A mine or a park?
Controversy swirls over Darnley Bay and its magnetic anomaly

by Glenn Taylor
Northern News Services

INUVIK (Sep 26/97) - Darnley Bay Resources Ltd. and Parks Canada may be on a collision course over Tuktut Nogait National Park.

The mining company is currently exploring the Darnley Bay anomaly near Paulatuk. Previous surveys by the Geological Survey of Canada and others have revealed a massive gravity anomaly, and suggest a "moderate to high" potential for concentrations of nickel, copper and platinum beneath the surface.

What concerns Parks Canada officials is that the anomaly extends underneath the western boundaries of the proposed park. Western Arctic superintendent Bill Fox is worried that if the company does indeed discover a world class mine within the park, that it would then apply political pressure to alter the boundaries of the park to accommodate development.

Darnley Bay Resources president Leon LaPrairie told the Edmonton Journal last month that exploration may reveal a find within the park "too big to ignore," and stated "one thing in our favor is that this is not yet a national park, so we have time to make changes (to its boundaries) if needed."

LaPrairie told the Drum this week that the Journal misquoted him. "I never said we'd be looking to extend the border (of the park)," said LaPrairie. "There's no way the company can control that."

He said that decision would be up to the public, the Inuvialuit Regional Corporation, the people of Paulatuk and the government of Canada to decide.

Tuktut Nogait National Park does not formally exist, despite an agreement signed between the federal government and the Inuvialuit Regional Corporation to create it, and last year's signing ceremony with Heritage Minister Sheila Copps in attendance at Paulatuk.

Under the Parks Act, Parliament must agree to create the park under an amendment to the act. That hasn't been done yet, and meanwhile Darnley Bay Resources is moving as quickly as it can to explore the area around and inside the proposed park boundaries.

"We're proceeding to gazette the park as rapidly as possible," said Fox, who believes DBR may well be manoeuvring to amend the park boundaries. He points to plans by the company to do aerial and land-based mineral exploration within the park boundaries as proof.

Prospecting within the park "violates the spirit of the Tuktut Nogait Agreement," said Fox. "They claim they are there in a research capacity, but this is clearly a mineral exploration exercise."

Darnley Bay launched an airborne magnetic survey of the property last week, and it's expected to continue through to next month. The $500,000 project is intended to pinpoint magnetic targets for later exploration by ground crews, including areas within the proposed park.

"We've been finding very interesting results so far -- very encouraging," said LaPrairie. One such target identified is only about 15 kilometres from Paulatuk, he said. The best "hits" found so far occur outside the park boundaries, he said.

Dave Nutter, the director of mineral resources for the Department of Indian and Northern Affairs, said he had no objections to the company exploring within park, "as long as it recognizes that doing so will not prejudice the question of whether or not they can later acquire the mineral rights in the area."

"To get the government of Canada to reverse itself (on the boundaries) would require a very distinct change in policy.

(The government) wouldn't do that without close consultation with Paulatuk and within government internally," he added.

Another burning issue is that the anomaly is situated within the Bluenose caribou calving grounds.

Canada has long opposed to oil development within Alaska's Arctic National Wildlife Refuge, home not only to America's last best chance for an elephant oil discovery, but also calving ground for the Porcupine caribou. Canada would lose its credibility if it allowed a full-scale mining operation within the Bluenose calving ground on one hand, while opposing development within the Alaskan refuge, said Fox.

Nutter agrees the location of the anomaly within a calving ground raises the political heat. But he said "there's no reason why the park and the mine can't exist side by side, given the proper environmental controls."

Nutter said the department is currently reviewing its policy of allowing mining developments within caribou calving grounds. A policy was drafted to protect a herd in the Keewatin in 1978, but it has not been broadly applied to other calving grounds, he said.

The department is now reviewing whether the policy should be followed elsewhere, including at Darnley Bay.

But where would that leave the company, after spending millions of dollars on exploration if was disallowed from mining the fruits of its labor?

"That's not something anybody would wish for," said Nutter. "That would be a very adversarial and very costly situation." He said the government might be forced to pay the company a hefty settlement if such an issue emerged.

Fox and his department are working with DIAND to ensure no further land use exploration permits are granted within the park, and with the Inuvialuit Environmental Impact Screening Committee to monitor exploration projects proposed by the company.

"There is no doubt where the park boundaries are, and no doubt of the commitment between parties to establish the park," Fox said.