That plan was followed in 2010 by an Arctic foreign policy statement. Harper's annual trips are meant to ensure progress on those strategies, said MacDougall.

Chamber News Briefs 5 "(It) demonstrates our government's continued commitment to ensuring that a strong and prosperous north helps shape the future of our nation." Harper lasted visited the North in February when he announced money for adult education. But the Opposition NDP says the Conservatives haven't gone far enough when it comes to helping the North cope with the cost of living and resource development. "They have yet to deal with many of the issues that have been in front of the North for a long time," said the NDP's Dennis Bevington, who is the MP for Western Arctic. "And they're not giving us the tools that we need to make a difference up here, and that's a problem as well." Bevington pointed to the escalating cost of food in the North as a major issue. Protests against the high price of food have been ongoing for months, including a Facebook group called Feeding my Family that includes a chart comparing the cost of foods in the North with the rest of Canada. In Iqaluit, four litres of milk sells for $10.39, compared to $4.40 in Ottawa. Harper will be accompanied on the trip by Health Minister Leona Aglukkaq and Aboriginal Affairs Minister John Duncan. Harper's trip last year was bookended by tragedy. It was delayed and his itinerary later amended after 12 people died in a plane crash near the airport in Resolute; upon his return, he went straight to the funeral for NDP Leader Jack Layton.

'We will never forget' Nunavut News/North – August 20, 2012 Crash victims remembered one year after accident in Resolute Laura Busch One year ago today, an accident occurred that rocked the small hamlet of Resolute, the tight-knit Northern aviation community, and countless family members, friends and acquaintances of the 12 dead and three survivors. When First Air Flight 6560 slammed into a hill 1.5 km short of the landing strip it was approaching outside the hamlet of 214 people, there were 15 souls on board. Three passengers survived the crash - Gabrielle Pelky, Nicole Williamson and Robin Wyllie. However, the remaining eight passengers and all four First Air crew members died that day. A small, private gathering is planned in Yellowknife for First Air employees and crew families. The company also plans a moment of silence at 11:42 a.m. Aug. 20 in honour of everyone on board the flight, First Air stated in a press release. "We will never forget the events of that day and the lives and legacies of those who passed will remain in our thoughts forever," stated Kris Dolinki, president and CEO of First Air in a news release. "We are also thinking of the survivors and are grateful for their health." Resolute is moving forward and dealing with the loss, said Quttiktuq MLA Ron Elliott, who represents Resolute, and in the legislative assembly of Nunavut. He added the hamlet is not doing any official event to commemorate the anniversary. A small private gathering is planned at the South Camp Inn, whose owner lost one granddaughter in the crash while the other survived, said Elliott. A number of the deceased were staff who were travelling to the inn for work, added Elliott. "Everyone was deeply saddened when the accident happened, but I think everyone is still mourning the loss and definitely moving on, dealing with the situation and pain," said Elliott. Over the past year, those who knew the victims of the tragedy have dealt with their losses in their own private ways.

Chamber News Briefs 6 Sonya Golding told News/North in a written statement that she travelled in January on what she referred to as "the Footprints Tour" to South Africa, a place where her sister, flight attendant Ann Marie Chassie, loved to volunteer her time. Golding and her aunt have also set up a trust to raise funds for a water purification system in the community Chassie visited. Golding remembers her sister as a determined single mother who supported herself and her two children through her work with First Air, while also earning a bachelor of science in nursing. "Even with all of Ann Marie's love and ambitions in aviation, medicine and charity, she had no greater love than the love she had for her children, Ashley and Bradley," wrote Golding. Within sight of the crash site, approximately 700 military personnel, including roughly 30 Canadian Rangers, were at or near a fully-equipped camp that had been set up for Operation Nanook 2011. Coincidentally, the camp had prepared for a simulated plane crash response that was planned for later in the week. This made for a much faster response time than would have been possible if emergency personnel had to travel from the hamlet, located roughly 10 km away, said Maj. Jeff Allen, commanding officer of the 1st Canadian Rangers patrol group. Allen's group of roughly 30 Canadian Rangers included many who were from the area, he said. In the initial moments it was unknown who was on board, so local rangers were assigned to tasks some distance from the wreckage, while some of the other rangers assisted the first responders. "I think that, during the event itself, it's almost an automatic response - people's training kicks in," said Allen. "It's afterwards, after the event, after the survivors have been extracted, that people seem to think about how they responded and how things transpired." Generally, the Transportation Safety Board can release its final report on a crash within 12 months of the incident. However, the final TSB report on First Air Flight 6560 is not expected to be released until sometime next year due to the complex nature of the technical review conducted on the Boeing 737- 200 involved, said Brian MacDonald, the investigator in charge of the file. So far, the TSB has released two updates on its investigation. The first was on the day following the crash. The second, released in January, disclosed that the flight crew attempted to abort the landing and initiate a go-around two seconds before impact. Families continue to be given more regular updates, said MacDonald. "One of the key cornerstones of the TSB is to make sure that the families who are involved with this tragic event are kept abreast as to the progress of the investigation," he said.

