Nunavut Mining - April 24, 2023

Blue Star Gold building its Kitikmeot resource

Exploration company strives to exceed one million ounces of gold in the near-term

By Derek Neary Northern News Services

There are a couple of established large-scale exploration projects in the Kitikmeot region that are already at the mining stage or rapidly approaching it: Hope Bay and Back River.

Blue Star Gold is aiming to write a similar story at the High Lake Greenstone Belt, approximately 210 km southeast of Kugluktuk.

The company amassed a resource estimate of 572,000 ounces of measured and indicated gold as well as 303,000 ounces of inferred gold as it advances its Ulu project. Both figures are at approximately seven grams of gold per tonne.

“The current Ulu project resource base occurs at our flagship high-grade Flood Zone gold deposit, and two satellite resource centres that lie in close proximity,” said Blue Star CEO Grant Ewing. “In addition to the strong expansion potential at all three resource centres with further drilling, the company has developed an extensive target pipeline of (close to) 100 mineral showings/zones that provide opportunity for significant new discovery.”

Raffi Elmajian, Blue Star’s manager of corporate communications, said the company’s near-term goal is to exceed one million ounces of gold following an anticipated “robust” drilling season in 2023. The longer-term goal is to get into the multi-million ounces range.

“Once you get up to those levels, the multi-million ounces of gold, then you can start looking deeper into the economics — is this going to be worthwhile to become a mine

one day?” he asked rhetorically.

Ulu is a former development site where a camp, airstrip and underground decline into the Flood Zone gold deposit already exist.

Blue Star took over in 2018.

Past operators planned to process gold from Flood Zone at the now defunct Lupin Mine.

“Blue Star’s approach has been to focus on exploration initially in an effort to build up a larger resource base,”

Ewing said, noting that the company has rights to 267 square km of mineral properties in the Kitikmeot.

Fred Pedersen, executive director of the Kitikmeot Inuit Association (KIA), was complimentary of the company’s efforts.

“KIA has a good working relationship with Blue Star Gold Corporation. They have been proactive working with KIA on reclamation issues at the Ulu site, while also making new gold discoveries in the area,” said Pedersen.

Blue Star’s reclamation work, initiated in 2020, includes the creation of a landfill and a soil treatment facility.

Ewing said he and his board and staff understand that developing mineral exploration projects in Nunavut requires “adherence to some of the most stringent environmental requirements in the world.”

“The company uses rigorous scientific investigations and leading-edge methods and technologies to advance and develop its projects and generate social and economic benefits while protecting the environment,” he said.

“Blue Star supports a collaborative approach to mineral exploration and devel-

opment, and the company believes that conservation and cultural interests can be protected while enjoying the strong economic benefits that mineral exploration and development can create, to the benefit of all stakeholders.”

Elmajian added that Blue Star seeks to hire as many local people as possible. He said he has received phone calls from residents of Kugluktuk and other Northerners who are looking forward to getting back to work for the field season.

“One individual who is a core cutter is extremely excited because he has been teaching his son, and his son wants to get involved this year,” said Elmajian.

Forces move gold prices

Over the past year, the price of gold fell to a low of near $1,600 per ounce in November but then recovered to break through the $2,000 per ounce mark in early April.

Elmajian described the price of the precious metal as being “very cyclical” in nature. Many global factors influence the ability to raise money from investors, he noted. Recent issues with a few banks in the United States caused some people to flock to gold and that helped drive up the price.

“Gold always seems to be that sort of safe haven in the industry,” he said.

He also cited Agnico Eagle’s presence in Nunavut, with designs on expansion, and the attention brought by B2Gold’s bid for Sabina Gold and Silver as beneficial factors.

“I think the sentiment up in the region that we’re working out of is growing positive and people are starting to take notice,” said Elmajian.

Workers with Blue Star Gold conduct field work. The company plans to resume drilling at its Ulu project, approximately 210 km southeast of Kugluktuk, this spring and summer. Photo courtesy of Blue Star Gold

Blue Star Gold staff engage in conversation in the core logging area at the Ulu project in the Kitikmeot region. The company has amassed a resource of 572,000 ounces of measured and indicated gold as well as 303,000 ounces of inferred gold. Photo courtesy of Blue Star Gold

Seeking free, prior and informed consent from Inuit and Indigenous peoples must become the standard

It is my pleasure to contribute in the feature on mining. I take this opportunity to discuss the bill that I have introduced, Bill C-326 an Act to amend the Territorial Lands Act. I introduced the bill at the House of Commons in March 2023.

The bill seeks to amend section 12 of the act so that it would now read (bolded words are what would be added):

The Governor in Council may make regulations for the acquisition of mining rights in, under or on territorial lands and the payment of royalties in respect of the acquisition, but such regulations shall

a) Provide that any such acquisition requires the free, prior and informed consent of Inuit and any other Indigenous peoples who would be directly affected by it; and

b) Provide for the protection of and compensation to the holders of surface rights.

Canada is founded on Indigenous peoples’ lands. Given this fact, federal, provincial and territorial legislative, policy, program and service delivery must respect Indigenous Peoples’ inherent rights, especially when it comes to lands, wildlife management and addressing social issues.

This bill stems from my work

before I became the Member of Parliament for Nunavut, a role I am privileged to undertake. I was honoured to work with hunters and trappers’ organizations and other rightsholders and stakeholders while the Nunavut Impact Review Board was reviewing the Phase 2 application submitted by Baffinland Iron Ore Mines. My passion to ensure the protection of the environment came directly from Inuit that I worked with. The important values of being guided by the environment and, in turn, protecting it is an important relationship for Inuit.

