Exploration Companies Remain Cool To Nunavut

Exploration companies remain cool to Nunavut

CBC News

8th February 2007

Nunavut's mineral potential seems to have lost its lustre, with only 150 exploration permits issued in 2006.

Although that is only slightly fewer than the 160 issued in 2005, it is considerably less than the boom years of 2004 and 2005, when more than 1,000 were issued each year and people lined up for days to acquire them.

The permits give mining companies the exclusive right to explore for minerals on Crown-owned land.

Indian and Northern Affairs official Spencer Dewar said the low number of permits is no cause for concern.

"It would be natural to see a slowdown after a rush, as some of the groundwork has to be done just to see what is out there," Dewar told CBC News.

"I think, if you see some positive results start to come back from some of the exploration camps, I think you could see another rush in the future."

The new permits are fairly evenly divided across Nunavut, with slightly more interest in the Baffin Island area, Dewar said.

The permits issued in 2006 cover about six million acres.