1 year later, mourners remember fatal Resolute plane crash Canadian Press – August 19, 2012 Bob Weber and Chris Purdy Sorrow and remembrance will hang over a newly built memorial near a tiny Arctic hamlet Monday as the families of 12 people killed in a fiery plane crash gather on the pebbled tundra where the jet went down one year ago. "Just a simple few prayers said and we'll say our goodbyes," said Aziz Kheraj, a hotel owner in Resolute, Nunavut, who lost friends, employees and a six-year-old granddaughter when the First Air 737 that he had chartered flew into a hill near the airport. "Every day's a tough day. Every day is different. Some days are harder than others, but all you do is put your head down and plug away. Not much else one can do." The pain of the crash spread from this dot on the northernmost shores of the like a stain across the whole country. The victims were from the Maritimes, Winnipeg, Edmonton, Yellowknife and across the North. Many of their family members flew to Resolute, sponsored by First Air, to spend the weekend creating the monument to their memory — a concrete pedestal adorned with a bronze plaque. First Air also plans to hold a private ceremony in Yellowknife for

Chamber News Briefs 7 the families and co-workers of the four crew members who died on flight 6560. The company said its 1,000 employees across the Arctic will observe a moment of silence at 11:42 a.m., the exact moment the plane struck the hillside. The impact split the jet into three pieces and flung debris and flaming wreckage across the rugged terrain. Three passengers miraculously survived: the dead girl's seven-year-old sister, Gabrielle Pelky, and geologists Nicole Williamson and Robin Wyllie. "The memories are still full of raw emotion for everyone ... enough to make a grown man cry," Wyllie, 49, wrote in a letter published Friday in a northern newspaper. "Not a day goes by that we do not recall this terrible event and the tragedy it inflicted upon so many lives." Residents who heard the loud bang and spotted the flames and smoke that followed rushed on ATVs to the crash site to look for possible survivors. They were joined by a large military contingent that happened to be in the area on annual manoeuvres that ironically were to include a mock plane crash. The army's After Action report on the rescue effort, obtained by The Canadian Press under access to information legislation, gives officers on the site high marks for their response. A military helicopter was dispatched to the scene within 12 minutes of the crash, the report says. A search team from that chopper and one from the Coast Guard found the three survivors and transported them to a military field hospital that had been set up for the exercise. The survivors were airlifted by a military plane to Iqaluit. They were later sent to hospitals in Ottawa. "Both other government departments and Canadian Forces personnel responded swiftly and professionally to the First Air crash," the report concludes. But there is no mention of the cause of the crash or the military's role at the airport when it happened. Although transport investigators are still looking into the cause, several lawsuits lay at least partial blame on the military for taking control over the airport that day. The small airport is normally an uncontrolled airspace with no air traffic control service. Pilots navigate themselves onto the runway. The suits detail how the military made an agreement with Nav Canada, Canada's civilian air traffic authority, to establish a temporary air traffic control tower and guide in all aircraft. The lawsuits claim there were several planes coming into the airport, but the military did not have enough people on duty to handle the traffic. They allege those working the tower were not briefed or properly trained to navigate civilian planes. The suits also detail how soldiers were in communication with the crew of First Air 6560 and gave the plane permission to land. None of the allegations has been proven in court and statements of defence have not been filed. The Transportation Safety Board revealed in an interim report that the crew was preparing to land. The plane's landing gear was down and locked and the flaps on its wings were open. The report said the plane's two pilots wouldn't have been able to see the runway because of fog, cloud and drizzling rain, so they tried to land using navigation instruments. They aborted the landing two seconds before crashing into a hill. The plane was 1.6 kilometres from the runway. The stunned survivors found each other after the crash. The RCMP said Williamson followed the sound of a crying girl and found Gabrielle sitting on a rock. Wyllie wrote that the three of them, all with broken bones, limped away from the wreckage and were soon found by military firefighters. Over the next few days, experts removed the remains of the dead and studied the wreckage. The Rangers reserve unit provided security for the area when hungry polar bears approached. The chartered jet, in addition to people, had been carrying 2,000 kilograms of food to the isolated community. An official with the transportation board was unable to provide an update on the crash investigation, but earlier said staff were still looking at the plane's navigational equipment. They also planned to study whether the military's control tower interfered with the landing. An earlier news report said the plane was not equipped with a terrain awareness warning system (TAWS), but had an older version of the equipment. Last month, the federal government announced new regulations requiring all private turbine-powered and commercial planes with six or more

