NUNAVUT - The first gold brick, worth about $250,000, was poured at the Meadowbank gold mine near Baker Lake this past month.

Agnico-Eagle employees David Illuglayok, David Paquin, Chesley Nibgoarsi and Julie Larouche, from left, are all smiles while holding the first gold brick poured at the Meadowbank mine near Baker Lake this past month. - photo courtesy of the Mikilaaq Centre

The pouring of the bar officially launched Meadowbank into commercial production, becoming Nunavut's only operating mine.

The mine is expected to produce about 400,000 ounces of gold in its first year of operation.

Once construction is completely finished, the mine will employ 550 workers, with 275 being on-site on a two-week rotational basis.

The content of Inuit employees at the site, with construction still continuing, is about 35 per cent.

After final construction, Agnico-Eagle Mines Ltd. hopes to keep the rate of Inuit employees at about 25 per cent of its total Meadowbank workforce.

Mines operation manager Eric Lamontagne said the decrease of Inuit workers after construction is due to the fact a more skilled labour force is needed for the operational stage.

He said there are many helper-type jobs available during construction, but, once that's complete, it becomes more of a specialist job and more Inuit need to be trained for those positions.

"Even 25 per cent local workforce is a good ratio compared to other mines such as Raglan (Nunavik territory in Northern Quebec), which has about 12 to 16 per cent of Inuit workers in a comparable workforce," said Lamontagne.

"Our challenge for the future is to try and keep our percentage where it's at.

"After focusing on training for the past two years, all 50 of our trucker positions, 100 per cent, are occupied by Inuit workers.

"Now we'll increase the level of difficulty and training to change the job for Inuit from truck driver to bulldozer or grader operator, that type of thing."

Increase

Lamontagne said the same approach will be used in every department to try and train more people to increase the percentage of Inuit workers at the Meadowbank site.

But, he said, Meadowbank's impact on the local economy is not restricted to on-site workers.

"We will also try to pass many contracts on to Inuit companies in areas such as transportation and contracting.

"Our goal is to try to provide as much to Kivalliq businesses as we can."

Lamontagne said Agnico-Eagle will also be a good corporate citizen and try to do as much for projects away from the mine as it can.

He said the company was happy to play an active role in the recent Avataq Cup hockey tournament in Rankin Inlet, and attempted to build a new community ball field in Baker Lake this past summer.

"In the future, we will try to implement Agnico-Eagle in different Kivalliq communities by being involved in community projects.

"It's always important for our company to do what it can, within reason, to help with special activities or worthwhile community projects."

Mine life

While Meadowbank has an estimated mine life of about 10 years, Lamontagne said that number could increase.

But, he said, it's important for people to remember the price of gold plays a large role in the viability of producing gold in the Kivalliq.

"The price of gold is one issue in the life of a mine and the second is the total of the mineral reserve.

"We spend a lot of money on exploration at Meadowbank; with $8 million slated to be spent this year on exploration, after the same envelop of money was spent this past year, as well.

"But, the principle target is underground and underground mining is more complicated, so we need more time to define the body.

"With open pit, you're able to define the body in one or two years, but it can take five to seven years for the development of an underground mine."

Lamontagne said Agnico-Eagle has found an underground body at Meadowbank, but more holes need to be drilled to define it.

He said defining the body is even more complicated because it's underwater.

"With our underground project, for example, being under a lake, we're not able to drill during the summer.

"We need to wait and drill during the ice season.

"But it's a good project and, maybe, in the future, we will be able to announce good news for Meadowbank concerning it."