The continued impacts of colonial laws and policies continue to have a detrimental impact on the well-being of Inuit and Nunavummiut. While these impacts remain, Inuit and Indigenous communities are revitalizing their voices. Indigenous communities are demanding changes and demanding to be part of the decision-making. For too long, governments have taken and ignored those voices. Communities have called on the government and industry to respect and uphold rights to their lands.

The expectation that the mining sector should generate employment because of federal and territorial failures is a dangerous assumption. This assumption has driven

the conversation about economic development without regard for Canada’s treatments towards Indigenous peoples.

My bill provides a pathway for immediate action to advance the commitments made in the United Nations Declaration on the Rights of Indigenous Peoples Act to take all measures necessary to ensure that the laws of Canada are consistent with the declaration.

My bill generates a pathway to ensure that Inuit and Indigenous peoples provide free, prior and informed consent (FPIC) at the acquisition stages. While the duty to consult remains an important legal obligation, ensuring FPIC must become the predecessor in this continuum.

Some communities may wish for their lands to be developed. Other communities may prefer to protect their lands from development. Regardless, the government must actively seek their consent before any rights to explore and mine are given. This approach will go a long way provide certainty to those seeking to invest in Nunavut. In Canada, actively obtaining freely given consent from Indigenous peoples is the law, and the Territorial Lands Act must be brought up to date.

— Lori Idout is the member of Parliament for Nunavut.

NDP MP Lori Idlout rises during Question Period in the House of Commons on Parliament Hill in Ottawa on June 3, 2022. From March 12 to 19, Idlout led a trip as part of an ongoing House of Commons Indigenous and Northern Affairs committee study that included stops in Cambridge Bay, Kugluktuk and Yellowknife. (Justin Tang/Canadian Press)

Northern News Services

Critical minerals key to going green: Senator Patterson

Critical minerals are the key to progress in this country. Every ambition related to a greener, more sustainable, and “just transition” in this country is reliant on stable, steady access to critical minerals.

Despite mining often being demonized in certain quarters of the country, advocates and lobbyists helped the government understand this reality and it resulted in $3.8B to support the exploration, mining and refinement of 31 critical minerals in Budget 2022. They later released their Critical Minerals Strategy titled, “From Exploration to Recycling: Powering the green and Digital Economy for Canada and the World.”

The funding alongside the strategy will be significant as we move toward a more sustainable future; however, the North cannot be left behind.

When we talk about supporting exploration and mining of critical minerals, we should consider projects like the Grays Bay road and port project. This project is timely as building an all-weather road to the Coronation Gulf beginning in Yellowknife will be a catalyst for the development of the rich mineral resources, both currently discovered and in future – including known deposits of critical minerals –from the very rich Slave geological province at a time when critical minerals are priorities for our federal government.

It is this road and port which will be the vehicle for unlocking Nunavut’s ability to support the current priority of our federal government to supply critical minerals through Canada’s Critical Minerals Strategy. It is this strategy which could support the cost of vital, multi-purpose, multi-user infrastructure to make the production of critical minerals feasible in Nunavut.

On Dec. 21, 2022, the Liberal government published draft regulations requiring that all new passenger vehicles and light trucks sold in Canada after 2035 be electric zero-emission vehicles. The rules will be phased in gradually, starting with a 20 per cent requirement in 2026. However, electrification is outpacing the mining of the required raw materials.

According to the Canadian Mining Journal, it takes an average of seven to 10 years to permit and build a mine in Canada. Conversely, it takes two to five years to build a new battery plant, and some gigafactories can be built in just a few months. Many of those on a waiting list for a new electric vehicle will tell you that we simply cannot meet the demand for electrified vehicles at this moment.

Renewable energy infrastructure

In terms of alternative energy, Natural Resources Canada writes on its website that, “The Government of Canada views nuclear energy as an important component of a diversified energy mix. It has taken necessary measures to ensure the long-term development of nuclear energy as a sustainable energy source in meeting our existing and future energy requirements.”

Since the Standing Senate Committee on Energy, Natural Resources and the Environment released its report, “Powering Canada’s Territories” in 2015, there have been many advances in renewable energy infrastructure. Wind turbines can now more reliably withstand Arctic weather conditions; batteries for solar power have advanced in design and accessibility; and small nuclear reactors (SMRs) are increasingly being recognized for their many advantages. The advantages of SMRs include the fact that they are relatively easy to construct; they are modular and so you can expand the project to fit the growing needs of communities easily; and they are extremely safe sources of energy. It is also significant that Canada is the world’s fourth largest uranium producer, accounting for 9 per cent of the total uranium produced globally.

In Nunavut, the Kiggavik deposit in the central region of the territory – the Kivalliq – has the potential to be another Athabasca Basin and one only needs to look at how the primary, secondary and tertiary industries resulting from Cameco’s Cigar Lake and McArthur River mines, to know the potential that rich resources and sustainable development can boost the local economy and shape and entire region.

Another major green initiative that Canada can contribute to is the move to “green steel.”

The World Economic Forum, in its July 11, 2022 blog post discuss the carbon footprint of steel and the trend to move toward green steel, which is essentially steel made by electric furnaces as opposed to the traditional blast furnaces that are fed by coal. All steel cannot be green steel, as it requires low carbon hydrogen and high-grade ore.

Baffinland Iron Mine’s ore grade is the quality that green steel producers would require. Building the train to Steensby,

as currently permitted, would enable our territory to participate in a worldwide movement in a significant manner. This demand will not abate anytime soon and the reserves at Mary River could lead us to be a major supplier of high-grade iron ore for the green steel movement for the next 100 years.

