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SOMBA K'E/YELLOWKNIFE - Sometimes even the best of intentions can hit a snag.

In late February, Deninu Ku'e First Nation (DKFN) signed an agreement with Avalon Rare Metals Inc to provide the company with 1,000 core boxes - used to hold core samples drilled by mineral exploration companies - for its winter drilling program at Avalon's Thor Lake project, located 100 km southeast of Yellowknife.

From left, Deninu Ku'e First Nation acting chief Louis Balsillie, Bob McLeod, Minister of Industry, Tourism and Investment, and David Connelly show off a sample of the core boxes the factory in Fort Resolution will be producing for Avalon Rare Metals Inc. - Guy Quenneville/NNSL photo

"A lot of the core boxes were all coming from down south. We didn't see any reason why they couldn't be made locally," said Don Bubar, president of Avalon.

The company had pledged to help hire an experienced supervisor for the initial order - Avalon has promised to give DKFN's factory the right of first offer for future deliveries - who will provide training, safety, quality control and mentorship.

Now, mere weeks away from the end of March deadline for the boxes, that individual has yet to be hired and flown North, according to DKFN acting chief Louis Balsillie.

The factory "still hasn't got off the ground," he said. Bubar confirmed this is the case.

Many things, Bubar added, have slowed since the economy turned sour.

According to Balsillie, the order will be filled by a company in Winnipeg so Avalon can get its core boxes in time, and the DKFN factory in Fort Resolution will make 1,000 boxes for that company as replacement - once a supervisor is hired to train its workers to do so.

"The order will be filled, but not by the Deninu Ku'e. We were supposed to do the work. Nothing happened. By now we should have been started," said Balsillie.

While Balsillie was disappointed the factory's workers - it will employ three - weren't able to start work right away, he is happy for Avalon's involvement in the community. In addition to the three factory workers, six others will be employed through Avalon's work at Thor Lake.

"We don't have much (employment opportunity). With Avalon there we'll have nine people employed," said Balsillie, adding nine more people working in a town of 500 is a big deal.

Balsillie said many members of the community were previously employed with Tamerlane Ventures - the first company to agree to buy core boxes - but it has dipped off since the company slowed activity to weather the economic time and cancelled its core box order.

"With Avalon, we have a good chance of stuff happening," he said.

Considering Avalon's corporate policy to be proactive in the local communities near its sites at an early stage, there's a good chance Balsillie is right.

"We're a bit different than a lot of other companies," said Bubar, referring to the company's policy to begin building relationships with community leaders earlier rather than later in its work.

"We're trying to change that culture in our industry," he added.

And in doing so, Burbar said he hopes to dispel some of the negatives surrounding mining and exploration companies and their approach toward local and aboriginal communities.

Toronto-based Avalon is one of the few mining exploration companies outside of China actively drilling rare earth and metals such as indium, beryllium, lithium and tantalum.

Demand for rare earth elements, which are critical components for high-strength magnets used in everything from flat screen TVs to hybrid cars, has catapulted, most recently with the rising green trend.

Avalon will meet with the DKFN at the end of March in Fort Resolution, said Balsillie.