QAMANITTUAQ/BAKER LAKE - Areva Resources Canada Inc. will conduct $13 million in new drilling this year at its Kiggavik uranium project, says Barry McCallum, manager of Nunavut affairs for Areva.

From left, camp operators Roland Alerk and Roger Owingayak, both of Baker Lake, work on the generator at Areva Canada Resources' Kiggavik camp in 2009. The company will spend $13 million in new drilling this year and employ approximately 30 Inuit people. - photo courtesy of Areva Resources Canada Inc.

Last week it was announced the project's environmental assessment will not by carried out by the federal government but by the Nunavut Impact Review Board (NIRB).

The review, known as a Part Five review, refers to a clause in the Nunavut Land Claims Agreement granting NIRB the authority to assess projects.

McCallum said he expects the environmental assessment to take at least three years.

The Kiggavik project, which is located 75 km west of Baker Lake, is host to approximately 130 million pounds of uranium, with the mine life currently estimated at between 15 to 20 years.

While waiting out the permitting process, Areva will conduct additional drilling on both existing and newly discovered targets at Kiggavik, continue environmental baseline work and carry out more public engagement programs, said McCallum.

On any given day, between 50 to 60 people are expected on site this year, he added

"We employ 30 to 35 Inuit people from the Kivalliq region, primarily from Baker Lake. For environmental baseline work, we've hired people from Chesterfield Inlet. When we go around the communities we hire translators from all of the (Kivalliq) communities. We've hired a few people from Arviat for construction work at the Kiggavik site and at least one person from Rankin Inlet."

But most people – 90 per cent of Inuit staff – come from Baker Lake, which is no stranger to the mining industry; the Meadowbank gold mine opened near the community in February.

Having such a large operation near its own project helps Areva, said McCallum.

"It brings competition for labourers, but we've been able, during all three seasons, to get all the local content that we wish to have, and that would be filling out all the jobs that could be reasonably carried out by people with the skill set(s) in the area."

Warren Nagyougalik, a lifelong resident of Baker Lake currently working as a blaster's helper at Meadowbank, said that once Meadowbank – which presently has a 10-year mine life expectancy – shuts down, he'll simply take his skills with him and move on to Kiggavik.

"(Once the mine closes) I'm probably going to go down to this company called Areva, work with them, blast over there," said Nagyougalik.

Training for positions like Nagyougalik's will kick in once the mine approaches the construction stage, said McCallum.

"We anticipate that during construction, once we've made a decision to mine and build a mine and we know that we'll need miners and mill operators ... we plan to hire local people and train them so that when the mining and milling starts, we'll have trained a workforce.

"But it's early to do that now because we're several years away."

Based on the timeline estimated by the company, construction could begin five years after the receipt of required permits, with production beginning two to three years later.

"A 20-year mine life is a long mine life," said McCallum. "Many mines start with a known resource of considerably less than that."