Hope Bay quietly advancing
TMAC Resources drills 67,000 metres this summer; more Inuit participation sought
Walter Strong
Northern News Services
Published Monday, December 1, 2014
KINNGUAK/BATHURST INLET
For a gold project that raised almost $80 million in financing earlier this summer, TMAC Resources Inc. has been flying under the radar on its Hope Bay project located approximately 170 km southwest of Cambridge Bay, directly south of Bathurst Inlet.
Existing infrastructure at TMAC's Hope Bay/Doris North gold mine project. After raising close to $80 million earlier this summer, the company completed 67,800 metres of drilling on the property to further advance the project. - photo courtesy TMAC Resources |
Alex Buchan, TMAC Resources director of community relations travelled to the 2014 Geosciences Forum last week to give an update on work this year on the project.
The results of this summer's drill program are not known, but the results of the almost 68,000 metre drill program are likely to generate much interest when they are released in approximately one month.
At 67,800 metres of drilling, it is the largest drill program on a gold deposit undertaken in the North after Agnico Eagle Mines Ltd.'s massive drill program on its properties near the Meadowbank mine where Agnico Eagle drilled approximately 80,000 metres this year.
TMAC spent approximately $61 million this year on the property. The company came in significantly under budget on all-in drilling expenditures at $356 per metre drilled. The company had budgeted $400 per metre.
With $24.1 million spent on drilling, the remaining went toward multiple on-site projects including the reopening of the Doris underground mine, airstrip resurfacing, mine ventilation, permitting fees, repairs to port facilities and infrastructure upgrades to existing mine facilities.
Contract spending amounted to $25.8 million with $4.9 million going to Kitikmeot-based companies, and a further $6.9 million awarded to Inuit-owned firms.
That's almost half of all contract spending on the site this year. Year-to-date Inuit employment on site amounted to 1,724 person days of work, or 14 per cent of total employment.
"We're hoping to increase the proportion of contract spending as we move forward," Buchan said.
There is room for improvement when it comes to driller contracting when it comes to Inuit participation.
"It (Inuit employment) does go down quite significantly when we bring the drill crews in," Buchan said.
"What we need to see ... is labour penetration into diamond drilling from Inuit."
According to a December, 2013 pre-feasibility report, total measured and inferred resource estimations show a 10-year mine life with 10.6 million ounces gold across both categories.
An existing Kitikmeot Inuit Association impact benefit agreement signed under previous management remains in effect, and includes annual payments into training, education, cultural and community funds.
A mine pre-feasibility study is expected early in 2015. Until then at least, one of the most extensive and well-funded gold mine projects in the North will remain TMAC's undertaking as a privately held company.
"That's under continual evaluation," Buchan said of the prospect of taking the company public. "It's based on a continual evaluation of the market place."
TMAC Resources Inc. is jointly owned by majority stakeholder Newmont Mining Corp., RCF Holdings and executive investment.
The company is spending approximately $3.5 million per year to maintain its type-A water licence. Buchan reported that TMAC is in the process of seeking an amendment to its permitting and water licence to further advanced exploration and mine plan development.
