Vancouver — Permitting a new mine is an arduous process anywhere in North America, but nowhere more so than in Canada’s North, where regulatory authorities expect resource companies to strike the right balance between economic benefit and environmental protection.
In the eyes of the Nunavut Impact Review Board (NIRB),
NIRB turned down Miramar’s application last summer on the grounds that not enough information was provided as to how the mine might affect caribou herds, water quality, and fish habitat, among other things. The panel stated, however, that the mine “can, and perhaps should, be built” one day, and urged the company to file a more complete application addressing concerns raised in the initial review process.
Miramar carried out more studies and filed its updated application in mid-February of this year. NIRB subsequently received approval from the federal Minister of Indian and Northern Affairs (INAC) to review the updated application — a process now under way.
Once the review is completed, NIRB will make a recommendation to INAC as to whether the mine should proceed. Assuming a positive decision is made, Miramar would then have to schedule and hold hearings in order to obtain a water licence for the project, while continuing efforts to acquire various other permits.
The permitting risks are such that Miramar has included them in its “forward-looking statements.” The company says there is no certainty that NIRB and other panels and agencies will grant the necessary permits, and it also cautions that the regulatory authorities “may impose additional requirements that might increase costs, result in further delays, or render the project unfeasible.”
Miramar views the proposed Doris North mine as the first step of a long-term development strategy for the Hope Bay gold belt, which is one of the largest, prospective undeveloped greenstone belts in Canada.
Recent exploration efforts have outlined measured and indicated resources equivalent to 2.1 million contained ounces (average grade: 9.6 grams gold per tonne), plus 4.3 million oz. (average grade: 7 grams per tonne) in the inferred category.
These resources are found in a series of deposits, including Doris North, which is designed to produce 150,000 oz. gold annually for two years in the first phase of operations.
A feasibility study for the second-phase development is expected next year. It will focus on Doris Central and more accessible areas of the Boston and Madrid deposits. Production is estimated at 200,000 oz. annually.
The third phase will shift attention to the large Madrid deposit, and the remaining deeper portions of the Boston and Doris deposits. Assuming all goes as planned, the third phase of mining will result annual production of up to 400,000 oz. gold annually.
Miramar plans to spend $13 million exploring and advancing gold deposits in the Hope Bay belt this year. An additional $1.5 million will be spent permitting Doris North (and on community relations), while $2.7 million is earmarked for the second-phase feasibility program.
A 17-hole program totalling 4,500 metres is under way at Doris Central, which is 1.2 km south of Doris North. This program is designed to upgrade and expand resources, which at last report hosted 201,000 contained ounces (averaging 14.9 grams) in the indicated category, and 59,000 oz. (averaging 16 grams) in the inferred.
Highlights of recent infill drilling at Doris Central include:
– 10.8 metres grading 23.4 grams gold, including 4.4 metres of 54.4 grams;
– 15.1 metres of 10.6 grams, including 2.3 metres of 26.2 grams;
– 21.2 metres of 16.1 grams, including 11 metres of 21.2 grams;
– 15.8 metres of 14.9 grams, including 7.6 metres of 23.5 grams; and
– 17.6 metres of 10.5 grams, including 6 metres of 22.8 grams.
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