Nunavut’s potential

Nunavut is becoming known as an “under-explored” region with high mineral potential. The success of the Polaris and Nanisivik zinc mines and the reopening of the Lupin gold mine demonstrate the feasibility of mining in the territory. In fact, despite the territory’s obvious climatic and infrastructure disadvantages, several major companies are involved in ongoing exploration programs there.

In the neighbouring Northwest Territories, diamonds are being mined at BHP Billiton’s Ekati mine.

Meanwhile, the possibility of finding gold deposits similar to Hope Bay and Meadowbank continues to attract exploration spending, and the sale of the George Lake project to former operator Kinross Gold indicates the company’s faith in the project’s viability.

In 2000, prices for platinum and palladium surged to unprecedented levels, partly because of increased demand for vehicle pollution-control devices and Russia’s inability to supply world markets. Platinum demand for jewelry is also on the rise. In 2001, prices fell back considerably, but have stabilized at or above pre-1999 levels, owing to sustained demand. This has led to renewed interest in copper-nickel-PGM mineralization in Nunavut, such as the Muskox and Ferguson Lake projects.

Platinum group metals (PGMs) commonly occur within magmatic copper-nickel mineralization. Companies engaged in magmatic copper-nickel or PGM exploration are likely to increase exploration activities in the region.

A number of prominent zinc mines, including two in Nunavut, are becoming depleted. Although zinc demand is low, grassroots exploration for base metals is continuing throughout the territory. Some early-stage exploration for zinc is under way by BHP Billiton and Hudson Bay Exploration & Development. Also, Noranda and Wolfden Resources continue to explore for copper.

— The preceding is from Nunavut, Mining, Mineral and Geoscience 2001, a joint publication of the government of Nunavut, the Department of Indian Affairs and Northern Development, and the Land and Resources Department of Nunavut Tunngavik.