Saturday 14th December 2019

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Posts tagged ‘nunavut’

Northern challenge

November 8th, 2019

NWT prosperity depends on rebuilding investor confidence, miners warn

by Greg Klein

NWT prosperity depends on rebuilding investor confidence, miners warn

 

What happens when a mining-based economy runs out of mines? The Northwest Territories risks finding out the hard way but the reason won’t be a lack of mineral resources. For too long, investors have been discouraged from backing territorial exploration. That’s the message the NWT and Nunavut Chamber of Mines delivered to the legislative assembly in Yellowknife last month. Now the industry group awaits a response, one backed with action, as the newly elected government prepares for its four-year term.

The territory’s three mines, all diamond operations, have passed peak production, facing closures over the coming decade. The NWT hosts only a few advanced projects, none comparing in potential economic clout with the big three. The problem contrasts with the NWT’s two northern neighbours, where the industry continues to thrive.

Projections released in July by the Conference Board of Canada call for Nunavut to lead the country in annual economic expansion, with an average 4.6% up to 2025. “Mining will be the main driver of growth, as Agnico Eagle prepares to bring its Meliadine mine and Amaruq satellite deposit into operation, and Sabina works on its Back River project.”

More tepid growth in mining will have repercussions on other areas of the economy, with growth in services-based industries remaining flat for much of the forecast. In all, economic growth in the Northwest Territories is forecast to contract by an average annual pace of 1.6% between now and 2025.—Conference Board of Canada

Yukon “will also experience a boom, with growth of 4.6% this year and 6.2% in 2019,” again thanks to mining. But the NWT faces decline:

“Two new metal mines should help offset some of the losses for the mining sector, but not until after 2020,” the Board stated. “More tepid growth in mining will have repercussions on other areas of the economy, with growth in services-based industries remaining flat for much of the forecast. In all, economic growth in the Northwest Territories is forecast to contract by an average annual pace of 1.6% between now and 2025.”

A lack of exploration spending explains the lack of projects in the pipeline, according to the Chamber of Mines. “The NWT has basically been flat-lining for the last 12 years,” says executive director Tom Hoefer. “That’s a problem because that’s the very investment you need to come up with new mines.”

But it’s a problem industry can’t solve without government help, he emphasizes.

“The government goes to Roundup and other conferences with really good marketing tools and they’re putting out all the right messages, such as: ‘Come unlock our potential.’ But if it’s that easy, why hasn’t the industry picked up?” Hoefer asks.

“Well, it’s because these other things happen.”

His group outlined a number of causes in its presentation to the assembly: high cost of living, relative lack of infrastructure, regulatory uncertainty, unsettled land claims and additional expanses of land (over 30% of the territory) deemed off limits for exploration and development.

NWT prosperity depends on rebuilding investor confidence, miners warn

Benefiting from previously built infrastructure,
NorZinc hopes to begin zinc-lead-silver mining
at Prairie Creek by 2022. (Photo: NorZinc)

Hoefer also mentions “contortions” imposed on companies. As examples he cites some early-stage exploration projects that were sent to environmental assessment, “something that would never happen in southern Canada,” and two companies being required to collect data about lakes from which they might or might not draw water in small amounts for diamond drilling, “a totally new requirement, totally out of step with what happens in the rest of the country.

“What that says to investors is, ‘You’d better be careful when you come up to the NWT because there are these surprises coming out of the woodwork.’”

Convincing the territorial government calls for a different approach than in most of Canada. With no political parties, the Chamber deals with 19 individual MLAs tasked with working on consensus. They put together collective priorities, Hoefer explains, then create a mandate for their four-year term. His group looks forward to seeing the current mandate, expected to be released soon.

“Candidates don’t run on a platform but on a community-by-community basis, saying ‘this is what I would do for our community.’ So the challenge is pulling them all together to serve the entire NWT and try to keep them on that path over the next four years.”

Should problems remain unresolved, however, the territory risks an unfortunate repeat of late 1990s history.

