Jennifer Pritchett
Northern News Services

RANKIN INLET (Sep 02/98) - Falling gold prices are forcing the mining company operating the biggest gold exploration camp near Rankin Inlet to delay the construction of an underground test ramp, originally set to begin this winter.

WMC Meliadine Lake project manager Jo Campbell said the underground tunnel that was expected to be built this winter to examine the ore deposit has been put off until the international company can re-assess the gold deposit.

"With metal prices the way they are, we're delaying the underground test program," he said.

As a result, WMC has withdrawn its land permit for underground exploration from the Kivalliq Inuit Association until they can decide what the next step in the project will be.

"We told the KIA that there has been such a change in the program that we felt that we'll put another application in when we figure out what we're going to do," Campbell said.

Another option, he said the company is considering, is to do similar testing by drilling a test pit this spring.

"The test pit is similar to the underground testing," he said. "There are no outcrops...we have to look at the deposit. That will go a long way to explaining the mineralization to us."

He expects the test pit to be as deep as 25 metres. However, there has been no decision made to go ahead with this as yet.

Campbell also said WMC has every intention of keeping the Meliadine Lake camp open this winter, despite widespread rumors around Rankin Inlet that the company is closing. While there is a chance that it may shut down for the winter, he believes it is unlikely.

"We want to make sure the camp is kept in good condition," he added.