Northern Ontario diamond mine a possibility

Page 10

A northern First Nation could have Ontario's first diamond mine in its backyard in two years or less.

That's according to the community's designated spokesman on the issue, consultant Paul Wilkinson.

De Beers Canada is in the advanced exploration stage at its Victor Project 90 kilometres west of Attawapiskat in the James Bay lowlands, where diamond-bearing kimberlite pipe was found last summer.

The firm recently completed a desktop study in conjunction with engineering consultants Bechtel Canada and SRK, to find out if they have a good prospect. Another engineering firm, AMEC, is evaluating environmental considerations.

Criteria for building a mine include having enough diamonds that can be extracted in a manner that will recover the costs of building a mine and operate it at a profit.

The study "did not show they could build and operate a mine profitably," according to Wilkinson, but it recommended a pre-feasibility study be done to see if technical problems can be overcome and if costs can be reduced. This will take about a year.

At this stage, both the First Nation and De Beers are optimistic.

Company executives from Canada and South Africa met with Attawapiskat's chief and council and the community Nov. 26 and 27 to present the results of the study. About two dozen band members are employed on the Victor project, where there has been an exploration camp for two years.

Key concerns of the community, set out in the memorandum of understanding agreement signed between the band and the company in 1999, are protection of the environment and economic opportunities for the First Nation, Wilkinson said.

"De Beers has made a commitment that if it goes ahead to build a mine, it will negotiate what is called an impact and benefit agreement with the Attawapiskat First Nation."

He added, "We are at a very advanced stage of our planning to define the kinds of benefits that Attawapiskat will try and negotiate, and we are also at an advanced stage of discussions with De Beers about the Attawapiskat negotiating team and . . . the timetable for negotiations. Because the impact and benefit agreement has to be signed before the environmental assessment of the process is complete."

That agreement has to be filed as part of the environmental impact study "to show that all of the concerns, environmental, employment, contracting, training . . . have been solved to the satisfaction of everyone concerned."

In addition, Wilkinson said, "De Beers has also made a commitment already that if it proceeds with the mine, it will build a training centre in Attawapiskat so that people can get training without having to leave their homes, their families and their communities for long periods."

The study found that an open pit mine is the best option for the area if De Beers decides to go ahead, because it would be too difficult and costly to keep an underground mine dry.

Ground water disposal is one of the biggest challenges to operating on the muskeg terrain; therefore, more geotechnical work and hydrology studies are required. That will be done this winter, along with drilling and possibly further geological work. Drilling is done in winter when there is a winter road from Attawapiskat and an ice runway providing access to the camp. The First Nation has no year-round road access, so transportation costs are high.

Bulk sample drilling removed about 10,000 tonnes of rock for testing last winter, most of which was processed at the site. Both De Beers and Wilkinson say diamond mining does not involve the use of harmful chemicals in processing.

Following the pre-feasibility study, if De Beers proceeds, a number of stages remain before diamond extraction for profit can begin. Some timelines overlap, such as the 12 to 18 months needed for both a feasibility study and to obtain permits. That is followed by 12 months for site preparation and another 18 to 24 months for construction.