NWT prosperity depends on rebuilding investor confidence, miners warn

Considerable infrastructure remains at the former
Pine Point operation, where Osisko Metals upgrades
Canada’s “largest pit-constrained zinc deposit.”
(Photo: Osisko Metals)

“We were in a similar situation before the first diamond mine opened because the gold mines were winding down. At the same time Nunavut was created, and the new territory pulled a lot of funding away to create a parallel government. The Yellowknife economy really took a dive and housing prices went way down. At the time the government was actually offering $10,000 grants to encourage people to buy homes. We went through a lot of pain then, but I think a lot of people have forgotten that.”

Even Ekati seemed insufficient to buoy the economy. “But when Diavik got its approval the change was palpable. There was this big sigh of relief, money started to flow and the economy turned around.”

Now the challenge is to overturn 12 years of neglect that have made investors “gun shy about the NWT,” he says. “We have to rebuild that trust by showing that things are different now. It’s going to take all of us working together to help make it better.”

With no other industries ready to take mining’s place, “we have to encourage companies to come up here and bring their expertise to do what government can’t do, and that’s turn rock into opportunity.”

 

Current and potential mines: Comparing job numbers and durations

 

NWT prosperity depends on rebuilding investor confidence, miners warn

While updating indicated and inferred resources,
Vital Metals sees near-term potential for a short-lived
operation at its Nechalacho rare earths deposits.
(Photo: Avalon Advanced Materials)

Employment numbers reported by the Chamber for the NWT’s existing diamond mines in 2018 show 1,625 workers at Dominion Diamond Mines’ majority-held Ekati, 1,113 at Rio Tinto’s (NYSE:RIO)/Dominion’s Diavik and 527 at De Beers’/Mountain Province Diamonds’ (TSX:MPVD) Gahcho Kué.

Projections for the territory’s four likeliest potential mines show estimated average annual employment of 363 workers at Prairie Creek (for 15 years), 300 at Pine Point (13 years), 225 at NICO (21 years) and 30 at Nechalacho (four years).

The NWT’s next mine will be Prairie Creek, according to NorZinc TSX:NZC. Built to near-completion by 1982 but never operated, the zinc-lead-silver project reached feasibility in 2017. The company hopes to receive its final permit, for an all-season road, this month. Should financing fall in place, NorZinc plans to begin production in 2022.

Having operated from 1964 to 1987, the Pine Point zinc-lead camp retains infrastructure including an electrical substation and an all-season 96-kilometre link to Hay River, the head of Canada’s only industrial railway north of 60. A previous operator reached PEA in 2017 but current owner Osisko Metals TSX:OM has been drilling the property to upgrade a 2018 inferred resource of 38.4 million tonnes averaging 4.58% zinc and 1.85% lead, for 6.58% zinc-equivalent, Canada’s “largest pit-constrained zinc deposit.”

Fortune Minerals’ (TSX:FT) NICO cobalt-gold-bismuth-copper project reached feasibility in 2014 based on a mill production rate of 4,650 tpd for a combined open pit and underground operation. A further study considered but rejected a rate of 6,000 tpd. Fortune now has several other proposals under consideration to improve the project’s economics and “align the development schedule with the expected deficit in cobalt supply in 2022-23.”

The project sits about 50 kilometres north of Whati, which will have an all-season connection to Yellowknife via the Tlicho road now under construction.

Avalon Advanced Materials TSX:AVL brought its Nechalacho rare earths project to feasibility in 2013 but this year divided the property with another company, privately owned Cheetah Resources which was taken over by ASX-listed Vital Metals in October. Under a $5-million property acquisition that closed soon after the takeover, Vital gets two near-surface deposits while Avalon retains the ground below that. Now working on an update to the indicated and inferred resources, Vital says its deposits show near-term “potential for a start-up operation.”

See the Chamber’s PowerPoint presentation to the NWT government.

Related:

Stanley Anablak of the Kitikmeot Inuit Association supports the Grays Bay all-season road and deep-water port proposed for Nunavut

October 29th, 2019

…Read more

PDAC infographics: Highlighting mining’s contributions to Canada’s economy

October 28th, 2019

by Greg Klein | October 28, 2019

Although Canadian miners hold global stature, Canadians don’t always recognize the industry’s importance to our own country. Yet the numbers tell a story that’s not only impressive but vital to understanding an economy in which mining supports one in 29 jobs and provides the largest private sector source of native employment.

To state the case clearly, the Prospectors & Developers Association of Canada created a series of infographics outlining the industry’s contributions. Check them out yourself by scrolling down to see facts and figures for Canada overall and for each province or territory. Or click on the menu below for a direct link to each jurisdiction.

