MINING AND EXPLORATION

IN THE NORTHWEST TERRITORIES

2002OVERVIEW Mining and Exploration in the Northwest Territories 2002 Overview

Compiled by: Minerals, Oil and Gas Division (MOG) Resources, Wildlife and Economic Development (RWED) Government of the Northwest Territories P.O. Box 1320 Yellowknife NT X1A 2L9 867-920-3222

With contributions by: Minerals, Oil and Gas Division (MOG) Resources, Wildlife and Economic Development (RWED) Government of the Northwest Territories www.mog.rwed.gov.nt.ca

Indian Affairs and Northern Development Canada Mineral Development Division www.inac.gc.ca nwt.inag.gc.ca

C.S. Lord Northern Geoscience Centre www.geosciences.ca

Robert Hornal and Associates Ltd.

Cover Photo: BHP Billiton Diamonds Inc. / Jiri Hermann 2002Overview intheNorthwestTerritories Mining andExploration 2002Overview intheNorthwestTerritories Mining andExploration associated withmineral,oilandgasexploration. on thegeologicalpotential,industrialactivityandpotentialopportunities attract non-renewable resource developmentintheNWT. Provides advice Minerals, OilandGas • Diamond Wildlife andFisheries Projects • InvestmentandEconomic Analysis • ParksandTourism • Minerals,OilandGas • • Forest Management • Environmental Protection The Departmentisresponsible forthefollowingsevencore functions: in thetraditionalandwageeconomies. natural resources andenhancesthecreation ofnew, sustainable opportunities economic self-suf The DepartmentofResources, Wildlife andEconomicDevelopmentpromotes Mandate ..Lr C.S.LordNorthern C.S.LordNorthern C.S. Lord CSL GSC Geological Departmentof Indian Minerals,OilandGas Survey DIAND MOG Resources,Wildlifeand RWED Governmentofthe GNWT Guide toAbbreviations Geoscience Centre Geoscience Centre of Canada Development Affairs andNorthern Economic Development Northwest Territories fi

ciency andgrowth through thesustainabledevelopmentof developsandimplementsstrategiestoencourage historical information. T exploration industryoftheNorthwest on thecurrentstatusofmining and The publicationcapturesinformation at [email protected]. telephone at867-920-3345orbye-mail invited tocontactChristyCampbellby For moreinformation,thereaderis and RobertHornalAssociatesLtd. C.S. LordNorthernGeoscienceCentre and NorthernDevelopmentCanada, Development DivisionofIndianAffairs contributions fromtheMineral Economic Development,withadditional Department ofResources,Wildlifeand Minerals, OilandGasDivisionofthe This reviewwascompiledbythe Exploration Overview A NoteAbouttheMiningand eore ...... Resources Resource Directorate...... Mineral andPetroleum ...... Minerals Education Prospecting Supportand .... Mineral EconomicActivities ...... Centre Activities Northern Geoscience Summary of2002C.S.Lord ...... Northwest Territories Claim Stakinginthe ...... in Detail Exploration Activities Northwest Territories ...... Exploration Overview of2002NWT ...... Operating Mines Status ofNWT ...... Geoscience Forum The OriginsoftheNWT ...... in theNorthwestTerritories The HistoryofMining Contents erritories, alongwithpertinent 36 34 33 32 29 26 19 15 12 11 3

1 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 2 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW hit apel879034 CalvinBrackman867-873-7735 [email protected] [email protected] SeniorResource Economist: Christy Campbell867-920-3345 CommunityMineralsAdvisor: Resource DevelopmentSpecialist: [email protected] [email protected] W JoanneTsetta 867-920-3222 A/Senior MiningAdvisor: [email protected] [email protected] Doug Matthews867-920-3214 Director: Director’s ADMINISTRATION www.mog.rwed.gov.nt.ca Resources, WildlifeandEconomicDevelopment Minerals, OilandGasDivision Secretary: Photo: DiavikDiamondMinesInc. rikBle 6-7-06 DianeBaldwin867-920-3347 arwick Bullen867-873-7086 eteMngr ieasadBdok GeologicalDataManagement DougIrwin867-669-2482 MineralsandBedrock CarolynRelf867-669-2635 [email protected] Bernie MacLean867-669-2475 Centre Manager: ADMINISTRATION www.nwtgeoscience.ca C.S. LordGeoscienceCentre Northern aaaeGooit Dtbs elgs: DIANDDistrictGeologist: KellyPierce867-669-2484 StephenGoff 867-669-2638 GISTechnician: DatabaseGeologist: Project Geologist: [email protected] [email protected] KarenGochnauer867-669-2637 Len Gal867-669-2686 Project Geologist: Project Geologist,Petroleum: DonnaSchreiner867-669-2614 DougIrwin867-669-2482 [email protected] [email protected] [email protected] DIANDDistrictGeologist: Karen MacFarlane867-669-2645 Database Geologist: Archives Technician: Project Geologist,Geomatics: [email protected] [email protected] [email protected] Beth Sage867-669-2646 Project Geologist: Geological DatabaseManager: LANAdministrator: [email protected] [email protected] [email protected] Y [email protected] Vivi Lazar867-669-2485 Archives Geologist: Project Geologist,Minerals: [email protected] [email protected] V HendrikFalck867-669-2681 Project Geologist: [email protected] [email protected] [email protected] John Armstrong867-669-2644 Diamond Geologist: [email protected] [email protected] C.S. LORDSTAFF [email protected] Brendan Norman867-669-2636 Administrative Coordinator: government andindustry.government geoscience. TheCentre housesanarchive andtechnicallibrarycontainingmapsgeologicalreports produced byboth mineral depositstudies,kimberliteresearch, GIS,remote sensing,multi-disciplinaryfi groups agenciesthatsupportresponsibleresource andothergovernment northern development.CSLoffers expertisein The Centre, locatedinYellowknife, deliversanextensivegeoscienceprogram inco-operationwithindustry, Aboriginal n rso 6-6-62 nrwGgi 6-6-63 AllanTurner 867-669-2479 AndrewGeggie867-669-2643 ana Preston867-669-2642 lreJcsn876928 E aik 6-6-67 JamesLariviere867-669-2480 EdJanicki867-669-2687 alerie Jackson867-669-2683

the NorthwestTerritories’ andEconomicDevelopment(RWED) DepartmentofResources, Wildlife of Development(DIAND)andtheGovernment federal DepartmentofIndianAffairs andNorthern The C.S.LordGeoscienceCentre (CSL)wasestablishedin1997byagreement Northern amongthe C.S. LordGeoscienceCentre Northern

[email protected] Mapping Group Manager: [email protected] Adrienne Jones867-669-2488 Petroleum Group Manager:

and PublicationsManager: [email protected] E-mail: [email protected] Fax: 867-669-2725 Ph: 867-669-2642 For more information: nwt.inag.gc.ca www.inac.gc.ca Affairs Canada Indian andNorthern Division Mineral Development

eld-basedstudies,andpetroleum Caribou intheArctic. T The HistoryofMiningintheNorthwestTerritories that thepotentialformineralization Gilbert Labineread Bell’snotes However, itwasnotuntil1929when copper.” often stainedwithcobaltbloomand present themselvestothelake,are the steeprocky shores where they calcite containingchalcopyrite,and numerous interrupted stringersof area thus:“Inthegreenstons, with r and intoGreat BearLake.They Mackenzie River, uptheBearRiver of Canada,journeyeddownthe Camsell, oftheGeologicalSurvey In 1900,J.M.BellandCharles Eldorado Mine diamonds. r NWT miningindustry. However, in until recently, themainstayof Base andprecious metalsformed, The HistoryofMiningintheNorthwestTerritories ecorded theirobservationsofthe ecent yearsthefocushasshiftedto inextricably linkedtomining. T he economyoftheNorthwest erritories (NWT)is Daring Lake,NWT–lookingfordiamond indicatormineralsinlakeshoresediments. fl became clear. Labineimmediately the Arctic Circle, andstakedthe Lake, approximately 40kmsouthof company in1944. 125 tpd.Theminebecameacrown which throughput wasincreased to tons perday(tpd)upuntil1940,after The milloperatedatacapacityof50 uranium, andsubsequentlysilver. mine production inDecember1933.The mining operationintheNWT, began Eldorado Mine,the claims were recorded inthearea. of 1932,between2,500and3,000 population stoodat200.Bytheend of mining recorder’s radio stations,anRCMP postanda plant, generalstore, postof mine, asawmill,electricpower the partiallyconstructed Eldorado re By 1932,thetownofGreat Bear, later the Eldoradouraniummine. four claimsofwhatwouldbecome

ew totheeastshore ofGreat Bear named PortRadium,consistedof fi

rst produced radiumand fi fi

rst modern ce. Thetown’s fi

ce, two fi

rst 1981. production from theminewasin were recovered. Thelastreported of silverand4,935tonscopper tons ofore, from which792,888kg The EchoBayMineproduced 383,409 Echo BayMinesuntil1982. silver minein1976andoperatedby was subsequentlyre-opened asa from theEldoradoMine. and Smeltingtoexploitthesilverore an agreement withEldoradoMining 1974, EchoBayMinesLtd.reached was 2,331g/t Ag and0.92%Cu.In 1971 and1972theaverageore grade operating at90tonsperday. During mine hadsixlevelsandthemillwas Mining andSmelting.By1972,the and surfaceplantsfrom Eldorado 1966, EchoBayMinesboughtthemill Mine, 1.6kmtothesouthwest.In infrastructure from theoldEldorado ore wasmilledinitiallyusingthe and copperbeganin1964.The mining lease.Production ofsilver incorporated andacquired the Echo BayMineswassubsequently the property anddrilled11 holes. 1963, NorthwestExplorers optioned adits were developedin1934.In was donein1932andtwoparallel Canada. Somediamonddrilling Mining andSmeltingCompanyof staked in1930fortheConsolidated of PortRadium,were originally situated approximately 2kmeast The EchoBayGroup ofclaims, Echo BayMines longer pro sources inCanada,theminewasno the developmentofotheruranium capacity increased to300tpd.With mill wasre-built in1952withthe production in1951.However, the increased to170tpd. A In 1950,themillcapacitywas September 1960. fi

table andwasclosedin fi

re halted

3 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 4 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW closed in1937. produced only87oz.ofgold and Burwash Minewasshortlived.It area. shipment ofgoldfrom theYellowknife B.C., forrefi Fort McMurray, thenbyrailtoTrail, from theBurwashminesouthto around 12oz/tgoldwasshipped In 1935,some15tonsofore grading formed todeveloptheRichproperty. Y a subsidiarycompany, Burwash side ofYellowknife Bay. Subsequently, Baker foundmore goldontheeast they discovered free gold.In1934, down therivertoQuytaLakewhere They thenpaddledandprospected over landtotheYellowknife River. way upstream bycanoeandcrossed Coppermine River. Theymadetheir Bear Lakeandwere fl Baker andHerbDixon,leftGreat In July1933twoprospectors, Johnny over thesiteoffuture ConMine. the Yellowknife area theyprospected to When Clarkandhispartyreturned Lake andprospect backbycanoe. fl of Yellowknife Bay. Theirplanwasto (Dominion Explorers) totheeastshore Donavan Clarkandhisparty In July1929,StanMcMillanfl favourable forgoldmineralization. His workindicatedthatthearea was the northshore ofGreat SlaveLake. GSC madethefi In 1905,J.MackintoshBellofthe of 38.86oz/t. the samearea indicatedasilvercount gold. Asamplefrom anotherclaimin It assayedat2,158oz.perton(oz/t) the fi on hiswaytotheKlondike,staked In 1898,B.A.Blakeney, aprospector The Yellowknife Mines Gold Mining yuptheYellowknife RivertoSnare ellowknife GoldMinesLtd.,was rstclaimintheYellowknife area. ning.Thiswasthefi rstmineralsurveyof owntothe ew rst Mine andrenamed ittheNerco Con Corporation purchased theCon December 1986,Nerco Minerals the lowerlevelsofmine.In sunk to1,890mdepthaccess In 1974,theRobertsonShaftwas Campbell shear. produced atConMinewasfrom the followed. By1958,allthegold drifting. ThesinkingoftheB-3winze The C-1shaftwasdeepenedand jointly drilledanexplorationhole. when theConandNegusmines Campbell Shear, wasdiscovered In 1946,awideshearzone,the shear itself. gold wasbeingminedfrom theCon to 136tonsperdayandby1940 mill wasbuilt.Theexpanded the ConShearanda90tonperday quartz veininthehangingwallof on Vein-10, asmallhigh-grade of Canada.TheC-1shaftwassunk Jennejohn oftheGeologicalSociety the discoveryofgoldbyN. staked theNerco property following In 1935,aComincofi Con Mine Y Con Mine–RobertsonShaft, ellowknife, NorthwestTerritories eldparty Mine in2000. began processing ore from Giant r due toalabourdispute;operations In May1998,ConMinewasclosed evaluate theseareas. program waslaunchedin1994to vicinity ofthemine.Anexploration exploration rightsintheimmediate more than64.7square kmof At thattimeMiramarcontrolled Corporation acquired theConMine. 1992. In1993,MiramarMining began operationinAugustof arsenic sludgeandcalcinewastes, Campbell shearzone,aswell ore from theupperlevelsof An autoclavetotreat refractory was 1,043tonsperday. workforce of400.Millingcapacity of underground workingsanda m. Theminehad14levels,129km shaft extendedtoadepthof1,902 Mine. By1990,themainproduction esumed inJuly1999.ConMine which operatestheConMine,acquired GiantMineinDecember1999. April 1999,RoyalOakMinesInc.wentintoreceivership. MiramarMiningCorp., The Supercrest addedapproximately seventoeightyearsmine-life toGiant.In In 1995,production beganfrom theSupercrest area adjacenttoGiantMine. Resources Ltd.acquired GiantMine. that itsCanadianassetswere forsaleandonNovember2,1990,RoyalOak Giant Yellowknife MinesLtd.to45%.In1989,GiantResources Ltd.announced bought theoutstandingshares ofPamourInc.,thereby increasing itsinterest in declined to41.8%inSeptember1987.InApril1988,GiantResources Ltd. Mines Ltd.Pamour’s interest increased to50.2%inJanuary1987and then Pamour Inc.acquired Falconbridge Ltd.’s 19.2%share inGiantYellowknife In Novemberof1985,GiantMinepoured its10,000thgoldbrick.In1986 have beentotallydelineated. property (theLAW) wasin1962.By1964,theGiantorebody wasconsidered to carried out.Thelastmajornewore zonetobediscovered ontheGiantMine During thefi 1959. Allshaftsare connectedatthe750level. a depthof313.6mandlaterdeepenedto466in1954609.6 and theminewentintofullproduction. In1951,“C”shaftwascompletedto 159 mfrom surface.In1948,“B”shaftwascompletedtoadepthof238m Development beganin1946withthesinkingof“A”shafttoadepth indicated 2,753,329tonsatacutgradeof11.3gramsperton. mapped onsurface.Theoriginalresource estimationfrom thisdrillprogram r diamond drillholeswere completedforatotalof25,580m.Thisprogram in asurfacediamonddrillprogram. From 1944to1946,approximately 200 zones were located.A.S.Dadson’s examinationoftheproperty in1943resulted Surface explorationcontinueduntil1943andanumberofothermineralized outcrop atthesouthendofmineproperty nowknownastheDWCzone. the Giantclaims.In1938,D.W. Cameron discovered a goldbearingschist Gold MinesLimitedwasincorporatedin1937andshortlythereafter acquired Ltd., fi Prospectors C.J.BakerandH.Muir, onbehalfofBurwashYellowknife Mines Giant Mine esulted inthelocationofsubsurfaceextensionszonespreviously rststakedtheGiantMineproperty in1935.Asaresult, GiantYellowknife from ConMine. Gold brickproduced rst15yearsofthemine’s life,extensiveexplorationprograms were the activitieshype. had verylittlegoldtoshowforall these properties, liketheBeaulieu, questionably promoted. Manyof were strenuously andoften the great goldfeverin Yellowknife, properties that,duringtheheyday of example ofonethemany Beaulieu Mineisaninteresting gold hadbeenrecovered. down amonthlaterafter7.5oz.of October 23,1947.However, itclosed the BeaulieuMinebeganoperatingin promoted asaneconomicentityand explore theproperty. Thedepositwas Y the summerof1939.In1945Beaulieu east of Yellowknife, were stakedin The Normaclaims,located75km in theYellowknife Area Other Mines mineralization asaresult ofdiamond Y explored until1945,whenGiant However, thearea was notfully Y Lake area 220kmnorthwestof The presence ofgoldintheIndin Colomac Mine four yearsbefore closing. of goldand12,000oz.silverover produced approximately 175,000oz. near theoldTundra Mine.Themine Salmita MineonMatthewsLake, In the1983,GiantMineopened Salmita Mine was recovered. gold/ton. Some104,000oz.ofgold 185,000 tonsofore grading0.54 oz. mill hadprocessed approximately the timemineclosedin1968, years atagoldpriceof$35/oz.By However, theminestruggled forfour r was expectedtogenerateannual northeast of Yellowknife. Themine in 1964.Itwaslocated200km called whenitwentintoproduction is whattheTundra GoldMinewas “Canada’s mostnortherlygoldmine” T evenues ofaround $1,400,000. undra Mine ellowknife MinesLtdwasformedto ellowknife Minesdiscovered gold ellowknife wasknownsince 1938.