Chamber News Briefs 8 passenger seats to have TAWS. Operators have two years to install the systems. The transportation board said it has no idea when its final report into the crash will be complete. "Like the survivors, we look forward to understanding what happened one year ago," Kris Dolinki, president of First Air, said in a statement. "We will never forget that event of that day and the lives and legacies of those who passed will remain in our thoughts forever." Wyllie declined an interview but wrote at length in his letter that air travel is essential for life in the North. He said passengers need to smile and thank their flight crew each time they step out of a plane. "These people risk their lives on our behalf every day of the year to deliver us safely to our friends, families and colleagues. They bring us the mail and freight that make our modern lifestyle possible in the North. "It is appropriate to remember the dedication and sacrifice of the ones who did not make it home."

NorthwesTel banks on faster Nunavut Internet 'Fastest Internet experience available in Nunavut' launched in six communities Nunavut News/North – August 18, 2012 Thandiwe Vela NorthwesTel Inc. is banking on the marketability of a faster Internet service in Nunavut, with the launch of a new broadband service in six communities. Ka-Band -- the satellite technology launched this month to residential and business customers in , Baker Lake, Cambridge Bay, , and -- offers Internet speeds up to two- megabits per second, some 40 times faster than the roughly 56 kilobit per second dial-up services still used by some residents of the hamlets, said Curtis Shaw, NorthwesTel vice president of marketing. "People in the home now are watching video, YouTube, they're using Skype and they're using all new technologies that weren't around a number of years ago, so the demand for bandwidth in Nunavut communities is continuing to grow and this is just one way we think we could meet that need," Shaw said. "We've been able to make a business case to bring it in with this new technology," he said of the new direct-to-home Ka-Band satellite dishes. "Depending on demand, I think this will be a very good service for Nunavut." While the communities presently have access to a number of wireless and satellite Internet options through the Qiniq Network operated by NorthwesTel competitor SSI Micro and NorthwesTel's Netkaster service, the new service being launched by NorthwesTel is the fastest Internet experience available in Nunavut, said Shaw, estimating the fastest data speeds previously offered to be about 1.5 megabits per second. "The service is newer, it's faster, it's got new equipment, new hardware that we haven't used before," he said. The data-receiving satellite dishes connect to the outside of the residence or business and run inside to a modem connected to a computer or wireless router. The launch was prompted by the "dramatically" improved dish technology, Shaw said, in addition to customer demands for faster Internet in the communities. "It's kind of generally known that Internet here is slower than it is in the south," said Keith Collier, economic development officer for Arviat, noting faster Internet options are always sought after, especially by businesses in the remote hamlets. "Everybody could always use faster Internet, especially up here where we're kind of isolated," Collier said.

Chamber News Briefs 9 "I know, in my position, I use Internet a lot for sending documents back and forth, doing research, that kind of thing. "I think it would be great to do more video conferencing for training and things like that as a lot of training courses incorporate instructional videos on YouTube, that kind of thing, so the more access we have to resources the better." The launch is separate from NorthwesTel's proposed $270 million infrastructure modernization plan currently before the Canadian Radio-television and Telecommunications Commission, which would see 3G and 4G wireless services rolled out across the North, enabling expanded mobile wireless services. "This is a service we didn't think we needed to wait until we had approval on the modernization plan, we had an opportunity to launch it now," Shaw said, adding "a number of these communities over the next five years would get advanced wireless services." Based on demand, NorthwesTel plans to roll out the service in more Nunavut communities later this year.