Canada nationwide | Yukon | Northwest Territories/Nunavut | British Columbia | Alberta | Saskatchewan | Manitoba | Ontario | Quebec | New Brunswick/Nova Scotia | Newfoundland and Labrador/Prince Edward Island

Posted with permission of the Prospectors & Developers Association of Canada.

 

PDAC infographics Highlighting mining’s contributions to Canada’s economy

 

PDAC Yukon mining infographic

 

PDAC NWT Nunavut mining infographic

 

PDAC BC mining infographic

 

PDAC Alberta mining infographic

 

PDAC Saskatchewan mining infographic

 

PDAC Manitoba mining infographic

 

PDAC Ontario mining infographic

 

PDAC Quebec mining infographic

 

PDAC Nova Scotia New Brunswick mining infographic

 

PDAC Newfoundland Labrador PEI mining infographic

Posted with permission of the Prospectors & Developers Association of Canada.

Paved with promises II

October 9th, 2019

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

by Greg Klein

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

The Chinese government’s majority-held Izok Corridor project
would benefit from Canadian infrastructure. (Photo: MMG Ltd)

 

This is the second of a two-part series. See Part 1.

Canada would gain a deep-water arctic port, Nunavut would get its first road out of the territory and mineral-rich regions would open up if two mega-proposals come to fruition. Recent funding announcements to study the Northwest Territories’ Slave Geological Province Corridor and Nunavut’s Grays Bay Road and Port projects could lead to a unified all-season route from a highway running northeast out of Yellowknife to stretch north through the Lac de Gras diamond fields, past the Slave and Izok base and precious metals regions, and on to Arctic Ocean shipping.

In mid-August, as federal and NWT elections neared, representatives from both levels of government announced a $40-million study into a possible 413-kilometre all-season route linking the NWT’s Highway #4 with a proposed Nunavut road. The project would also extend the NWT electrical grid to the Slave region, which straddles both sides of the NWT-Nunavut border.

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

Isolated Grays Bay could become an arctic shipping hub,
helping fulfill a dream that dates back to John Diefenbaker
and, not exactly a contemporary, Martin Frobisher.
(Photo: Grays Bay Road and Port Project)

That same month the federal and Nunavut governments, along with the Kitikmeot Inuit Association, announced $21.5 million to study a possible 230-kilometre Nunavut section. That proposal includes building a deep-sea port at Grays Bay, about midway along the Northwest Passage. Supporters hope to reach the “shovel-ready” stage in two to three years.

A “champion and proponent” of the project, KIA president Stanley Anablak said, “We know that this is only the first step, but if it is constructed, this infrastructure project will be a game-changer with respect to improved community re-supply, marine safety, arctic sovereignty, regional economic development and international investment.”

KIA perseverance helped revive the proposal after Ottawa refused to provide majority funding for the $527-million estimate in April of last year, 18 months before the federal election.

Another supporter is MMG Ltd, with two advanced base metals deposits in the region: Izok holds 15 million tonnes averaging 13% zinc and 2.3% copper, while High Lake shows 14 million tonnes averaging 3.8% zinc and 2.5% copper.

The North’s infrastructure deficit impacts sovereignty, the economy and quality of life

The Nunavut portion of a grand trans-territorial proposal.
(Map: Grays Bay Road and Port Project)

The Kitikmeot region “hosts some of the world´s more attractive undeveloped zinc and copper resources,” MMG stated. “However, located near the Arctic Circle and with no supporting infrastructure, these resources have remained undeveloped since their discoveries roughly 50 years ago.”

But could a supposed nation-building project become a nation-buster, compromising sovereignty for the sake of another country’s new silk roads? The proposal’s main beneficiary “will be the Chinese government, more so than the government of Nunavut or the government of Canada,” Michael Byers told the National Post in August.

About 26% of MMG stock trades on the ASX. China’s state-owned China Minmetals Corp owns the rest.

Byers, a political science prof and holder of the Canada Research Chair in Global Politics and International Law, “does not see a problem with a Chinese-controlled company operating mines in Canada,” the NP stated, “but he wonders if the company will be allowed to bring in Chinese workers to build the road and if Canadian taxpayers should foot the bill.”

