Coppermine (Feb 20/06) - Wolfden Resources is poised to become a major player in Nunavut after acquiring three more base metal properties close to its High Lake project.

It signed a letter of intent to buy the rights to the areas, including Izok Lake, from Inmet Mining for approximately $50 million in shares.

Izok Lake has an historical indicated resource of 16.5 million tonnes with a combination of copper, zinc and silver. The other two, Hood and Gondor, are also rich with the same minerals and combined, contain an historical inferred resource of 10.5 million tonnes. Added to the more than 14 million tonne resource at High Lake, the company would be sitting on more than 40 million tonnes of high-grade ore.

"We can be one of the biggest employers in Nunavut," said Wolfden president Ewan Downie.

The company estimates it would need as many as 200 workers if its proposed High Lake mine is eventually approved.

As part of the project, Wolfden plans to build a road from Izok Lake to Gray's Bay, less than 200 km from Kugluktuk, where it would also put in port facilities.

"We'll need a way to access our deposits and then ship them out," he said.

Not seeing his firm's plan as competition for the Kitikmeot Corp. and its proposed $280 million Bathurst Inlet port and road project, Downie said he is hoping instead to work with the Nunavut and federal governments. While he would welcome any financial support that would bring, he added the company is prepared to fund the project itself if need be.

Unwilling to comment on any potential union between his group and Wolfden, Kitikmeot Corp. president Charlie Lyall said he is still, "analyzing the proposal."

Earlier this year, Lyall explained to News/North the importance of opening up transportation links to the region.

"For us, it means jobs for the Inuit," he said. "More development happening, revenue goals, economic development: It's everything."

With or without a combined effort on the port and road, Wolfden is quickly moving forward to develop High Lake primarily as a copper-zinc mine.

"We're looking to get our draft environmental impact statement to the Nunavut Impact Review Board by April," said Wolfden chief operating officer John Begeman.

Part of the plan includes relocating the old Nanisivik mine mill to the Coronation Gulf from Baffin Island.

The Thunder Bay-based mining company is hoping it could be in production as early as 2009.

- with files from John Curran