Jennifer Obleman
Northern News Services
Published Monday, November 5, 2007

NUNAVUT - A 110-kilometre road connecting the community of Baker Lake to Agnico-Eagle's Meadowbank site could bring a gold mine to the community - or the community to the gold mine, depending which direction you're driving.

Employee Lionel Quinangnaq drives a 773 haul truck used to haul blasted rock during construction of the 110-kilometre Tehek Access Road, which will connect Baker Lake to the Meadowbank mine site. Over the course of the project, workers will blast and haul 3.8 million tonnes of rock. - photo courtesy of Nuna M & T

The Tehek Access Road, stretching north from Baker Lake to the Meadowbank gold mine, will be Nunavut's longest road to date, more than triple the length of the stretch between Nanisivik and Arctic Bay.

Nuna M & T began work on the all-weather road a year ago, after the first materials were unloaded from the barges in October 2006. So far about 80 kilometres have been completed, and the road is expected to be finished by the end of December, according to Kenny Theriault, safety co-ordinator for the project.

More than 100 people are employed on the project, operating heavy equipment, blasting rock and building bridges. Approximately 80 per cent of the workers are Inuit.

Last month, Nuna M & T celebrated 200,000 man-hours on the project without a lost-time accident, complete with cake and prizes.

"That's very good for the crew working there. A lot of them, it's their first time having a job, and this is serious equipment they're driving," said Theriault.

"The people have been learning very well, taking to the job very well."

Weather has been the biggest challenge to the road construction so far, Theriault said.

"We're building a road from rock, so it all has to be blasted and hauled, and it's not the easiest climate to work in," he said,.

Nuna M & T will blast and haul 3.8 million tonnes of rock over the course of the project

David Smith, vice-president of investor relations for Agnico-Eagle, said the company is pleased at how well the road is coming along.

"That road is very important to us because it's all-weather. We are therefore not reliant on ice roads like at the diamond mines. We will have year-round access to the site," he said.

"It will also open the area up for exploration, providing easier access to drive drills closer to interesting targets."

Agnico-Eagle acquired the Meadowbank project this summer with the purchase of Cumberland Resources for $500 million net cash.

Meadowbank is slated to start production in 2010. Capital costs for the project will top $400 million, including the construction of the Tehek Access Road.

The mine, which is under construction now, is expected to produce an average of 350,000 ounces of gold a year over its eight-year mine life.

There are proven and probable resources of 2.9 million ounces, and Agnico-Eagle is still exploring in the area. There are 40 gold showings on the property that haven't been followed up on yet.

"We're quite confident this is a four million ounce gold deposit," said Smith.

"Our internal hope is to get it to five million ounces."