The prospect of a Chinese company importing Chinese workers for a Canadian resource project has already been demonstrated by HD Mining International. In 2012 the company planned to staff underground operations at a proposed British Columbia coal mine exclusively with Mandarin-speaking Chinese. The mine was later put on hold, but not before an 18-month bulk sampling program conducted entirely by Chinese workers.

A new Grays Bay port and 350-kilometre all-season road formed part of the 2012 pre-feasibility study for MMG’s proposed mine. The company has since backed away from the estimated $6.5-billion price tag, calling for collaboration with others to build regional infrastructure.

We know that this is only the first step, but if it is constructed, this infrastructure project will be a game-changer with respect to improved community re-supply, marine safety, arctic sovereignty, regional economic development and international investment.—Stanley Anablak,
president of the
Kitikmeot Inuit Association

Certainly other companies would benefit too, as would the communities represented by the KIA. And as for sovereignty, neglecting infrastructure would cause the greater setback. That’s the perspective of a Senate report issued in June that called for several measures to expand the northern economy and enhance its culture. “The impact of federal under-investment hits hardest on the Arctic’s greatest asset, Indigenous youth,” the committee emphasized. “Opportunities for nation-building can no longer be missed.”

Among the senators’ priorities were energy and communications, as well as transportation, for the benefit of communities and industry. The committee recognized that mining comprises “the largest private sector employer in the Arctic, contributing to 20% to 25% of the GDP of the northern territories and supporting about 9,000 jobs directly, or one in every six jobs.”

The report also noted “growing global interest in the Arctic and rising international rivalry outside of the Arctic. Several non-arctic states in Europe and Asia have developed arctic policies or strategies.” Canada’s sovereignty over the Northwest Passage and other arctic waters depends on the principle of use it or lose it, the committee suggested.

The Northwest Passage route to Asia had been an alternative considered by Baffinland Iron Mines, the Nunatsiaq News reported last month. With ambitious infrastructure proposals of its own, the Baffin Island company currently relies on  trans-Atlantic routes to Europe and has also used Russia’s Northern Sea Route to reach Asia.

As part of its Phase II plans to increase production, Baffinland has applied for permission to build the territories’ second railway, which would run north from the Mary River mine to the company’s Milne Inlet port, now reached by a 100-kilometre freight road. The new track would precede a 150-kilometre southern rail extension to a port the company would build at Steensby Inlet. The Steensby route and facilities received environmental approvals in 2014.

This is the second of a two-part series. See Part 1.

Related reading: Reaching arctic mines by sea.

Paved with promises

October 7th, 2019

The North’s infrastructure needs get some attention from campaigning politicians

by Greg Klein

This is the first of a two-part series. See Part 2.

Could this be the time when decision-makers finally get serious about Northern infrastructure? With one territorial election just concluded and a deficit-budget-friendly incumbent federal party campaigning for re-election, Yukon, Northwest Territories and Nunavut might have reason to expect definitive action demonstrated by men, women and machinery at work. But while some projects show real progress, much of Canada’s Northern potential remains bogged down in talk and studies.

The North’s infrastructure deficit gets some attention from campaigning politicians

That’s despite some $700 million allocated to the North in Ottawa’s pre-election budget and months of Liberal spending promises since then. Not all that money was intended for infrastructure, however, and even some of the projects labelled that way turn out to be social or cultural programs. Not necessarily new money either, much of it comes out of Ottawa’s $2-billion National Trade Corridors Fund, now two years into an 11-year program that promised up to $400 million for transportation infrastructure in the three territories by 2028.

Yukon, once again home to active mining, has $157 million planned to upgrade the North Klondike Highway from Carmacks up to the mineral-rich White Gold region, where the Dempster Highway branches off towards Inuvik.

The Klondike section slated for upgrades has connections to a new mine and a soon-to-be revived operation. Highway #11 turns east from the Klondike, meeting with a 90-kilometre year-round service road to Victoria Gold’s (TSXV:VIT) recently opened Eagle operation.

The Minto copper-silver-gold mine that Pembridge Resources plans to restart in Q4 has a 20-kilometre access road with seasonal barge service or ice bridge crossing the Yukon River to the Klondike Highway at Minto Landing. From there, the company will ship concentrate to the Alaska Panhandle deep water port of Skagway.

