Infrastructure Part I

Infrastructure Part I - Deep water Port

A couple of new articles/presentations

--> March 25th, 2016 - approval

--> April 5th Symposium PDF

Update January 25th, 2016

A new article -- iqaluit-port-moving-forward confirms the Liberal governments commitment to it's share of the funding.

Excerpts:

"Now Jim Stevens, assistant deputy minister for Nunavut's department of Economic Development and Transportation, says federal funding for the project is in place and it's going to move forward."

"The next step will be for MLAs to approve Nunavut's $21.2 million contribution to the project. "

"If all goes according to plan, officials say the port could be open by 2020."
This is great news for Chidliak as one key part of the infrastructure for a mine.

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Update January 2016.

A recent article -- Eye on the arctic talks about a deep water port based in Iqaluit would also be able to support the Canadian Navy in the north in addition to the commercial and civil tasks that it can handle.

Excerpt:

"Byers also said he’d like the Liberals to review another Conservative promise to build a deep water port for the Canadian Coast Guard and the Royal Canadian Navy in Nanisivik, a shuttered lead-zinc mine on Baffin Island in Nunavut.

“I think there is a real case to be made for actually locating that port at Iqaluit, the capital of Nunavut, where 8,000 people live, where the port could actually serve an important civilian function in addition to supporting the navy,” Byers said."
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Update November 2015.

This online article just came out talking about the new liberal government and the Nunavut Member of Parliament. --> Liberals and the North

Of very important to note is the reference to the a new port in Iqaluit:

Excerpt:

"But two Nunavut projects — promised by the Conservatives — are likely to go ahead. One is a deep-sea port at Iqaluit, to be financed with $63.7 million from Ottawa and $22.1 million from the Government of Nunavut. The other is a $40-million small-craft harbor at Pond Inlet.

Tootoo and his Liberal party promised this past August they’ll move ahead on those two projects — and you can count on it. It’s inconceivable they would now go back on their word."

With the new government, it does look like the planned new port is going to go ahead. It will just be a question of when.

Chidliak will have it's first PEA (preliminary economic assessment) out in the first half of 2016. Showing a robust project will be a win-win for Chidliak and Nunavut. A robust project that can show the community and the country the many benefits it will create can only strengthen the position to construct a deep water port in Iqaluit. Constructing a deep water port in Iqaluit only strengthens the robustness of the Chidliak project. That is what is called synergies at it's base level.

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This past week a couple of infrastructure related items came into the news front that effects Peregrine Diamonds.

The first one is talk of an all season road out of yellowknife up to the Lac De Gras district.

Here is the article -- Lac De Gras Road

It is significant (if it ever happens), in that it helps the economics of DO27, especially if they bring up cheaper HYDRO power to the district. They even have a Wind turbine up at Diavik (Presentation - Diavik that could be linked into the electrical grid as well. That would be a benefit south as well as north. It may bring the economics of wind turbines more into play if there is a connection to a demand source for the electricity beyond a simple mine life.

How does this effect Chidliak? At some point, DO27 may be liquidiated or spun out to raise some cash for Chidliak development. Any positives on the economic front for DO27 will be most welcome for Chidliak. Exploration costs to the lac de gras region will be cheaper as well. That could lead to further exploration in the region by Peregrine Diamonds...or in this case, Peregrine Exploration (subsidary to Peregrine Diamonds).

Now onto the second item that came out and significantly more important for Chidliak.

The federal government of Canada has approved funding for a deep water port at Iqaluit.

Peregrine Diamonds liked the idea so much, they issued a news release on it.
Here is a link -- Iqaluit Port News

Excerpt:
"The estimated budget for the project is $84.9 million with the federal government funding up to $63.7 million and the Government of Nunavut the remainder. The new facility will significantly reduce the time required to offload cargo,"

 "A modern deep water port would dramatically improve the efficiency of and lower the cost of shipping and supply."

In 2014, at the Nunavut Mining Symposium, Peregrine Diamonds had a presentation specifically on infrastructure. -- Infrastructure: The key to realizing mineral wealth

Excerpt:

Page 24 lists the 4 key infrastructure requirements:

1 - Port
2 - Power
3 - Road
4 - People

Page 25 specifically talks about a port and some of the quotes on that page:

"The economics of an future mine would be improved by a port."

This port will have significant impacts, not only on CH-6/CH-7 mine development..but also on the many other dozens of kimberlites (found and not found yet) that will benefit from lower capital and operating costs and extend the mine life.

It looks like the federal government has commissioned an engineering study to start in the fall of 2015. Considering there have been 5 studies on the port in the last 40 years...they will already have a lot of data at hand.

There has been no timeline on port construction and the federal election will be announced in very short order. This port is a need for Iqaluit, a want for Chidliak and a political issue for the federal government. Hopefully the elected government continues with this port development and sees not only the need for Iqaluit itself...but the potential for a diamond mine and revenue/employment/taxes for 2 or 3 decades.

Power and Road are the next 2 major hurdles for Chidliak.