Port and Road system for Bathurst Inlet
Doug Ashbury
Northern News Services
Yellowknife (Nov 20/00) - Inmet Mining says a toll system on a proposed port and road system in the Kitikmeot would benefit other mining companies.
"We see ourselves as the largest payer of toll fees" on a proposed Bathurst Inlet port and road system, Inmet Mining commercial vice-president Oliver Merton said.
Toronto-based Inmet Mining wholly owns the Izok zinc-copper-silver deposit, which is located about 265 kilometres from Bathurst Inlet.
"Izok is one of the highest quality ore bodies in North America (but it is) infrastructurally challenged," Merton said.
"We've lost faith in gold (and are) very much focused on the next stage -- developing something in our own portfolio and Izok comes into that category," said Merton, who spoke at the fifth annual Nunavut Mining Symposium in Rankin Inlet last Tuesday.
Izok has measured and indicated resources of 16.5 million tonnes grading 11.4 per cent zinc, 2.2 per cent copper, and 60 grams per tonne silver.
Inmet decided to take another look at the Izok project last year and the proposed transportation system that would link it to tide waters, said Merton, adding "The economics of the project have increased considerably."
With a port -- ocean-going vessels can travel to the south end of the inlet -- and road system, Inmet mining could lower its costs by shipping fuel in and lead and zinc concentrate out.
But Inmet cannot do it alone.
"We need other public and private interests to find a use for this infrastructure," Merton said.
Mining properties that could benefit from the proposed road and port infrastructure include George, Goose, Lupin, and Ulu gold deposits and the Jericho diamond property. Owners of Ekati and Diavik diamond mines are also potential users of the proposed transportation system. The Hope Bay gold property is also in the area.
Even the Qikiqtaaluk Corp. has a stake in the area. QC, the regional economic development company of the Baffin, owns the Pistol Lake property to the west of Bathurst Inlet. QC bought the 235,000-ounce gold property form Leeward Capital.
Other options
The main section of the proposed road would run southwest to Contwoyto Lake. Access to Lupin, Jericho and Diavik, would be over ice. George, Goose, Ulu and Izok would be over land.
Merton says if funding is secured, a road and port feasibility study may be under way by next year's annual mining symposium.
With a road and port system there's potential for at least five other projects to go ahead, says Kitikmeot Corp. president Charlie Lyall.
"I think there are quite a few ways to look at funding, one being a toll road," he said. Another option might be to look at debt financing, he said.
"We're still looking at getting this done," he said.
Linking other properties
Lyall said discussion and examination of a proposed port and road goes back 10 years.
In 1993, Inmet completed a $1.5 million prefeasibility study on Izok, and estimated capital costs of $350 million, which included a road to the Coronation Gulf, located 19 kilometres east of Kugluktuk.
But this would have benefited only Izok, Merton adds.
Nuna Logistics, a majority Inuit-owned company, proposed linking Izok and other properties, Merton said.
Nuna Logistics' Mervyn Hempenstall said the Bathurst project should not be considered in competition with a proposed road linking Churchill, Man. and Rankin Inlet.
Hempenstall said it is better to consider each project on its own merits. Each project should driven by whether it is economically viable, environmentally responsible and has benefits for Nunavut, he said.
