Haig Inlet site could hold 230 million tonnes of iron ore

Orebodies’ property lies on 14,180 hectares – 2,680 hectares of Inuit-owned land – spanning Flaherty Island, roughly 22 kilometres south of Sanikiluaq. (IMAGE COURTESY OF CANADIAN OREBODIES)

Canadian Orebodies Inc. says its early estimates show there could be up to 230 million tonnes of iron ore within its Haig Inlet project near Sanikiluaq, on Nunavut’s Belcher Islands.

The Toronto-based mining company conducted a drill program at the Haig Inlet site in 2011, revealing iron ore samples at more than 35 per cent iron, according to a Feb. 6 company news release.

“We are extremely excited about this initial resource estimate for Haig Inlet, which we believe represents a significant first step toward establishing the Belcher Islands as a new iron ore district in Canada,” said Gordon McKinnon, president and CEO of Canadian Orebodies.

“The 2011 drill campaign provided us with an excellent base to build upon as we look forward to the 2012 field season.”

In the summer of 2011, Canadian Orebodies drilled 9,119 metres among 64 holes on the Haig Inlet site.

Orebodies’ property lies on 14,180 hectares — 2,680 hectares of Inuit-owned land — spanning Flaherty Island, roughly 22 kilometres south of Sanikiluaq.

All of its 64 drill sites focused on the hematite rich parts of what’s known as the Kipalu Iron Formation, following up on the work of a 1950s drilling program by Belcher Mining Corporation Ltd.

That project employed about 20 Inuit workers until an epidemic of whooping cough hit the islands in 1956, decimating the local population.

But Canadian Orebodies said the Haig Inlet project now has great potential due to its location along tidewater in Hudson Bay, which opens up the possibility for direct ocean shipping 250 days of the year to global markets.

Orebodies’ business partners include Nunavut Tunngavik Inc., which holds sub-surface title to the affected lands and would receive royalties from any mineral production.

Orebodies entered into an agreement to acquire a 100 per cent interest over three years in the Haig Inlet property and will pay a $250,000 advance royalty to NTI when the production lease starts or in 2017, the sixth year anniversary of their deal.