5 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 6 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW stockpiled ore. in December1997afterprocessing of reserves. Theminewasclosed in September1997afterdepletion Mining operationswere discontinued production inMay1994. Colomac site,andresumed Corporation, andthereby the Inc. acquired NeptuneResources In April 1993, RoyalOakMines the interest ona$150millionloan. mill, andNeptune’sinabilitytopay costs, mechanicalproblems atthe 1991 duetolowgoldprices,highfuel operations were suspendedinJune achieved atColomacinMay1990. All of thesitein1989.Production was 1988, andplanneddevelopment extensive feasibilitystudiesduring option in1988.Neptuneconducted Mines Ltd.in1986andexercised this option ontheproperty from Johnsby Resources Corporationobtainedan was conductedatthesite.Neptune and anexplorationdrillingprogram 1974, Comincooptionedtheproperty, operations economicallyfeasible.In time, aslowgoldpricesdidnotmake not placedintoproduction atthat mineralization. Theproperty was extensive zoneoflow-gradegold 1946 ledtothediscoveryofan drilling. Furtherexplorationduring late 1949a90tonperdaymill was in 1946,ashaftwassunkand in property. After extensiveexploration formed, in1945,toexplore the Discovery Yellowknife Mineswas the Discoveryproperty in1944. A.V. Giauqueandsons Mine Discovery Colomac corestorage. fi

rst staked Ormsby Zone. to calculateanewresource forthe and thedatafrom thesewasused further 80,000mwere drilledin1997 the OrmsbyandDiscoveryareas. A drill holes,totalling22,769m,tested In 1996,approximately 100diamond the OrmsbyZonefrom underground. approximately 100minorder totest deposit. A declinewasadvanced into anagreement toearninthe Resources Corporationentered holes totalling915m.In1995,GMD In 1994thecompanydrilledsix Mines Ltd.todeveloptheproperty. Hess. HeformedNewDiscovery and wasre-staked in1992byGerry The property wasallowedtolapse Mine. claims inthevicinityofDiscovery optioned theproperty andexplored r r were performedoveramore grid, andIP andresistivity surveys were carriedoutovera60line-km surveys (magnetic,VLFEM,HLEM) summer of1981ground geophysical geochemical studies.Duringthe ground geophysics,mappingand property. Theycarriedout Exploration Ltd.optionedthe out. InDecember1980Newmont there wasnofurtherworkcarried Between March 1969and1980 prompted themineclosure. up tothe1,200mlevel. A auriferous quartzveinswere mined between 1950and1969.Several installed. DiscoveryMineoperated ocks). In1987,CanamaxResources estricted area (coveringthevolcanic near theHornPlateau,NWT. Discovery MiningCamp– fi

re in1969 been reclaimed. September 1,1987.Thesitehassince life. Thetownwasof 69 milliontonsofore overthemine pounds ofleadwere produced from billion poundsofzincand2.6 operated untilJune1987.Some8.4 railway inearly1965.PinePoint place afterthecompletionof rail shipmentofconcentratestaking Mine beganin1964,withthe Production from thePinePoint 1963 and1965. town ofPinePointwasbuiltbetween to PinePointstartingin1962andthe built arailwayfrom Roma, Alberta, deposit. TheCanadianGovernment Canada’s richestknownlead/zinc By 1958,Comincohadidenti Mines Ltd.). held a50%interest inPinePoint to furtherexplore thearea (Cominco Pine PointMinesLtd.wasformed Slave Lakeforbasemetals.In1951, area onthesouthshore ofGreat Falconbridge), begantoexplore the and Ventures Ltd.(predecessor to Company, formedbyComincoLtd. In 1929,NorthernLeadZinc Pine PointMine Base andIndustrialMetals fi In 1980,theHuntbrothers agreed to exploration wascarriedout. to 1980,extensiveunderground option inlate1980.From 1970 Explorations Ltd.terminatedthe underground exploration.Cadillac carried outextensivesurfaceand to Penarroya CanadaLtd.They In 1970,theproperty wasoptioned carried outin1968and1969. the mineralizedzones.Drillingwas Cadillac ExplorationsLtd.explored on theproperty until1966,when very littleexplorationwasdone west ofFortSimpson.However, discovered atPrairieCreek, 170km lead andsilvermineralizationwas In 1928,shearzone-hostedzinc, Prairie Creek

nance themineintoproduction. A fi

cially closedon fi

fi ed

rst Canadian ZincCorporation. Corporation changeditsnameto of 1999,San Andreas Resources r r followed withaprogram ofmine Butte DeneBand.Thiswas Agreement (IBA)withtheNahanni negotiated anImpactBene In 1996,San Andreas Resources strike. r zones to2.1km.Theorebody length oftheknownmineralized step-out holesextendedthestrike initiated. During1995,additional baseline environmental studieswere additional drillingtookplaceand the deposit.In1992and1993, multiple explorationtargets within which openedupthepossibilityof stratiform-style mineralization, San Andreas Resources discovered interest intheproperty. During1992, Resources Corp.toearna60% granted anoptiontoSan Andreas Ltd. acquired PrairieCreek, and 1990. In1991,ConwestExploration r The property wastiedupinlitigation property uptothatpoint. of $64millionhadbeenspentonthe was forced intobankruptcy. A total collapsed andCadillacExplorations 90 to95%complete,thepriceofsilver May 1982,whentheminefacilitywas milling facilitieswere constructed. In and brought tothesite,andmine copper concentratorwaspurchased allowed tolapse. r It wasfoundtobesub-economic in drilled byKennecottCopperin1956. mapped andsampledin1955 Simpson nearthe Yukon border, was property, located360km west ofFort in 1954,asacopperprospect. The Northwestern ExplorationsLtd., staked theCanTung depositfor Axel Berglund discovered and CanTung Mine DEVELOPMENT FORMANYYEARSTOCOME. WITH THEDIVERSITYANDRICHNESSOFNWT’SMINERALDEPOSITS,WECANEXPECTTOSEEALONGHISTORY OFMINERALEXPLORATION AND esource estimation.InSeptember ehabilitation, re-sampling and emains openatdepthandalong esulting from thebankruptcy until espect ofcopperandtheclaims were fi

ts 1962 Production commencedinNovember Cu were de tons grading2.47%WO3and0.45% in 1960.Ore reserves of1.08million drilled 11 holesin1959and41 develop theproperty. CanTung formed in1959toacquire and Corporation Ltd.(CanTung ) was The CanadaTungsten Mining Syndicate re-staked theproperty. late 1950s.In1958,theMackenzie panning intheFlatRiver Ltd.) discovered scheelitewhile and LakeExpanseGoldMinerals Dome MineralsLtd.,Ventures Ltd. Highland Belt, Area ExplorationLtd., “Mackenzie Syndicate”(Leitch, Prospectors workingforthe drilling in1972and1973identi “E Zone”.Surfaceandunderground Deep drillingin1971discovered the 1973. the pitcontinueduntilSeptember open pitmethods.Production from to includeonlythosemineableby In 1967,reserves were re-calculated was interrupted in1967byamill year duetolowtungstenprices,and was suspendedduring1963-64fora by underground mining.Production by openpit,andthensubsequently and Dome.ThePitZonewasmined from EZonebeganinJune1974. Zone ore. Millingofunderground ore pit, thenconvertthemillto process E higher-grade skarnore from theopen decision wasmadetotakeonlythe mineable reserves inthezone. A Winter iceroadsupply. fi

nanced byFalconbridge, Amax fi

ned. fi

ed fi r e. 2001. the CanTung MineonDecember1, Resources. Thecompanyre-opened former CanadaTungsten, from Aur with therelated assetsofthe Ltd. purchased CanTung , together American Tungsten Corporation merged in1996.In1997,North Canada Tungsten and Aur Resources the property in1995. control. Aur Resources Inc.optioned T project atMacmillanPass,toCanada including CanTung andtheMacTung transferred alltungstenassets, Dome in1985. Also in1985, Amax CanTung minein1966,followedby Falconbridge solditsinterest inthe prices. inde 1986 operationswere suspended low tungstenprices.In August of 1981, andformostof1983dueto from November1980toMay Production washaltedbyastrike day followingamillexpansion. to approximately 900tonsper In 1979,production wasincreased completed in1962-63. a ground magneticsurveywere the area. Geology, prospecting and Metal ClimaxInc.(Amax),staked Corp., asubsidiaryof American molybdenum. SouthwestPotash in 1962,whileexploringfor showings attheMacTung site J.F. Allen Mactung Project ungsten Inc.butretained majority fi

nitely duetolowtungsten fi

rst discovered scheelite Continued onpage10

Photo: Diavik Diamond Mines Inc.

7 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 8 • M INING EXPLORATION AND GEOSCIENCE OVERVIEW 2002 8 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW pipe wasthe Lake. ThePointLakekimberlite previously un-namedlake,Point the vicinityofLacDeGrasatasmall when diamondswere discovered in joint venture withDiaMetMinerals In 1991,BHP Mineralsentered intoa their source intheLacDeGrasarea. the MackenzieMountainsbackto kimberlite indicatormineralsfrom founded, DiaMetMinerals,traced Charles Fipkeandthecompanyhe From 1982to1990,geologist BHP Billiton’s EkatiMine discovered ontheEkatiproperty. fl line-km ofairbornegeophysicswas June 1993andMay1994,11,512 discovered ontheproperty. Between During 1992theKoalapipewas continued anddetailedground were drilled,heavymineralsampling diamond drillholestotalling 5,039m In thefollowingyearatleast 23 analyzed and28holeswere drilled. 2,000 heavymineralsampleswere Between 1994and1995,another of whichintersectedkimberlite. totalling 2,151mwere drilled,seven samples were analyzed.Eightholes Photo: BHP Billiton Diamonds Inc. Photo: DiavikDiamondMines Inc./JiriHermann kimberlite pipeshavebeenfoundintheterritory. Over 20diamond-bearingkimberliteswitheconomicpotentialhavebeenidenti involved indiamondexplorationandminingtheNWT. Since then,severaloftheworld’slargest miningcompanies,includingBHP, RTZ andDeBeers,havebecomeactively pipes atLacdeGrasinthewest-centralNWT. Thisdiscoveryresulted inthelargest stakingrush inCanadianhistory. In 1991,DiaMetMineralsLtd.andBHP Mineralsannouncedthediscoveryofmajordiamondbearingkimberlite economically viable. were discovered intheHigh Arctic onSomersetIslandbyComincoLtd.andDiapros Ltd.,butwere foundtobenot The NWTwasthesiteofsmalldiamondexplorationprograms intheearly1970s. A clusterofkimberlitepipes Exploration andProduction NWT Diamonds

own andover4,000heavymineral fi

rst ofover100pipes and industrialqualitydiamonds million caratsofpredominantly gem The EkatiMineproduces around 4 currently peggedat17years. from 2007onwards. Theminelifeis planned toincrease this to18,000tons at arateof9,000tonsperday, butitis The ore iscurrently beingprocessed only. exploited byunderground methods ore. TheKoalaNorthpipewillbe because ofthehighervaluetheir exploited viaunderground methods Koala pipeswillsubsequentlybe be minedopenpit.ThePandaand pipes inthemineplanwillinitially carat perton.Sevenoftheeight Ore gradesare intheorder ofone be minedoverthelifeofproject. tons ofwasterock, are scheduledto ore, andapproximately 508million plan. Inexcessof70milliontons 20 pipes,eightare inthecurrent mine these havebeenbulksampled.Ofthe identi Some 121kimberlitepipeshavebeen 1998. mine wasopenedonOctober14, mine, andprocessing facilities.The fi In 1997,BHP andDiaMetreceived mining project. was undertakenoftheproposed studies, andanenvironmental review Diamonds initiatedprefeasibility 1993 to1995.DuringthisperiodBHP Fox, andPandapipestookplacefrom grids. BulksamplingoftheKoala, geophysics wascompletedover

