Baker Lake (Nov 01/06) - The Meadowbank gold project should move closer to becoming a working mine this month.

The project received a positive-development recommendation from the Nunavut Impact Review Board (NIRB) in September.

The next step is for federal Minister of Northern Development Jim Prentice to give his seal of approval to the project.

Cumberland Resources Ltd. president and chief-executive officer Kerry Curtis hopes to have Prentice's decision within the next couple of weeks.

He said the process leading up to this point has been a lengthy one.

"We were a little discouraged by the amount of time the process took with the NIRB," said Curtis.

"But, we're not the ones who make the agenda. That's up to the group on the other side of the table from us.

"As the proponents, our role is to provide the information and, if it's deemed insufficient, to provide more."

Cumberland estimates the Meadow project will have a lifespan of about eight years.

However, results from a new zone the company has been working on for the past year are encouraging and could extend the project's life well past the eight-year mark.

Curtis said Meadowbank boasted 200,000 ounces of resources when Cumberland acquired the project.

Today, that number sits at four-million ounces.

"We've added to the figure every year, so it's a pretty successful project in that respect, and we don't see any reason why that would change.

"In our minds we're building a mine for longer than eight years, although we can't say how much longer.

"You just have to explore, which is part of the cycle.

"When mines go into production, a large percentage of any money made goes back into exploration to further the mine's life and extend production, if possible."

Meadowbank is expected to yield an average of 330,000 ounces of gold a year during its first eight years of production.

The last estimate on capital cost (December of 2005) projected a labour force of 313 at the mine.

Curtis said the number of local and regional hires will fluctuate from year to year.

He said while he hopes the number will increase annually, he can't say exactly how many people from the region will be hired.

"This will be a new activity in the Kivalliq for many people and there will be training periods required to bring up skill levels.

"As skill levels increase, we'll see more local and regional employment."

Curtis said Meadowbank being an open-pit operation, as compared to underground, works in the favour of more local hires.

He said the types of skills (heavy-equipment operators) required are relatively quick to acquire, compared to underground mining.

"As a rule in mining, there is one indirect job created for every direct position.

"Mines tend to be job creating machines because the industry is so labour intensive, so Baker will benefit in a number of areas.

"Part of our submission to the NIRB was the creation of an all-weather road linking Baker to the site.

"That will be a private road for the mine's duration, but there will be additional infrastructure in town that's required, as well, to service the site."

Cumberland estimates about 250 people will be required to operate the site at any given time.

The company will rotate southern workers at the camp every two weeks.

Actual production should begin in late 2008 or early 2009 at Meadowbank.

But, for now, Cumberland continues to play the waiting game.

It still has to receive approval from Prentice before it can get a project certificate from the NIRB to obtain the necessary licenses to commence construction.

"The next step is in the hands of Mr. Prentice and his staff.

"Having said that, given the extra time the NIRB took in making its decision and closing this file, the thoroughness of that should work in our favour.

"It would be very surprising if Mr. Prentice came back with a list of issues that had to be addressed."