Community engagement – the need and the opportunity
Galore Creek mine project will go ahead, despite current halt
Kaminak Signs landmark agreement with Nunavut Tunngavik Incorporated
Bloom Lake mining project agreement reached with Innu Takuaikan Uashat Mak Mani-Utenam
First Nation demands Carmacks Copper Mine be halted
New government considers options for Saskatchewan’s nuclear future
Horizon North Logistics Inc. announces completion of acquisition of Pioneer Site Service Ltd.
Jericho Diamond Mine demonstrates realities of mining operations
Community engagement – the need and the opportunity
By Chief Glenn Nolan, Missanabie Cree First Nation and CIM 2007-2008 Distinguished Lecturer
Mining activity in Canada is on the rise due to higher metal prices and the metals shortage worldwide. According to Natural Resources Canada, “approximately 1,200 Aboriginal communities are located within 200 kilometres of producing mines and 2,100 exploration properties across Canada.” Some of those communities have been participating in the industry through partnerships, joint ventures and employment contracts in all aspects of mining ranging from early exploration projects to production mining. However, the majority of communities remain on the outside of development projects, some even resisting any aspect of development within their traditional lands.
With the rise in activity in the mining sector, there are two possible scenarios. In the first scenario, the company engages the community to develop a meaningful working relationship that provides benefits for both parties. The company benefits from a stable local workforce, access to the traditional lands of the community and the political support necessary for a social licence to operate. The community benefits from increased employment, partnerships, training and knowledge that the company has some understanding of the traditional values and culture of their distinct society.
In the second scenario, the company makes every effort to rush the project through with little or no input from the community. This method, as history demonstrates, leads to conflict with the community, lack of investor confidence and prolonged disruption to the project schedule, leading to increased costs. Not taking the time to listen to the concerns of community members results in a lack of confidence in the project. Conflict might occur when community members believe their cultural identity and traditional way of life is threatened by the mining activity and that nobody, neither the government nor the company, is listening.
Today, more than at any other time in recent history, Aboriginal communities are looking to be heard and understood. Recent Supreme Court rulings have affirmed the need to engage Aboriginal communities early on in resource development projects. There are many conflicting ideas on how, who and when to engage. Given the large number of communities and the different and varied cultures, each resource development company must equip itself with an understanding of the community’s traditional territories in which they are working. While there is no single right way to engage communities, there are some universal steps that can overcome some common barriers.
First, companies need to engage communities in a proactive and respectful manner. To do this, the company needs to research the community. Who are the leaders? Are there interest groups within the community that need to be engaged? Are there culturally sensitive sites in the area where the project is located? Are there businesses that can provide services or supplies for the project?
Secondly, contact with the community should be made early on in the project and continue often. Politically, it is important that as soon as possible after initial contact the president of the company meet with Chief and Council. Building a meaningful relationship with a community is the foundation for a lasting partnership. Every community is unique and every approach to engage communities must be just as unique.
Communities and their leaders are under enormous pressure to be involved in the development of the natural resources on their traditional lands. On one hand, companies want the communities to participate in order to ensure that the project moves forward. On the other hand, community leaders continue to seek ways to develop employment opportunities while ensuring that resource development has minimal impact on the lands where many members continue to practice traditional activities such as hunting and fishing.
It is by working together in an open, transparent manner, that the company and the community will be able to strike a balance. The company will have access to the resources they seek, and the communities will build capacity as partners in the development while protecting their culture, their traditions, and their land.
The Canadian Institute of Mining, Metallurgy and Petroleum (CIM) provides a forum for the minerals industry to strengthen relations with Aboriginal communities, and brings together the leading tools and knowledge of best practices for moving forward. As a CIM Distinguished Lecturer, I have been giving presentations at local events across Canada on this subject to the mining industry. At the CIM Conference and Exhibition (May 2 to 8, Edmonton, Alberta), workshops and technical sessions dedicated to the minerals company-Aboriginal community partnership will compliment the program. Participation at such events will help encourage greater working relations.
Galore Creek mine project will go ahead, despite current halt
By Gordon Hoekstra
The province's mining minister said he is confident the multi-billion dollar Galore Creek mine project in northwest B.C. will be built.
“It’s not a question of whether, but when,” Kevin Kruger told about 200 community, First Nations and business representatives at the annual natural resource forum on January 17th.
Galore Creek's partners – NovaGold (TSX:NG) and Teck Cominco (TSX:AK.A) halted the project two months ago when a review showed costs more than doubling to $5 billion.
