Diamond hunt ignites Nunavut

The year 2001 presented some ups and downs for Nunavut’s mining industry, the most prominent being mine-closure announcements and a possible diamond rush.

Last year, the Lupin gold mine, in the Northwest Territories, marked a milestone by producing its three-millionth ounce. The mine, owned by Echo Bay Mines, was expected to pour 150,000 oz. last year from sulphidic iron formation grading about 8 grams per tonne.

Teck Cominco’s Polaris zinc-lead mine, on Little Cornwallis Island, completed its last full year of operations. More than 1 million tonnes of ore grading 12.15% zinc and 3.25% lead were to be mined in 2001. Reserves at the Mississippi Valley-Type orebody will be exhausted by summer of 2002, at which time the mine will close and begin reclamation.

Breakwater Resources’ Nanisivik zinc-silver mine, on Baffin Island, became a casualty of low metal prices and high operating costs. Planned production for 2001 was 0.787 million tonne grading 8.1% zinc and 32 grams silver per tonne, but actual grades were closer to 6.4% and 28 grams. Revenue was consequently lower, and the company announced that Nanisivik would also be closing in the summer of 2002.

Situated between Kugluktuk and the Lupin gold mine, the North Slave diamond play gained considerable momentum in 2001 as a result of several kimberlite discoveries: Kennecott Canada Exploration and Tahera discovered Anuri, Anuri East, Qamutiik and Anaruq on the Rockinghorse joint venture; and Ashton Mining of Canada found the Potentilla pipe on its Kikerk joint venture with Caledonia Mining and Northern Empire Minerals; Ashton and Pure Gold discovered the Artemisia pipe on the Kim property; and De Beers and Inmet Mining added two kimberlites, Troll and Unicorn, to the list of pipes on their Rockinghorse-Hood joint venture.

During the fall, the media began reporting on a possible staking rush, citing the presence of multiple field crews in the area. Diamondex, Tyler Resources, Northern Abitibi Mining, Blackstone Ventures and Stornoway Ventures were among the companies reporting land acquisitions during November and December.

The preceding is from Exploration and Development Highlights 2002, published by the Prospectors & Developers Association of Canada. The author is the minerals manager with the Department of Indian Affairs and Northern Development.

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