Diamond firm scrambles to fix Kahuna permit application

These are diamonds taken from a kimberlite bulk sample from Dunnedin’s Kahuna project in 2015. The bulk sample yielded a total of 526 diamonds, 96 of which were above the commercial size of 0.85 millimetres. (IMAGE COURTESY OF DUNNEDIN)

Dunnedin Ventures Inc., the mining company heading the Kahuna diamond project in Nunavut, is scrambling to make contact with local communities after the territory’s regulatory body raised concerns about their plans.

On its proposed Kahuna Diamond Project, located about 54 kilometres northeast of Rankin Inlet and 35 km southwest of Chesterfield Inlet, Dunnedin planned to conduct year-round diamond exploration from March 2016 to March 2018.

But following an assessment, the Nunavut Impact Review Board recommended April 4 that the diamond exploration project be revised or scrapped due to local social and environmental concerns.

Government agencies and Inuit groups both said the project could hurt wildlife habitat and potential archeological sites in the region.

Opponents also noted that the company hadn’t hosted any community events to share details of the project with Nunavummiut.

Just a week after the NIRB’s screening decision, representatives from Dunnedin are in the Kivalliq, hosting community consultations in both Rankin Inlet and Chesterfield Inlet April 11 to April 15.

In a April 11 news release, Dunnedin CEO Chris Taylor clarified the company’s proposal. He said Dunnedin submitted a multi-year exploration permit application almost two years before it was required to give the company time to work with regulatory guidelines.

Taylor explained that the company’s current exploration permit remains in place until December 2017, but that Dunnedin also applied for a multi-year permit in December 2015.

So the proposed work, including diamond drilling, bulk sampling and the daily transport of fuel and equipment from Rankin Inlet, relates to that new permit.

“Changes have recently been made to Nunavut’s mineral exploration regulations, and we decided to be proactive as it will take time for companies, government and local interests to adapt,” Taylor said in the release.

“I would like to apologize on behalf of the company for not having yet consulted with all community members at the time of our application’s submission.

“We look forward to building meaningful relationships with both communities, and to integrating local knowledge into our application to ensure an effective and responsible program.”

Following its meetings in both Kivalliq communities, Dunnedin plans to update its application with the input it receives.

It’s the federal government which will make the final call; the minister of Indigenous and Northern Affairs has 150 days to make a decision on the project.

The high-grade diamond project was discovered in 2001, though Dunnedin didn’t acquire 100 per cent interest in the project until 2014.

The property includes three main kimberlite dykes: the Kahuna, PST and Notch, the latter producing high-grade samples from a 2015 drilling program.

The now defunct Shear Minerals Ltd., along with Stornoway Diamond Corp., explored the area until about 10 years ago.

Responding to concerns about an abandoned exploration camp in the region, Dunnedin said the former camp was abandoned by Shear and is not located on Dunnedin’s mineral claims.