The original price tag of the mine was $2 billion.
The new mine, which was supposed to have been complete in 2012, was hailed by the B.C. mining community as a confidence booster as it was the first new metal mine to start construction in a decade in the province.
Kruger said a fundamental error in calculating costs added $1 billion in cost to the project.
Project planners mistakenly believed they could use the largest haul trucks to move material for a 275-metre dam and tailings pond, noted Kruger.
It turned out the trucks would not be able to turn around in the narrow valley, which meant using smaller trucks and added another two years to the construction timeframe of the dam and pond, he said.
Other costs increased because of inflation, although Kruger said he didn't believe the costs had escalated to $5 billion.
NovaGold Resources Inc. and Teck Cominco said earlier this week they have appointed a new management team to give the Galore Creek project a second look.
The partners have appointed Pol Guzman as president and general manager, and Gary Ward as project director of the Galore Creek Mining Corp.
The companies said Guzman and Ward have joined the Galore Creek team to lead an "aggressive" review of Galore Creek's development with the objective of producing a modified construction and execution plan that will deliver enhanced financial returns.
Rosalind Thorn, president of the Prince George Construction Association, welcomed the announcement, noting that both Prince George contractors and suppliers had work at the Galore Creek project.
“It’s extremely good news. We're looking forward to Galore Creek proceeding once again,” said Thorn.
Kaminak Signs landmark agreement with Nunavut Tunngavik Incorporated
Kaminak Gold Corporation (TSX VENTURE:KAM) announced January 31st that Kaminak and Nunavut Tunngavik Incorporated (NTI) have signed a Memorandum of Understanding (MOU) extending to Kaminak uranium rights on 18,000 acres of Inuit-owned land, located in the Kivalliq District of Nunavut, Canada. Kaminak now holds tenure on over 250,000 acres of highly prospective ground in the Angikuni - Yathkyed region.
Key Point Summary
• Kaminak is the first company to be awarded the right to explore for uranium on privately-held Inuit-owned land in Nunavut
• Property hosts numerous high-priority targets, including the historic near-surface and high-grade Lac Cinquante Uranium Deposit(i)
• Proposed spin-out transaction of Kaminak's uranium assets to shareholders
“We recognize and respect the unique environment and culture in Nunavut, and we are looking forward to working directly with our Aboriginal partners,” stated Rob Carpenter, President and CEO of Kaminak. “This agreement will also provide the Kaminak shareholders with a new exploration opportunity.”
This agreement consolidates over 250,000 acres of ground comprised of federally issued claims and prospecting permits as well as privately-owned Inuit-owned land. To date, the property has been called by several different names (i.e. Yathkyed, RI-30); however, going forward, Kaminak will collectively refer to the entire property as the “Angilak Project”. Angilak is an Inuit word that means “biggest”.
Geology of the Lac Cinquante Uranium Deposit
The most significant prospect known to date on the Inuit-owned land is the Lac Cinquante Uranium Deposit. This deposit was discovered by Pan Ocean Oil Ltd. in the late 1970s and was later acquired by Aberford Resources Ltd. The Aberford annual report from 1982 states that the deposit “contains approximately 11.6 million pounds of uranium oxide with grades averaging 1.03%.” No additional information was available in the annual report. Very little geological assessment information is available in the public government archives; however, a researcher from the Geological Survey of Canada published a description of the deposit geology in the mid-1980s based on a study of outcropping surface mineralization and diamond drill core (CIMM Special Paper #33, p. 263 to 285).
The CIMM report described the deposit as a vein-type hydrothermal system which resembles the classical veins of the Beaverlodge District in Saskatchewan. Mineralization consists of a steeply dipping series of fractures and veins, 1 to 3m wide, that contain variable amounts of pitchblende and sulphide minerals accompanied by hematite, carbonate, albite and silica alteration. The host structure is at least 1100m long and the mineralized portion measuring about 400m in length. Mineralization extends from surface to at least 265m depth and remains to be fully delineated.
Vein-like structures observed at Lac Cinquante represent one of many different styles of uranium mineralization on the property. For example, Kaminak's BOG and YAT occurrences are both located less than 10 kilometers from Lac Cinquante and have geological attributes which are suggestive of IOCG (iron-oxide-copper-gold).
