SNC-Lavalin lands Nunavik nickel deal

Inside Puvirnituq’s new air terminal the qamutik theme will play out on the wooden “flying qamutik” ceiling of the new building.

Canadian Royalties Inc.— now owed by China’s Jilin Jien Nickel Industry Co.— has signed a letter of intent with Quebec’s SNC-Lavalin Inc. for engineering, procurement and construction management services at its Nunavik nickel project, the company announced June 25.

But this deal is just another sign that activity Nunavik’s second nickel mine, located nearby Xstrata’s Raglan mine, is starting back up after a two-year shutdown.

A $17.5-million exploration program, including extensive diamond drilling, will also take place this summer.

Contractors, equipment and support personnel have already arrived at two camps for what Canadian Royalties’ new minority owner, Goldbrook Ventures Inc., called “an aggressive exploration and drilling program during the summer season.”

This program will follow up on the results of geological, geophysical and remote-sensing surveys completed over the previous years, Goldbrook says.

Jien Canada Mining Ltd. acquired the Nunavik Nickel project from Canadian Royalties Inc. in November 2009, when Chinese interests were taking advantage of low metal prices by going bargain hunting for financially-troubled Western mining assets.

The plans of the original owners of Canadian Royalties to develop the Nunavik Nickel mine fell apart in 2008, a casualty of their legal disputes with a former partner, the decline in metal prices, logistical problems and bad economic times.

Jilin Jien now owns 75 per cent of the shares of the company and 25 per cent of the shares are owned by Vancouver-based Goldbrook.

Jien Canada said an announcement about the future development and operating plans for the mine will follow later this year.