nal regulatory approval forthe fi

ed ontheproperty, and20of fi

Photo: Diavik Diamond Mines Inc. ed intheNWT. To date,more than300 kimberlites were discovered. In1995, from whichnineadditional North, and A154 South, A21, A154 pipes were sampled.Theseincluded During 1994,three diamondiferous end of2001. been produced from themineby value. Some9millioncaratshad production byweight,and6% a year, about4%ofcurrent global airborne geophysicswas January 1994,20,500line-kmof property. Between April 1992and Exploration tofurtherexplore the agreement withKennecottCanada Resources completedajointventure the project area. InJune1992, Aber the mineralclaimswhichsurround (now Aber Diamond Corp.)staked early 1992, Aber Resources Ltd. During thelatterpartof1991and Diavik DiamondsProject discovered. T totalling 6,630mwere completed. anomalies and65diamonddrillholes Ground geophysicstestedairborne heavy mineralsampleswere taken. wenty- fi

ve kimberliteswere fl

own, 1,700 kimberlite pipewasdiscovered on under SnapLake. A double-lobed to concludeakimberlitebodylay the property, leadingthe partners been identi kimberlite indicatormineralshad property. Bythesummer of1993, Ltd. wasstruck toexplore the Resources Ltd.and Aber Resources W joint venture agreement between the Property in1991.In1992a Antler Resources Ltd. Snap LakeProject US $63.74percarat. Diamond pricesare expectedtobe averaging 5.4millioncaratsperyear. envisaged withdiamondproduction the world. A 20-yearminelifeis the depositoneofrichestin grading at4.15caratspertonmaking are estimatedat25.6milliontons production in April 2003.Reserves Diavik isscheduledtocommence site. equipment were hauledtotheproject of fuel,construction materialsand winter road season,4,089truckloads to cost$1.3billion.Duringthe2001 Construction ofthemineisexpected 1999 fortheDiavikdiamondmine. from thefederalgovernmentin late licensing approvals were obtained Diamonds Project. Permittingand to developandmanagetheDiavik Kennecott CanadaInc.)wascreated of RioTinto plc,whichalsoowns Inc. (awholly-ownedsubsidiary In 1996,DiavikDiamondMines mine developmentwasmade. commence thepermittingprocess for Based ontheseresults, thedecisionto yielding 21,000caratsofdiamonds. from A418 and A154 Southpipes, of 6,000tonskimberlitewastaken the summerof1996,abulksample pipe, A418, wasdiscovered. During a fourthdiamond-bearingkimberlite AND DIAPROSLTD. KIMBERLITE PIPESWEREDISCOVERED INTHEHIGHARCTICONSOMERSETISLANDBYCOMINCOLTD. THE NWTSAW SMALLDIAMONDEXPLORATION PROGRAMS INTHEEARLY 1970S.ACLUSTEROF inspear Resources Ltd., Antler fi

ed atseveralareas on fi

rst staked in 2006. is expectedtocommenceproduction De BeersSnapLakediamondmine February 1,2001. The transactionwascompletedon De BeersCanadaCorporation. sell theirstakeintheproperty to Diamond Corporationagreed to early 2000.InDecember2000, Aber to Aber DiamondCorporationin Aber Resources changed itsname property. increasing thetotalvalueof dyke. Theprogram succeededin mineral resource estimateforthe the kimberlite.MRDIcompleteda well asanunderground declineto of drillholeswere completed,as Through thisprogram anumber extensions oftheSnapLakedyke. A this discovery. Resources totakefulladvantageof amalgamated withWinspear In January1997, Antler Resources kimberlite dykewasalsofound. and agentlydippingrelatively thick the property in1995(AR083638) de The program wasdesignedto scale “valuerecognition program”. Wi successful takeoverofthecompany, August 25,2000.Priortothe transaction wascompletedon to purchase Winspear andthis Corp. madeanall-cashoffer In Juneof2000,DeBeersCanada in 1999. planned andsamplingcommenced 20,000 tonbulksampleprogram was a 20,000tonsample. A three-year, to commencewiththeextractionof favourable andadecisionwasmade Results from thissamplewere 1998, a200tonsamplewastaken. sampling ofthedyke.During venture toproceed withbulk decision wasmadebythejoint fi nspear embarkedonalarge-

ne knownandprojected 6.6 and5.9carats,respectively. three largest diamondsweighing7.0, from 836tonsofkimberlitewith the total of1,215caratswere recovered and 5034pipes.Forthepipe,a further bulksamplesfrom theHearne r did notprovide anacceptablerate of production decision,astheresults that itwastooearlytomakea collected todate.Theyconcluded and Tuzo pipesusingthedata feasibility ofminingthe5034,Hearne During 2000,DeBeersstudiedthe diamond gradeandvalue. provide amore reliable estimateof taken from eachofthefourpipes to 1997. During1999,abulksamplewas by theHearneandTuzo pipesin discovered ontheproperty, followed In 1997,theTesla pipewas interest. option ofearninguptoa60% operation oftheproject, withthe Exploration Inc.assumedimmediate this venture, DeBeersCanada and CamphorVentures. Under holders, MountainProvince Mining into ajointventure withtheclaim Canada ExplorationInc.entered carried out.InMarch 1997,DeBeers a bulksamplingprogram was from samplestakenin1995and Macrodiamonds were recovered was discovered ontheproperty. claims. In1995,the5034pipe originally knownasthe AK/CJ The KennadyLakeproject was Kennady Lake eturn. In2002,DeBeersrecovered

99 •• MMININGINING AND EXPLORATION EXPLORATION ANDIN THE G NEOSCIENCEORTHWEST TOERRITORIESVERVIEW 2002 2002 OVERVIEW 10 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW r NWT/Yukon border, thereport was of theMacTung orebody onthe government. Becauseofthelocation environmental report wasreleased to description andbaseline In 1983,apreliminary project Northwest. claims were transferred to Amax Amax Potashin1971.In1972,the Exploration Limited,whobecame The claimswere transferred to Amax diamond drillingwascompleted. Between 1968and1973,10,600mof Continued frompage7 Diamond ExplorationandMineDevelopment eleased tothefederalDepartmentof (November)TheMinisterofthe • WinspearResourcesLtd.andAber • (December)DiavikDiamondMines • (September)AberResourcesLtd.and • (Fall)BHPopensKoalaCampjustnorth • (Fall)CharlesFipkeandStewartBlusson • (March) Diavikprojectdescription • (Winter) WinspearResourcesconductsa • received fi of theNWTannounceBHPprojecthas Northern DevelopmentandthePremier Department ofIndianAffairs and diamond deposit. Resources Ltd.discovertheSnapLake Y Inc. iscreatedwithitsheadoffi has thefullsupportofgovernment. Diavik Projectoffi Kennecott CanadaExplorationestablisha Y of LacdeGras.Italsoopensanoffi Canadian history. results inthelargeststakingrush T discover diamondsintheNorthwest assessment review. triggering formalenvironmental is submittedtofederalgovernment yields highgrade,gem-qualitydiamonds. 200-ton bulksampleatSnapLakethat ellowknife. erritories atPointLake.Thisdiscovery 1998 1996 1993ellowknife. 1991

nal Cabinetapprovalandnow

ce inYellowknife.

ce in

ce in per day. Minestaff wouldbehoused with potentialexpansionto1,800tons underground miningwasproposed, combination ofbothopenpitand to theportatSkagway, Alaska. A Ross River, Yukon, andfrom there out alongtheNorthCanolRoadto 1986. Concentratewouldbetrucked production estimatedtobeginin between 1984and1986,with day minewouldbeconstructed It wasproposed thata900tonper governments. (DIAND) andbothterritorial Indian andNorthernDevelopment (October 14)EKATI™ DiamondMine • (August) GNWTbeginsworkonaprogram • (April) BHPandtheGNWTreachan • (November)Thefederalgovernment • (August)TheGNWTnegotiatesa • (June)SiriusDiamondsLtd.offi • (April)Firstonemillioncaratsproducedby • (March)Memorandum ofUnderstanding • (February18)BHPsortingandvaluation • (January)AuroraCollege,inassociation • offi in theNWT. to certifydiamondsasbeingminedandcut the NWT. manufacturers forcuttingandpolishingin rough diamondstoqualifi that BHPwillfacilitatethesaleof Y and valuationfacilitywouldbebuiltin agreement wherebyadiamondsorting Agreement withtheGNWT. W phases ofpermitting.ArslanianCutting allows ittoproceedthroughthenext review oftheDiavikDiamondProject and completes theenvironmentalassessment diamonds forNWTmanufacturers. Diavik concerningaccessofrough Memorandum ofUnderstandingwith Diamond Mineintheglobalmarketplace. to representdiamondsfromtheEKATI™ Y opens acuttingandpolishingfacilityin EKATI™ DiamondMine. mine. agreement forthesaleof35%run-of- is signedbetweenBHPandDeBeersfor facility opensinYellowknife, NWT. Program. Employment) andIntroductiontoJewelry Introduction toDiamondsProgram(Pre- (HRD) ofAntwerp,Belgium,establishesthe with ECEandtheDiamondHighCouncil ellowknife, aswellanunderstanding ellowknife. Mapleleaflogolaunched orks NWTLtd.signsaMonitoring

1999 cially opens. 1998

ed northern

cially property. Resources Inc.,includingtheMactung number oftungstenassetsfrom Aur Corporation Limitedpurchased a In 1997,North American Tungsten property in1995forre-evaluation. Aur Resources Inc.optionedthe plans. 1986 caused Amax toshelvethese in tungstenpricesbetween1984and site byairorbus.Thedramaticdrop in acampfacility, andtransportedto TheGNWTlaunchesnewlogorepresenting • (June) BHPBillitonpurchases • DeBeerssubmitsitsproject • (November)GNWTcertifi • (August)DeBeersacquiresWinspear • (July)WinspearResourcesreceivesoffer • (June)Deton’choDiamondsInc.signsa • (April)SnapLakepre-feasibilitystudyis • (March)Deton’choDiamondsInc. • DiavikDiamondMinesInc.begins • (December)ArslanianCuttingWorks • Canada’s Northwest Territories. diamonds mined,cutandpolishedin government’s certifi CANADIAN ARCTIC™diamondsandthe Mine™ to80%. ownership oftheEkatiDiamond Dia MetbringingBHPBilliton’s Project. description fortheSnapLake Resources. shares inahostiletakeoverbid. from DeBeerstoacquireallcommon Monitoring AgreementwiththeGNWT. completed. T Standards undertheApprenticeship, the DiamondPolisherOccupational in Yellowknife. TheGNWTreleases opens acuttingandpolishingfacility construction. facility inYellowknife. NWT Ltd.opensacuttingandpolishing Canadian Arcticdiamond. 2002 2001 2000rade andOccupationsCertifi

cation programfor

es thefi

cation Act.

rst The OriginsoftheNWTGeoscienceForum Robert Hornal,B.Sc. T The OriginsoftheNWTGeoscienceForum Mining Services,focusedonadvances by BillKnutsenofPrecambrian Islands. Thefourthsession,chaired lead zincpossibilitiesinthe Arctic Arm ofGreat SlaveLake,andthe the search foruraniumontheEast for nickelintheParryRiverarea, River Greenstone Belt,thesearch included papersontheBeaulieu in theNWTprevious yearand Giant Mine,dealtwithexploration by DavidEmery, themanagerof T Giant, EchoBay, Terra, PinePointand in theNorthwestTerritories; Con, exploration attheexistingmines the managerofConMine,dealtwith session, chaired by Alex Richardson, geophysical techniques.Thesecond Canada discussedgeochemicaland from theGeologicalSurveyof Geologist’s Of a recent recruit totheResident and waschaired byBillPadgham, with newexplorationmethods sessions. The The program consistedoffour r this program. About 150peopleattended Geologist’s Of to sponsortheeventifResident Chamber ofMineswillingagreed the next stimulate explorationefforts in and geologistswithnewideasto was toprovide localprospectors 1972, thesymposium’sobjective Inn onFebruary 12and13of the CaribouRoomof Yellowknife Offi Wourms Cheryl E-mail: [email protected] T General Manager Vaydik Mike Fax: 867-669-2714 Y P NWT &NunavutChamberofMines Contact Information: E-mail: [email protected] T esounding success. .O. Box2818 el: 867-873-5281 el: 867-873-5281 ungsten. Thethird session,chaired ellowknife, NTX1A2R1

ce Manager fi

rst symposiumandjudgedita mineral exploration.Heldin began asasymposiumon he NWTGeoscienceForum fi

eld season.TheNWT fi fi fi

rst sessiondealt ce staff. Speakers ce arrangedthe planes would force thecancellationof next day. Occasionally, theweather extended totheearlyhoursof evening geologicaldebatesthat Y always warmandcongenial.The debates intheconference hallwere However, thediscussionsand of 40belowwere notuncommon. weeks oftheyear. Temperatures seemed tofallinoneofthecoldest Those earlyconferences always Geoscience Forum, respectively. Geoscience Forum andtheNWT two conferences becamethe Yukon exploration inthe Yukon. These the NWTconference, todiscuss Whitehorse immediatelybefore conference wouldbeheldin next December, andthatasimilar conference wouldbeheldthe concept, itwasagreed thatanother As everyonepresent likedthe Hornal. The Symposium’schairwasRobert of of landusepermits,andthemethods Mining Regulations,theintroduction in drilling,changestotheCanada those inattendancewould held inFebruary1972. Here are afewpresentation topicsfrom thefi Arctic –J.M.Patterson Exploration Possibilitiesinthe Eastern Slave Lake,NWT–A.Rich Uranium ontheEastArmof Great River –Gren Thomas Nickel CopperPotentialofthePerry The EchoBayMine–Ted Trueman Group –G.Woollett Eldorado MineandtheEchoBay Exploration atConMine–Z.Nikic Exploration atGiantMine–B.Watson – J.P.N. Badham Geology oftheCamsellRiverArea Hornal Canada–R.W.Belts ofNorthern Basemetal ExplorationinGreenstone ellowknife Innsawanumberof fi

nancing grassroot exploration. fl

ying infrom thesouthand fi

nd Thorpe Structural Provinces, NWT–R.I. Metallogenesis oftheBearand Slave – E.M.Cameron andR.J.Allan Exploration intheCanadianShield New Approaches toGeochemical Grasty – Dr. K.A.Richardson andDr. R.L. Surveys intheTerritories GammaSpectrometry Airborne Bear-Slave Province –Dr. J.C.McGlynn New ThoughtsontheGeologyof Advances inDrilling–BarrySimons Regulations –DaveGee Administration ofLandUse Development –Jeff Whiton The RoleofBanksinFinancingMine your efforts. on aregular basisare gratefulfor become. We whoattendtheForum to maketheforum thesuccessithas have provided thesupportnecessary federal andterritorialgovernments geological communityandthe of theChamber, the Yellowknife Throughout alltheyears,staff Y still preferred thehospitalityof more space,butmanyoldhands 1970s gavetheForum organizers of theExplorer Hotelinthemid- would oftensellout.Thebuilding The dinnerswere verypopularand hold its Annual GeneralMeeting. after whichtheChamberwould a dinneroneeveningoftheForum, NWT ChamberofMinessponsored of interest toNWTresidents. The public lecture onageologicaltopic used theoccasiontosponsora Charles CamsellGeologicalSociety In theearlyyearsofForum, the advance. on atopicdetermined15minutesin in anunscheduledpaneldiscussion missing speakersortoparticipate the Forum organizers to themselves beingvolunteered by ellowknife Inn.