Nunavut can play a vital role in achieving our national

ambitions with regard to critical minerals and a greener economy. We just need to make sure we make the right investments to meet these goals.

—Senator Dennis Patterson is a former premier of

Northwest Territories who served for 16 years in its Legislative Assembly. He played a key role in the creation of Nunavut and represents the territory in the Senate.

Nunavut Senator Dennis Patterson, right, shakes hands with U.S. President Joe Biden during Biden’s visit to Ottawa in March. The American president has made critical metals a high priority, as has Prime Minister Justin Trudeau, seen at left. CBC screen shot

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Bringing the mining company and the community together

Celestino Uyarak strives to bridge the gap between Baffinland and Iglulikmiut

By Derek Neary Northern News Services

Former Iglulik mayor Celestino Uyarak is accustomed to bringing parties together and finding resolutions.

He figured he could put those skills to work as a knowledge holder and community relations guide with Baffinland Iron Mines, a role he took on last October.

“I thought I could get feedback to help out the relationship between the community and the mine,” he said, adding that he has experience interacting with community working groups, mining representatives and the hunters and trappers organization, among others.

He also wants to engage youth in learning about employment options within the industry.

“The community has more opportunity in the future for our young people,” he said.

Overall, he said his impression is that most Iglulik residents are supportive of the Mary River iron mine, but he acknowledged that some of them have concerns about protecting the land and the water.

He hopes a community committee can be formed with delegates from the municipality, the hunters and trappers and other organizations to address issues surrounding mining activities.

“It’s very important to have work-

ing groups in each community,” he said.

Uyarak said he doesn’t mind being called upon at any time by those who have questions about the mining operation. If he doesn’t know the answer immediately, he’ll endeavour to find out and get back to people.

“I think I’m very comfortable doing that,” he said.

Udlu Hanson, Baffinland’s vice-president of community and

strategic development, called Uyarak an important voice in the community.

“He is very approachable which allows him to connect easily with his fellow community peers. He is also well known and well respected in his community for his long history of public service as mayor and assistant senior administration officer,” said Hanson. “He is still very active in the community. He is also well known for his generosity, his volunteerism and his commendable need to give back. Most recently, Celestino has been involved in a wellness programs supporting men in Iglulik.”

Uyarak is one of several Baffinland employees serving in a knowledge holder and community relations guide position. He and his colleagues in Pond Inlet, Sanirajak and Arctic Bay hold weekly video conferences to give each other advice. Clyde River also has a similar position.

“The communication between us is good,” he said.

Baffinland stated that the positions are designed to enhance communications and increase transparency.

“The Inuit knowledge holders are grounded in Inuit ways, customs, traditions, and ceremonies. They will share their knowledge with Baffinland teams, to ensure the company provides tailored, relevant and culturally appropriate services in their communities,” Baffinland says of the job description. “They will also

contribute to the review and development of Inuit Qaujimajatuqangit (IQ) documentation and will support a continuous integration of IQ in our operations and interactions.

“The community relations guides are skilled in hunting and harvesting, and have a deep understanding of local wildlife, in addition to having knowledge and perspective on the socio-economic state of their community. They will provide advice to Baffinland leaders to enhance effective community relations, liaising directly with residents of their community to discuss any concerns, and responding to questions about Baffinland’s operations. In concert with Inuit knowledge holders, they will pass on what

Elders have shared with them over the years, in relation to a variety of environmental and wildlife topics, as well as people, careers and training activities.”

When he decided to accept the job with Baffinland, Uyarak was aware that he might be labelled a “sellout” to industry by some people in Iglulik. He said he’s faced criticism in other roles in the past.

“I’m quite used to that. Before I took this role, when I was with the management with the hamlet, I had the same thing. Also working for search and rescue, I had the same response. Also as the mayor, and now with Baffinland. But I still have to move forward.”

Celestino Uyarak served as Iglulik’s mayor for three years after being elected in 2016. He now works as a knowledge holder and community relations guide with Baffinland Iron Mines. Photo courtesy of Celestino Uyarak

The Mary River iron mine is about 240 km from Iglulik. Celestino Uyarak has visited the site multiple times. He has taken a job with Baffinland where he’s responsible to provide people with answers about the mining operation. Photo courtesy of Baffinland Iron Mines

From fuel truck driver to supervisor

Mark Pitseolak oversees energy and infrastructure department at Agnico Eagle’s Meliadine gold mine

By Derek Neary Northern

Services

Mark Pitseolak started working for Agnico Eagle in 2020, shortly before the Covid-19 pandemic struck and caused significant disruptions to the mining company’s Nunavut operations, including sending Nunavummiut miners home for lengthy periods for the safety of the communities.

“It was a very interesting time to start. My career was uncertain,” said Pitseolak. “It was pretty hard. I have three kids and a common law back home (in Ottawa) and it was pretty hard to leave them for a period of time — at that time we were doing longer rotations than normal.”

During part of the pandemic, workers were putting in 28 days at the mine site, followed by 28 days off, up from the usual two weeks in/two weeks out, because the company wanted to reduce travel due to the risk of Covid.

“It was very difficult for my family,” Pitseolak recalled. While at the mine site, he stays in contact with his loved ones through FaceTime after his 12-hour shifts are over.

“My kids, if they’re still awake, I get to talk to them almost every day,” he said. “It helps a lot.”

Pitseolak draws an analogy of a hunter.

