Acadia signs first deal — Nunavut lands open to mining

In a positive sign for the exploration industry, two companies have inked the first agreement to explore and develop deposits in the newly formed region of Nunavut in the eastern Northwest Territories.

Acadia Mineral Ventures (TSE) has entered an agreement for acquiring the mineral rights to 25,000 acres east of Contwoyto Lake. The agreement, signed with Nunavut Tunngavik Inc. (NTI), will allow Acadia the exclusive right to carry out exploration and sampling on the land. Following the completion of a feasibility study, it will have the exclusive right to obtain a mineral production lease.

This first agreement is just the beginning. NTI says it will release other Inuit-owned subsurface lands for exploration and development on April 18. About 38,000 sq. km will become available. The land was withdrawn when the dispute was initiated but is now being released as a result of an agreement in principle between the federal government and the Inuit people. “I hope this demonstrates to other companies that we mean what we say,” says James Eetoolook, president of NTI. “We welcome and encourage mining companies to explore and develop our lands as long as they follow acceptable practices.” Acadia has been searching for gold and diamonds in the area since 1992. In addition to the 25,000-acre concession, the company holds title to another 26,000 acres. It is negotiating joint-venture agreements for parcels of the land with several major companies.

The region of Nunavut was established following the settlement of land claim disputes by the Inuit.