Norm Poole
Northern News Services

Cambridge Bay (Mar 17/03) - Nunavut Tunngavik Incorporated (NTI) has signed an agreement with Strongbow Resources, of Vancouver, for exploration of more than 5,500 square kilometres in the Kitikmeot.

The three-year agreement includes 28 different parcels on Inuit-owned land in the region.

Strongbow has identified high potential for gold, diamonds and base metals, as well as nickel with platinum group metals.

About 18 per cent of the optioned area is in the Coronation Diamond District.

The agreement also covers parts of the High Lake greenstone belt, known to contain both gold and base metals.

NTI's Wayne Johnson said the corporation has some 50 other exploration agreements on the go, but none as large as this one.

The corporation usually limits exploration agreements to a maximum 10,000 hectares.

The complicated deal is more than 270 pages long and took eight months to put together. The two parties signed a memorandum of understanding last summer.

"In effect we are wearing two hats -- one as the landowner and a second as a potential partner," said Johnson.

"There wasn't any model for this kind of an arrangement. In effect we are breaking new ground and we will use this as a model for future agreements."

Strongbow will pay NTI $455,000 and spend $1.3 million on exploration this year.

NTI receives all geo-science data collected and has the option of taking an equity position in any future mine.

Strongbow is headed by Gren Thomas, a key player in the discovery of the Diavik kimberlites.

Johnson said he has already been approached by other exploration firms interested in a similar arrangement.