About Kaminak
Kaminak Gold Corporation is a prospect generator employing a joint venture strategy that maximizes opportunities for discovery while attempting to minimize exploration risk to Kaminak. A critical component of Kaminak's business model is working with strong project partners to advance Kaminak's exploration projects. Covering several million acres, Kaminak holds one of the largest land positions in Canada devoted to metallic mineral exploration. Kaminak's projects offer world-class exploration potential and present exposure to strategic commodities including, gold, uranium and nickel.
Geoscience BC releases initial results from $5 million exploration project in central BC’s Mountain Pine Beetle infestation area
Mineral claim staking in central BC’s Mountain Pine Beetle Infestation Area has skyrocketed in anticipation of the release of initial results from the $5 million QUEST (Quesnellia Exploration Strategy) mineral exploration project – the largest mineral exploration geoscience project of its kind in the province.
Since the QUEST project was announced last June, almost 1,760 mineral claims have been staked in the central B.C. geophysical survey area by 114 companies or individuals. These claims cover over 780,000 hectares of land. This brings the total mineral claims in the area to over 6,000 held by more than 300 companies or individuals, covering approximately 2 million hectares.
At the Mineral Exploration Roundup Conference, Geoscience BC released the initial results from the QUEST project making over 1.5 Gigabytes of information available to industry and the public. Data released included the airborne electromagnetic (EM) survey of central B.C. and geochemical results from a reanalysis of almost 5,000 archived stream and lake sediment samples collected in the region over 10 years ago. These projects represent over $1.5 Million of the $5 Million QUEST project. The EM data was collected by Geotech Ltd., from Aurora Ontario, with TRK Helicopters (BC) Ltd., based in Langley BC. The geochemical reanalysis program was undertaken by Noble Exploration Services Ltd., from Sooke, BC.
“This new information will encourage increased exploration throughout the central area of the province further fuelling an already surging mining sector while providing more jobs for areas impacted by mountain pine beetle,” said Minister of State for Mining, Kevin Krueger.
“The data sets released today are the first in a series that will help unlock central BC’s mineral potential,” said Dr. Lyn Anglin, President and CEO of Geoscience BC. “The electromagnetic survey will help identify different rock types that may be associated with mineralization, and will aid in determining the thickness of glacial cover. The enormous wealth of new information made available today will help guide industry in targeting their mineral exploration programs.”
The QUEST project was funded by Geoscience BC in partnership with the Northern Development Initiative Trust, and covers a 46,000 square kilometre area extending from Williams Lake to north west of Mackenzie. The communities of Mackenzie, Fort St. James, Prince George, Quesnel, Wells and Barkerville are within the project area.
Central B.C. has yielded some important copper and copper-gold deposits over the years resulting in mineral discoveries that led to the opening of the Mount Polley and Gibraltar mines in the southern portion of the target area and the ongoing exploration of the Mt. Milligan copper-gold deposit to the north. Large parts of this area still remain largely unexplored due to a cover of glacial material (sand and gravel) in the region. The QUEST project was designed to help “see through” this cover of glacial material to the prospective rocks below using leading-edge exploration technologies.
In addition to the airborne electromagnetic survey, the QUEST project involves an airborne gravity survey of the project area which is presently underway. Airborne gravity surveys measure the density of rocks and help identify different rock types and potential mineralization targets in the subsurface. Results from this survey are expected to be available this spring.
The QUEST project also includes the analysis of new geochemical samples collected from streams and lakes in the region to identify trace minerals. More than 2,000 new geochemical samples have been collected in the project area, which are currently being analyzed and documented.
For more information on the details of the QUEST project, please visit www.geosciencebc.com.
Geoscience BC is an industry-led, industry-focused, non-profit organization. Its mandate includes the collection, interpretation and delivery of geoscience data and expertise to promote investment in resource exploration and development in British Columbia. Geoscience BC works in partnership with industry, academia, government, First Nations and communities to attract mineral and oil & gas investment to B.C.
Bloom Lake mining project agreement reached with Innu Takuaikan Uashat Mak Mani-Utenam
Following high-level talks, representatives of the Innu Takuaikan Uashat Mak Mani-Utenam (ITUM) band council and Consolidated Thompson Iron Mines Limited (TSX: CLM) are pleased to announce that they have reached an agreement regarding the development of the Bloom Lake project. The two parties have signed an Agreement In Principle (AIP) intended to provide a framework for fast track discussions toward establishing an industrial benefits agreement for the project.
