Yellowknife (Nov 22/06) - The prospect of a diamond mine on the shore of Great Slave Lake is inching closer to reality now that a pair of exploration companies have acquiesced to a request for more information on a number of drilling projects.

In July, the Mackenzie Valley Environmental Impact Review Board (MVEIRB) warned one of the companies involved, Consolidated Goldwin Ventures, that they would have to drop their land-use permit application unless they provided detailed responses to a list of questions posed by several government agencies and groups.

They include the Prince of Wales Northern Heritage Centre, Indian Affairs and Northern Development and the Department of Fisheries and Oceans.

Goldwin Ventures submitted its responses two weeks ago. Company chair Souhail "Abby" Farrage said he is optimistic that exploratory drilling can begin as early as next month.

He said the area has huge potential for diamonds and will be much cheaper to develop compared to the other NWT diamond mines because its close proximity to Yellowknife.

"There are (diamond) kimberlites all over there," said Farrage.

"They needed to be discovered and proven commercial. I think there will be a mine up there. That's why we're there."

There are nine proposed Goldwin drilling sites along the Great Slave Lake shore from Jackfish Cove to Drybones Bay about 30 kilometres southeast of Yellowknife, plus more farther inland around Moose Lake.

Another company exploring for diamonds, Sidon International Resource Corporation, has claims at nearby Defeat Lake. Farrage is on the board of directors for that company as well.

Questions put to the companies included whether they intend to investigate the possibility of archeological sites in the area, and what they plan to do to protect fish habitat.

The submission of responses last week by the two exploration groups is a decided departure from a year ago when one of their consultants complained bitterly to the MVEIRB, accusing the board of not supporting mineral exploration.

The MVEIRB had just informed them that they wanted an environmental assessment of the proposed drilling sites.

Farrage admitted they were frustrated, but said they want to put it all behind them.

"At this stage, we waited so long," said Farrage. "There's an old Lebanese saying: 'You don't go milk the cow and then kick the bucket.'"

Nonetheless, getting a permit and drilling next month is highly unlikely, said Vern Christensen, MVEIRB executive director. A complete environmental assessment is likely still weeks or months away.

The land-use permit itself will have to come from the MacKenzie Valley Land and Water Board, who have their own procedures to follow.

"Our report needs to go to the minister (of Indian Affairs and Northern Development) and that can take some time as well," said Christensen.

Another potential snag are the Yellowknives Dene who, after more than a year, have yet to respond to the MVEIRB with information requests of their own for the drilling projects. The MVEIRB sent the First Nations group a reminder letter Nov. 8 - the day after they received their responses from Sidon and Goldwin.

"I'm not sure where the hold up was as far as the Yellowknives Dene are concerned, but between the two groups we were waiting for information," said Christensen.

Rachel Ann Crapeau, manager of lands and environment for the Yellowknives Dene, could not be reached for comment.