rst ExplorationSymposium fi

ll infor

11 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 12 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW Status ofNWTOperatingMines Status ofNWTOperatingMines T end oftheirlives. Both are mature minesnearingthe produced over7millionoz.ofgold. into production in1948andhas gold todate.GiantMinewasbrought and hasproduced 5.5millionoz.of Con Minebeganoperatingin1938 (Miramar MiningInc.,100%) Con andGiantMines NWT inrecent years. important mineralproduced inthe have superceded goldasthemost shows theextenttowhichdiamonds years isdepictedtopright.Thegraph from theNWToverlastfour of goldanddiamondshipments production earlyin2003.Thevalue construction, isslatedtocommence diamond mine,currently under CanTung tungstenmine.TheDiavik mines, Ekatidiamondmineand NWT –ConandGiantgold operating minesinthe here are currently four acquisition wouldallowthecompany Miramar calculatedthatthe Northern Development(DIAND). Department ofIndian Affairs and assets oftheGiantMinefrom the Mining Corporationtoacquire the formed asasubsidiaryofMiramar 1999, MiramarGiantMineLtd.was under a 1999. Miningresumed inJuly1999 dispute from May1998to April suspended owingtoalabour Operations atConMinewere 3 2 1 Output fromGiantincludedyear 2000onwards For theperiodfromJuly1toDecember 31,1999 For theperiodfromJanuary1toMay 13,1998 979,1 351 23,447 94,410 1998 1997 Ye 023dQatr3,5 233 256 197 240 31,250 129,607 25,791 121,874 31,749 2002 3rd Quarter 38,678 2002 2ndQuarter 2002 1stQuarter 2001 2000 1999 V rPouto OperatingCosts Production ar $.000 alue ofGoldandDiamondShipmentsfrom theNorthwestTerritories 1,000,000 800,000 200,000 400,000 600,000 fi

ve yearplan.InDecember 0 Diamonds Gold 1998 2 1 3 1999 (US $/oz) 4 Operationssuspended 264 272 343 below. statistics forConMineare tabulated Con andGiantmines.Production per dayofrefractory ore from both was consistentlyprocessing 500 tons By mid-February 2000,theautoclave process refractory ore concentrates. was successfullyrecommissioned to In December1999,theConautoclave costs tounderUS$260perounce. year, whilereducing cashoperating operations toaround 130,000oz. per to boostproduction atthecombined Y ear 2000 Comments to April1999. dispute from May1998 owing toalabour 2001 tabulated below: Reserve estimatesfortheConandGiantMinesasatDecember31,2001,are has therefore playedanintegralrole inloweringoperatingcostsatCon. contribution represents asubstantialproportion ofthetotalandmine 2002, withproduction from Giantaccountingfor20%ofthetotal.Giant’s Approximately 82,000tonsofore wasminedduringthesecondquarterof increases inproduction togetherwithcostreduction measures. Miramar hasbeenabletoreduce cashoperatingcostsatConthrough Giant –totallingsome$300,000 permonth. compliance andholdingthat were previously theresponsibility ofMiramar 2002. DIANDhasagreed tocoverthecostsassociatedwithenvironmental r property toDIANDonDecember14,2001.Subsequently, thecompany On June22,2001,Miramargavenoticethatitwouldreturn theGiantMine processed bymid-2003. to betreated. MiramarexpectsalloftheConarsenicwastestohavebeen 8,300 tonsofwastematerialwastreated during2001,leaving10,900tons Miramar hasacceleratedthetreatment ofarsenicwastesatCon.Justover The reserveestimatesarebasedonaUS$280perouncegoldprice. in ie9,0 19 ,5 36,000 324,000 1,152 10,195 11.95 11.79 94,000 T 860,000 Giant Mine Con Mine prto osGrade Tons Operation eached anagreement withDIANDtoextendoperationsatGiantuntillate tl94001.91,4 360,000 11,347 11.89 954,000 otal Gold mininginYellowknife. (grams perton) Gold Kilograms Gold Oz. ht:Dai imn ieIc Photo:BHPBillitonDiamondsInc. Photo: DiavikDiamondMineInc. e kimberlite pipeshavebeenidenti the cityof Yellowknife. Some121 T Arctic barren landsoftheNorthwest on October14,1998inthesub- The Ekatidiamondminewasopened – 10%) C. Fipke–10%andS.Blusson (BHP BillitonDiamondsInc.–80%, Ekati Mine tabulated below. Production statisticsforEkatiare by value. global production byweight,and6% a year, aboutfourpercentofcurrent gem andindustrialqualitydiamonds four millioncaratsofpredominantly The EkatiMineproduces around life iscurrently peggedat17years. tons from 2007onwards. Themine is plannedtoincrease thisto18,000 at arateof9,000tonsperday, butit The ore iscurrently beingprocessed underground methodsonly. Koala northpipewillbeexploitedby the highervalueoftheirore. The underground methodsbecauseof will subsequentlybeexploitedvia open pit.ThePandaandKoalapipes the mineplanwillinitiallybemined grams). Sevenoftheeightpipesin carat perton(oneequals0.2 Ore gradesare intheorder ofone mined overthelifeofproject. of wasterock, are scheduledtobe and approximately 508milliontons In excessof70milliontonsore, eight are inthecurrent mineplan. been bulksampled.Ofthe20pipes, on theproperty, and20ofthesehave Estimated 013,691 2,533 2002 2,496 2001 278 2000 1999 1998 Ye erritories, 300kmnortheastof rDiamondProduction ar e (000 carats) 4,086 fi

ed

13 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 14 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW tungsten. but containssubstantialreserves of deposit isundevelopedatthistime care-and-maintenance. TheMacTung commodity pricesandplacedon subsequently closedduetolow operated from 1962to1986;itwas r western worldsknowntungsten contain approximately 15%ofthe on theNWT/Yukon border and r the DehChoandSahturegions, the MacTung deposit,locatedin owns boththeCanTung Mineand North American Tungsten (NAT) (North AmericanTungsten –100%) CanTung Mine US $63.74percarat. Diamond pricesare expectedtobe averaging 5.4millioncaratsperyear. envisaged withdiamondproduction the world. A 20-yearminelifeis the depositoneofrichestin grading at4.15caratspertonmaking are estimatedat25.6milliontons production in April 2003.Reserves Diavik isscheduledtocommence site. equipment were hauledtotheproject of fuel,construction materialsand winter road season,4,089truckloads currently underway. Duringthe2001 of themine,atacost$1.3billion,is Diavik diamondmine.Construction government inlate1999forthe were obtainedfrom thefederal Permitting andlicensingapprovals (Diavik –60%,Aber40%) Diavik Mine esources. TheCanTung Mine espectively. Bothare situated

due toexpire inSeptember2002. a renewal oftheirwaterlicense, (MVLWB) inFebruary 2002for Va NAT appliedtotheMackenzie right. for themineare tabulatedtothe January 2002.Production statistics CanTung resumed operationsin

1 One MTU=10kgoftungstenconcentrate 2nd Quarter 2002 1st Quarter 2002 Ye lley LandandWater Board rProduction ar Diavik DiamondMinesInc. 0687.7Revenueswere 75.47 90,698 34,700 (MTU) 1 (C $/MTU) Production Costs this decision. have askedforajudicialreview of environmental assessment.NAT license wasrequired subjecttoafull MVLWB decidedthatanewwater Comments $81.31/MTU Overview of2002NWTExploration E Overview of2002NWTExploration DeBeersCanada,inajoint • DeBeersCanada’sSnapLake • developments for2002are asfollows: Diamond explorationhighlightsand Diamonds industrial metals). base andsteelindustrymetals, various metals(i.e.precious metals, focussed ondiamondsand23 2001. Ofthistotal,22projects were exploration projects intheNWT Wo the right. in theNWTare detailedinthetableto exploration anddevelopmentprojects The more advancedmineral around 7.5%ofthetotal. in theNWTtherefore accountfor $501.1 millionin2002.Expenditures as awholeare expectedtototal Exploration expenditures forCanada discovery ofnewmineraldeposits.) grassroots explorationinvolvesthe of knownmineraldeposits,while up ongradeandtonnageestimates studies andadditionaldrillingtofi engineering studies,environmental r – $16.4millionversus$21.3million, rather thangrassroots exploration is beingspentondepositappraisal proportion ofthisexplorationmoney spent in2001.Furthermore, alarge signifi espectively. (Depositappraisalincludes Diamonds, recovered further venture withMountainProvince 2005. production from SnapLaketolate it woulddelaythestartof August 2001,DeBeersannounced to beginin2006insteadof2005.In company nowexpectsproduction in thepermittingprocess. The later thanplannedduetodelays commence production ayear diamond mineisexpectedto rk wascarriedouton45 cantdrop from the$86.6million $37.7 millionin2002,a NWT are expectedtototal xploration expenditures inthe NWT MApCentre Spread MAP rm aeZn,To aeTnau RareMetal Tantalum Lake Zone,Thor oadsPs ic edPlacerDome Zinc,lead Howard’s Pass rii re ic ed ivrCanadianZinc Zinc,lead,silver Prairie Creek IOCobalt,gold, NICO Nicholas Lake Discovery Mine/ aoiLk odStandardMining Gold Damoti Lake npLk imnsD er 0%2.01.51caratsperton 24.40 Mountain DeBeers100% Diamonds Diamonds Kennady Lake Snap Lake property “M” Zone,Hart Tonnage Owner Commodity construction) Diavik (mineunder Project 20 kmnorthwestofKennady awaited. DrillingatMZLake, r 34, respectively). Thesample 2001 (70compared to42and the samplestakenin1999and in thisbulksamplecompared to than onecaratwere recovered number ofdiamondsgreater r weighing 7.0,6.6and5.9carats, with thethree largest diamonds from 836tonsofkimberlite of 1,215caratswere recovered Lake. Forthe5034pipe,atotal and 5034pipesatKennady bulk samplesfrom theHearne esults fortheHearnepipeare espectively. Asigni bismuth, copper odTyhee Gold gold Zinc, lead,silver Diavik60%,Aber Diamonds fi

cantly larger Alloys 100% Minerals 49% 51%, Cygnus 100% Company 20% 80%, Private Fortune Minerals Corp. 100% Development Corp. 100% De Beers51% Camphor 4.9%, Province 44.1%, Syndicate 51% 49%, Tri-Star Solid Resources 40% A drillingprogram onthe Afridi • Ekati diamondmine,isunder located 80kmsoutheastofthe DA-2 kimberlite.Theproperty, immediately westoftheknown electromagnetic anomaly while testingageophysical intersected 62mofkimberlite Lake property ofMantleMinerals kimberlite. were recovered from 56kgof A was 3.2matadepthof27m. The thickestintersectiondrilled which were diamondiferous. of fourkimberlitesills,three of Lake, resulted inthediscovery total of50micro-diamonds 50.03%Ta 65 1. 5.4%zinc,2.1%lead 113.4 1812.5%zinc,10.1%lead, 11.8 54 0.11%cobalt,0.6grams 35.40 .413.99gramsper 1.04 .112.91gramsperton 0.41 90 1.51caratsperton 29.06 . 5.10%zinc,2.2%lead, 1.2 4.15caratsperton 25.60 (million ton) Continued onpage18 161 gramspertonsilver bismuth per tongold,0.13% resources only) ton gold(indicated gold ton gold silver, 0.6gramsper 337 gramsperton Nb Grade 2 O 5 2 O, 0.4%

15 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 16 • MININGINING AND EXPLORATION EXPLORATION AND IN THE G EOSCIENCENORTHWEST TOERRITORIESVERVIEW 20022002 OVERVIEW

NORTHWEST TER RI TO RIES

Mineral Deposits and Pe tro leum Resources of the Northw est Territories

Government of the Northwest Territories, Department of Resources, Wildlife and Economic Development Minerals, Oil and Gas Division • www.mog.rwed.gov.nt.ca • Phone: (867) 920-3222 • Fax: (867) 873-0254 P. O. Box 1320, Yellowknife, Northwest Territories Canada X1A 2L9

