Mineral Exploration is the official publication of the Association of Mineral Exploration British Columbia.
Issue link: http://digital.canadawide.com/i/264766
Photograph : Kivalliq Energy Corporation s P r i n g 2 0 1 4 37 N unavut and Saskatchewan have more in common t h a n e x c e p t i o n a l a n d diverse mineral potential. They are both attracting respectable levels of exploration spending and min- ing investment despite bleak capital markets – a remarkable feat for jurisdic- tions that once suffered from negative investor sentiment. Saskatchewan was shunned after it nationalized potash mines and created a Crown corporation to govern all mining during the 1970s. Nunavut's initial regulatory regime was criticized for lacking clarity and certainty. So what changed, and why? In Saskatchewan, industry and gov- ernment are less polarized today and have a more balanced understanding of their respective roles in resource development. But as the province's former finance min- ister Janice MacKinnon cautioned in a recent paper, parties of all stripes in the province still view resources (notably stra- tegic resources such as potash and uranium) as "belonging to the people" and want development to generate economic and social benefits. Nunavut has similar views and is negotiating devolution from Ottawa to gain control of its resource wealth. Companies mindful of these senti- ments helped Saskatchewan establish a private-sector resource economy and are doing the same in Nunavut. Nunavut's only operating mine, the Meadowbank gold mine built by Agnico Eagle Mines, helped boost investor confidence and was a catalyst for policy reforms. "We based the timing of our entry [in 2008] on a positive shift in policy as the moratorium on uranium explora- tion ended," says Jim Paterson, CEO of Kivalliq Energy Corporation. "We con- sider Nunavut one of the best jurisdictions in Canada and around the world. It's also one of the most active jurisdictions in the world with many projects and players." Jeff Ward, president of Vancouver- based K ivalliq, notes that Nunavut accounted for 10 per cent of all explo- ration spending in Canada in 2012. Reports show $422.5 million was spent that year, with an estimated $249 million spent in 2013. Nu nav ut's st rong performance reflects a resurgence of uranium explo- ration and mine development focused on the K ivalliq region near Baker Lake, which hosts deposits similar to those found in the Athabasca Basin of Saskatchewan. The most advanced is Kiggavik, a proposed mine project oper- ated by Areva Resources Canada (a unit of Areva of France). Cameco is exploring for similar deposits in the region. On the junior scene, Kivalliq Energy was the first company to sign an agree- ment to explore for uranium on Inuit- owned lands in Nunavut. Its flagship Angilak project is considered Canada's highest-grade uranium resource outside of Saskatchewan's Athabasca Basin. The inferred resource is 2.8 million tonnes grading 0.69 per cent U 3 O 8 , totalling 43.3 million pounds U 3 O 8 . The com- pany's discovery costs to date are $1.40 per pound, which Paterson says "beats operators in the Athabasca Basin." Nunavut: The next Saskatchewan? Thanks To unrivalled uranium deposiTs and similar governmenT policies, nunavuT is poised for saskaTchewan-sTyle success By ViVian Danielson Summer at Kivalliq Energy Corporation's Nutaaq camp at the Angilak property. p36-39_Nunavut.indd 37 14-02-14 3:06 PM