Lutsel K'e Dene challenge Canterra's land use permit application
First Nation says exploration company submitted misleading claims to land and water board
Karen K. Ho
Northern News Services
Monday, November 2, 2015
LUTSEL K'E/SNOWDRIFT
The Lutsel K'e Dene First Nation is accusing Canterra Minerals Corporation of misleading regulators about meeting with Dene representatives regarding the conditions of the company's recent land use permit.
A photo of Canterra Minerals' exploration properties in the South Slave region. CEO Randy Turner is back and says he is excited about further diamond prospects in the territories. - photo courtesy of Canterra Minerals
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The Vancouver-based junior diamond exploration company was granted this permit on Aug. 27 for exploration work to search for kimberlites, a kind of rock that sometimes contains diamonds.
In a series of e-mails sent to the Mackenzie Land and Water Board by Peter Unger, the First Nation's wildlife, lands and environment manager, he challenges assertions contained in the company's land use permit application submitted July 6.
An appendix to Canterra's application states three letters were sent by the company to the Lutsel K'e Dene First Nation. The document specifies that one letter was sent in May and another in October last year.
"We received response after the (Yellowknife) GeoScience Forum and were given a new contact," states the company's community engagement log. "The third letter was sent to update the file and forward the previous letters. The Wildlife, Lands and Environment Committee was curious to know our exploration plans and our intentions, these items were discussed along with the Lutsel K'e's desire to have an exploration agreement. We have not completed an exploration agreement yet, but it is our intention to do so."
Unger challenged these statements in one of two e-mails he sent to the board on Oct. 13.
"This is at best disingenuous and at worst a complete falsehood," he stated in response to company's application.
Unger stated that while it was true Canterra invited the Lutsel K'e Dene Chief to Yellowknife, it was framed as having a coffee and the company was not open to a formal meeting.
"They have repeatedly outright refused to come to Lutsel K'e and often did not respond to correspondence," he added. "We very much wanted to discuss an exploration agreement. They refused to give us the time of day."
According to Unger's e-mail to the board, the First Nation has not discussed the signing of an exploration agreement with company representatives.
"It is news to us that they plan to sign an exploration agreement, as they will not even talk to us on the phone about it," he stated.
Unger concluded his e-mail to the board's regulatory officer Julian Morse by asking if there is any penalty for making false claims in an official board document.
Formal protest
In the other other e-mail Unger sent to the board on Oct. 13, the First Nation issued a formal objection to Canterra being issued a land use permit. Unger cited the company's lack of willingness to hold a community consultation or meet with its leadership regarding its plans for the area.
The First Nation's criticism of what they characterize as a lack of consultation with the company dates back to July.
"We have made every effort possible to have a discussion with this company and have been brushed off the entire way," Unger stated in an e-mail to the board on July 16 earlier this year.
In the e-mail, Unger emphasized the First Nation's desire for continual communication throughout the process.
"The sooner you engage with the community, the better your working relationship with them will be," he stated.
Canterra financing
Canterra was one of this year's recipients of the GNWT's mining incentive program, which gives successful corporate applicants up to $100,000 to cover 50 per cent of eligible expenses.
However, the company has had difficulty attracting private investment. Last month the company announced it has closed the first part of its non-brokered private placement of $500,000 from the sale of a mix of regular shares and flow-through shares, which are a kind of share that provides investors with tax incentives to promote investment in junior companies.
The company first announced this round of fundraising in July and extended it through August and September.
The proceeds will be used for Canterra's general working capital and upcoming field programs, which are still being finalized, according to the company's Oct. 20 news release. The field work is being designed follow-up on several target areas warranting additional exploration in the territory.
Canterra currently has six properties in the South Slave area, with its Hilltop site located approximately 170 kilometres from Yellowknife. Two of the other sites are next to major existing mines under development or construction: King is adjacent to the De Beers' Snap Lake diamond mine and Marlin is adjacent to Gahcho Kue.
Representatives from Canterra and Lutsel K'e Dene First Nation could not be reached for comment by press time.
