Guy Quenneville
Northern News Services
Published Monday, November 12, 2007

UMINGMAKTUUK - Miramar Mining Corporation's latest gold mining development is one step closer to production now that the company has obtained a six-year water licence for the project.

The Minister of Indian and Northern Affairs Canada approved and signed the licence last week, which will cover the construction, operation and eventual reclamation of Miramar's Doris North Project, located 75 kilometres northeast of Umingmaktuuq.

"I think it's really illustrative of how not just industry but how the regulatory industries, the government of Nunavut and the local stakeholders, like the Kitikmeot Inuit Association, Nunavut Tunngavik Inc. are all embracing progress," said Nicole Hoeller, a spokesperson for Miramar.

"We're really excited about it. It really opens up the door for the mining industry in general."

The permitting process is not yet complete, however. A commercial lease with the Kitikmeot Inuit Association for the operation of the mine, and a royalty agreement with Nunavut Tunngavik Inc. must be finalized before production begins in the fourth quarter of 2008.

"(The negotiations) are going well," said Hoeller. "They are substantially negotiated, and we think that we should probably have those finalized between the end of this year or the beginning of the first quarter next year."

Close to $15 million dollars has been spent on the permitting process so far and the capital costs of the project are still being determined, said Hoeller.

"We anticipate it's going to be higher than we (originally) thought. It was going to be ($40 million)," she said.

An updated feasibility study should be complete before the end of month, she added.

The Doris North mine should create 180 jobs. Hoeller expects a significant portion of employees at the mine will be Inuit.

"We don't have anything targeted, but we have been averaging at our exploration camps about 35 to 40 per cent (Inuit workers),' she said.

Derrick Power, mayor of Kugluktuk, welcomes the economic prosperity that will likely come with the mine, but he wants to make sure his town is not left in the dust once the mine runs dry.

"More effort should be made to create sustainable growth, where after they're gone, the growth will continue," said Power.

The announcement about the water licence comes as Miramar shareholders consider a $1.5 billion takeover bid from Newmont Mining Corporation.

"Our board has recommended the deal. We think it's a fair offer for shareholders," said Hoeller.

The board has until Dec. 6 to accept the offer. Newmont is the world's second largest gold producer with operations on five continents. If the purchase of Miramar goes through, it will be the international mining corporation's first foray into the Canadian Arctic.