17 • MININGINING AND EXPLORATION EXPLORATION AND IN THE G EOSCIENCENORTHWEST TOERRITORIESVERVIEW 20022002 OVERVIEW 18 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW Archon commencedtestingsome • SouthernEraResources re-tested • Tahera, together withjoint • DiamondexResources issetto • Continued frompage15 NavigatorExplorationandHighwood Resources carriedoutfurthermetallurgicaltestworkonthetantalum- • Industrial metalexplorationhighlights anddevelopmentsfor2002are asfollows: Industrial Metals the WOblockidenti 19 geophysicalpipe-liketargets in dimensions. 11 micros and18macros, including sample from thepipeyielded30 100 m. A 226.7kgkimberlite expression estimatedat150by Sue kimberlitepipehasasurface 40km northoftheEkatimine.The pipes atthe Yamba Lakeproject, the SueandSputnikkimberlite drilling isunderway. Exploration. Furtherexploration Energy andInternationalSamuel option toShearMinerals,Dasher Lake pipe. continue itsassessmentofRanch diameter. BHP Billitonplansto were greater than0.425mmin were recovered, ofwhich46 spring of2002.266diamonds kimberlite wassampledinthe diamond mine.TheRanchLake Lake kimberlitenorthoftheEkati exploring theICEclaims/Ranch venture partnerBHP Billiton,are and BearHeadproperties. their whollyownedCzar, Hilltop that willtestuptoeighttargets on begin a1,600mdrillingprogram 10% bySouthernEra. 20% by Archon, 15%by Aber and are held55%byDHKDiamonds, low is3.1hectares. TheWOclaims surface expression ofthegravity a lake-covered gravitylow. The 38.7 mofkimberlitewhiledrilling mine. Thecompanyintercepted south oftheDiavikdiamond The WOclaimblockliesdirectly stonesexceeding0.5mmintwo payments andexplorationexpenditures totaling$1.5million overfouryears niobium pentoxide.Navigator mayacquire a51%interest intheproperty from Highwoodbymakingcash of Yellowknife. TheLakeZonehasaresource of65milliontons,grading 0.03%tantalumpentoxideand0.4% niobium-yttrium-zirconium andrare earthelementbearingLakeZone,situatedatThor Lake,100kmsoutheast fi

ed byBHP. Tyhee are exploringtheirNicholas • CanadianZinchaverecently • developments for2002are asfollows: Gold explorationhighlightsand Precious Metals and 6.6g/tgoldover1.6m. 1.5 m,21.8g/tgoldoverm gold over1.5m,7.2g/t Intercepts sofarinclude11.8 g/t previously establishedresource. for atleast300mnorthofthe gold mineralisationcontinues r program for2002.Drillresults $800,000 ona21drillhole oz. ofgold.Tyhee hasbudgeted are knowntocontain690,000 Y properties, located90kmnorthof Lake andDiscoveryMine and stock. annual leasepaymentsincash its 50%positionandalsomaking property overfouryearstoearn expending $2.4milliononthe contemplates CanadianZinc mine. TheOption Agreement past producing Colomacgold Y Lake islocated200kmnorthof Damoti Lakegoldproject. Damoti Resources toacquire 50%ofthe owned subsidiaryofDoublestar Standard Mining,awholly- into anOption Agreement with signed aLetterofIntenttoenter eceived to-datecon ellowknife. Thetwoproperties ellowknife, 14kmsouthofthe Andalusite –BiotiteSchist. fi

rm thatthe . SolidResources drilledthree • FortuneMinerals,ownerof • Explorationhasresumed on • 2002 are asfollows: highlights anddevelopmentsfor Base andSteelindustryexploration Base andSteelIndustryMetals not available. north ofthe“M”zone.Resultsare while the tested theso-called“C”zone, of the“M”zone,secondhole hole testedthenorthernextension of theSunrisedeposit.The holes intheHartProperty west gold. for bismuth,and50to70% estimated at83%forcobalt,42% r test worktoimprove metal project, carriedoutmetallurgical the NICOcobalt-gold-bismuth Minister Nault. now inthehandsofFederal Impact ReviewBoard andare Mackenzie Valley Environmental of adeclinehavecleared the a pilotplantandthedriving permits fortheoperationof known resource. Additionally, to in 60 holedrillprogram designed r during 2001.Thecompany mineralisation, were completed of whichintersectedhigh-grade lead-zinc project. Fiveholes,all Canadian Zinc’sPrairieCreek ecoveries. Recoveriesare now ecently received apermitfor fi

ll andextendtheexisting fi

nal holetestedanarea fi

rst DHKDiamondsInc.,aprivate • CantechResources Ltdacquired • CantechResources Ltdacquired • AlmadenMineralsLtd. conducted • Northwest Territories ExplorationActivitiesinDetail Diamond explorationhighlightsanddevelopmentsfor2002are asfollowsandare shownonFigure 1: Diamonds Nort topographic interpretations. a combinationofFalconand target wasgeneratedthrough north ofDO29N.Thekimberlite of DO-27andDO-18200m approximately 2.1kmsouthwest The newkimberliteislocated negative andonepositiveresult. targets were tested,withthree the program. A totaloffour with Archon asoperatorof Inc., KettleRiverResources), Ltd., HorseshoeGoldMining claim block(DentoniaResources crater facieskimberliteontheWO Minerals Ltd.hadintersected company, reported that Archon Lake property. other is40kmeastoftheSnap southwest ofSnapLakeandthe two claimblocks.Oneis32km acres insizeandiscomprisedof company. Theproperty is18,077 Mineral claimsfrom aprivate a 100%interest intheBaylee acres. covering approximately 30,000 consists of13mineralclaims The OutramLakesproperty property from MayanMinerals. 100% oftheOutramLakes Explorations Ltd.(40%). Ltd.(20%), andWilliams Creek Ltd. (40%),Troymin Resources is ownedby Almaden Minerals (10%). ATW Resources inturn (15%), andSouthernEraResources (75%), Aberex MineralsLtd. joint venture of ATW Resources The MacKayLakeproperty isa anomaly remains unexplained. of graphiteconductors,thethird two are explainedbythepresence target wasaresistivity low, and kimberlite wasintersected.Each their MacKayLakeproperty. No a three-hole drillprogram on h west Territories Exp l DiamondexResources Ltd.hasa • DiamondexResources Ltd. • DiamondexResources Ltd. • oration ActivitiesinDetai A 06). Targets are focusedalongan for theHilltopproperty (75M/02- winter 2003drillprogram planned covers 353,00acres. is 10%ownedbyDiamondexand property. TheBearHeadproperty till sampleswere takenonthe fall drillprogram. A totalof305 three havebeenselectedfora (75M/06). Ofthe10targets targets ontheBearHeadproperty and gravity)over10highpriority surveys (magnetics,revistivity conducted detailedground block. 77,000 acres inacontiguousclaim owned byDiamondexandcovers taken. TheCzarproperty is100% over gravity surveyswere conducted ground magnetics,resistivity and the Czarproperty. Inaddition, airborne Mag/EMsurveyover conducted a2,000linekm total of288tillsampleswere fi

ve highprioritytargets.

l DiamondexResources Ltd. • clearly de the 20012-Dseismicsurvey beneath theproperty. Datafrom the packageofkimberlitedykes and verticalvariationswithin data isanticipatedtoshowlateral Interpretation ofthenewseismic owned KingProperty (75M/10). spring 2002ontheirwholly- 3.6 line-kilometre surveyin 2001 andconductedanadditional seismic surveyundertakenin continued toevaluatea2-D claim blocks. covers 215,000acres incontiguous 100% ownedbyDiamondexand train. TheHilltopproperty is unresolved kimberliteindicator No kimberlitewasintersected. A eight holes,totalling1,410m. drilling testedseventargets with geophysical surveys.Subsequent were selectedfordetailedground survey line.Twenty anomalies to theoriginal7.6line-kilometre was conductedatrightangles dyke atdepth,the2002survey

fi

ned theSnapLake

19 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 20 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW DiavikDiamondMinesInc. • DiamondexResources Ltd.staked • DiamondexResources Ltd. • geophysical surveys,detailed consisted ofground based Diavik claimblock.Exploration conducted explorationonthe till samplecampaign. claim block.Plansincludea200 the easternboundaryofCarat 2002. The23claimblockadjoins the 56,000acre Ajax property in the property. evaluating allexplorationdatafor partner, Tyler Resources, are re- Diamondex anditsjointventure diamonds were recovered. were processed andtwomicro 02). A totalof242kgkimberlite property (76D/15,16;76E/01, the CT-55 kimberliteontheCarat r samples ontheproperty. to collectsome200follow-up sampling campaignwasdesigned eleased causticfusionresults for Mine rescueteam. GGL DiamondCorporation • GeodexMineralsLtd.optioned • Ekati DiamondMine 40 kmsouth-southwestofthe and islocatedapproximately property consistsof62,000acres property (76D/06,11). The on the100%ownedSeahorse serpentine kimberlitebodies hypabyssal spinelphlogopite announced thediscoveryofthree program duringthefallof2002. mine, includeatillsampling claims, locatedwestoftheDiavik for the Gras area from Trevor Teed. Plans several claimblocksintheLacde on theproperty to63. bringing thetotalnumberofpipes new kimberliteswere discovered the samplingare pending.Three kimberlite pipes,results from samples were takenfrom two and diamonddrilling.Mini-bulk and regional geohemicalsurveys fi

ve contiguousLac1-5 TM . The GGL DiamondCorporation • GGL DiamondCorporation • (161 samples),Star mineral samplingontheSeahorse continued followupheavy diamonds were recovered. fusion. Nomicro ormacro Research Councilforcaustic were submittedtoSaskatchewan total of339.4kgkimberlite a metasedimentarypackage. A intersected kimberliteintruding southeast ofCH02-09SE. All holes drilled approximately 350m intersected, holeCH02-10SEwas south-southeast ofthe drilled approximately 670m 09SE kimberliticbodywas fi Drillhole CH02-08SEwasthe magnetic highanomalies. southwest trend andare strong three bodiesoccuralonga AK. Province MiningInc.property property adjoinstheMountain To is operatorfortheLA 1-25 claims. 60% interest intheproperty and Exploration Ltd.hasearneda of theclaim.DeBeersCanada anomaly ontheeasternportion of onesample–afourgarnet to furtherelucidatethenature of 16sampleswasundertaken addition, afollow-upprogram up program of32samples.In three garnets,from afollow- train containcountsof10and the SquigglyLakedispersion (75N/02-07). Two samplesin Lake LA 1-25mineralclaim conducted in2001overtheDoyle glacial sedimentsamplesurvey r Craton oftheNWT. above andelsewhere intheSlave were collectedonproperties listed samples and971soil (152 samples). A totalof874till South (89samples)andGclaims carried outontheWinter Lake samples). Newsamplingwas and Winter LakeNorth(128 samples), Mackay(49

eported ontheresults ofa136 rst bodyintersected,CH02- thenorthDoyleLA 1-25 fi

sh (261 fi

rst body KalahariResources Ltd.reported • GMDResources announced • MountainProvince MiningInc. • was airborne magneticandEMsurvey that a1,453line-kilometre train hasadistinctchemistry. mineral chemistryindicateseach train remains open.Indicator fourindicatortrains,a off’ 2001 were successfulin‘cutting from 106tillsamplescollectedin a linespacingof100m.Results gradiometer airbornesurveyat a 3,500line-kilometre Falcon anomalies were selectedfrom gravity low/EMconductors.The tested lake-basedcoincident intersected. Two oftheholes system, nokimberlitewas by BHP Billiton’sFalcongravity on explorationtargets generated BHP Billitondrilledfourholes of claims(85O/2,3,5-7,10-14). work doneontheRoyceGroup the Tuzo pipetobetterde additional sevenholes(HQ)into 1 km.DeBeersalsodrilledan have astrikelengthofatleast 2.19 mandthesillappearsto r The thicknessofkimberlite further microdiamond analysis. and sizeinconjunctionwith to betterde 1 lake onthe AK claims(75N/06, 10 holeprogram intosill-73atMZ Exploration Inc.hadcompleteda announced thatDeBeersCanada further evaluatethetrains. samples were takenin August to indicator trains. A totalof160till Lake andSouthOnekimberlite the sources oftheNorthMargaret intent ofthesurveywastolocate project (75M/08,75N/05).The holes, thisshouldallowfor parallel totwo1999bulksample 130 m.Thedeeperholeswere r drilled todepthsof300m,the of thepipe.Two oftheholeswere grade inunderexplored portions internal geologyanddiamond ecovered rangesfrom 7cmto emaining holeswere drilledto 1). Theprogram wasdesigned fl

own ontheBackLake fi

ne thesill’sthickness fi

ne the fi

fth

Hearne 2002 Hearne MountainProvince MiningInc. • Hearne 2002 Hearne *includes thosediamonds>2.0carat 998694 90 74 40 27 157 9 50 846 6 1999 751 13 2001 1174 2002 Year Sample Bulk Hole Drill 029 8. 7. 0.92 172.5 2.12 2.27 222.1 188.3 1.79 228.8 104.7 2002-91 267.2 2.32 100.7 2002-105 283.4 149.6 2002-91 122.2 2002-99 2002-101 m inlengthtrending north-south. lobe, anelongatedpipeover250 portion ofthepipeisNorth consists oftwobodies.Themain samples. TheHearnekimberlite that ofthe1999and2000bulk carats recovered) greater than (207) isproportionately (tototal diamonds greater than0.50carats 6.4, and4.9carats.Thenumberof diamonds recovered weigh8.7, of kimberlite.Thethree largest were recovered from 665.5tons Hearne pipeatotalof1,174carats bodies (75N/06,11). From the the Hearneand5034kimberlite r Exploration Inc.hadreceived announced thatDeBeersCanada bulk samplegrades. calibration ofmicrodiamond to esults from thebulksamplingof aas#Diamonds Carats (in situ) T >2 Carats ons aasGrade Carats >1 Carats Diamonds # Bulk SampleResults Ct/t Carat 0.5 and1 between # Diamonds 5034: 1999and2002

*includes thosediamonds>2.0carat 5034 9910 04 113 104 42 161 34 10 1005 70 10 1999 914 21 2001 1215 2002 Year Sample Bulk 1999-05 Centre Lobe 1999-06 Centre Lobe 2002-86 Centre Lobe 2002-81 Centre Lobe 1999-03 We 2002-102 We 2002-89 We 2002-08 We Hole Drill For the5034kimberliteatotal con weights, willallowforbetter of carats,especiallythelarger same size.Thegreater number modelling fortheHearneand above are approximately the lobe. The of aneast,center, west,andnorth The 5034kimberliteiscomprised and centrallobesofthe5034body. sampling targeted thewestern 1.0 caratwere recovered. Bulk Seventy diamondsgreater than weigh 7.0,6.6,and5.9carats. three largest diamondsrecovered from 836tonsofkimberlite,the the northlobe. 2002 bulksamplingfocusedon approximately 100mlong.The The southlobetrends E-Wandis f 1,215caratswere recovered of st Lobe st Lobe st Lobe st Lobe fi

dence ingradeandrevenue aas# Carats fi 576.21.32 0.91 60.02 38.5 45.7 0.79 109.9 42 1.00 138.2 139.7 1.86 138.5 92.6 1.77 179.9 49.9 1.70 243.6 101.9 2.19 419.5 143.4 191.7 T

n aasGrade Carats ons >2 Carats Diamonds rst three lobeslisted >1 Carats Diamonds # Ct/t Carat 0.5 and1 between Diamonds #