The North’s infrastructure deficit gets some attention from campaigning politicians

With no deep water facilities of its own, Yukon connects
with the Alaskan port of Skagway and, pictured above,
the B.C. port of Stewart. (Photo: Stewart Bulk Terminals)

Intended to increase safety and capacity while addressing permafrost thaw, the North Klondike Highway project gets $118 million from Ottawa and $29 million from the territory. The money will be spent over seven years beginning in 2020.

A July feasibility report for BMC Minerals’ Kudz Ze Kayah polymetallic copper mine foresees concentrate shipment along a 24-kilometre access road to southern Yukon’s Highway #4, part of a 905-kilometre journey to Stewart, British Columbia, the continent’s most northerly ice-free port.

Another project approaching development but more distant from highways, Newmont Goldcorp’s (TSX:NGT) proposed Coffee gold mine calls for a 214-kilometre all-season road north to Dawson City. But with upgrades to an existing service road, the route would require only 37 kilometres of new construction.

In the NWT, work began last month on the Tlicho all-season road to connect the hamlet of Whati with Yellowknife, 97 kilometres southeast. Expected to finish by fall 2022, the $200-million P3 project would replace an existing ice road, giving communities year-round access to the highway system and encouraging resource exploration and development.

[The Tlicho road], which includes Indigenous participation from the Tlicho Government, is great news for our industry and a positive step forward in addressing the infrastructure deficit in the Northwest Territories.—Gary Vivian, NWT and Nunavut
Chamber of Mines president

About 50 kilometres north of Whati, Fortune Minerals’ (TSX:FT) NICO cobalt-gold-bismuth-copper project undergoes studies for a scaled-down feasibility update in light of lower cobalt and bismuth prices. Fortune has already received environmental approval for a spur road to Whati, part of a plan to truck NICO material to Hay River where the territories’ only rail line (other than short tourist excursions in southern Yukon) connects with southern Canada.

A much more ambitious priority of the NWT’s last legislative assembly was supposed to have been the Mackenzie Valley Highway, a Diefenbaker-era dream that would link the territory’s south with the hamlet of Tuktoyaktuk on the Arctic Ocean. The subject of numerous studies, proposals and piecemeal construction for about 60 years, the proposal has received more than $145 million in taxpayers’ money since 2000.

A 149-kilometre stretch from Inuvik to Tuk opened in 2017, linking the ocean with the Dempster route to the Yukon. Now underway are studies for a 321-kilometre route between Wrigley and Norman Wells, where further driving would depend on an ice road. Assuming receipt of environmental approvals, native agreements and an estimated $700 million, the NWT’s last assembly hoped construction on the Wrigley-to-Wells portion would begin in September 2024.

Far more ambitious proposals for the NWT and Nunavut took initial steps forward with funding announcements made just prior to the federal election campaign’s official start. Part 2 of this series discusses the Slave Geological Province Corridor and Grays Bay Road and Port projects.

Nunavut art, Nunavut gold celebrate Nunavut anniversary numismatically

June 26th, 2019

by Greg Klein | June 26, 2019

A bit late for the April 1 birthday but an impressive work just the same, the Royal Canadian Mint has unveiled its latest collector coin commemorating Nunavut’s creation. The gold comes from two territorial mines and the design from a Nunavummiuq artist.

Nunavut art, Nunavut gold celebrate Nunavut anniversary

The most recent coin displays
Germaine Arnaktauyok’s work.

“The Mint is passionate about honouring Canadian talent and celebrating our exceptional cultural diversity through beautifully crafted coins,” said president/CEO Marie Lemay. “We are proud to honour Germaine Arnaktauyok’s artistic legacy, in pure Nunavut gold, to wish the people of this important territory a happy 20th anniversary.”

With one-tenth of an ounce of 99.99% yellow metal from Agnico Eagle Mines’ (TSX:AEM) Meadowbank and TMAC Resources’ (TSX:TMR) Hope Bay mines, the coin has a face value of $20 but sells for $359.95 in a limited edition of 1,500. The piece depicts an Inuit drummer that Arnaktauyok created for a circulating toonie struck in 1999 on the new territory’s birth. The flip side portrays the Queen.