“A long time ago, the Inuit would go hunting for up to a month at a time and come back with food. Like a modern Inuk, I go to work for two weeks and come back with a pay cheque,” he said. “The first thing (when I get home), I hug my kids. They’re so happy. Everyone’s happy that I’m home. My other half, I can almost see her shoulders drop when I get home, from joy. I can take over the parenting.”

Despite the additional challenges posed by the pandemic, Pitseolak persevered. He started out as a fuel truck operator at the Meliadine gold mine, north of Rankin Inlet, and he was taught to operate other equipment, such as a telehandler, which has a telescopic boom and a service loader for snow removal and transporting materials.

“I hadn’t operated any heavy equipment until I came here,” said Pitseolak, who was in the construction industry — primarily roofing — for several years in Ottawa prior to starting with Agnico Eagle.

One day a little over a year ago, his boss in the environment and infrastructure department announced that he would soon be retiring. He said he was looking for someone to step up and take his job. Pitseolak considered the possibility, but first he wanted to ensure he wasn’t stepping on anyone’s toes. Nobody immediately jumped at the opportunity.

“So I decided to take the role on,” he said. “My supervisor at the time took me under his wing.”

He admitted that taking the promotion took him out of his “comfort zone.” Addressing a group of workers during meetings, for example, is not something he had done previously, so he practised his public speaking skills in church.

He started learning his new duties and responsibilities in 2022 but he anticipates that he will continue absorbing knowledge for a long time to come.

“I think the training will be a lifetime. There’s many things to learn working with other departments. You never stop learning,” he said.

Pitseolak said safety is always at the forefront in the mining industry and it’s his primary concern. He puts emphasis on operating equipment properly and following established procedures. He oversees heavy equipment operation on the surface at Meliadine, such as maintaining the road, haul trucks carrying tailings and loaders removing snow. He

leads a crew ranging from 12 to 19 workers.

Josh Bazar, Pitseolak’s boss, said Pitseolak is fit to be a supervisor due to his “dedication, professionalism and personal drive.”

“His leadership and promotion of the company’s values will be influential to future employees as they grow within the department and company,” said Bazar. “We are excited and proud to be part of Mark’s development and will continue to give him the tools and mentorship required to realize his full potential.”

Pitseolak envisions himself continuing to grow in the job.

“Hopefully I’ll be here for many years,” he said.

News

Mark Pitseolak was promoted to become energy and infrastructure supervisor at Agnico Eagle’s Meliadine gold mine, north of Rankin Inlet. “I think the training will be a lifetime. There’s many things to learn working with other departments. You never stop learning,” he said. Photo courtesy of Agnico Eagle Mines/ MicrosoftTeams

Port and road project on shaky ground

Neither the Kitikmeot Inuit Association nor the Government of Nunavut is taking the lead on project

By Derek Neary Northern News Services

Whether a Grays Bay port and road project — a road to mineral resources that would make numerous projects feasible — will ever come to fruition remains unclear.

The Kitikmeot Inuit Association (KIA), although supportive, is no longer at the forefront of championing the initiative.

“KIA conducted an independent business case study of the Grays Bay port and road project. The results indicate that the only viable means to permit, build and operate the project is if the government was the proponent and funder,” stated Fred Pedersen, executive director of the KIA. “The federal government, along with key stakeholders like the GN (Government of Nunavut) and KIA, is well positioned with the resources required to complete the project. KIA remains a strong advocate of the Grays Bay road and port project and will work with the federal and territorial governments and other stakeholders to complete a road and port in the Kitikmeot region.”

In the legislative assembly on March 14, Economic Development and Transportation Minister David Akeeagok, responding to questions from Kugluktuk MLA Bobby Anavilok, said, “This project, our government has always been in a supportive role if this road is to be built. There are a number of ways that I’m trying to help see this dream come to reality.”

While meeting with federal Natural Resources Minister Jonathan Wilkinson, Akeeagok said he expressed “… that Grays Bay is one of the projects that we need to see in order for the critical minerals to be extracted within Nunavut if we’re going become self-reliant on our mineral extractions as a country.”

He added that he’s also discussed Grays Bay with Nunavut Senator Dennis Patterson, who he described as “very proactive in this project” and with the Northwest Territories’ premier and infrastructure minister, as that territory hopes to build an all-season road to the Nunavut border

that would link with the Grays Bay route.

The Nunavut portion of the road would span 227 km from a deep-water port in the Northwest Passage to the former Jericho diamond mine. A second phase, comprising 95 km of road, would hook up with the Tibbitt to Contwoyto winter road, which may become a year-round artery.

The Nunavut side of the proposal carries an estimated $550-million price tag.

The KIA and the GN sought $415.1 million from the federal National Trade Corridors Fund in 2017 with a desire to build Grays Bay. It was unsuccessful. In 2018, the GN announced that it was withdrawing from the project as the $138 million that represented its share of the cost would go against its debt cap and be too limiting.

While the fate of Grays Bay remains uncertain, industry representatives are forging ahead with or without it.

“We have built our own port facility on Bathurst Inlet (in 2019). We ship our supplies in during the summer shipping season. We then wait for winter and build an ice road (173 km) from our port facility to the Goose Mine site and haul all our equipment along the temporary ice road,” explained Nicole Hoeller, vice-president of communications with Sabina Gold and Silver. “We fly in consumables and people — and other equipment from time to time. Once in production, we would fly out the (gold) bars.”

At Blue Star Gold’s Kitikmeot Ulu project, Raffi Elmajian, the company’s manager of corporate communications, said it would be a huge boon to the company if Grays Bay proceeds, but it wouldn’t necessarily be a deal-breaker if the project never comes to fruition.

