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.