The Izok Corridor project includes the Izok and High Lake deposits located in the Slave Geological Province in Nunavut, northern Canada. Izok is a large deposit with a Mineral Resource of 15 million tonnes at 13% zinc and 2.3% copper. The High Lake deposit, located north of Izok, has a Mineral Resource of 14 million tonnes at 3.8% zinc and 2.5% copper. MMG also holds other base metal deposits in the region and exploration tenements totalling 5,000 square kilometres.
During 2013, the evaluations of the Izok and High Lake base metal deposits continued. The geological resource models for Izok and High Lake were updated and metallurgical testing was completed during the first half of 2013. A number of value engineering opportunities were identified during the year, including the bulk modularisation of process plant and infrastructure. These evaluations are indicating potential capital savings compared with previous scenarios.
Along with engineering effort, the exploration program will continue to focus on identifying additional mineral resources in the Izok Corridor. New mineral resource targets have been identified along the project development corridor with an exploration program planned for 2014.
Total capital expenditure for the Izok Corridor project in 2013 totalled US$16.7 million, taking the capital expenditure to date on the Izok Corridor project to US$53.3 million.
The High Lake deposit, located north of Izok, has a classified Mineral Resource of 17.2 million tonnes at 3.4% zinc and 2.3% copper.
Landing on ice at the High Lake exploration camp
MMG also holds other base metal deposits in the region and exploration tenements totalling 5,000 square kilometres.
MMG submitted its Izok Corridor Project Proposal to the Nunavut Impact Review Board (NIRB) and key authorising agencies in September 2012.
MMG has since advised NIRB that it is undertaking a feasibility study to evaluate alternative engineering opportunities aimed at improving the project economics. These include maximising the modularisation of the process plant and infrastructure to reduce capital costs, and modifying the mine schedule and production plan to optimise cash flow, operating expenses and shipping costs.
MMG is continuing its feasibility study and exploration program in 2014 and expects to provide NIRB with an update in the fourth quarter 2014.
Should the project proceed to development, it is expected to provide a number of economic benefits to Nunavut including the creation of employment, business opportunities, skills development and the payment of taxes to the federal, territorial and Inuit governments.