“I think we’re moving forward regardless of what happens with Grays Bay. Obviously it would be a huge catalyst to our company. That proposed road will run right through our project, pretty much. That would add an enormous amount of value to the Blue Star story, obviously, in regards to infrastructure,” said Elmajian. “But we’re well prepared to move forward without it happening. We’re able to put together, if need be, winter roads and a makeshift port for ourselves to be able to move equipment in and out, if we

get to that level. If the grade (of gold) and the ounces in the ground are healthy enough, then a mine could be developed really anywhere. There’s a lot of places in the world that are quite remote that have made it happen. Our peers over to the southeast, Sabina (Gold and Silver) has been able to do so and prove out what they’ve got in the ground.”

The Grays Bay port and road project is estimated to cost $550 million to build. The Kitikmeot Inuit Association has pulled back from its role as the primary project advocate. Image courtesy of The Senate of Canada

Government of Nunavut updating mining regulations Rules for industry, environment, infrastructure, community benefits and role of critical minerals among areas to be examined

by

The Government of Nunavut’s mineral exploration and mining strategy, known as Parnautit, is in the process of being updated for the first time in approximately 16 years.

“It was the first strategy addressing the territory’s mineral resource sector after Nunavut came into being. A lot of good work went into creating it, which turned out to be a strong document. The strategy has held up well over the past years,” said Paul Budkewitsch, manager of minerals with the Department of Economic Development and Transportation.

The modernization will look at the regulatory framework that the industry operates under, environmental concerns, supportive infrastructure, community benefits (direct and indirect) and the geo-scientific information available that goes into mineral resource investment decisions, according to Budkewitsch. These areas will be discussed with the mineral exploration and development industry, responsible government departments, Inuit organizations, communities and institutions of public government.

“As time passes, some issues gain or lose relative importance, and new ones may also arise through the discovery process of dialogue with our stakeholders,” Budkewitsch said.

The recent emphasis on critical minerals by the federal government will be among the items considered in the review, he acknowledged.

“The resource sector in Nunavut is important not only for Canada, but as part of that larger global picture,” he stated. “Mineral markets are influenced by worldwide cycles of supply and demand, and there are many components to consider in the strategy. Critical minerals, however, will be of significance in the strategy. In recent years they have become increasingly important, particularly the battery metals, and will likely be a driving factor in world markets for some time to come.”

The review process is expected to take about two years to complete.

“Parnautit sets a high bar for us and we want to do it justice with an equally meaningful new strategy to support the economic opportunities of Nunavummiut,” Budkewitsch said of the amount of time to be invested.

Nunavut Tunngavik Incorporated (NTI), which oversees implementation of the land claim, is among the key participants in the update of the mining and exploration strategy.

NTI has its own Mining Policy and Uranium Policy, passed initially in 1997 and again in 2007.

“The policies are reflective of the different points of view — NTI and RIA (regional Inuit associations) are land and mineral owners and GN is not — but they are consistent in many ways,” stated Carson Gillis, Nunavut Tunngavik’s director of lands and resources.

“The discussions are only just beginning. The GN would like to open a dialogue to identify and discuss the key issues that affect the mineral exploration and mining sector, develop options for actions that the GN can take to address issues within

their jurisdiction, and develop GN positions for key issues that affect the sector even if, at this time, they are outside of Government of Nunavut jurisdiction,” Gillis added.

Parnautit is also separate from the Nunavut Mining Regulation, which governs mining and exploration activity on Crown lands and falls under federal jurisdiction.

In light of some of the potential changes to Parnautit, there may be recommendations to amend the federal regulations, but Budkewitsch said because federal jurisdiction over mining on Crown lands is expected to be transferred to the territorial government, it’s most likely it will be left up to the Government of Nunavut to make its own modifications in the years ahead.

In the legislative assembly on March 10, Economic Development and Transportation Minister David Akeeagok told his colleagues that when Parnautit was released in 2007, Nunavut

had no operating mines operating and fewer than 100 people employed in seasonal exploration work. By comparison, there are now more than 1,000 Inuit employed full-time in “well-paying jobs, supporting their families and communities,” the minister said.

“Our growing mining sector has brought significant investments to many parts of our territory. We must work to ensure Nunavut remains an attractive and competitive jurisdiction for the long-term benefit of Nunavummiut,” said Akeeagok. “Critical minerals are becoming more important for supporting a green economy where Nunavut can play a part. Exploration activity and the mining industry are strong cornerstones in our economy, creating many opportunities for Inuit-owned businesses and a high and sustainable quality of life for Nunavummiut.”

Derek Neary Northern News Services

The Government of Nunavut has started consultations on its mineral exploration and mining strategy, known as Parnautit. These regulations set rules for the mining and exploration industry. Seen here is the former Jericho diamond mine in Nunavut. Photo courtesy of Agnico Eagle

Agnico Eagle sets sights on nearly 800,000 ounces of Nunavut gold in 2023

Mining company lays ground for Meliadine mine expansion and more Inuit employees

By Derek Neary Northern News Services

processed, is to produce just over 400,000 ounces, a significant increase from 275,000 ounces in 2022.

At Meliadine, the expec-

tation is to extract up to 375,000 ounces of gold this year.

The company is proposing to expand its Meliadine mine,

north of Rankin Inlet, by developing the Tiriganiaq-Wolf underground deposit and going underground at the Pump, Fzone and Discovery

zones. This would entail an additional 225 camp rooms for staff, a new airstrip, a wind farm and disposal of tailings and waste rock in a designated pit and a wind farm. The initiative is projected to extend the mine life at Meliadine to 2043, an additional 11 years.

