Diamond hunters make kimberlite find outside Rankin Inlet

Despite the Nunavut government’s attempts to promote prospecting among Nunavut residents, it is southern prospectors representing small junior mining companies who are cashing in on the territory’s exploration boom.

The latest example of that was announced this week, when Shear Minerals Ltd., the 51 per cent majority partner in a group doing geophysical research near Rankin Inlet, reported that it has found a promising kimberlite occurrence about 20 kilometres from the community.

It’s the company’s second such discovery, adding strength to their belief that they’ll eventually find a diamond-rich kimberlite pipe in the area.

Shear Minerals, together with Northern Empire Minerals Ltd. and BHP Billiton, hold the exploration rights to 1.1 million acres of land in the southern Kivalliq region in a venture they’re calling the Churchill Diamond Project.

“These discoveries clearly confirm our belief that Churchill will become one of Canada’s leading diamond projects,” said Northern Empire’s president and CEO, John Robins, in a company press release issued June 9.

The three partners are touting a section of the Churchill project located near Rankin, called the “Trust Me Property,” because of its proximity to seasonal shipping, all-year-round air transport and fuel supplies.

BHP, the mining industry giant that developed Ekati, Canada’s first diamond mine, bought its way into the project by paying $3 million for a 14 per cent share previously held by the Hunter Exploration Group.

As part of the deal, BHP agreed not to launch a bid to take over Shear Minerals or Northern Empire for at least four years.

In January, the three firms agreed to spend $2.5 million exploring their property in the Kivalliq.