Canadian Orebodies to acquire 100-per cent ownership of Nunavut iron mine project
"We believe there is vast potential in the Belcher Islands"
Canadian Orebodies Inc. said Nov. 5 that it’s acquiring a 100 per cent ownership interest in the Haig Inlet Iron project on Nunavut’s Belcher Islands.
Canadian Orebodies’ property lies on 14,180 hectares — 2,680 hectares of Inuit-owned land — spanning Flaherty Island, roughly 22 kilometres south of the community of Sanikiluaq.
The company had entered into an agreement to acquire a 100 per cent interest over three years in the Haig Inlet property from its business partners. These included Nunavut Tunngavik Inc., which holds sub-surface title to the affected lands and would receive royalties from any mineral production.
“Our excellent drill results last year combined with advancements in our technical knowledge of the Haig Inlet deposit over the course of this year warranted the company to take action,” said Gordon McKinnon, Canadian Orebodies’ president and chief executive officer.
“We believe there is vast potential in the Belcher Islands and considered it prudent to cement our position by exercising the option and making the Haig Inlet Iron project wholly owned by Canadian Orebodies.”
Canadian Orebodies says there could be up to 230 million tonnes of iron ore within its Haig Inlet project.
The Toronto-based mining company conducted a drill program at the Haig Inlet site in 2011, which revealed iron ore samples at more than 35 per cent iron.
Canadian Orebodies said Nov. 5 that its results from this year’s exploration program are “encouraging.”
The company said its believes that the Haig Inlet project’s biggest advantage is its island location.
“The ability to ship via ocean freighter without using rail could be a major cost advantage on both the initial capital and operating expenses when compared to land locked projects,” stated its Nov. 5 news release.
Canadian Orebodies will make $250,000 advance royalty to NTI when its production lease starts or in 2017.