Consolidated Thompson believes that the AIP demonstrates Consolidated Thompson’s respect for their First Nation counterparts and that ITUM fully supports the development of the Bloom Lake project. Under the terms of the AIP, the representatives of the Innu Takuaikan Uashat Mak Mani-Utenam (ITUM) band council have agreed to suspend any legal proceedings against Consolidated Thompson. The development work on the Bloom Lake property is continuing, and the call-for-tenders process and the mobilization of all the personnel required to undertake the preparation work at the site have been finalized.
Both the Chief of the band council representing ITUM, Mr. Georges-Ernest Grégoire, and the President of Consolidated Thompson, Mr. Richard Quesnel, said they were pleased that an agreement has now been reached and that harmonious relations have been established, paving the way for a development project that will benefit the region.
Located in the regional municipality of Caniapiscau, QC, 13 km northwest of the town of Fermont and 8 km north of the Mont-Wright deposit, the Bloom Lake project represents an initial investment in the order of $410 M. Some 400 jobs will be created by the construction activities, and approximately 250 direct jobs will subsequently be created during the operation of the mine.
First Nation demands Carmacks Copper Mine be halted
The Yukon Environmental and Socio-economic Assessment Board was told January 15th that it must stop the approval process for a controversial copper mine planned in the Traditional Territory of the Little Salmon Carmacks First Nation until the company proposing it addresses a number of serious environmental issues.
“We are not against mining, but we will not accept a mine on our Traditional Territory that threatens the very existence of our land and water,” so says Eddie Skookum, Chief of the Little Salmon Carmacks First Nation located approximately 180 kilometers north of Whitehorse, YT.
Western Copper Corporation (TSX:WRN), a junior mining company based in Vancouver has proposed a mine in the Carmacks region that includes a heap leach pile built on the side of a mountain that will cover at least 31.5 hectares (79 acres), and is 90m (300 feet) high.
“They’re treating this land like it’s some Third World country,” said an outraged Chief Skookum.
The mountainside heap will be filled with a toxic stew of chemicals including sulphuric acid, copper, cadmium, lead and selenium. “If their cheap collection dam breaks – and chances are that it will some day – we'll see an environmental disaster unlike any we’ve seen in Canada before,” predicts the Chief. If this happens the heap and pond will drain into the nearby Yukon River which supplies First Nations people throughout the Yukon with salmon, and is a major tourist attraction.
The First Nation wants Western Copper Corporation to negotiate a better environmental engineering solution as part of an Impacts Benefits Agreement with the First Nation, the Chief said.
“This dispute will only get worse unless the company comes to the table and negotiates in a meaningful way. I wouldn’t want to be an investor if things turn ugly,” the Chief warned.
The First Nation is currently facing the prospect of negotiating an IBA while the bulldozers rip and push, something which isn't supposed to happen in this day and age the First Nations Council believes.
Carmacks is located 180 kms north of Whitehorse.
New government considers options for Saskatchewan’s nuclear future
By Tim Cook
It was an analogy that developed in the 1970s as nuclear power plants were being developed around the world: Saskatchewan and its vast supply of unmined uranium would be to nuclear power what Saudi Arabia was to oil.
Over the last three decades the prediction has been realized and the province, better known for wide open spaces and wheat, has grown into the world's largest producer of the radioactive element.
Saskatchewan Premier Brad Wall
But mining the raw material is as far as Saskatchewan has progressed in the nuclear cycle. Plans to develop a uranium refinery, build a nuclear reactor and even store nuclear waste have been shelved over the years in the face of stiff public opposition and concerns about feasibility.
Signs of change, however, are starting to emerge with a newly elected provincial government intent on moving the industry forward. The right-leaning Saskatchewan Party is not as fettered by internal conflict over the issue as its left-leaning NDP predecessor, and everything short of the nuclear waste storage idea appears to be back on the table.
“Who knows what opportunities lie ahead in this area for the province?” Premier Brad Wall said recently. “I believe we can lead in this area, certainly in research and development.”
Saskatchewan first looked at developing the uranium industry in the 1940s and '50s under then premier Tommy Douglas as a means of diversifying its agricultural economy. In the 1970s the mining industry expanded rapidly thanks to several big finds in the north.
The province enjoyed a comfortable relationship with the industry until people began to question where the uranium was ending up, said Bill Waiser, a historian at the University of Saskatchewan.
“They were beginning to question the morality of it,” Waiser says. “There are ecological concerns about it and ‘Are we facilitating the arms race unintentionally?’”