The company has already started public consultations on this proposed project and has encountered some voices of opposition at the community level, primarily based on environmental and wildlife concerns. Martin Plante, vice-president of Nunavut operations for Agnico Eagle. said the company welcomes such feedback and adapts its projects accordingly. He cited the installation of a water line from Meliadine to Melvin Bay. There were initial misgivings expressed over the line’s potential to affect caribou, so Agnico Eagle acted on recommendations to bury the line underground to minimize any impact.

“We adapted our project on this feedback, so we see that really positively to receive those comments,” said Plante. “We want to be in Nunavut for the long term and we believe there is a way to responsibly achieve mineral development and economic prosperity while meeting the conservation of the territory and the wildlife as well.”

The Kivalliq Inuit Association (KIA) ultimately came out in support of that water line.

“The Kivalliq Inuit Association worked with Agnico Mines and other intervenors to find resolutions to its concerns in advance of and during this hearing. We are satisfied that our technical concerns have been addressed through the new information provided, commitments made by Agnico Eagle and the proposed terms and conditions we have filed with the Nunavut Impact Review Board,” KIA president Kono Tattuinee stated in June 2021.

As for the proposed Meliadine expansion, the KIA is offering few comments to the media.

“At this time the project is under review proceedings. All the information KIA has submitted is in the public website of the Nunavut Impact Review Board. KIA will not make any further comments until the review process is complete,” reads a statement sent by Hunter Tootoo, Tattuinee’s executive assistant.

In correspondence sent to the review board in late February, KIA outlines a need for additional information from Agnico Eagle in order to reach conclusions on several aspects of the Meliadine expansion.

Continued on page B11

Doris North remains on hold

At the Hope Bay project in the Kitikmeot region, the Doris North gold mine was not in production in 2022. Agnico Eagle has been concentrating on exploration in the area. This year will feature $30.6 million worth of work to complete 72,200 metres of drilling, including 30,800 metres of underground exploration drilling at the Doris deposit in hopes of adding to the existing mineral reserves. Surface drilling is also planned at the nearby Madrid deposit.

Plante wouldn’t put a date on when gold production will resume at Hope Bay.

“We need a sufficient volume (of gold) to make that project sustainable,” he said. “Our goal is not to start and shut down again. We want to come with a project that will be opening for a longer-term and for the benefit of the Kitikmeot region.”

Exploration plans at the Meliadine mine add up to $16.6 million to cover 63,200 metres of drilling at the Tiriganiaq, Pump, Normeg, Wesmeg and F-Zone deposits and further development of the exploration drift.

At the Meadowbank Complex, the company expects to spend approximately $15.1 million to do 40,000 metres of drilling at Amaruq underground deposits and at near-surface satellite deposits close to the road and infrastructure around the Meliadine and Meadowbank/Amaruq operations. Any new discoveries at open-pit depths have the potential to extend the life of each mine in conjunction with the extensions of higher-grade underground mineralization at each site.

Inuit employment

Including contractors, Inuit employment stood at around 380 people in 2022.

Also last year, 14 Inuit employees were in the “management and pro-

fessional” and “skilled” categories, excluding contractors.

Since the beginning of March, Ag-

nico Eagle has launched Sanajiksanut, a community-based recruitment program that has resulted in a total

of 198 hires. Forty-one Inuit employees were added during the first quarter of this year.

“Our goal remains that one day our Nunavut mines will be operated and managed by Inuit,” Plante said. Effects of inflation

Agnico Eagle has been wrestling with inflationary pressures and has been focused on ways to reduce its diesel fuel consumption, which represents a major cost, Plante said. That effort to reduce fuel usage also contributes towards Agnico Eagle’s commitment to reduce its carbon output by 30 per cent as of 2030 and to achieve net zero carbon by 2050.

“Renewable energy is a big file for us,” he said, adding that the company is a major supporter of the Kivalliq hydro-fibre link proposal, which would provide a clean source of power. “To us, it goes beyond Agnico Eagle, it’s a nation-building project that will open even further the territory for more mineral development and economic development for Nunavut.”

Employees at the Meliadine mine, where Agnico Eagle is proposing to exploit additional underground gold deposits to extend the life of the mine by an estimated 11 years. Photo courtesy of Mathieu Dupuis/Agnico Eagle

Continued from page B10

One of many massive vehicles owned by Agnico Eagle dumps rock at the Amaruq open pit, about 160 km northwest of Baker Lake. Photo courtesy of Mathieu Dupuis/Agnico Eagle

Agnico Eagle is projecting that its Meliadine mine, pictured, will produce approximately 375,000 ounces of gold this year while the Meadowbank Complex will process more than 400,000 ounces of gold from the Amaruq deposit in 2023. Photo courtesy of Agnico Eagle

Baffinland reverts to quest for southern rail route

Qikiqtani Inuit Association president says stringent monitoring will be needed

Baffinland Iron Mines is hammering out plans in hopes of building a railway to Steensby Inlet.

The company, whose phase two expansion proposal was rejected by the Minister of Northern Affairs last November, is resurrecting the Steensby route to the south on Baffin Island — an idea it had tabled close to a decade ago.

The Qikiqtani Inuit Association isn’t expressing opposition to this latest plan, but its president, Olayuk Akesuk, struck a cautious tone when addressing the railroad project.

“As we saw through the phase two proposal review, there are significant concerns about the potential impact on wildlife if proper

mitigation measures are not implemented,” Akesuk stated. “The placement of the rail for the southern route (to Steensby) will require significant review to ensure that as much as possible the disruption to wildlife can be mitigated.

