Such is the case in Iglulik where De Beers Canada dropped $200,000 this past summer. Beginning their work in 2000, they returned last June to begin a five-year exploration program involving 131 prospecting permits on a chunk of land the size of Prince Edward Island.

Linda Dorrington, communications manager for the international gem company, said of the overall $2 million diamond exploration project, 10 per cent was spent in Iglulik on salaries for local residents, camp supplies from the Igloolik Co-op, hotel rooms, restaurants, vehicle rentals and rent.

An additional $300,000 was spent in Nunavut on airline tickets, fuel, sealift and shipping.

De Beers plans to invest a similar amount next year. They also plan to hire six more Inuit staff, bringing the total number of local employees to 20.

"Jobs are scarce here so this is very welcome to us," said Iglulik Mayor Elijah Evaluarjuk. He said while he originally had environmental concerns with the exploration project, De Beers had allayed his fears and replaced his caution with optimism.

"There are only so many jobs here so I'm all for this," he said.

Alongside the salaries paid out, handling De Beers' needs through the Co-op was especially beneficial for the community. Co-op manager Isaac Gullage said through local sales and fees paid to the Co-op owned hotel, a good amount of money was circulated through the local economy.

"(De Beers) purchased appliances from us. They purchased fuel from us. They requested items we don't usually have so we brought them in for them," said Gullage.

"Hopefully they were satisfied with our service and will come back. This is the people's store. It's nice to know (De Beers) uses local business."

A company policy

Dorrington said using resources from local communities is a policy De Beers adopted with their projects. She said prior to work set for March of 2003, the company will travel back to Nunavut to inform residents of the scope of their work and the opportunities available.

"Our policy is not to go in before explaining to local people the opportunities that are there," said Dorrington.

As well as conducting airborne geophysical surveys of the area next March, De Beers will return to the area in June to take drill samples and to continue with the sediment sampling work initiated this summer.

During an eight-week period beginning last July, workers collected some 5,000 sediment samples.

The samples were sent to Sudbury, Ont. for processing and will be analyzed at a De Beers laboratory this winter. Results from the diamond exploration will be released next year.

De Beers' claim to the property -- located some 100 kilometres north of Iglulik -- runs out at the end of 2006.