A meeting of the G7 Finance Ministers in Iqaluit, Nunavut, Feb.6 brought renewed global attention to the critical need for mining dollars to stimulate the economy of Canada's newest territory, Mineweb Inc. reported Feb. 8. The report also noted that Agnico-Eagle’s Meadowbank Project is set to begin production this quarter with the first gold bar possibly coming out of its gravity circuit by the end of February. Construction is complete on the C$700 million (US$654 million) project, which is believed to have a probable gold reserve of 3.6 million ounces and a measured and indicated resource of 1.5 million ounces. This year's exploration budget is US$6 million for Meadowbank. The gold mine is anticipated to produce 350,000 ounces of gold this year, and averaging 350,000 to 400,000 ounces annually over a nine-year mine life. Agnico-Eagle is confident mine life will extend well beyond 10 years. Meadowbank is located in Kivalliq district of Nunavut 70 kilometers north of the town of Baker Lake, which is 320 kilometers inland from the western shore of Hudson’s Bay.
Investments at Meadowbank have made Nunavut the fastest growing territory in Canada. However, the global recession has slowed exploration and development in the territory, Nunavut Premier Eva Aariak recently told Bloomberg. Mining industry capital expenditure is believed to have dropped 62 percent to C$340.2 million in 2009, according to Nunavut’s budget projections.
Meanwhile, Baffinland Iron Mines’ Mary River iron ore project needs to find C$4.1 billion (US$3.83 billion) in financing to start production by a new target date of 2016.
As the G7 Finance Ministers met in Iqaluit, Baffinland CEO Gordon McCreary introduced his Mary River iron ore project - located on North Baffin Island, in the Qikiqtani Region - to an audience of journalists and international visitors.
McCreary said the German government considers the project to be strategically important to their country and has declared it to be eligible for a C$1.2 billion loan. He added that maybe the project also should be considered important to Canada.
A mine at Mary River would produce 18 million metric tons of iron ore annually. The project has reserves of about 365 million metric tons of ore grading 65 percent iron, and about 500 million metric tons of ore resources.
Baffinland estimated the cost of the mine to be C$591 million (US$552 million). A railway system will transport the ore from the mine to an all-season deep-water port and ship-loading facility at Steensby Inlet where the ore will be loaded into ore carriers for overseas shipment through Foxe Basin. A dedicated fleet of cape-sized ore carriers, capable of breaking ice, will be chartered by Baffinland. Some non-icebreaking ore carriers and conventional ships also will be used during the open-water season.