Nunavut art, Nunavut gold celebrate Nunavut anniversary

A 2018 coin featured Andrew Qappik’s images.
(Photos: Royal Canadian Mint)

It’s the second coin in a year featuring Nunavut gold and artistry. In June 2018 the Mint released a $20 piece using Meadowbank and Hope Bay gold as the canvas for Andrew Qappik’s images of a walrus, ptarmigan, polar bear, bowhead whale and narwhal.

By far Nunavut’s largest private sector employer, the industry now has four territorial mines in operation, including Baffinland Iron Mines’ Mary River and Agnico Eagle’s Meliadine, which achieved commercial gold production just last month. Agnico Eagle also has Amaruq, a satellite project 50 kilometres northwest of Meadowbank, slated for commercial production in Q3.

At Hope Bay, TMAC hopes to begin production on its Madrid and Boston gold deposits in 2020 and 2022 respectively, adding to current output from the Doris operation.

Baffinland currently has community consultations underway as part of a Nunavut Impact Review Board process for two railways that the company proposes building to expand Mary River output.

Among Nunavut’s other promising projects are Sabina Gold and Silver’s (TSX:SBB) Back River gold project, which has received all major permits since reaching feasibility in 2015, and De Beers’ Chidliak project, subject of the giant’s buyout of Peregrine Diamonds last year.

Read more about the Royal Canadian Mint.

Margaret Lake Diamonds/Arctic Star Exploration move Lac de Gras project to drill-ready status

May 6th, 2019

by Greg Klein | May 6, 2019

Three seasons of state-of-the-art techniques have a Northwest Territories diamond project ready for the rig. The Diagras joint venture of Margaret Lake Diamonds TSXV:DIA and Arctic Star Exploration TSXV:ADD has now undergone geophysical strategies that weren’t used by previous operators but proved successful at Kennady Diamonds’ (TSXV:KDI) Kennady North, another project in the prolific Lac de Gras diamond field. With a permit already in hand, the JV has drilling planned for spring 2020.

Margaret Lake Diamonds Arctic Star Exploration move Lac de Gras project to drill-ready status

Margaret Lake holds the majority share of the 60/40 JV and acts as project operator.

Analysis of ground gravity, magnetic and electromagnetic surveys found compelling targets among 23 known kimberlites on the 22,595-hectare property. Among the examples are Black Spruce, where three distinct signatures from magnetic, gravity and EM data might represent different phases of the same kimberlite complex that could host different diamond grades and populations.

Jack Pine, one of Lac de Gras’ largest kimberlite complexes, revealed “a new kimberlite-like geophysical expression believed to have not yet been evaluated by drilling according to available public domain records,” the companies stated. Previous drilling at Jack Pine showed it’s “significantly diamond-bearing.”

The Suzanne kimberlite shows gravity and EM anomalies that likely weren’t adequately tested by a previous operator’s drill hole, therefore warranting further drilling.

Surveys over the HL02 kimberlite suggest “an untested gravity and EM target that breaks a diabase dyke,” the JV explained. “This is a classic compelling kimberlite drill target.”

EM anomalies at the Kong and Penelope kimberlites could represent untested kimberlites or kimberlite phases. Several other known kimberlites have yet to undergo modern geophysics, but remain open for surveys while next year’s drilling takes place.

Margaret Lake also has drilling planned for its recently optioned Kiyuk Lake gold property in Nunavut, just north of the Manitoba border. With analysis of detailed ground geophysics underway, the company plans a 5,000-metre program focusing largely on the property’s Rusty zone. Some historic, non-43-101 results from 2017 showed 26.48 g/t gold over 8 metres, 1.16 g/t over 38 metres, and 1.82 g/t over 122 metres. Margaret Lake may earn up to 80% of the 59,000-hectare property.

The company also holds a 100% interest in the eponymous Margaret Lake property, another Lac de Gras diamond project.

Margaret Lake Diamonds/Arctic Star Exploration begin new program on NWT diamond project

March 25th, 2019

by Greg Klein | March 25, 2019

State-of-the-art exploration techniques will target Lac de Gras diamonds as a new campaign begins on the Diagras joint venture. Detailed ground gravity, magnetic and electromagnetic geophysics will test areas around kimberlites discovered through historic work and around airborne geophysical anomalies that suggest potential kimberlites.