NWT NEWS

Gwich’in on the open road NWT News/North – August 20, 2012 Since being elected as president of the Gwich'in Tribal Council on June 22, Robert Alexie Jr. has kept his campaign promise to bring more transparency to the organization. Recent updates to the GTC's website, a frequently updated Facebook page and an open-door policy with media demonstrates his efforts to keep his people informed. Last week, during the Gwich'in Assembly in Fort McPherson, Alexie Jr. decided to revisit the GTC's position on devolution. Although prior to the meeting he wouldn't say if he supported the organization's lawsuit against the GNWT over devolution, he expressed concern that the Gwich'in people might not have understood what they were voting on when they supported a motion to sue the territory. To ensure his people are aware and can make decisions based on accurate information, he said it was his mission to explain devolution in layman's terms. Whether the GTC decide to suspend its lawsuit against the GNWT and support devolution is important, but it's equally important that the organization made that critical choice while fully informed. With that assurance behind him, Alexie Jr. can move forward with confidence he is fulfilling the will of his people. So far Alexie Jr. has demonstrated a desire to support the wishes of his constituents without pushing his own agenda. He is clear in his meaning and is not afraid to admit if he doesn't know the answer to a question. A willingness to learn, communicate and support those who put him into power are the characteristics of a true leader.

RESOURCE DEVELOPMENT AND ENERGY NEWS

Feds say no to Nunavik review of Baffinland mine Makivik Corporation concerned about shipping through Hudson Strait CBC News – August 16, 2012 The federal government says there will be no separate review of Baffinland's Mary River iron ore project for Nunavik's marine region.

Chamber News Briefs 10 Makivik Corporation requested the review earlier this summer because it says the plan to ship iron ore from the mine through nearby Hudson Strait could have an effect on Nunavik communities. But John Duncan, minister of Aboriginal Affairs and Northern Development, told Makivik in a letter that the review now underway in Nunavut is adequate. "In conducting its review, the Nunavut Impact Review Board has sought evidence on and will consider information provided in respect to potential transboundary impacts in adjacent jurisdictions due to the project's shipping activity in the scope of its assessment," the letter stated. Makivik representatives participated in the final hearings into the Mary River project last month. They told the Nunavut Impact Review Board the project could affect Nunavik waters and wildlife. “We are disappointed considering the scale of the shipping that's going to be going through the Nunavik marine region,” said Jobie Tukkiapik, president of the Makivik Corporation. “I know they say they won't use that region but, with all the ice conditions that do happen and all the noise it's going to create throughout the year, we are disappointed." Makivik is concerned about the proposed year-round use of icebreakers, and the possibility of a fuel spill. Tukkiapik said the Makivik board will discuss Duncan's letter further and decide what to do. A final decision on the Mary River project from the Nunavut Impact Review Board is expected next month.

Ottawa says no to separate Nunavik review of Mary River NIRB already looking at transboundary impacts, Duncan says Nunatsiaq News - August 16, 2012 John Duncan, the minister of Aboriginal Affairs and Northern Development, has rejected a demand from the Makivvik Corp. that the Nunavik Marine Region Impact Review Board conduct a separate environmental review of the Mary River project. Duncan communicated the decision in an Aug. 8 letter to Makivvik president Jobie Tukkiapik. This past June, Tukkiapik asked Duncan to authorize an environmental review by the Nunavik marine board, citing the potential damage that huge Mary River ore vessels could inflict on Nunavik’s marine environment when they pass through Hudson Strait. Papigatuk, the chair of the Nunavik marine board, also requested a separate Nunavik environmental review this past June. The Baffinland Iron Mines Corp. has asked Fednav, a Montreal-based shipping company, to supply a fleet of between 10 and 17 ice-breaking ore carriers that would operate 12 months of the year. The huge 190,000-tonne ships, likely to cost about $200 million each, would be about 310 metres long, roughly equal to three football fields laid end-to-end, with a breadth of 51 metres. Many times larger than any vessel ever to ply Canadian Arctic waters, these vessels would be capable of cutting through 1.7 metre-thick sea ice and would move at a speed of about six knots, or 11 kilometres an hour. The vessels would sail from Steensby Inlet through Foxe Basin and Hudson Strait to ports in Europe. “Makivvik believes that the proposed shipping route will have to be modified significantly due to ice conditions, tides, currents, other marine vessels, and marine mammal avoidance,” Adamie Delisle Alaku, the executive assistant to Makivik’s vice president for renewable resources, said July 18 at a NIRB public hearing in Iqaluit. At that meeting, Alaku asked for NIRB’s help in facilitating a Nunavik review.

