 |
|
|
|
|
  
|
Striking plans in Nunavut
Record high mineral exploration spending in Nunavut in 2011; spending intentions for 2012 soar to $568.6 millionThandiwe Vela Northern News Services Published Saturday, March 17, 2012
The company, which is expected to begin a modest drilling program on the property this summer, is not alone, as Nunavut continues to be a hot spot for resource companies this year, with recent Natural Resources Canada figures showing 2012 mineral exploration spending intentions of $568.6 million. According to preliminary figures, mineral exploration and deposit development expenditures surpassed half a billion dollars in Nunavut last year, with preliminary data from the federal government registering expenditures at $502.3 million. The level of exploration and deposit appraisal expenditures for Nunavut in 2011 was a record high. Natural Resources Canada expects another record breaking total in 2012. James Lauer, director of industry, economics and taxation, said in a released statement that Nunavut surpassing $500 million in mineral exploration spending is unprecedented. "2011 is the first year that the territory has seen exploration spending this high and it's widely expected to continue growing, with spending intentions for 2012 topping $568 million," Lauer stated. "Nunavut has grown faster than the other two territories and is fourth in the country for exploration spending right now." Rich geology is the main factor attracting exploration investment to Nunavut, including West Melville, which was formed specifically for the Fraser Bay iron project, which covers 1,306 hectares on Inuit-owned land southwest of Hall Beach and Iglulik. West Melville's deposit has the potential to produce direct-ship ore, said president and CEO Rory Moore, with ore grading higher than 60 per cent iron in a deposit of largely 30 to 35 per cent iron. In addition, as part of the Aurora Resource Group -- a conglomeration of public companies with a long history of working in the North -- Moore feels secure in the project's tenure of title. "What we're interested in first and foremost is the geology," Moore said. "And then, obviously, one has to be comfortable that your investment is safe, that it's in a stable jurisdiction with clearly defined rules. And so Nunavut meets that objective as well." Grassroots exploration, such as West Melville Metals' iron program, makes up only a part of Natural Resources Canada's mineral exploration figures, also included are middle-phased deposit development expenditures by senior companies, including West Melville's sister company Kivalliq Energy Corp., which is developing its high-grade Lac Cinquante uranium deposit near Baker Lake. Major mining companies that contributed to 2011 Nunavut exploration spending include ArcelorMittal S.A., Rio Tinto Exploration Canada Inc., and Agnico-Eagle Mines Ltd., developing its advanced exploration stage Meliadine project -- sister to the Meadowbank gold mine. Mining investment in Nunavut has also taken hits recently, including Newmont Mining Corp. putting its Hope Bay gold project on care and maintenance, and Agnico-Eagle's write down of Meadowbank, reducing the mine's life by three years. Tom Hoefer, executive director of the NWT and Nunavut Chamber of Mines, said the two developments may be signals that industry has to dig deeper on. "We want to find out if they represent something bigger, and if they do, then let's fix it now, so that it doesn't become contagious," Hoefer said, listing cost pressures and regulatory certainty among possible threats to Nunavut's boom. Spending intention figures for 2012 were gathered through a preliminary survey, conducted during the last quarter of 2011 up to mid-February 2012. Mineral exploration spending data includes on-mine-site and off-mine-site activities, field work, overhead costs, engineering, economic and feasibility studies, environment, and land access costs. Natural Resources Canada is expected to release 2011 final numbers and 2012 revised spending intentions by fall.
|
