Bordering the Arctic, the Northwest Territories is the third largest Canadian territory but additionally it is some of the sparsely-populated. With huge stretches of undeveloped wilderness and a bone-chillingly chilly local weather, it is one of many least hospitable areas within the nation for human habitation. On the identical time, it is residence to a few of Canada’s most stunning and distinctive sights, from the beautiful Northern Lights to the smoldering hills of Franklin Bay.
Past these traits, the Northwest Territories is greatest identified for its diamond mines, and for the reason that starting of manufacturing within the late 90s, it has established Canada because the third-largest international producer of the luxurious gem.
The mineral wealth of the Northwest Territories goes past diamonds.
Huge and underexplored, the area has unimaginable mining potential, with discoveries that embody gold, lead, copper, silver, tungsten and iron ore. Additionally it is residence to at the very least 22 of the Canadian authorities’s 31 essential minerals. Lastly, the Northwest Territories accommodates at the very least 15 zinc-lead deposits.
Along with authorities mining initiatives, the untapped mineral wealth of the Northwest Territories makes it an extremely priceless goal for mining exploration, discovery and funding — supplied one first understands the area itself.
Huge mining historical past
Lengthy earlier than Europeans ever set foot within the area, the Indigenous inhabitants of the Northwest Territories mined copper alongside the Arctic coast, significantly in and across the Kogloktok River (identified by colonists because the Coppermine River). They used the bottom metallic in all the things from instruments to commerce items to weaponry. A number of people and organizations have tried to find these historic copper deposits through the years to no avail.
That apart, the area has gone largely unnoticed for a lot of Canada’s historical past. Even the Klondike Gold Rush within the late 1800s did little to ignite the curiosity of mining firms and buyers. It wasn’t till the Geological Survey of Canada mapped the Nice Slave Lake and Nice Bear Lake in 1900 that the area’s mining trade actually started to take maintain.
When Gilbert LaBine found radium and silver at Nice Bear Lake in 1930, the Northwest Territories lastly skilled its first mineral rush, resulting in the event of the territory’s first producing mines. By 1936, a booming gold market noticed a number of hundred claims staked round Yellowknife Bay. The next three years noticed two main gold mines go into manufacturing together with a number of smaller mines.
Mining exercise noticed a good higher surge after World Struggle 2, because the federal authorities invested vital capital into modernizing communities and infrastructure within the territory.
One main improvement throughout this era concerned the town of Yellowknife. Initially, a small group, the Big Mine and Discovery Mine collectively contributed to the delivery of what would finally grow to be the provincial capital. Exploration within the Fifties and Sixties continued to disclose extra of the area’s mineral wealth.
Pine Level was arguably essentially the most vital of those, a significant zinc-lead deposit which was single-handedly accountable for the event of a railroad to Nice Slave Lake, the place a mine operated from 1965 to 1988, producing a number of the traditionally cleanest sphalerite and galena concentrates. Osisko Metals (CVE:OM) acquired the mine in 2017 for redevelopment.
Different vital tasks throughout this timeframe included silver manufacturing within the Nice Bear Lake area, tungsten manufacturing at Cantung Mine and zinc-lead manufacturing from the Polaris and Nanisivik Mines. With the Nineteen Seventies got here renewed deal with environmental laws, stricter land declare laws and an emphasis on cooperation with Indigenous peoples within the area. For the following twenty years, the mining sector within the area was comparatively quiet — not failing by any means, but additionally not experiencing any main development.
Then in 1991, Chuck Fipke found diamonds round Lac de Gras, kicking off a large diamond rush which noticed a number of prospectors and mining firms stake giant tracts of land all through the territory. The 2 largest mines that emerged from this rush, Ekati and Diavik, stay operational to at the present time. Growth has continued at a wholesome tempo ever since, regardless of the myriad challenges posed by the area.
Mining infrastructure
The Northwest Territories is residence to three diamond mines — Ekati, Diavik and Gahcho Kué.
Owned and operated by the Arctic Canadian Diamond Firm alongside mining entrepreneur Stewart Blusson, Ekati is Canada’s first floor and underground mine. It is famend for producing extremely high-quality diamonds, together with a 186-carat stone recovered and offered in 2016. To this point, the mine has cumulatively produced over 67.8 million carats and is anticipated to proceed producing till 2028.