2121 •• MMININGINING AND EXPLORATION EXPLORATION ANDIN THE G NEOSCIENCEORTHWEST TOERRITORIESVERVIEW 2002 2002 OVERVIEW 22 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW NewShoshoniVentures Ltd. • Premier DiamondCorporation • PatricianDiamondsInc.staked • of thepipewas Corporation. Theeasternportion from Snow over theDrybonesBayarea high resolution EMsurvey has acquired theresults ofa kimberlite (85I/04).Thecompany and sampletheDrybonesBay David Smithtofurtherexplore has signedanagreement with Company forvaluation. be senttotheDiamondTrading 5034 pipes.Thediamondswill (379,628 acres) approximately mineral claimsinfourblocks (76D/05, 06)comprisedof163 the CourageousLakeproperty Diamond Corp.owns90%of Corporation. SlaveLake held SlaveLakeDiamond takeover oftheprivately is continuingwithareverse planned. and electron microprobe workis discrete trains.Furtherpicking previously observedinthree substantiate themineralzoning preliminary results appearto indicators inonesample.These counts havebeenashigh217 been pickedandtodatevisual Only thecoarsefractionhas till sampleshavebeenreported. Preliminary results from 33of56 observed inarchival material. each ofthree dispersiontrains chemistry ontheindicatorsfrom 1980s) andtoobtainhighquality (sampling byDeBeersinthelate kimberlitic indicatorresults designed tocon ha. A tillsamplecampaignwas in twoblocks,covering26,800 comprised of33mineralclaims Norman Wells. Theproperty is (96E/01), 160kmsoutheastof claims inBlackwaterLakearea the mainDrybonespipe. a suspectedsatellitekimberliteto portion ofthepipe,where there is m spacedlinesoverthewestern spaced north-southlinesand50 fi

eld Development fi fl

rm earlier own with100m SouthernEraResources Ltd. • ShearMinerals,Mantle • expression of150mby100m. A is estimatedtohaveasurface two axes>0.5mm.TheSuepipe 716 kg,atotalof22stoneshad core sampledfrom sixholeswas to testtheSuekimberlite.Total conducted asixdrillholeprogram de the othertwoholestestedwell- and intersectedmetasediments, one holetestedagravitylow failed tointersectkimberlite, degrees. Three subsequentholes with theholeangledat-50 the holefrom 256to460feet, Kimberlite wasencountered in west oftheDA-2kimberlite. test anEManomalyimmediately hole AL02-02 wasdesignedto Lake property (76C/03,06).Drill been intersectedonthe Afridi announced thatakimberlitehad International SamuelExpl.Ltd. Dasher Energy Corp.,and of 300tillsamples. geophysical surveyandcollection a 7,400line-kilometre airborne planned aprogram consistingof spending requirements. Kladhad a 40%interest bymeetingcertain Enterprises Ltd.whichcanearn of theproperty, isheldbyKlad Lake deposit.Theremaining 10% site and50kmnorthoftheSnap 45 kmsouthoftheEkatimine fi

Prospector campkitchen. ned magneticlows. Tahera Corporationreleased • WheatonRiverMineralsLtd. • tuf correspond toanolivine-rich that containthelargest stones mm (0.043carats).Thoseunits and 2.00mmx1.821.10 1.31 mmx1.37(0.024carats), mm (0.009carats),1.71x carats), 1.60mmx0.860.75 mm x1.200.95(0.015 largest stonesrecovered were 1.31 square meshsievesize.The 46 were greater than0.425mm mesh cut-off) were recovered, and 266stones(0.1mmsquare processed atLake of kimberlite(dryweight)were Lake pipe. A totalof854.6kg central untestedarea oftheRanch four verticalNQholesintothe 02, 07,08)jointventure, drilled Lake (76E/03,04,06;86H/01, operator oftheICEclaims/Ranch kimberlite. BHP Billiton,as r 0.425 mmsquare mesh. pipe returned onestonefrom + 194.92 kgsampleoftheSputnik approximately The program wasdesignedtotest from NavigatorExplorationCorp. interest intheCrystalProperty program inorder toacquire an spend atotalof$300,000ondrill announced thattheywould geophysical targets. esults from theRanchLake fi

sitic kimberliteunit. fi

ve highpriority fi

eld Research SolidResources drilledthree • FortuneMinerals,owner • Figure 2andare asfollows: developments forare shownon exploration highlightsand Base andsteelindustry Metals Base andSteelIndustry Results are notavailable. area northofthe“M”zone. while the tested theso-called“C”zone, “M” zone,thesecondhole northern extensionofthe The west oftheSunrisedeposit. holes intheHartproperty gold. bismuth, and50to70%for at 83%forcobalt,42% Recoveries are nowestimated improve metalrecoveries. metallurgical testworkto bismuth project, carriedout of theNICOcobalt-gold- Black bearintheNWT. fi

rst holetestedthe fi

nal holetestedan NavigatorExplorationand • as follows: 2002 are shownonFigure 2andare highlights anddevelopmentsfor Industrial metalexploration Industrial Metals bearing LakeZone,situatedat zirconium andrare earthelement the tantalum-niobium-yttrium- further metallurgical testworkon Highwood Resources carriedout

over fouryears. expenditures totalling$1.5million cash paymentsandexploration from Highwoodbymaking a 51%interest intheproperty pentoxide. Navigatormayacquire pentoxide and0.4%niobium tons, grading0.03%tantalum has aresource of65million of Yellowknife. TheLakeZone Thor Lake,100kmsoutheast

23 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 24 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW NavigatorExplorationCorp.and • Tyhee DevelopmentCorp. • CanadianZinchasrecently • follows: shown onFigure 2andare as and developmentsfor2002are Precious metalexplorationhighlights Precious Metals gold richarea. carried outonthispotentially scale geologicalmappingwas As well,prospecting and1:10,000 of Yellowknife on Arseno Lake. located 240kmnorth-northwest over the495haTingo property, electromagnetic airbornesurveys completed detailedmagneticsand North ContinentalEnergy Ltd. and 6.6g/tgoldover1.6m. 1.5 m,21.8g/tgoldoverm gold over1.5m,7.2g/t Intercepts sofarinclude11.8 g/t previously establishedresource. for atleast300mnorthofthe gold mineralizationcontinues r program for2002.Drillresults $800,000 ona21drillhole oz. ofgold.Tyhee hasbudgeted are knowntocontain690,000 Y properties, located90kmnorthof Lake andDiscoveryMine is exploringtheirNicholas and stock. annual leasepaymentsincash its 50%positionandalsomaking property overfouryearstoearn expending $2.4milliononthe contemplates CanadianZinc mine. TheOption Agreement past producing Colomacgold Y Lake islocated200kmnorthof Damoti Lakegoldproject. Damoti Resources, toacquire 50%ofthe owned subsidiaryofDoublestar Standard Mining,awholly- into anOption Agreement with signed aLetterofIntenttoenter eceived to-datecon ellowknife. Thetwoproperties ellowknife, 14kmsouthofthe fi

rm thatthe DaveNickersonprospected for • LaneDewarhasbeenworking • of humusandblackspruce were Poof property (85C/02).Samples bismuth, silverandcopperonthe Squalus Lake(85P/14). Rare EarthElements(REE)at prospecting fortantalumand As well,LaneDewarcontinued group elements,anddiamonds. prospected fornickel,platinum property. BeniahLakeisbeing on theBeniahLake(85P/08) Giant Mine. PatHunglecontinuedworkon • 8 claimwasstaked.Re-logging 75E/13 west).TheHolyMoly Lake (NTS75L/4,75E/13east, on theEast Arm ofGreat Slave Group ofclaimsonOpenerIsland the poly-metallicHolyMoly metal andgoldoccurrences. property forprospective base Beaulieu River(85I/10,15,16) and samplingtheLake1052, Nickerson hasbeenprospecting taken foranalysis. As well,Dave Tyhee DevelopmentCorp., • PhelpsDodgeCorp.ofCanada • prospected forcopper, cobaltand properties. ContactLakeisbeing – ContactLakeandCobalt diligence surveyontheirIOCG completed samplingandadue gold. in search ofcopper, cobaltand NOD (85N/10and11) showing, 1 Ltd. drilled Pt andPdanalyses. taken for32elementICP plus Au, sampled. Intotal,28sampleswere and three oftheholeswere re- Rainbow in1981wasdone of eightholesdrilledbyScurry 150 montheMazenodLake: fi

ve holestotalling m. Additional grabsampleswere across anarea measuring70by40 Zone, grabsampleswere taken lies 3,500mnorthwestofthe6118 massive tobrecciated basaltsand and disseminationswithin is comprisedofnarrow fractures andesite breccia. The4020Zone within amagnetite-matrixed a 70mzonewithcopperstaining grab samplestakenfrom across m aeromagnetic anomaly, had 6118 Zone,a1,200mby3,400 4 kmwidealterationzone.The identi gold. Two newzoneshavebeen targets were copper, silverand gold whiletheCobaltproperty fi

ed withina14kmlongby Wayne Kendrickworkedon • Walt Humphries carriedout • taken for32elementICP analysis. carried outwith139grabsamples Prospecting andsamplingwas (inclusive) claimswere staked. 85H/10). TheLCW#25to#30 the PetitotIslandclaims(NTS and 32elements(ICP analysis). were takenandanalyzedforgold claims. Seventy-onegrabsamples #1, Isle#2,Laren #1andJoliff #5 sampling wasdoneontheIsle and 85I/14).Prospecting and Gordon Lakearea (NTS85P/3 prospecting workforgoldinthe km longby4widetrend. taken withinthefavourable14

25 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 26 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW – ExtractedfromGuidetoMineralDevelopment2002CD themselves. rights rests withthelandowners owned, theissuanceofprospecting subsurface rightsare privately Where boththesurfaceand landowners before stakingaclaim. land must this casepermissiontoenterthe being managedbytheCrown. In privately owned,withthesubsurface large areas ofthesurfacemaybe W privatelands,eitherthrough a • areas administered orcontrolled • landwithdrawalorders; • mineralsthathavebeengranted • mineralclaimsingoodstanding; • cemeteriesorburialgrounds; • • national parks; lands exceptwhere there are: Claims canbestakedonallcrown Sections 11 to23) (Canada MiningRegulations: Staking aClaim A Claim StakingintheNorthwestTerritories possession of a valid prospector’s licence. possession ofavalidprospector’s Prior tostakingaclaim,theprospector orminingcompanymustbein are subjecttoenvironmental screening. and territoriallegislativerequirements adhered to. Any developmentactivities r claimisaportionoflandheldeitherbyprospector oramining Claim StakingintheNorthwestTerritories epresentation workcommitmentshavebeenmet,andtherelevant federal ith regard tosettledlandclaims, where noti in thecaseofsettledlandclaims, surface rightsholderconsents,or surface leaseorgrant,unlessthe without writtenconsent; (Natural Resources Canada), Minister ofMinesandResources the MinisterofTransport, orthe Defense, theMinisterofEnergy, by theMinisterofNational or leased; any mineralscontainedwithintheclaim,provided thatall company. Theclaimholderhastherighttoprospect andexploit fi

rst beobtainedfrom the fi

cation isgiven. thenorthwestcornerpost • thesouthwestcornerpost • thesoutheastcornerpost • thenortheastcornerpost • next page),forexample: “Sample ClaimSketch”lateronthe in aclockwisefashion(refer to Posts mustbeerected andnumbered moundsofearthorstoneinareas • woodenposts,atleastfourfeetin • cut-off trees, atleastfourfeetin • following are allowed: be markedbyalegalpost.The Each corneroftheclaimmust benobiggerthan2,582.5acres. • havelengthsandwidthsof1,500 • beasnearlypossible • Claims must: How toMarkor“Stake”aClaim is PostNW4 is PostSW3 is PostSE2 is PostNE1 least three feethigh. feet atthebottomandmustbe minimum circumference ofthree must becone-shaped,witha where there are notrees. These must exceed1.5inchesacross; height, andeachsideofthepost squared; height, withtheupperonefoot more than length oftheclaimcannotbe feet, ormultiplesthereof (the connect atrightangles; and west,thesidesshould ru r ectangular, withthesides nning north,east,south, fi

ve timesthewidth); thedirection anddistanceinfeet • thelettersW.P.; • together with: information neededforcornerposts, tag mustbemarkedwithallofthe on thenextpage).Theidenti post (refer to“SampleClaimSketch” to theactuallocationofcorner boundary lineasclosepossible post mustbeerected onthe natural barrier, aso-calledwitness owing toalake,river, orother If acornerpostcannotbesetup of theclaim. with thepostnumberandname Each boundarypostmustbemarked used. in circumference atthebasemaybe over 18incheshighandthree feet post oramoundofearthstone trees, eitheralegalsizedwooden on thenextpage).Inareas without (refer to“SampleClaimSketch” number onefrom eachcornerpost numbered inorder startingwith feet apartalongtheboundaryline, must beputupnomore than1,500 and cuttingunderbrush. Legalposts must bemarkedbyblazingtrees In treed areas, claimboundaries staking wascompleted. date, hour, andminuteatwhich number oftheclaimholder, andthe NE1 mustbemarkedwiththelicence In addition,thetagaf thedate,hour, andminutethat • thenameofpersonrecording • thenameofpersonstaking • thenameofclaim; • Each tagmustbemarkedwith: container onthetopofmound. tag shouldbeputinawaterproof post. Ifamoundhasbeenused,the must beattachedtoeachcorner of from theminingrecorder’s they are commonlycalled(available An Identi actually havebeen. to where thecornerpostshould the postwasputup. claimstaker; the claimifthatpersonisnot the claim; fi

cation Tag, orclaimtagas fi

xed topost fi

fi cation

ce), ownership. has mapsshowingsurfacerights Land Administration SurfaceSection access mustalsobeproduced. The the property holdergrantingright of property, writtenauthorizationfrom If theclaimisonleasedorprivate Recorder’s Of Recorder’s ownership mapsattheMining manually plottedontheclaimand the locationofclaimmustbe During therecording procedure, thecorrect fees. 3. a1:50,000scalemapshowingthe 2. aForm3,signedbythe 1. following are required: next daythatisnotaholiday).The • geological, geochemical, stripping,drilling,trenching, • work includes: work ontheclaim.Representation a certainamountofrepresentation r Thereafter, theclaimcanonlybe is validforaperiodoftwoyears. Once recorded, amineralclaim Sections 38to44) (Canada MiningRegulations: Representation Work the applicationmaybe a weekendorstatutoryholiday, of days withtheminingrecorder’s it mustberecorded within60 Once theclaimhasbeenstaked, Sections 24to28) (Canada MiningRegulations: Recording aClaim enewed iftheholderhascompleted fi

and thepositionofallposts; claim inrelation tootherclaims, landmarks, thelocationof site oftheclaim,anyrecognizable name theclaomwasstaked; prospector orcompanyinwhose geologist; work asapproved byadistrict geophysical, orotherexploratory drifting; shaft sinking,aditdriving,or ce. (Whenthe60thdayfallson fi

