BHP agrees to sell Boston gold project to Cambiex

DWANE WILKIN
Nunatsiaq News

IQALUIT — Mining giant BHP Diamonds Inc. has agreed to sell its stake in three gold exploration projects in the Kitikmeot region to Cambiex Exploration Inc. of Montreal and Denver, Colorado for US $23 million.

The agreement between Cambiex and BHP in includes the Boston gold property and two smaller deposits, Madrid and Doris Lake, located about 110 kilometres southeast of Cambridge Bay.

“I think there is potential for resource development that can be beneficial to all the stakeholders, if there’s a willingness on everyone’s part to work together to make it occur,” David Fennell, chief executive officer at Cambiex, said.

The company expects to resume exploration programs at the so-called Hope Bay properties once it has completed its due diligence, which Fennell said would take about 45 days.

“It’s our intention to continue to do exploration and to continue the programs that have been undertaken to this point,” Fennell said.

BHP suspended work at its Boston gold mine project near Umingmaktok last summer, and has been divesting itself of gold properties worldwide.

The Australian-owned company opened Canada’s first diamond mine last fall.

Fennel said Cambiex, which is also exploring for gold in northern Quebec and French Guyana, eventually aims to carry out a feasibility study on the construction of a mine in Nunavut.

Fennel said the high cost of transportation would always be a factor in considering any future development, but noted that the BHP properties are close enough to the Arctic Ocean to foresee the construction of a port.

“There are several sites which have been studied for port location,” Fennell said. “At the northern end of the project, it’s actually extremely close. The Doris deposit’s only seven kilometres from tide water.”