Former NDP premier Allan Blakeney, who oversaw the widespread expansion in the 1970s, recalls pitching uranium mining in Saskatchewan as something the province had to do for the sake of the rest of the world.
“As the world was developing and as the Third World was developing, there was going to be a need for significant new sources of power. One of those was uranium, and we had a moral duty to contribute,” Blakeney says now.
“We have got virtually every power source in the world and there is one million of us, and we’re saying, ‘Oh, those people over there shouldn’t be generating their power over there using uranium.’ This is not a very good piece of moral ground to stand on.”
Still public opposition prevented the industry from developing further than punching holes in the ground and bringing the ore to the surface.
In 1980 a proposal to build a uranium refinery in Warman, north of Saskatoon, was killed because of the impact it might have on the largely Mennonite community.
In the early 1990s both the Progressive Conservative government and the NDP government were in talks with Atomic Energy of Canada Ltd. to build a Candu 3 reactor in the province, but the idea was shelved because of cost and lack of need.
In the mid-1990s the Meadow Lake Tribal Council, an organization representing several northern First Nations, briefly studied the idea of storing nuclear waste on its land but backed down after widespread protests.
“It caused a lot of controversy and a lot of difficult feelings,” recalls Vern Bachiu, general manager with the tribal council’s development corporation.
With a new government in power and a premier who talks about nuclear opportunities every chance he gets, people on both sides of the debate are watching the situation closely.
While the previous NDP government had expressed interest in refining uranium in the province, Steve McLellan, CEO of the Saskatchewan Chamber of Commerce, figures the business-friendly Saskatchewan Party will take a “hard look” at attracting a company to do it.
“We, particularly, are quite optimistic,” McLellan says. “Anything that adds value to things that are mined here is great for business.”
Some, like former NDP deputy premier Dwain Lingenfelter, say Saskatchewan’s wide open spaces make it ideal for every step of the cycle, including power generation and waste storage. While conventional reactors are widely seen as producing too much power for the province’s needs, Lingenfelter argues Saskatchewan could become a power hub and supply energy to the rest of Canada and the United States.
“The first thing that has to happen is the government in the province has to say to the world that they're interested, which hasn't happened to this point,” says Lingenfelter, who is now an executive with the Calgary-based oil company Nexen.
“I think it takes more than governments saying, ‘Yeah, we are sort of in favour of it, but we will see how it goes.’”
Wall has expressed interest in research being done around small-scale nuclear reactors that would produce power at a level more suitable to the province's needs. He’s also talked about the idea of developing a research reactor such as the one in Chalk River, Ont., which produces medical isotopes.
Ann Coxworth, with the Saskatchewan Environmental Society, acknowledges that the current political situation in the province does not favour the anti-nuclear movement.
“I think we have quite a struggle ahead of us, so there is a lot of work to be done,” she says. “The forces that want to go down that nuclear path are pretty powerful right now.”
Coxworth is worried that those who oppose nuclear energy may have been lulled into a sense of complacency over the last few years.
“When these issues were being quite actively discussed – say in the 1970s – the public got quite well informed about the issues,” she says.
“We haven’t had to think about it over the past many years.”
Horizon North Logistics Inc. announces completion of acquisition of Pioneer Site Service Ltd.
Horizon North Logistics Inc. announce January 10th that it has completed the acquisition of all of the common shares of Pioneer Site Services Ltd.
Pioneer owns a 49% interest in, and is the managing partner of two companies which provide camp catering services in Nunavut. The other 51% of the catering companies, Kitikmeot Caterers Ltd. and Sakku Caterers Ltd., is Aboriginally owned by Kitikmeot Corporation and Sakku Investments Corp., respectively. Their mandate is to foster business and employment opportunities for the benefit of the Inuit people in their regions within Nunavut. The two catering companies are expected to generate combined revenue of approximately $5 million in 2008.
“While the acquisition of Pioneer is not a large transaction, it is a very nice fit with Horizon's strategy of providing services to remote northern resource development projects, while at the same time working closely with, and providing benefits to, the Inuit residents in the region. Our business units continue to see expansion opportunities in Canada’s far north and the addition of Pioneer allows Horizon to provide a full suite of camp an catering services in Nunavut with a base of experienced and local employees,” noted Rob Hunt, Horizon's President.
Jericho Diamond Mine demonstrates realities of mining operations
By Aarviunaa
2008 has not been a good year for Tahera Diamond Corporation so far. Tahera operates Nunavut’s first diamond mine and only operating mine in Nunavut – the Jericho Diamond Mine. Tahera recently announced that mining activity at Jericho was being suspended.