Margaret Lake Diamonds Arctic Star Exploration begin new program on NWT diamond project

Margaret Lake Diamonds TSXV:DIA and Arctic Star Exploration TSXV:ADD hold 60% and 40% respectively of the JV. Margaret Lake acts as project operator on the 22,595-hectare property in the diamondiferous Northwest Territories region.

The current exploration strategy uses techniques that weren’t used in historic work but proved successful at Kennady Diamonds’ (TSXV:KDI) Kennady North project. At Diagras, the strategy has located drill-worthy anomalies proximal to the property’s previously discovered Black Spruce, Jack Pine and Suzanne kimberlites. Historic drilling has found diamonds at Jack Pine.

Part of the program’s funding comes from the NWT’s Mining Incentive Program.

Last month Margaret Lake announced an imminent campaign on its newly optioned Kiyuk Lake gold project, a 59,000-hectare property north of the Manitoba border in Nunavut. Pending receipt of permits, the company plans 5,000 metres of spring drilling in a program that would also include ground magnetics. Historic drilling brought impressive near-surface results.

Back in the NWT, the company also holds the Margaret Lake diamond project.

Miners and explorers pick their spots in Fraser Institute’s latest report card

February 28th, 2019

by Greg Klein | February 28, 2019

Ontario dropped dramatically but an improved performance by the Northwest Territories and Nunavut helped Canada retain its status as the planet’s most mining-friendly country. That’s the verdict of the Fraser Institute’s Annual Survey of Mining Companies 2018, a study of jurisdictions worldwide. Some 291 mining and exploration people responded to questions on a number of issues, supplying enough info to rank 83 countries, provinces and states.

Canadian and American jurisdictions dominated the most important section, with four spots each on the Investment Attractiveness Index’s top 10. Combined ratings for all Canadian jurisdictions held this country’s place as the miners’ favourite overall.

The IAI rates both geology and government policies. Respondents typically say they base about 40% of their investment decisions on policy factors and about 60% on geology. Here’s the IAI top 10 with the previous year’s numbers in parentheses:

  • 1 Nevada (3)

  • 2 Western Australia (5)

  • 3 Saskatchewan (2)

  • 4 Quebec (6)

  • 5 Alaska (10)

  • 6 Chile (8)

  • 7 Utah (15)

  • 8 Arizona (9)

  • 9 Yukon (13)

  • 10 Northwest Territories (21)

Here are Canada’s IAI rankings:

  • 3 Saskatchewan (2)

  • 4 Quebec (6)

  • 9 Yukon (13)

  • 10 Northwest Territories (21)

  • 11 Newfoundland and Labrador (11)

  • 12 Manitoba (18)

  • 15 Nunavut (26)

  • 18 British Columbia (20)

  • 20 Ontario (7)

  • 30 New Brunswick (30)

  • 51 Alberta (49)

  • 57 Nova Scotia (56)

Despite Ontario’s fall from grace, the province’s policy ratings changed little from last year. Relative to other jurisdictions, however, the province plummeted. Concerns include disputed land claims, as well as uncertainty about protected areas and environmental regulations.

The Policy Perception Index ignored geology to focus on how government treats miners and explorers. Saskatchewan ranked first worldwide, as seen in these Canadian standings:

The evidence is clear—mineral deposits alone are not enough to attract precious commodity investment dollars. A sound regulatory regime coupled with competitive fiscal policies is key to making a jurisdiction attractive in the eyes of mining investors.—Ashley Stedman,
senior policy analyst,
the Fraser Institute

  • 1 Saskatchewan (3)

  • 9 New Brunswick (13)

  • 10 Quebec (9)

  • 11 Nova Scotia (24)

  • 14 Alberta (16)

  • 18 Newfoundland (10)

  • 24 Yukon (22)

  • 30 Ontario (20)

  • 33 Manitoba (27)

  • 42 NWT (42)

  • 44 B.C. (36)

  • 45 Nunavut (44)

The NWT and Nunavut’s indifferent PPI performance suggests greater appreciation of the territories’ geology boosted their IAI rank.

This year’s study included a chapter on exploration permitting, previously the subject of a separate Fraser Institute study. Twenty-two jurisdictions in Canada, the U.S., Australia and Scandinavia were evaluated for time, transparency and certainty. Cumulatively, the six American states did best, with 72% of explorers saying they got permits within six months, compared with 69% for the eight Canadian provinces, 53% for the two Scandinavian countries (Finland and Sweden) and 34% for the six Australian states.

