Nunavik, Oceanic agree on Aupaluk iron mine
"We are pleased to be associated with the project"
Makivik Corp., Aupaluk’s landholding corporation and the Vancouver-based Oceanic Iron Ore Corp. announced today that they have agreed to the terms and conditions on which Oceanic will continue to develop its Hopes Advance Bay project, and “set a basis” for a later impact benefits agreement.
“We are pleased to be associated with the project in conformity with our Partnership Agreement on Economic and Community Development in Nunavik [the Sanarrutik Agreement] whereby Inuit of Nunavik play a bigger role at the onset of mining activities whenever undertaken in our territory,” said Makivik president Pita Aatami.
According to the “letter of intent,” Oceanic agrees to respect the environment, Inuit rights, interests and traditional land-use practices, said an Aug. 4 news release.
“In order to continue to foster open communications between the parties,” the news release said that a transitional committee will be created.
This committee will meet four times a year.
“Oceanic has made it a priority from the outset to ensure open communication and involvement with the local Inuit community and the finalization of this LOI further strengthens our working relationship with the Inuit,” said Steven Dean, chairman and chief executive officer of Oceanic.
Oceanic’s wants to pinpoint a billion tonnes of iron ore with a grade between 30 and 35 per cent by the end of 2011 — although past exploration shows there could be as much as 2.6 billion tonnes of iron ore on Oceanic’s three properties along the Ungava Bay coast.
The iron deposits range from the Roberts Lake area north of Kangirsuk to the Morgan Lake area, about 50 kilometres from both villages, to Hopes Advance Bay in the south, which lies only 10 km from Aupaluk.
Oceanic plans to mine Hopes Advance first.
This summer Oceanic is sinking more that $12 million into drilling and other exploration activities to get a better idea of the size of the iron deposits.
Oceanic is looking into the feasibility of a mine and a port, and it’s fast-tracked a preliminary economic assessment on the complex — due in October — to determine whether the mine would be economically feasible.