deposit for its economic feasibility. It is planning to spend $7.2 million in 1998 to conduct advanced exploration and engineering programs at the site, that covers one-half of a 70-kilometre long gold trend 25 kilometres north of the community.

"We've done enough work to know there's gold out there -- now WMC has to determine if there's enough for a mine," said Jo Campbell, project manager. "We still have a couple of steps before we have a mine."

If exploration and the pre-feasibility study moves ahead as scheduled, construction of a gold mine could begin in two years, and production could start two years after that, he added.

Jack Kabvitok, who worked underground 25 years ago in the old Rankin Inlet mine, said that a new mine near the community would provide much-needed jobs for local young people.

"Should there become a mine, more job opportunities would be open to everyone," he said. "I have five sons who are hoping to get jobs there. I support it."

But Campbell said that WMC has environmental concerns as well as the price of gold to take into consideration before moving ahead with a mine that would cost upwards of $200 million to build.

"This is not a good time to determine if we can make money," he said. "That said, WMC believes this is a very good project. Otherwise we wouldn't carry out these studies."

Since 1989, when claims were staked in the area, the project has expanded to the Peter Lake area, where exploration will begin this summer. During this time in the Kivalliq region, WMC has spent $225,000 in 1995, $550,000 in 1996 and $1.2 million in 1997.

Over this same period WMC has spent more than $14 million on the project, including services contracted outside of the region.

Thirty residents of Rankin Inlet and Chesterfield Inlet were employed at the project last year and they are all expected to find jobs again this year.

The pre-feasibility study is expected to be finished this April.

If a mine is built, production costs will have to be kept low. The owners of the Lupin gold mine in the Central Arctic recently decided to close the mine, and Yellowknife's Con gold mine cut production in half last month -- both in response to falling gold prices.