A majority of respondents working in Canada (56%) said permitting waits had grown over the last decade, compared with 52% in Australia, 45% in Scandinavia and 28% in the U.S.

A lack of permitting transparency was cited as an investment deterrent by 48% of respondents working in Australia, 44% in Canada, 33% in Scandinavia and 24% in the U.S.

Eighty-eight percent of explorers working in the U.S. and Scandinavia expressed confidence that they’d eventually get permits, followed by 77% for Australia and 73% for Canada.

Saskatchewan led Canada for timeline certainty, transparency and, with Quebec, confidence that permits would eventually come through.

As for the IAI’s 10 worst, they include Bolivia, despite some recent efforts to encourage development; China, the only east Asian country in the study; and problem-plagued Venezuela.

  • 74 Bolivia (86)

  • 75 La Rioja province, Argentina (80)

  • 76 Dominican Republic (72)

  • 77 Ethiopia (81)

  • 78 China (83)

  • 79 Panama (77)

  • 80 Guatemala (91)

  • 81 Nicaragua (82)

  • 82 Neuquen province, Argentina (57)

  • 83 Venezuela (85)

Explorers made up nearly 52% of survey respondents, producers just over 25%, consulting companies over 16% and others nearly 8%.

“The evidence is clear—mineral deposits alone are not enough to attract precious commodity investment dollars,” said Ashley Stedman, who co-wrote the study with Kenneth P. Green. “A sound regulatory regime coupled with competitive fiscal policies is key to making a jurisdiction attractive in the eyes of mining investors.”

Download the Fraser Institute Annual Survey of Mining Companies 2018.

Margaret Lake moves fast on Nunavut gold acquisition

February 21st, 2019

by Greg Klein | February 21, 2019

Margaret Lake moves fast on Nunavut gold acquisition

Accustomed to working in Arctic conditions, Margaret Lake adds a Nunavut property to its NWT portfolio.

 

With an aggressive winter/spring campaign planned for a newly acquired project, Margaret Lake Diamonds TSXV:DIA turns its attention to Nunavut gold. The company announced its Kiyuk Lake option just last week, allowing up to an 80% interest in the 59,000-hectare property north of the Manitoba border. Now, assuming receipt of land and water use permits, Margaret Lake intends to start building an exploration camp next month in preparation for up to 5,000 metres of spring drilling. The agenda also includes ground magnetics.

Margaret Lake moves fast on Nunavut gold acquisition

Past drilling brought impressive near-surface intercepts
and identified a 13-kilometre strike open in all directions.
(Photo: Cache Exploration)

Drilling will target the Rusty zone, where some historic, non-43-101 results from a previous operator in 2017 brought the following near-surface results:

  • 26.48 g/t gold over 8 metres, starting at 108 metres in downhole depth
  • (including 92.76 g/t over 2 metres)

  • 1.16 g/t over 38 metres, starting at 58 metres
  • (including 3.98 g/t over 8 metres)

  • 1.82 g/t over 122 metres, starting at 188 metres
  • (including 3.34 g/t over 15 metres)

Additionally, a 2013 intercept showed:

  • 1.6 g/t over 249 metres, starting at 8.2 metres

Further 2017 work at the property’s Gold Point/East Gold Point zone yielded the following results:

  • 1.46 g/t gold over 64 metres, starting at 35 metres
  • (including 3.12 g/t over 14 metres)

  • 6.51 g/t over 10 metres, starting at 248 metres

True widths weren’t available.

Over 13,000 metres of historic work identified four mineralized zones as well as five more areas that have yet to be drilled. The property features a 13-kilometre strike that remains open in all directions, the company stated.

Subject to exchange approval, an initial 50% Margaret Lake stake in Kiyuk Lake would require the company to issue five million shares, buy three million of the vendor’s shares for $150,000, pay $100,000 within a year and spend $3 million within three years. An additional 30% would cost $5 million.

In the Northwest Territories, the company also holds the eponymous Margaret Lake diamond project and the majority interest in a 60/40 JV with Arctic Star Exploration TSXV:ADD on the Diagras diamond property.