There were high hopes for Tahera when it officially opened its Jericho Diamond Mine on August 17, 2006. In attendance at the opening ceremony were hundreds of guests including: The Right Hon. Stephen Harper, Prime Minister; The Hon. Paul Okalik, Premier of Nunavut Territory; The Hon. James Prentice, Minister of Indian Affairs and Northern Development; James Eetoolook, Nunavut Tunngavik Vice-President and Donald Havioyak, President of the Kitikmeot Inuit Association. Most attendees expressed optimistic views about the mine’s ability to create economic opportunities for Nunavut and Canada. But mining is not a sure thing. Many factors are required to make a mining operation successful; chief among them is to have an economically viable resource deposit.
As Tahera’s Jericho Mine entered production it became obvious that the economic viability of its diamond resource base was in question. It was not a profitable operation from the start. The mine was not producing enough diamonds to pay for the cost of its mining operations, a recipe for failure. Tahera sought partners, explored nearby properties, consolidated shares, sought out lines of credit and did everything to keep its cash flow flowing into its company but its operations drained it out just as fast. In late 2007 Tahera announced that it lost $143 million during the first nine months of 2007. It also wrote off $73 million it had spent on the mine that it did not expect to recover.
As Tahera entered 2008 its owners, investors and workforce would be impacted by some tough decisions if Tahera was unable to secure the cash needed to re-supply the Jericho Mine. The Jericho mine is located about 360 kilometres southwest of Cambridge Bay, in the Kitikmeot region in western Nunavut. A mining operation in this location is expensive to supply as everything including diesel fuel has to be trucked up from the south over an ice road. All other supplies such as food and employees are flown in by aircraft. Jericho needed to raise approximately $40 million for its annual re-supply.
Tahera was unable to secure financial investment in the Jericho Diamond Mine so management took the next step in staving off bankruptcy – it filed for bankruptcy protection in mid-January. Tahera Diamond Corp. then said a week later that it would suspend mining activities at its money-losing Jericho mine in order to save cash and fuel as the company restructures its operations.
The impact of the failure of Jericho Diamond Mine has had consequences for workers, governments, suppliers and investors across the North and throughout Canada. One investor from the north who did not wish to be identified said, “The failure of the mine (Jericho) means I lost thousands of dollars that I invested in this company’s shares. I know a few others who lost also. It’s not good because we really thought it was going to be a good investment.” Other investors will no doubt be impacted.
The suspension of the Jericho Diamond Mine will also impact companies that provide goods and services to the mining operation. When a company goes into bankruptcy protection, Creditors line up to wait for a resolution which takes time to resolve and if the result is bankruptcy -some creditors get a fraction of what’s owed to them or worst like a shareholder they could take a complete loss. This all depends on where they are in the Creditor chain of priority but one thing is clear – everyone is impacted especially employees.
The Jericho Diamond Mine employs approximately 100 people of which about 35 are Inuit. Donald Havioyak, President of the Kitikmeot Inuit Association spoke out on public radio about Tahera’s decision to cease activities by saying, “We have lots of Inuit from the region that are working in Tahera, and that would have a big impact. If it does close, it’s a loss to us. Unemployment can be a very sad thing for our region if they do close down.”
The potential failure of the Jericho Diamond Mine demonstrates just how difficult it can be to operate a successful mine. Tahera did everything it could to make its mine work but in the end the economic viability of the mine was decided by its less than economic diamond resource base in a time of rising operations costs, flat diamond prices and economic uncertainty in the investment markets. Investors are unwilling to invest in operations that can not show profit potential. Even Tahera’s CEO Peter Gillin admitted that if Tahera could not borrow or raise enough money, they would have to sell the mine or the company’s other assets.
In the end many will be impacted by the Jericho Diamond Mine situation but Jericho is only one case in the reality of mining development. Casualties of mining can be found all across Canada and the world but where one operation closes, the glint of hope arises with another discovery somewhere else. Nunavut has significant mineral resources which are currently being explored and getting closer to development. Nunavut is working hard to attract mining investment. High commodity prices will keep the exploration movement going but as always economic viability (as in any business) will be the reason for a venture’s success or failure. The glint of hope still shines throughout Nunavut and the North as more discoveries are being made but Tahera’s experience is a lesson in just how precarious it can be to go from glitter to economic success.