“Focus on improving adaptive management measures will be critical if there is to be a railway constructed and operated on Baffin Island, particularly in combination with the existing northern road, and mitigation measures must be developed that are acceptable to impacted communities,” he said.

Baffinland president and CEO Brian Penney did not make himself available for an interview.

During a presentation at the Northern Lights business and cultural showcase in Ottawa in February, Penney said Baffinland is attempting to secure financing for the more costly 149-km

railway to Steensby Inlet.

The mining company currently uses a road to truck iron ore from its Mary River site to the port at Milne Inlet. It wanted to construct a 110-km railway to Milne as part of the phase two expansion but approval was not granted.

The project certificate for the Steensby site permits the shipping of 18 million tonnes of iron ore per year, which exceeds Baffinland’s request of 12 million tonnes annually through its rebuffed phase two proposal at Milne Inlet. The company currently has a six million tonne shipping limit per year. It has stated that its objective is to eventually reach 30 million tonnes annually.

Akesuk again emphasized the need for vigilance if the alternative route to Steensby comes to fruition and shipping traffic consequently increases.

“Impacts on wildlife as a result of any increased traffic via rail, tote road and shipping need to be monitored regularly and if there are negative impacts observed which exceed predictions as a result in increased traffic, measures to remedy negative impacts need to be implemented,” he said. “Many lessons were learned, and Inuit observations of current marine impacts were accepted by NIRB (Nunavut Impact Review Board) through the phase two proposal, which was not approved to proceed.

“The commitments made to north rail in the phase two review which were not applied to the project, as well as lessons learned since the original project was proposed more than a decade ago need to be applied to what is proposed for southern rail, Steensby Port, and Ikpikitarjuaq,” said Akesuk.

By Derek Neary Northern News Services

Baffinland Iron Mines has been operating at the Milne Inlet port for close to a decade. With its phase two expansion plans denied by the minister of Northern Affairs, the mining company is now proposing once again to build a railway to the south at Steensby Inlet. Photo courtesy of Baffinland Iron Mines

Making plays for coveted properties

Some companies staking claims for exploration, other companies paying up for projects

By Derek Neary Northern News Services

Things are heating up for some gold, diamond, copper and uranium projects in Nunavut. Here are some recent developments in exploration across the territory.

Project: Back River

Owner: B2Gold

Resource: Gold

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Location: 364 km southwest of Cambridge Bay

Status: Sabina Gold and Silver shareholders approved a $1.2 billion takeover offer on April 12 from Vancouver-headquartered B2Gold, a miner with international holdings.

Prior to that, Sabina accepted a $139-million joint bid in January from CGT Industrial (“CGT”) — comprising Clark Builders, Gisborne Industrial Construction Ltd. and PTW Energy Services — to build the process plant for the Goose mine and other related buildings.

In March, the company released its 2022 year-end financial results, which showed a net loss of $14.4 million as Sabina focuses on the construction of the Goose mine. The Company ended 2022 with cash and cash equivalents and short-term investments of $65.8 million. In February 2022, Sabina secured US$530 million in financing to proceed with building the mine.

Project: Angilak �������������������������������������

Owner: Labrador Uranium

Resource: Uranium

Location: 350 km west of Rankin Inlet

Status: ValOre Metals agreed on March 13 to sell the rights to Angilak to Labrador Uranium for $3 million in cash and 100 million common shares of Labrador Uranium valued at 40 cents apiece.

The 686-square km property has a historical inferred resource estimate of 2,831,000 tonnes containing an inferred 43.3 million pounds of U3O8 and 10.4 million pounds of molybdenum.

Hunter Tootoo, executive assistant to Kivalliq Inuit Association (KIA) President Kono Tattuinee, said Labrador Uranium had not been in touch with KIA as of April 3. In regards to the potential for uranium mining, Tootoo stated, “ValOre Metals have a licence to explore. Exploration is allowed but if and when it comes to mining, any company would be required to follow the established regulatory process.”

Tom Hoefer, executive director of the NWT and Nunavut Chamber of Mines, expressed his hope that the draft Nunavut Land Use Plan will undergo significant revisions in the future to help protect “Nunavut’s great mineral development opportunities in its next version.”

“With respect to critical minerals, uranium is now listed as critical mineral, and Canada has adopted a supportive approach to nuclear power and small modular reactor technology,” said Hoefer. “The EU (European Union), I understand, considers nuclear a green energy to invest in. And nuclear is now recognized as necessary to successfully address climate change. We expect that the public’s support will also increase with this… I understand uranium prices are also increasing as a result, and this would bode well for the higher costs of mining in Nunavut. With both the price and public acknowledgement of uranium, I’m hopeful we will see something happen in Nunavut.”

Project: Chidliak ������������������������������������

Owner: De Beers

Resource: Diamonds

Location: 120 km northeast of Iqaluit

Status: Chidliak, which De Beers has said it would like to turn into a diamond mine, is heading for an environmental review after federal ministers endorsed such a proposal from the Nunavut Impact Review Board (NIRB) in February. NIRB expressed a desire to further analyze unfamiliar technologies that De Beers is proposing to use through its FutureSmart Mining program, such as a modular nuclear reactor and remotely-operated vehicles and mining techniques. There are also concerns relating to impacts on Inuit harvesting and wildlife.

Project: Nagvaak �����������������������������������

Owner: StrategX Elements Corp.