Chamber News Briefs 11 Also on July 18, another Makivvik official, Gregor Gilbert, said the huge vessels that Baffinland Iron Mines Corp. proposes using “should avoid Hudson Strait altogether.” But Duncan said the NIRB has already been asked to consider transboundary impacts in its review of the Mary River project and has held meetings in seven Nunavik communities that could potentially be affected by Baffinland’s ore carriers. He also said the Nunavik marine board and the Nunavik Marine Region Planning Commission have been included in the distribution list for information on the project. “It is for these reasons that the does not consent to your request for a review of Baffinland’s Mary River project by the Nunavik Marine Region Impact Review Board…,” Duncan said in his letter. This past July 4, prior to the start of NIRB’s public hearings on the Mary River project, Michael Wernick, the deputy minister of AAND, urged Makivvik to use the NIRB process “to the fullest potential.” “It will be critical for you to continue to share your views on the Mary River Project with the Nunavut Impact Review Board so that they can be duly considered,” Wernick said.

Rockfall at Diavik mine stops open pit work for a week Alarm systems warned workers rock was unstable CBC News – August 16, 2012 Five thousand tonnes of rock fell from the edge of the open pit at Diavik Diamond Mine last week but employees got out 10 hours before the rockslide started. Two alarm systems alerted workers that the rock was unstable. “Both systems worked, nobody was injured,” said Corey McLachlan, a spokesperson for the mine. “I think there is a recognition that rock slides will happen periodically. So it's very comforting to know that our systems work and give us lots of advance notice and we're confident and believe in zero harm — we don't want to see anyone injured. This is a great example of systems that we have in place to ensure that we have a safe workplace.” Employees at the mine didn't resume work in the pit for seven days after the rockslide. McLachlan said they're clearing the fallen rocks, and have added heavy-duty mesh at the opening of the pit. This week, work resumed during daylight hours. McLachlan said the mine is completing more geotechnical tests before going back to 24-hour operations.

Avalon inks First Nations deal; reports new hire, testing progress Mining News North of 60 – August 16, 2012 Avalon Rare Metals Inc., the owner of the Nechalacho rare earth metals project located southeast of Yellowknife, Nwt., has entered into an agreement with the Deninu K’ue First Nation from Fort Resolution whereby the First Nation will become a 3 percent equity owner of the project. In addition to signing the agreement with the Deninu K’ue, Avalon is negotiating agreements with the Yellowknives Dene First Nation and the Lutsel K’e Dene First Nation. If successful, the Nechalacho mine could become 10 percent Aboriginal-owned. The project is currently undergoing an environmental assessment and is preparing to secure the capital funding to eventually build the mine. It could start production as early as 2016.

Chamber News Briefs 12 World demand for the minerals which make up the Nechalacho deposit is increasing due to their importance to the development of green energy technologies such as wind generators and rechargeable batteries and other high-tech electronic applications. Avalon Aug. 7 also reported the appointment of Dave Marsh as senior vice president, metallurgy, to lead the company’s metallurgical work programs going forward. Marsh, FAusIMM (CP), brings almost 30 years of experience in the metallurgical and mineral processing industries. He has worked in Africa, Australia and Canada. Much of his experience has been in the engineering and technical side of the business and this is complemented by several years in operations. A native of the United Kingdom, Marsh received a bachelor’s degree with honors in mineral processing from the University of Leeds in England in 1980. Marsh’s previous positions include senior management roles in process design and implementation, particularly with heavy minerals, gold and platinum group metals as well as development of state-of- the-art uranium recovery plants. He also managed engineering design, project teams, bankable feasibility studies and project implementation with large EPCM (engineering, procurement, construction and management) companies. As senior vice president, metallurgy, Marsh assumes a critical role leading all aspects of metallurgical process development work on the Nechalacho project and on Avalon’s other development-stage rare metals and minerals projects. Avalon also reported progress in understanding the flotation characteristics of material from different parts of the Basal Zone at the Nechalacho project and the impact of observed textural differences in the ore on flotation recoveries. Furthermore, opportunities for reducing REE and niobium losses from the de-sliming circuit through the use of more selective reagents have been identified, and these will be investigated over the next few months. All these improvements, developed in the laboratory since February are to be tested in a follow-up pilot plant trial scheduled to commence in late August or early September. A hydrometallurgical pilot plant trial on the sample of mineral concentrate obtained from last winter’s flotation pilot plant trial commenced in mid-July and is expected to run through August. This trial will test the acid bake process (which uses sulfuric acid) and the results from this program will confirm the process design criteria for the hydrometallurgical plant to be used in the definitive feasibility study. The acid bake process produces an intermediate mixed REE concentrate and a refractory solid residue. The concentrate contains most of the Light REE and over 50 percent of the Heavy REE, and will be delivered to the separation plant for further processing and refining to produce purified, separated rare earth oxides. The residue from the acid bake process contains the balance of the rare earths and most of the zircon, niobium and tantalum contained in the mineral concentrate. Treatment of the residue requires a more aggressive form of processing to dissolve the zirconium, tantalum and niobium minerals. The conventional process to achieve this is referred to as “cracking” and two cracking alternatives have been evaluated; caustic cracking and alkali cracking. Both alternatives are costly to design and build. The caustic cracking process was originally incorporated by the company in its pre-feasibility study and has been successfully tested at the laboratory scale. However the company is presently evaluating other alternatives to cracking to reduce costs and the risk of delays to the project schedule. These include hydrochloric acid leaching or sale of the residue as a zircon mineral concentrate to a zirconium processor. Avalon said several expressions of interest in this product already have been received from potential buyers. Avalon President and CEO Don Bubar said, “Dropping the cracking process from the current development model offers several advantages for the project in terms of simplifying operations and reducing capital requirements, while maintaining positive project economics. However, Avalon will