ce. fi

led onthe A activities. monetary valueofexploratorywork Mining Regulationssetsoutthe each year. ScheduleIIoftheCanada at least$2.00peracre iscompleted as representation worktoavalueof re period. Thereafter, theclaimcanbe Schedule IImustbe undertaken inaccordance with concerning thetypeofwork work donetogetherwithinformation the location,nature, andextentof plan ofthemineralclaimshowing Regulations), accompaniedbya Schedule IIIoftheCanadaMining per acre duringthe work toavalueofatleast$4.00 The claimholdermustcomplete theconstruction ofroads or • asurveyoftheclaimasapproved • work. r by thedistrictgeologist,mining mining recorder. Uponveri ecorder willissueacerti newed onanannualbasis,aslong statement ofwork(Form9, the claim. airstrips whichprovide accessto by theSurveyorGeneral; fi fi

rst twoyear led withthe fi

cate of fi

cation claim (forexample,rede for thepurposeofrelocating the Claims mayonlybesurrendered Sections 49to51) (Canada MiningRegulations: Lapsing andSurrender of Claims in thegroup. the group canbespread toallclaims this case,workdoneonanyclaimin area oftwomaximum-sizeclaims. In more than5,165acres, whichisthe total area ofthegrouped claimsisnot re may begrouped forthepurpose of Claims thatare nexttoeachother excess workhasbeen the claim.Unwantedclaims,where how muchworkhasbeen but thedateoflapsingdependson allow unwantedclaimstolapse, boundaries). Claimholdersmay of years. held ingoodstandingforanumber presentation workaslongthe fi

led, maybe fi

ning the fi

led on

27 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 28 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW E-mail: [email protected] T Y Box 1500 5th FloorBellancaBuilding DIAND Mining Recorder Contact Information: submitanapplicationfora • makeanapplicationtorecord a • acquire anyrecorded claimorany • prospect oncrown lands; • A form andfee. r Canada MiningRegulationsupon by theminingrecorder underthe licencesare issued Prospector’s Prospector’s Licence CanadaMiningRegulations. • • Territorial Lands Applicable Acts andRegulations: Act; Inuvialuit SettlementRegion. prospecting formineralswithin the There are specialrestrictions for following thedayofissue. the dateofissueuntilMarch 31 A Northwest Territories. Corporations, Governmentofthe good standingwiththeRegistarof in theNorthwestTerritories andin any corporationthatisregistered Company licencesare available to licence. you cangetaprospector’s you are 18yearsofageorolder, licences.If can getprospector’s Both individualsandcompanies acquire aleaseofrecorded • el: 867-669-2689•Fax:867-669-2714 eceipt oftheappropriate application ellowknife, NTX1A2R3 prospector’s licenceisrequired to: prospector’s prospector’s licenceisvalidfrom prospector’s certi claim; interest inarecorded claim; claim. of extension; fi

cate ofwork,oracerti fi

cate prospect inaspeci holder theexclusiverightto Prospecting permitsallowthe Prospecting Permits working northof68degrees north depending onthearea. Ifyouare A Mining Regulations. in Sections29to36oftheCanada Prospecting permitsare covered following year. into effect onFebruary 1ofthe application isapproved itwillcome the monthofDecemberandif a periodofthree to Of Mining Recorder’s must bemadetothe Yellowknife licence. Theapplicationforapermit must holdavalidprospector’s fi prospecting permitdoesnotrequire acres) insize.Theapplicationfor a is approximately 18,750ha(45,000

eld work,howevertheapplicant prospecting permitisvalidfor Mineral Tenure intheNorthwestTerritories andaportionofNunavut. fi

fi ed area, which

ve years, fi

ce during permit willbecancelled. second orthird workperiod,your prior tothebeginningofeach ofthe If youdonotpaytherequired fees one-year periodat40centsperacre. 20 cents,respectively, anda two-year periodsat10centsand the next latitude, andthesameamountsfor third year, southof68degrees north year and40centsperacre forthe year, 20centsperacre forthesecond latitude apermitcanbeheldfor plus 10centsperacre forthe A that area foraperiodofoneyear. expired youcannotstakeaclaim in r within itandthepermitsmaybe area, mineralclaimsmaybestaked done therequired workinthepermit be heldforthree years.Ifyouhave degrees northlatitudeapermitcan years. Ifyouare workingsouthof 68 elinquished. Onceyourpermithas prospecting permitcosts$25.00 fi

ve yearperiod,withtwo fi

fi nal

rst fi

ve Summary of2002C.S.Lord Geoscience Centre Northern Activities Summary of2002C.S.Lord Geoscience Centre Northern Activities to viewuponrequest. To aidinthe Centre isnowavailableforclients the C.S.Lord NorthernGeoscience (~511 diamonddrillholes)heldby A collar location,etc.)wasdiscarded. with nocorresponding data(logs, located totheGiantMinesite.Core placed onpalettes,wrappedandre- was checked,retagged, catalogued, held inDIAND’score library. Core and moveNWTdrillcore previously undertaken thisyeartoinventory r An initiative,precipitated bya geoscience publicationsanddatasets. discovery ofdistributedCanadian catalogue, allowingsearch and Knowledge Network(CGKN)data node oftheCanadianGeoscience NORMIN willbetheNT/NU r dynamic databasewiththousandsof www.nwtgeoscience.ca/normin. This been moved.Itisnowlocatedat r T eduction inwarehouse space,was eferences iscontinuouslyupdated. eferences forNTandNUhas comprehensive listofNWTcore exploration/geology mineral showingsand he NORMINdatabaseof Heavy dutyminingvehicles,DiavikDiamond MinesInc. A to downloadassessmentreports. to developanftpsiteallowclients to clientrequests. Work isunderway number, andondemandinresponse scanned systematicallybyreport at thecentre. publicly availabledigitaldatahoused will allowaccesstoresources and active earlyinthenewyear. Thissite under developmentandshouldbe www.nwtgeoscience.ca, iscurrently Geoscience Centre website, r priority fortheCentre. As time/ and *.tif from papertodigitalformat(*.pdf Conversion ofassessmentreports Acrobat format). showings andreferences (in Adobe locations topertinentNORMIN and willalsohotlinkthecollar sections and/orgridlocationmaps, locations tothescannedlogsor The Arcview project willlinkcollar will bereleased inJanuary2003. digital databasein ArcView format use ofthedrillcore byclients,a esources allow, C.S. Lord Northern fi

les) continuestobea fi

les are being 2002 Geoscience Initiative.Duringthe a contributiontoGSC’sTargeted being ledby Allan Turner andis NWT componentoftheproject is NWT andnorthern Alberta. The for MVT-type depositsinsouthern the origin,distributionandpotential aimed atdescribinganddelineating Alberta GeologicalSurvey, andis Lord Centre, GSC-Calgary, andthe collaborative effort betweenthe C.S. and Sedimentary Basinisinitssecond deposits intheWestern Canadian The studyofcarbonate-hostedPb-Zn The MVT-TGI Project shown onthemappage21. coming months.Project locationsare projects willbereleased inthe Universities. Products from these Survey ofCanadaand/orCanadian in collaborationwiththeGeological underway thisyear, severalofthem program. A numberofprojects are Centre deliversadiversegeoscience The C.S.Lord NorthernGeoscience Geoscience Initiatives the differences inthere Reef (Turner); apaperexamining of drillholesfrom theGreat Slave Slave Plain(Janicki);adatabase of Presqu’ile dolomiteintheGreat map delineatingthedistribution to bereleased byspringinclude a for geochemicalstudies.Products and core sampleswere collected Current Research (January2003), which are beingreleased intheGSC’s side oftheborder, theresults of study wasundertakenontheNWT structures basedonre GSC: aninterpretation ofbasement to a (Turner etal.);andtwosubmissions unmineralized core fordistinctfacies spectra betweenmineralizedand MVT project (Turner). paper oftheNWTcomponent data (MacLean);andasummary fi fi

fi nal MVTproject publicationby nal year. Theproject isa

eld season,afracture analysis fl

ection seismic fl

ectance

29 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 30 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW The mappingcompletesthe of NTS75N/1,2,3,4,5,6,7,11,12). southeastern SlaveProvince (parts 125 K)bedrock mappinginthe is the southwestern SlaveProvince). This (parts ofNTS85Oand85N; mapping intheSnare Riverarea V The SnareRiverMappingProject third and The Walmsley Lakeproject isinits The Walmsley LakeProject r data, etc.),isinprogress andwillbe wholerock andisotopegeochemical and numerous datasets(P-Tdata, a bedrock geologycompilation for theWalmsley project, containing collect software were successfullyusedto 2003). PocketPCsandESRI’s ArcPad GSC’s Current Reasearch (January 2002 by ScottCairns.Highlightsfrom GSC. Theproject isbeingcoordinated conducted inpartnershipwiththe Ta multidisciplinary Walmsley Lake work componentofthethree year, our knowledgeofaparttheSlave The aimoftheproject istoupgrade eleased in2003. al Jacksoncompletedbedrock r geted GeoscienceInitiativeproject fi

fi eld workwillbepublishedin

fi fth and

eld data. A Polar BearontheArcticcoastline. fi

nal yearofregional (1: fi

nal yearofmapping. fi

nal digitalatlas fi

eld- P candidate parkbeingsupportedby Areas Strategy(PAS). A second park undertheNWTProtected has beenidenti mineral sampling.Sahyoue/Edacho stream sedimentsamplingandheavy outcrop examinations,geochemical the summer. Activities included appraisal wasundertakenduring and initial proposed parkonGreat BearLake, completed fortheSahyoue/Edacho of areas. A PhaseINRA was Appraisals (NRA’s) inanumber out Non-renewable Resource James Lariviere andLenGalcarried Resource Assessments being supportedbythisproject. B.Sc. thesesandonePh.D.thesisare assay results, agedata,etc.).Three data sets(e.g.geochemicaldata, bedrock compilationandvarious digital atlaswhichwillcontaina in 2003,andworkisunderwayona 2002 mappingwillbereleased early 1:50 Kmapsshowingtheresults of metamorphic studies.Preliminary geochemical, geochronological, and geology withcomplementary mid 1900sandintegratethebedrock province thatwaslastmappedinthe AS istheEdehzie(HornPlateau). fi

eld workforaPhaseII fi

ed asacandidate fi

nal Planning Board forfurtherwork. have beensubmittedtotheLandUse preliminary workplanandbudget to becompletedthiswinter, anda (GLUP). ThePhaseIreport isdue NRA fortheGwich’inLandUsePlan Gwich’in area, aspartofaPhase I proposed ConservationZonesin the investigations commencedonthree Preliminary reconnaissance geologic P this area willadvancethrough the attended inTulita. Itisexpectedthat and communitymeetingshavebeen protected area earlyinthesummer Ki Deh(BlackwaterLake)proposed r Economic InformationRequest(EIR) I report isanticipatedthisspring. An have beengenerated,andthePhase preliminary workplanandbudget r was followedupwithhelicopter Initial datacompilationforthearea the project’s highlights,andaCD organized toshowcasesomeof of Canada(GAC) June 2002,aGeological Association directed atpublishingresults. In year fortheproject, effort isbeing Y gold explorationmodelsforthe aimed atdevelopingimproved of severalintegratedstudies (C.S. Lord). EXTECHIIIconsists is coordinated byHendrikFalck (GSC), andindustrypartners, Geological SurveyofCanada managed bytheC.S.Lord Centre, EXTECH IIIproject isjointly The multidisciplinary Yellowknife Y eport wascompletedforthePehdze econnaissance inSeptember. A AS process overthenextyear. ellowknife EXTECHIII ellowknife Basin. As this isthe The scenicNorth. fi

eld tripwas fi

nal Plain, anda Hydrodynamics oftheGreat Slave spring 2003includeapaperonthe Plain. Products anticipatedby Basal ClasticsoftheGreat Slave dolomite andthepre-Devonian core andsamplesofthePresqu’ile Slave Plainarea. Janickihasreviewed Pool Studies,focusingontheGreat updating theNWTHydrocarbon r by Adrienne Jones andwillbe selected cross-sections, wasupdated r summarizing theNWT’spetroleum The oilandgasposterseries, Oil andGasActivities Mineralogist. for publicationtoCanadian a manuscriptwillbesubmitted this springthrough theCentre, and for thisshowingtypewillbereleased University. Explorationguidelines Dr. DanMarshallofSimonFraser University ofBritishColumbiaand include Dr. LeeGroat from the emerald showing.Co-investigators nearby tungstenskarn,isNWT’s by R.Berdahl whileprospecting a showing, originallydiscovered this yearbyHendrikFalck.The emerald showingwasinitiated A NWT Emeralds Pierce. Gochnauer, DougIrwinandKelly Falck, John Armstrong, Karen EXTECH project includeHendrik in 2003.C.S.Lord participantsinthe Mineral DepositsDivisionofGAC papers willbepublishedbythe containing aseriesofintegrated 4339), wasreleased. A containing newdata(GSCOpenFile e-released thisfall.EdJanickiis esources, tableofformationsand one yearstudyoftheLened database thatissuitableforinclusion inaGISframework.Preliminary results shouldbeavailablebyJune2003. The datawillbecompiledfrom assessmentfi Cordillera).A project isplannedforJanuary 2003,tocompileRegionalGeochemicalDataforNTS105I (Northern Compilation Cordilleran Geochemistry fi

nal summaryofthe fi

nal volume fi

rst A Exploration Diamondiferous Kimberlite Databases toSupport started onaSlaveCratonLineament (KIDD) compilations.Work has Indicator andDiamondDatabase (KANDD) andtheKimberlite Anomaly DrillholeDatabase the previously released Kimberlite Efforts are underwaytoupdate for thenorthernSlaveProvince. kimberlite-related dataonCDROM colleagues, released acompilation of Armstrong, alongwithNunavut underway. Earlyin2002,John kimberlite explorationare currently venues overthelastyear. NWT petroleum geologyatvarious Janicki havegivenpresentations on Basal Clasticsstudy. BothJonesand number ofstudiesinsupport lesandcompanysources. The product willbeageoreferenced Daring Lake,NWT. re Hornby Bayformationsusing Proterozoic DismalLakesand subdivisions ofSequence A ofthe a studywhichproposes new Bernie MacLeanhasbeencompleting Seismic Studies committee forreview. were submittedtothe8IKCtechnical June 2003.Inaddition,three abstracts Kimberlite Conference tobeheld in trip aspartofthe8thInternational the Northern Alberta –Slave sheet (UWO). Armstrong willco-lead dykes intheWalmsley Lakemap Thesis onthegeochemistryofma support isbeingprovided toaMSc. in thesummerof2003.Continued ROMs. Product release shouldoccur data from theSMACseriesofCD- study thatwillutiliseaeromagnetic fl