Resource: Graphite, nickel, vanadium, cobalt, copper, silver and platinum group metals

Location: On the Melville Peninsula, southwest of Sanirajak, northeast of Naujaat

Status: StrategX touted on March 7 that, based on drill core intersections and surface grab samples, it has added graphite to the assorted metals found at Nagvaak.

The graphite is described as high grade and jumbo flake. Samples taken from drill intersections included 22.2 per cent graphitic carbon over eight metres.

“Our exploration team is putting the Melville Peninsula on the map as a major new prospective region to discover critical minerals for the global energy transition,” stated Darren Bahrey, CEO of StrategX.

The company indicated that its next steps are to “further evaluate the quality of the graphite in additional surface and drill core samples and determine the extent and dimensions of graphite mineralization at Nagvaak.”

In December, StrategX announced a best drill result of 2.63 per cent copper equivalent over 58 metres, starting at a depth of 27 metres below surface.

Canadian North Resources’ Ferguson Lake project lies approximately 250 km west of Rankin Inlet. The company is on the hunt for nickel, copper, cobalt and platinum group metals at the 254-square-km property. Photo courtesy of Canadian North Resources Inc.

More drill core will be on the way at the Ferguson Lake project. Canadian North Resources is planning 20,000 metres of drilling this year. This follows a 18,144-metre, 68-hole campaign in 2022. Photo courtesy of Canadian North Resources Inc.

A cut and polished fancy colour diamond that was extracted as part of North Arrow Minerals’ 2021 bulk sample at Naujaat’s Q1-4 diamond deposit. Photo courtesy of North Arrow Minerals

Preparations are made for underground drilling at the Back River project, which is now held by B2Gold after that company took over Sabina Gold and Silver in April. Photo courtesy of Sabina Gold and Silver

Project: Ferguson Lake

Owner: Canadian North Resources Inc.

Resource: Nickel, copper, cobalt and platinum group metals

Location: 250 km west of Rankin Inlet

Status: The field season is underway and 20,000 metres of drilling is planned for 2023, the company announced on April 3. This follows a 18,144metre, 68-hole campaign in 2022 at the 254-square-kilometre property. The indicated mineral resource stands at 24.3 million tonnes grading at 0.85 per cent copper, 0.60 per cent nickel, 0.07 per cent cobalt, 1.38 grams per tonne palladium and 0.23 grams per tonne platinum. The inferred mineral resources is estimated at 47.2 million tonnes at 0.91 per cent copper, 0.53 per cent nickel, 0.06 per cent cobalt, 1.4 grams per tonne palladium and 0.25 grams per tonne platinum.

Project: Naujaat ��������

Owner: North Arrow Minerals

Resource: Diamonds

Location: Nine km northeast of Naujaat

Status: Australia’s Burgundy Diamond Mines officially earned a 40 per cent interest in the Naujaat project in February with the cutting and polishing of 0.31 carat and 0.21 carat fancy colour diamonds that were extracted as part of the 2021 bulk sample at Naujaat’s Q1-4 diamond deposit. The refining of the diamonds marked the final step in a $5.6-million financing agreement that the two companies signed in June 2020.

Project: Seal/Storm ���

Owner: Aston Bay Holdings

Resource: Copper, zinc, silver

Location: 120 km south of Resolute Bay

Status: Following the discovery of near surface highgrade copper by project partner and operator American West Metals Limited last year, that company released news in late March that it’s planning to use two drills to bore 10,000 metres this year, almost five times the amount of drilling done during the last exploration season.

Storm encompasses a staggering 3000-sq-km area, including the Seal zinc and silver project.

Project: Bathurst Inlet lithium

Owner: North Arrow Minerals

Resource: Lithium

Location: 80 southwest of the Doris gold mine

Status: North Arrow acquired 100 per cent interest in a Bathurst Inlet lithium property in late February. The site, formerly held by Panarc Resources, is within nine kilometres of tidewater and 12 km from Sabina (now B2Gold’s) port. “With the help of recent satellite imagery, we’ve been able to prioritize target areas for follow up detailed mapping and prospecting for lithium mineralization in early summer 2023,” said Ken Armstrong, President and CEO of North Arrow.

Project: North Thelon

Owner: Forum Energy Metals Corp.

Resource: Uranium

Location: 50 km west of Baker Lake

Status: Forum Energy announced on April 17 that it was turning to the markets with a goal of raising $2 million to drill at its 1,020-square-km Nunavut Uranium Project later this year. The company refers to the territory’s Thelon Basin as “a geological equivalent to the Athabasca Basin,” which is a prolific source of high-grade uranium in northern Alberta and northern Saskatchewan.

Project: Hood River, Ulu, Roma

Owner: Blue Star Gold Corp.

Resource: Gold

Location: 125 km west of Bathurst Inlet

Status: The Government of Nunavut’s Discover, Invest, Grow (DIG) program is injecting up to $250,000 into Blue Star’s drilling activities, the company announced on April 4. A $125,000 initial contribution would be complemented by an equivalent amount following review and approval of the company’s exploration summary report for 2022, Blue Star stated. The company also signalled its intention to participate in DIG in 2023.

Delegates from Gjoa Haven, including MLA Tony Akoak, left, tour the Back River project in September 2022. Photo courtesy of Sabina Gold and Silver

StrategX Elements Corp’s Nagvaak property on the Melville Peninsula boasts graphite, nickel, vanadium, cobalt, copper, silver and platinum group metals. Image courtesy of StrategX Elements

A 10-million litre fuel tank, the first of four to be installed as the Goose gold mine is constructed in the Kitikmeot region. The Back River project recently changed hands as B2Gold acquired Sabina Gold and Silver.

Photo courtesy of Sabina Gold and Silver