Chamber News Briefs 13 continue to investigate the cracking alternatives with a view toward its future incorporation into the project once we have commenced operations.” Bench scale test work is in progress with the objective of optimizing the acid bake process flowsheet wherever possible. For example, recent work has identified a simpler, more efficient process for removing impurities from the concentrate, which, once proven, would positively impact both capital and operating costs as well as plant operability. A scope of work document has been developed for confirming the separation plant flowsheet, and proposals are being acquired globally from various research laboratories. This work is expected to begin in October. Evaluation of potential sites for the separation plant continues, with a final decision on the site for the separation plant expected before the end of 2012.

Mining News Nuggets Mining News North of 60 – August 16, 2012 Northwest Territories POLYMETALLIC – Fortune Minerals Ltd. Aug. 16 reported the NI 43-101-compliant technical report for the updated mineral reserves and economics for its Nico gold-cobalt-bismuth-copper project in Northwest Territories has been filed and will shortly be available on the Fortune Minerals profile at www.sedar.com and through the company’s website at www.fortuneminerals.com. Fortune is focused on the development of Nico and the Mount Klappan anthracite metallurgical coal deposits in northern British Columbia. As part of the development of the Nico deposit, Fortune is developing a plant in Saskatchewan to process Nico concentrates to high-value metal products. The company has acquired and dismantled equipment from the Golden Giant Mine at Hemlo, Ont. for relocation to Nico. In addition, Fortune owns the Sue-Dianne copper-silver-gold deposit and other exploration projects in the Northwest Territories. NICKEL – Strongbow Exploration Inc. Aug. 7 said it has entered into an option agreement with North Arrow Minerals Inc. whereby North Arrow can earn a 50 percent interest in Strongbow’s Snowbird nickel project. Kenneth A. Armstrong, Strongbow’s president, CEO and a director, is also a director of North Arrow, and D. Grenville Thomas, Strongbow’s chairman and a director, is the president, CEO and a director of North Arrow. The Snowbird project covers some 16,000 hectares (40,000 acres) along the southern extent of the Snowbird tectonic zone in northern Saskatchewan and southern Northwest Territories. The Snowbird tectonic zone is a geologic feature that is considered to be highly prospective for magmatic nickel copper sulphide mineralization and is known to host several deposits including Strongbow’s Nickel King nickel-copper-cobalt deposit located immediately to the north of the Snowbird project. Exploration work completed by Strongbow has included airborne geophysical surveys, geochemical surveys, bedrock mapping and limited drilling. This work has identified a number of target areas where previously unknown mafic and ultramafic intrusions are coincident with electromagnetic and magnetic geophysical anomalies, geochemical anomalies and nickel-copper mineralization. The highest priority targets are located in the Opescal Lake area along the Saskatchewan-Northwest Territories border where a five-kilometer (three miles) long linear magnetic anomaly coincides with several electromagnetic conductors. These geophysical targets lie beneath glacial cover, however they are within a broad area of mapped mafic and ultramafic rocks where prospecting has identified local occurrences of nickel-copper sulphide mineralization associated with norite and pyroxenite intrusions. Rocks collected in the area have returned values ranging from detection up to 1.17 percent nickel and 0.40 percent copper. The Opescal Lake targets have never been previously drilled and will be a priority for ground geophysical surveys and diamond drilling during the winter of 2013. Under the terms of the option agreement and subject to North Arrow completing an equity financing by Dec. 31, 2012, North