The Diavik diamond mine, owned and operated by Rio Tinto (ASX:RIO), consists of 4 diamond-bearing pipes mined via a mixture of open-pit and underground strategies. What’s most notable about Diavik is that via a mixture of engineering innovation and partnership with Indigenous individuals, the mine operates with minimal affect on native land, water, and wildlife. Rio Tinto even has a plan for the mine’s eventual closure: eradicating the buildings and infrastructure with no hint, reclaiming the embankments and permitting water to circulation again into the open pit.
Starting manufacturing in 2016, Gahcho Kué is without doubt one of the largest diamond mines of the twenty first century. Situated at a distant mine web site simply south of the Arctic Circle, the mine is accessible solely by air for many of the yr and makes use of an ice highway to resupply throughout winter. A three way partnership between De Beers Group and Mountain Province Diamonds (TSE:MPVD), the mine has obtained quite a few awards recognizing its innovation and sustainability.
How the federal government galvanizes mining and exploration
Having been recognized by the Nationwide Aboriginal Financial Growth Board as a essential sector for Canada’s northern territories, mining within the Northwest Territories now enjoys a wholesome stage of presidency help. Over the previous a number of years, the private and non-private sectors have collaborated within the creation of a number of incentives and packages. Collectively, these are meant to encourage the event of socially and environmentally accountable operations within the territory.
The Northwest Territories Mining Incentive Program is meant to cut back the chance of grassroots mineral exploration. Managed and facilitated by the Northwest Territories Geological Survey, this system is a component of a bigger initiative to develop the territory’s mining trade. Prospectors can apply for as much as $25,000 in funding, whereas mineral exploration firms can apply for as much as $240,000.
The federal government of the Northwest Territories additionally maintains a work credit score program which awards as much as 125 % in work credit for eligible exploration carried out throughout a calendar yr. Eligible work have to be reported to and authorized by the Mining Recorder. By this system, exploration firms and prospectors — significantly these impacted by COVID-19 — will have the ability to extra simply meet their work necessities and stay operational.
The territorial authorities has additionally issued a framework for socio-economic agreements between mining firms and residents of the territory. These agreements present precedence alternatives to native communities whereas additionally guaranteeing that mining firms hold one of the best pursuits of these communities at coronary heart. Additionally they define how the territorial authorities will help the corporate in exploration and improvement.
Potential hub for zinc manufacturing
The distinctive geography and numerous mineralogy of the Northwest Territories make it extremely promising for exploration and discovery, significantly for zinc. Mining firms and buyers are conscious of this — there are at present a number of zinc exploration tasks at varied phases of completion all through the area.
Owned by NorZinc Restricted (TSE:NZC), the Prairie Creek Mine accommodates an estimated 6.4 million tons of whole inferred sources. Located in conventional Dene territory on the location of a failed silver mine, Prairie Creek is anticipated to supply roughly 261 million kilos of zinc per yr. Since 1991, the corporate has accomplished over 78,000 meters of floor diamond drilling and underground exploration.
As talked about earlier, the Pine Level Mine is operated by Osisko Metals via Pine Level Mining Restricted, a wholly-owned subsidiary. Located on the southern shore of Nice Slave Lake, the venture’s sources consist primarily of carbonate-hosted zinc-lead. A 2022 preliminary financial evaluation replace confirmed that, regardless of price escalations, the mine stays promising from an funding standpoint.
Located within the world-renowned Howard’s Cross zinc-lead district on the border between the NWT and the Yukon, Selwyn Chihong Mining’s Selwyn Challenge represents one of many largest undeveloped zinc-lead deposits on the earth. Building was slated to start this yr. Nevertheless, although the corporate continues to be listed as energetic, there was little information on the mine’s standing.
Spanning 7,300 hectares, Slave Lake Zinc’s (CNSX:SLZ) O’Connor Lake venture, which was initially found in 1948, hosts not solely zinc and lead deposits, but additionally gold, silver and copper, all inside a mineralized structural hall. The venture is ideally-situated, positioned simply 148 kilometers east of Pine Level and simply 60 kilometers south of the Taltson hydropower plant. Historic knowledge additional means that the venture is extremely potential for a number of essential minerals.
Different firms with claims to Zinc deposits within the area embody SSR Mining (TSE:SSRM), Panarc Assets, Silver Bear Mines, Teck Assets (TSE:TECK.B) and Blind Creek Assets (CVE:BAG).
Takeaway
Mining within the Northwest Territories could have had a sluggish begin in comparison with different areas in Canada. Nevertheless, with the event of superior discovery, exploration and mining strategies, the area has begun to indicate nice promise from an funding perspective. Its wealthy mineralization and numerous geography greater than make up for its challenges.
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