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Cumberland Resources Ltd. Receives Project Certificate for Meadowbank Gold Mine in Nunavut

by admin ~ January 10th, 2007

Meadowbank gold mine gets approval from Nunavut Impact Review Board regarding development proposals for upper reaches of the Quioch River system 70 km north of Baker Lake. Proposal includes development of a permanent four season road from Baker Lake to mine site, open pit vaults, onsite mill and processing plant, airstrip, and storage facilities in Baker lake for mining materials and chemicals. Cumberland Resources Ltd., a junior mining company located in Vancouver, submitted its feasibility study for the project in 2003, and has been delayed by several years in meeting its targets for permitting, procurement, pre-stripping, and processing of ore. Project proposal includes employment targets that reflect demographics of work force in Nunavut (with up to 70 local jobs at the outset), mining of subsurface Inuit Owned Lands requiring royalties to Nunavut Tunngavik Inc. (the Inuit land claims organization in Nunavut), and a scholarship fund of $14,000/year to the Kivalliq Inuit Association. With an estimated cost of $350 million, Cumberland Resources Ltd. is the sole owner of the mine and has attempted to fund the project with a combination of cash reserves and debt financing. According to its press release, Cumberland “has secured at least Cdn$254 million for its gold loan facility and has raised approximately Cdn$100 million in equity financing to be used for development of Meadowbank.” The CBC reports on concerns by Nunavut’s Department of Environment over the lack of a spill-plan for three barges of Cumberland diesel fuel sitting in Baker Lake ice, but says it is working with the community on the issue. The projected life of the mine is 8-10 years, with construction to begin on the all-weather road this winter.


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