Chamber News Briefs 14 Arrow can earn a 50 percent interest in the Snowbird project by incurring C$4 million in exploration expenditures by the end of 2016, including a firm commitment to spend C$30,000 prior to Dec. 31, 2012. Nunavut DIAMONDS – Peregrine Diamonds Ltd. Aug. 14 provided an update on the Chidliak diamond project located on Baffin Island. During its 2012 summer exploration program, a total of 2,378-meters of core drilling was completed on the CH-1, CH-7 and CH-44 kimberlites, bringing the total meters of drilling completed to date on the three bodies to 1,106, 2,992 and 1,881, respectively. CH-1, CH-7, CH-44 and CH-6 are four kimberlites with economic potential at Chidliak that are at the bulk sample stage of economic evaluation. Between 2009 and 2011, 4,700 meters of core drilling was completed at CH-6. Information from the core drilling will be used to refine the geologic models of these kimberlites and to better establish the diamond size distribution of the various kimberlite units in preparation for future bulk sampling. In addition, over 720 line-kilometers of ground magnetometer surveys were completed, 131 man-days were devoted to prospecting and mapping and 402 kimberlite indicator mineral samples were collected. A total of 20 overburden profile holes has been drilled at the CH-6 kimberlite with a heli- portable reverse circulation drill and the 2012 field program will conclude after overburden profile holes have been drilled at the CH-7 and CH-31 kimberlites. These overburden profile holes will assist with planning for the potential future collection of bulk samples from these kimberlites by trenching. About 20 kimberlite targets were generated from the 2012 prospecting and ground geophysical surveying programs. Testing of these targets by RC drilling, originally planned for this year, has been deferred to a future program. The planned 2013 bulk sampling program is currently postponed. Cooper Drilling LLC is nearing completion of modifications to the large diameter RC drill rig to be used in a future bulk sampling program at Chidliak. Current planning is for the rig to be thoroughly tested, and then stored for use at a later date. The Company is in active discussions regarding corporate and financing options and will provide further updates. Peregrine also reported the discovery another kimberlite, CH-61, located some 20 kilometers (12.4 miles) southeast of the CH-7 kimberlite. CH-61 is defined by a complex magnetic anomaly with an estimated surface expression of 2.4 hectares (almost 6 acres). The prospecting crew discovered kimberlite float and green clay soil containing limestone fragments coincident with the anomaly. CH-61 will be evaluated by drilling in a future program. GOLD – Elgin Mining Inc. Aug. 13 released financial results for the second period of 2012, which is the first to include production results from the Bjorkdal gold mine acquired pursuant to a plan of arrangement completed May 1. The company’s unaudited condensed consolidated interim financial statements for the four and seven months ended June 30, and notes, along with its management’s discussion and analysis are available at www.sedar.com and www.elginmining.com. Among highlights of the second period results: Elgin produced 14,121 gold ounces and sold 13,744 gold ounces; realized gold prices averaged US$1,571 per ounce; cash costs averaged US$1,071 per gold ounce sold; net income totaled C$1.5 million; and the cash and cash equivalents balance was C$16.5 million at June 30. Elgin commenced the first phase of a regional drill program at the Lupin gold mine project in Nunavut and also completed a detailed airborne geophysics survey including HTEM and HeliTEM at Lupin. Follow-up drilling on any newly identified targets is expected to commence in the third quarter of 2012. The explorer also commenced drilling at the Ulu project in Nunavut that will provide in-fill drilling on the main Flood deposit and also test the down-dip and along-strike potential of this high grade vein deposit. “This is our first quarter after the recent combination of Elgin and Gold-Ore, and our focus has been the integration of the Bjorkdal mine and expansion of our management team,” said Elgin President and CEO Patrick Downey. “In that regard, I am very pleased to welcome Jim Currie who has joined us as COO. Jim is a seasoned mining executive with a proven track record of building and operating successful mines. Our current and ongoing focus will be to continue to work with the Bjorkdal team towards optimizing