ection seismicdata. fi

eld fi

c

31 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 32 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW T DIAND andNRCan). projects ofmutualinterest (e.g. government onmineraleconomic also collaborateswiththefederal Finance, Bureau ofStatistics).MOG government departments(e.g. Economic Analyses) andtoother within RWED (e.g.Investmentand information tootherdivisions MOG disseminatesmineraleconomic constant dollarterms. all moneyvaluesare expressed in best possibleestimates,andthat that resource r methodology ensures thatresource evaluation ofoperatingmines.The as wellforward, tofacilitatethe economic modelsthat“look”back example, staff havedeveloped developed andre techniques are continuallybeing addition, neweconomicevaluation Canadian Arctic generally).In of explorationandmininginthe economic aspects(e.g.theeconomics share taxcredits) andmacro- (e.g. miningtaxation, commodity markets,policyissues mineral economicstudiescovering MOG staff are alsoinvolvedin the modelsisderived. from whichthedatausedtobuild extensive mineraldepositsdatabase The divisionhasdevelopedan r and togaugeexpectedresource applicable tothevariousdeposits to evaluatetheeconomiccriteria in theNWT. Themodelsare used mining projects andoperatingmines Mineral EconomicActivities Mineral EconomicActivities www.mog.rwed.gov.nt.ca E-mail: [email protected] T P Minerals, OilandGasDivision Resources, WildlifeandEconomicDevelopment Government oftheNorthwestTerritories W If youwouldlikemore informationaboutMOG’s mineraleconomicactivities,pleasecontact: evenues are correctly calculated, evenues (incomeandminingtaxes). .O. Box1320,Yellowknife NTX1A2L9 el: 867-873-7086•Fax:867-873-3254 arwick Bullen economic modelsofpotential Division (MOG)develops he Minerals,OilandGas fi

gures represent the fi

ned. For fl

ow through writesmineraldepositdatatoan Access database.Datathatcanbe • economic evaluationexercises in theNWT. Theprogram, namedFINDABA: MOG staff havedevelopedacomputer applicationtoassistwithmineral calculatesamineraldeposit’scash • summarizescapitalexpenditures inthevarioustaxpools; • showsthemineplan; • displaysdatafrom thedatabaseinan“Excel-type”formatforeaseof • computesannualandore body-speci • acceptsdifferent caratvaluesfordifferent pipesonadiamondmine; • acceptsdatafor10different ore bodies perdeposit(e.g.kimberlitepipe1, • allowstheusertoupdateorenternewdataatanytime; • retrieves datafrom thedatabase; • computesdiscountedandnon-discountedeconomiccriteria. • employee production data,mineplant operatingandsustainingcapitalcosts, production capitalexpenditures, reserve andresource information,mine captured includesdepositname, localityandcommodity(s),pre- r account in viewing; over thelifeofmine; kimberlite pipe2,etc.); eclamation andsalvagedataincometaxes; Daring Lakeresearchstation. fi fl

gures, minesiteexplorationand developmentinformation, ation and fl

ow-through expenditures; fl

ow includingtaxeswhiletakinginto fi

c averagesforawidevarietyofdata Prospecting SupportandMineralsEducation Prospecting SupportandMineralsEducation T Y P Fax: 867-873-0254 T Community MineralsAdvisor Diane Baldwin contact: support servicesandmineralseducation, For more informationaboutprospector in NWTcommunities. organization ofprospecting courses career andsciencefairsthe education through classroom visits, Division supportsgeoscience exploration bynortherners.The grass roots prospecting andmineral and .O. Box1320 el: 867-920-3347 ellowknife, NTX1A2L9 fi

Gold panningintheNWT. nancial supporttoencourage prospectors bothtechnical Division offers NWT he Minerals,OilandGas

Properties forOptionCompilation. properties tobeincludedintheNWT updates ofworkontheirmineral provided. Prospectors maysubmit their teachersandprincipal. Prospecting Courseasallowedby have alsotakentheIntroductory Upper levelhighschoolstudents up inthecommunityforcourse. ro with interested teacherswhilethe School visitsmayalsobearranged Prospectors Grubstake Program. r prospecting courseisoneofthepre- r Oil andGasDivisioninresponse to are offered directly bytheMinerals, Introduction toProspecting Course followed laterbya40-hour A and Courses Prospecting Workshops identi r r (Geologist). Providing information the CommunityMinerals Advisor by RWED geologists including of thegeologicalservicesoffered explorationists cantakeadvantage All NWTprospectors andmineral Te r applicable, incompletingthework judged onprevious performance,if targeted forsamplecostsandmaybe on themeritsofproposal, dollars grubstake grantsare awarded based made directly intheprofession. The course orproof ofworkandexpenses taken anapproved prospecting program requires evidenceofhaving per year. Eligibilitytoapplyforthe maximum of$8,000perindividual NWT prospecting projects uptoa provides partialfundingfor The Prospectors Grubstake Program Prospectors Grubstake equisites forapplicationtotheNWT equests from NWTcommunities. A esults andhandsamplemineral egarding assayresults, geochemical equirements oftheprogram. cks andmineralsdisplaysare set two dayintroductory workshop chnical Advice fi

cation are typicalservices availability offunding. students iscarriedoutdependenton Prospecting FieldSchoolforNWT Chamber ofMines. A Geologyand supported viatheNWTandNunavut allows. MiningWeek Activities are to helpwiththeprogram astime students bysendingageologist T The DivisionalsosupportsRWED’s Courses whileinthecommunities. in conjunctionwithProspecting School visitsare mainlyoffered visits byageologistonrequest. fairs, scienceandschool The Divisionsupportsschoolcareer Minerals, OilAndGasEducation NWT SchoolSupportand Up Conference. (PDAC) andtheCordilleran Round- Association ofCanadaConvention the Prospectors andDevelopers properties atconferences suchas greater exposure forNWTmineral Nunavut. Onegoalistoprovide companies workingintheNWTand and companyinformationbymining prospectors andforcore displays and properties foroptionbyNWT a venuetoshowmineralshowings Geoscience Forum, in Yellowknife, as Prospectors Room)attheannual organizes theExplorationRoom (or The CommunityMinerals Advisor Promotion undra ScienceCampforhighschool Daring Lake,NWT.

33 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 34 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW Mineral andPetroleum Resources Directorate Mineral andPetroleum Resources Directorate T provide afocalpointtovoiceyour • facilitatediscussionsbetween • actasastrategicconsultantand • What canwedoforyou? • socio-economic matters NWTCommunityMobilization • landaccessanduseplanning; • • land claims; • exploration; • mineral policy; • regulatory issues; including: deals withmining-related issues The MineralDevelopmentDivision Mineral DevelopmentDivision • Petroleum Development • Geology Of MiningRecorder’s Division • MineralDevelopmentDivision • and responsibilities: directorate, eachwithspeci There are fourdivisionswithinthe communities andgovernment. industry,groups, Aboriginal to, allinterested groups including and provide informationandadvice We r development whileensuringthat We T gas resources withintheNorthwest administration ofmineral,oiland r and NorthernDevelopmentis developmentofinformation • • mine reclamation; esources are managedwisely. esponsible fordispositionand erritories. encouragetheparticipationof, promote investmentinresource NWT. about mineralmanagement inthe opinions andconcernstoDIAND groups; and Aboriginal mining industryrepresentatives identify keycontacts; r facilitator, provide adviceonthe (including ImpactBene Job PartnershipStrategy; and Bene products onregulatory processes. Agreements); egulatory process andpolicy Department ofIndian Affairs Resources Directorate ofthe he MineralandPetroleum fi

ts Division fi

ce fi fi

t c roles provide mineraldisposition • customsubsurfaceright research; • provide informationand • provide mapcopies; • provide informationandadvice • What canwedoforyou? Of The MiningRecorder’s Mining Recorder’s Offi E-mail: [email protected] Fax: 867-669-2705 Phone: 867-669-2571 For more information: provides adviceonlegislation • across-referenced index/ • Mineral Development Guide toLegislationAffecting administertheTerritorial • provide claimmaps; • • keep records; • maintain LIMS-MINERS issuemineralsclaims/leases/ • issueclaimtags; • issueapplicationsfor • administersubsurfacemineral • provisions). We also: (with theexceptionofroyalties the CanadaMiningRegulations your contactforinformationon individuals andgovernment. r legislative packages; groups; on mineralrightstointerested licences. about contacts,permitsand and regulation andinformation mineral activities; database oflegislationand Regulations. Coal andTerritorial Dredging database; prospecting permits; prospectors’ licences; appeals andrelief; r work, statisticreports, lapsing notices,representation permit issuance,rental notices, permits, mineralleaseissuance, transfer ofclaims/leases/ rights includingclaimrecording, eports forlandclaimantgroups, egistration ofdocuments,and

ce fi

ce is developandmaintainthe • maintaintheearthscience • provide expertise ondiamonds • research metallicmineral • review assessmentreports on • • monitor/track mineral we: exploration intheNWT. Speci collects dataonminingandmineral The GeologyDivisionmonitorsand What dowedo? Geology Division • collects geoscienti acooperativegeoscience • Geoscience Centre C.S. LordNorthern provide client facilities • provide information and • answergeneralquestionsabout • What canwedoforyou? E-mail: [email protected] Fax: 867-669-2714 Phone: 867-669-2690 For more information: NORMIN andKIMdatabases. library; and related rocks; and research Kimberlitelocations deposits; mineral exploration; exploration activity; the NWT; program withtheGovernmentof (i.e. computers,lighttable,etc.). and government; Aboriginal groups, communities of clientsincludingindustry, technical advicetoawidevariety NWT geology; land useplanning. environmental assessmentand mineral resource development, used inmineralexploration, fi

c datatobe fi

cally E-mail: [email protected] Fax: 867-669-2725 Phone: 867-669-2642 For more information: creates digitalcompilationsand • containsreferences toexploration • stores geologicalinformation • NORMIN Database paper mapsusing ArcView. and geologyoftheNWT; NWT; about mineralshowingsinthe adviseindustryandconsult • visitcommunities,deliver • consultwithcommunitiesand • provide generaladviceon • Speci Canada OilandGasOperations Act. Petroleum Resources Act andthe gas developmentundertheCanada Bene The Petroleum Developmentand What dowedo? and Benefi Petroleum Development dealwithoilandgasrelated • bene communities onoilandgas gas workshops; information sessionsandoil land issuancesanddevelopments; Aboriginal groups onoilandgas development; oil andgasexploration r socio-economic matters. access andlanduseplanning, exploration, landclaims, issues includingregulatory issues, egulatory requirements on fi fi

ts Divisionmanagesoiland cally we: fi

t plans;

ts Division E-mail: [email protected] Fax: 867-669-2705 Phone: 867-669-2469 For more information: • provide path provide informationandadviceto • What canwedoforyou? approvals, permitsandlicences. assessments, environmental project screening and for project approvals including planning; areas strategyandlanduse and PrivateLands,protected issues includingaccesstoCrown r and gas,keyNWTcontacts,the and approva lsprocesses foroil the communityaboutlegislation industry, Aboriginal groups and egulatory process, landaccess the lakemargins. concentrated around from Garnet reddish colouris sediments. The Ya mba Lake fi

nding services

35 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW 36 • M INING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW Resources Resources www.mog.rwed.gov.nt.ca E-mail: [email protected] Fax: 867-873-3254 T Y P Minerals, OilandGasDivision Development Resources, Wildlife andEconomic T Government oftheNorthwest Christy Campbell MOG publications,pleasecontact: If youwouldlikeacopyofthe Organizations Directory of Aboriginal T Companies intheNorthwest Directory of Active Mining Contact Sheet NWT Resource Map Book andCD NWT GuidetoMineralDeposits Minerals, OilandGasPublications .O. Box1320 el: 867-920-3345 erritories erritories ellowknife NTX1A 2L9 Fax: 867-669-2725 T Y P Centre C.S. Lord NorthernGeoscience Archives Geologist,Publications Y contact: C.S.Lord publications,please If youwouldlikeacopyofthe appendices. Centre, Yellowknife, NT. Reportplus 04. C.S.Lord NorthernGeoscience G, H,I,J.NWTOpenFile2002- Lake Area, NWT, Canada,NTS96A, Assessment (PhaseI),Great Bear Areas Non-RenewableResource Edacho CandidateProtected Gal, LP &Lariviere JM.Sahyoue- (paper or*.pdffile$10.00) NWT OpenFile2002-04 NT. Reportplusappendices. NWT GeologyDivision, Yellowknife, NWT OpenFile2002-03.DIAND, Riviere Grandin Area, NWT, 86D. r Lariviere, JM.DogribRefugeNon- (paper or*.pdffile$10.00) NWT OpenFile2002-03 50,000. NT. fourmapspluslegend,scale1: NWT GeologyDivision, Yellowknife, NWT OpenFile2002-02.DIAND, (Assay tablestoaccompanymaps); Slave Province; Partsof85Oand 85N. the Snare River Area, Southwestern Jackson, VA. Preliminary Geologyof for theset) (paper or*.tiffile$10.00permap;$50 NWT OpenFile2002-02 one map,scale1:2,500. Geology Division, Yellowknife, NT. Open File2002-01.DIAND,NWT Belt, NWT. (Partof85J/09);NWT Yellowknife,Mine Area, Greenstone Ootes, L.GeologyoftheCrestaurum (paper or*.tiffile$10.00) NWT OpenFile2002-01 Centre Publications Geoscience C.S. Lord Nothern enewable Resource Assessment .O. Box1500,4601-B Avenue el: 867-669-2642 ellowknife NTX1A 2R3 ana Preston www.gov.nt.ca/RWED/rs/index.htm NWT Centre forRemoteSensing www.nrcan.gc.ca/gsc/index_e.html GSC GeologicalSurveyCanada cgkn.net/2002/index_e.html Network (CGKN) Canadian GeoscienceKnowledge www.miningnorth.com Mines NWT andNunavutChamberof e.html www.ainc_inac.gc.ca/oil/index_ INAC, OilandGasDirectorate nwt.inac.gc.ca (mineral claims) INAC, NWTRegion;SIDViewer www.gov.nt.ca/RWED/mog Gas Division GNWT, RWED, Minerals,Oiland www.liardresources.nt.ca Fort Liard Resources Directory www.bmmda.nt.ca Development Area Beaufort-Mackenzie Mineral www.nwtgeoscience.ca/normin Database NORMIN NorthernMinerals www.nwtgeoscience.ca Centre C.S. Lord NorthernGeoscience We b Sites

MINING AND EXPLORATION IN THE NORTHWEST TERRITORIES 2002 OVERVIEW

2003