Yellowknife (May 23/05) - Uranium exploration in the Northwest Territories and Nunavut is heating up, with close to a dozen companies spending $14 million in the field, hoping to find the next massive uranium ore body.

Production on one of these massive ore bodies, known as elephants, is already underway at the McArthur River Mine in northern Saskatchewan.

At today's prices, the ore body at McArthur River is worth approximately $12.8 billion. Hornby Bay Exploration plans to invest $7 million on exploration claims on the border between the NWT and Nunavut, said Jennifer Smith, manager of corporate development and a geologist with the company.

The company has 218 claims in this area, located approximately 120 kilometres southwest of Kugluktuk. Two of the claims are on the NWT side of the border, another five straddle the border, and the remaining 211 fall within Nunavut's borders.

It's been 20 years since uranium exploration activity has come close to reaching the activity levels currently underway.

"My first job in the industry was in 1981-82, doing uranium exploration work up there," said Smith.

Between 25 and 35 people are expected in Hornby Bay's exploration camp this summer, with work expected to continue until break up next spring and resume next summer to go again until the fall.

Hiring Northerners

The company is attempting to be more proactive in hiring from the North and is looking for resumes from Kugluktuk, said Smith.

Smith said people in the North should consider that uranium development could help slow the pace of environmental change in the Arctic.

"The reduction of greenhouse gases is an issue for the Arctic. It's something to consider," she said.

"We're all very keen to be proper corporate citizens and educate people to bring the public perception of uranium around to something more positive," she said.

Pathfinder Resources

Uranium exploration in the North is here to stay, said John Gomez, manager of investor relations at Pathfinder Resources.

Many factors have lead to the resurgence of uranium exploration. The first, and perhaps most important, being increasing demand from China, Gomez confirmed.

"In many cases, uranium deposits can be worth more than diamonds," he said.

Pathfinder's uranium deposit is located 500 kilometres east of Yellowknife, near De Beers' Gahcho Kue diamond project, Gomez said.

"Our geologists tell us the geology is very similar in nature to the Athabasca deposit, where McArthur River is located."

Personnel with Hornby are very excited to be working in the North.

"We feel it's a world class area. There aren't a lot of places where that geological environment exists. We're looking for the next big uranium deposit," Smith said.