Chamber News Briefs 15 the operations at the Bjorkdal gold mine and to aggressively advance the past-producing Lupin gold mine towards a production decision, and a restart of operations.” Elgin also began drilling on certain regional targets at Lupin and with the completion of the detailed airborne geophysics program the company expects to generate several new targets for drill testing. “Over the coming months, we expect to bring on additional key hires to further advance the company’s stated objectives,” Downey added. IRON – Advanced Explorations Inc. Aug. 10 reported results of a feasibility study TetraTech Wardrop conducted on the C Zone of its Roche Bay iron project. “The completion of our feasibility study marks a significant milestone for the company, and lays a clear foundation for the path forward to production,” said Advanced Exploration President and CEO John Gingerich. Highlights of the Roche Bay Iron Project Feasibility Study: 5.5 million metric tons per year start-up production based upon 501 million metric tons of ore averaging 26.35 percent iron (indicated); 66 percent iron concentrate production with demonstrated potential to produce a concentrate exceeding 68 percent; mine life of 15 years (C Zone); stripping ratio of 0.92:1 over life-of-mine; pre-tax NPV of US$642 million at a discount rate of 8 percent and a concentrate selling price of US$104 per metric ton of iron concentrate (FOB Roche Bay); net start- up mine cash flow of US$2.9 billion; pre-tax internal rate of return of 16 percent; capital cost of US$1.2 billion (excluding contingency); operating cost of US$49.13 per metric ton of iron concentrate; reduced infrastructure costs due to ore body being located six kilometers (3.7 miles) from natural, deep water harbor. “The location of the project at tidewater and its consequent low infrastructure requirements promote future expansion and lower operational and construction risks, which compares favorably with many projects in Brazil, Australia and Canada,” said Gingerich. The Roche Bay iron project is situated on the east coast of the Melville Peninsula, approximately 60 kilometers (37 miles) southwest of the community of Hall Beach, and approximately 240 kilometers (150 miles) west of Iqaluit, Nunavut. FINANCE – Aura Silver Resources Inc. Aug. 10 said it has closed the second and final tranche of a non- brokered private placement. In total, for both tranches, 4 million units were issued for proceeds of C$200,000. Each unit consists of one common share and one common share purchase warrant. Each unit was offered at a price of C5 cents per unit. Each unit contains a whole warrant exercisable for a period of two years from the closings of the offering at C10 cents per common share. Aura Silver President and CEO Robert Boaz subscribed for a total of 2 million units for C$100,000 in this first tranche of the private placement. Nick Tintor, a director of the company subscribed for 200,000 units for C$10,000. Following the private placement, Mr. Boaz will hold approximately 3.5 percent of the issued and outstanding shares of the company and Tintor will hold 0.2 percent. The participation of Boaz and Tintor in the private placement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions. The board of directors determined that the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 and approved the private placement, with Boaz and Tintor abstaining from the vote. A previous news release indicated that the private placement may involve insider participation. The material change report in respect of the transaction was not filed 21 days in advance of the closing of the private placement because insider participation had not been confirmed. The shorter period was necessary in order to permit the Company to close the first tranche of the private placement in a timeframe consistent with usual market practice for transactions of this nature. As consideration for the services of an agent in connection with the private placement, the company has provided cash compensation of C$2,400 and agent options exercisable for 48,000 units. Each agent option is exercisable at C5 cents per unit and will expire Aug. 9, 2014. All securities issued in the first and second tranche are subject to four month hold periods from the closing dates of the private placement offering. This offering is subject to final acceptance of the TSX Venture Exchange. Aura Silver intends to use the proceeds of this offering to fund exploration program costs at the company’s East

Chamber News Briefs 16 Taviche and Alma Delia properties in Oaxaca, Mexico and for working capital and general corporate requirements. Aura Silver is also exploring the Greyhound project in Nunavut.

Areva's uranium mine in Saskatchewan wins approval Canadian Press – August 16, 2012 The federal government has approved the environmental assessment of Areva’s proposed Midwest project in northern Saskatchewan. Environment Minister Peter Kent approved the project after ruling it is not likely to cause significant adverse environmental effects given planned measures to reduce risks and follow-up programs. Areva’s Midwest deposit is in the eastern Athasbasca Basin, about 750 kilometres north of Saskatoon. The company said Thursday that several steps still remain before the Midwest partners can reach a decision regarding the project, including completion of an updated feasibility study. The Midwest joint venture includes Areva, Denison Mines Corp. and OURD Canada Co. Ltd. In addition to the Midwest project, Areva’s other investments in Saskatchewan include a 30-per-cent stake the McArthur River mine and 37 per cent of the Cigar Lake mine. Last month, Areva started the first phase of construction to expand its McClean Lake uranium mill in northern Saskatchewan. Areva and its partners are investing $150-million to upgrade the mill and increase its capacity. The upgrade is being done so that the mill can process uranium ore from the Cigar Lake mine slated to begin production late next year. The work includes construction of a storage facility for yellowcake, the powder that is an intermediate step in the processing of uranium ores.

Chamber News Briefs 17